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     | Sunday, October 22, 2000 - 10:28 pm  my husband and I need a car bad, and my beacon score is only a 580, while his is a 560. Average credit for some people, bad for others. Ok, my question is, does anyone know of any places we could go to get special financing? I'm tired of going to places and getting declined and ending up with a dozen inquiries on my report.
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| | Monday, October 23, 2000 - 01:56 am You can probably get a loan from Arcadia which lent to me, one year out of ch 7 and before I worked on my credit scores--very close to yours. You need to do some homework before you make application as every time they run a check your score is dinged. Ask for the "special financing" manager and explain your situation. do not deal with the regular salesperson. You need to be aware that your interest rate will be higher but you should be able to get financing. Look in the paper for ads talking about financing for almost everyone. Ford, in some states, offers a special program for low credit. Chrysler is tough. Most foreign cars are tough to get also. GM usually steers you into the used marketplace. good luck
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| | Monday, October 23, 2000 - 06:46 am If you are willing to lease instead of buy, you might not need special financing. I was able to lease a new Taurus from Ford Motor Credit at their best rates less than six months after my Chapter 7 was discharged. What's more, I was able to do this with a minimum down payment -- and a $1,000 Ford rebate was applied to the down payment. What I'd suggest -- before settling for special financing -- is taking your credit report to the business manager of the local Ford dealer and talking to him or her about a Red Carpet Lease. Don't allow the dealer to pull a new credit report until the the business manager agrees the dealership can work with you. It worked for me, and from what I've heard from others in similar situations is Ford is the best for people with bad credit. Try it. I think Ford is offering rebates now.
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| | Monday, October 23, 2000 - 07:31 am You can probably get a loan from Arcadia which lent to me, one year out of ch 7 and before I worked on my credit scores--very close to yours. You need to do some homework before you make application as every time they run a check your score is dinged. Ask for the "special financing" manager and explain your situation. do not deal with the regular salesperson. You need to be aware that your interest rate will be higher but you should be able to get financing. Look in the paper for ads talking about financing for almost everyone. Ford, in some states, offers a special program for low credit. Chrysler is tough. Most foreign cars are tough to get also. GM usually steers you into the used marketplace. good luck Aren't all auto credit inquiries made within a 30-day period aggregated into a single inquiry, thereby limiting credit-score effects? Or am I thinking of mortgages? I have heard from people in the auto finance industry that car dealers love these "special financing" deals. It's not because of the higher interest rates, which in any effect benefit the finance companies. No, it turns out that at least some dealers actually boost the prices of cars sold through these programs, sometimes all the way up to full sticker. And note that higher-risk loans aren't any riskier from a dealer's standpoint. As far as I know, the lenders don't penalize dealers for defaulted loans. I guess the dealers just look upon these special financing deals as a nice extra revenue source. Dunno about anyone else, but it strikes me as really sleazy to charge higher prices to people who are going to be stuck with high interest rates. Regarding foreign cars, I have heard that Toyota's finance arm tends to be the most leinient when it comes to people with credit problems. Toyotas hold their resale value so well that the losses associated with repossessions tend to be manageable.
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| | Monday, October 23, 2000 - 02:49 pm Credit inquiries are supposed to be lumped together if done over a certain period. You'll have to do a search on the website to get the info. However, what is in theory supposed to occur may, in fact, not occur. This is due to the fact that many lenders put "unspecified purpose"behind their inquiry rather than an auto loan identifier. Bingo, scores lowered.
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| | Wednesday, October 25, 2000 - 03:58 pm I always wondered about something regarding car financing. When you have bad credit and have to go into a high risk pool does that automatically proclude you from buying new? I have always tried to save and buy old, ugly cars with what I could come up with in cash b/c of bad experiences with dealers and financing. What I do remember and what I have heard, is that they don't come right and tell you, but you end up with a used car because of the value of the new car once driven off the lot is substantially less than what is paid. My question is (from a curiosity standpoint only), with a huge down-payment can you get financing for a new car?
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| | Thursday, October 26, 2000 - 05:58 am Patricia, Read my message up above about Ford. I was about to lease a new Taurus with about $1,500 down just six months after my bankruptcy was discharged. Plus, I got the great lease deal Ford was advertising on TV at the time. (Believe it or not, I was a "qualified buyer.") Yes, I know it's a lease. But after paying Ford Motor Credit for three years, Ford will finance me to buy my leased car -- or to buy a new car. I was willing to lease for three years to build my credit with a major auto finance company. Lease vs. buy, new vs. used, it's a decision you have to make about what's best for you. I needed to rebuild my credit, so I was willing to lease with Ford as opposed to buying at a subprime APR. And I know a car loses a lot of value the minute you drive it off the lot, but I prefer to buy new. That way I know everything that has happened to the car - every scratch, every oil change, etc. The peace of mind is worth it to me. Shy Guy
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| | Thursday, October 26, 2000 - 09:50 am I appreciate your response Shy Guy but it does not answer my question. Can a large down payment overcome credit difficulties when buying a new car? (Not a used car and not a lease but a buying a new car.)
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| | Thursday, October 26, 2000 - 11:14 am Patricia, to answer your question requires a lot of additional information. How bad is bad? How much is large? How new is new? Now let me make some assumptions. First by new you mean never driven. You also mean not a year-end model (i.e. a 2001 model year now not a 2000 that is sitting on the showroom floor with zero miles on it.) I will assume also that you are looking for a car in the $20-$30K price range. You call a "substantial" down payment 20-25% of the sales price or $4000 to $7500 cash. Now for the hard part - credit? With what you give it is hard - extremely hard to properly answer. I will give you some likely scenarios. 1. Your credit is poor because of too high a DTI ratio. In this case you probably would not get financing without placing at least 75% cash into the deal and maybe require a co-signer as well. This reason simply means you are living beyond your means and you can't really afford more debt. 2. Your credit is poor because of too many 30s, 60s or 90s late. In this case you might get the loan (at a higher interest rate) as long as your DTI is good. You may be considered a procrastinator and good for the entire group of late fees etc. But you will definitely need to find a niche auto dealer. Many dealers place moral judgments on people's credit-worthiness and "know' their lender will not finance this person. It limits their business but they like the easy deals anyway. The "hungry" dealer aggressively views each customer as a sale and has lenders that work with all kinds of scores. 3. Your credit is poor because of loss of job or medical reasons. If you are back to work and your income is verifiable, you've worked at cleaning up lates; you will probably be able to find financing. Once again at a higher interest rate! 4. Your credit is poor because of a Bk. As long as you have been discharged then you are probably pretty good. Once again plan on paying an interest premium but you may get some of those rebates or lower interest rates if you have a low DTI and high income. In this case job, residence, location stability is very important in helping that interest rate. So you can see that unless more is known about your situation it is nearly impossible to answer your question. Also remember there are dealers that specialize in "hard to finance" or "poor credit" customers. Make sure you are realistic about what you can get. That Lincoln Navigator or Cranberry Corvette may not be right for you - nor may the $18K Saturn. If you are looking for companies that do "hard" money auto loans you could call GE Capital CACS (out of everywhere) or AmeriCredit out of Texas? They both give auto loans in the 12-18% interest rate categories and will finance "most" needs. But most important to remember, just about anyone can get financed for the right price (interest rates, down payments, co-signers, equity pledges etc) and almost anyone can get rejected and turned down no matter what your scores and credit! Just remember a member of the Federal Reserve (with excellent FICO) was rejected for a Toys-R-Us Credit Card - a banker how ironic? Hope this helps. Frank
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| | Thursday, October 26, 2000 - 03:01 pm Yes. That was very helpful. To give you a bit more of background, I do not have a high DTI and my scores are in the mid-600's as of 6 months ago due to late pays and charge-offs 5 years ago when my income was very low and I got into a car loan I couldn't afford. Those scores may be lower now due to a change in the way Discover is reporting the charge-off. I make low 6 figures with little debt except some student loans. I have current, clean credit cards now that have been solid trade lines for 3 years. I have a car which is paid for but is getting old and could die sometime in the next year and wanted to know something before I decided to buy a new car. I have a husband with excellent credit (mid-700's for scores) but would like to move away from relying on him for major purchases. So, from what you just told me Frank, I should try to find a dealership that has a problem credit department but don't have my heart set on driving anyway in anything that has never been owned by someone else?
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| | Thursday, October 26, 2000 - 03:04 pm Oh, Frank 2 more things: I have lived in the same residence for 3 years and have been at the same job for 6 months having left my previous position in the same industry after 2 years.
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| | Friday, October 27, 2000 - 01:55 am Patricia, have you tried challenging the negative entries on your cr? You could improve your scores by having those that cannot be verified be deleted. I have had many, many deletions and raised my scores from the 500 level to above 600, working to get to high 600s/700. I also would add that nothing helps get a car like income. they'll overlook anything with cash coming in.
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| | Friday, October 27, 2000 - 07:44 am Patricia, I listed my story to give you an example and hope. I was able to lease a new car only six months out of Chapter 7 with FICOs around 500. Five of my creditors are still reporting past due instead of included in BK. My income is very good, but definitely not six figures. My down payment was only around $1,500, and I got Ford's best financing rates. In other words, my situation was far worse than yours. OK, I had to lease. But if I could lease, I have to believe you can buy -- and probably get prime financing. Try Ford Motor Credit, which is the best auto financing company for people with bad credit. And remember, Ford also owns Mazda, Volvo and Jaguar. I know Ford Credit owns Mazda Credit. First, take Senator's advice about your credit reports. Your negatives are five years old -- and very likely to be removed if you dispute them. If you're too busy to do it yourself, you can hire one of the reputable credit-repair services -- such as Junum.com, Lexington or Bradley, Ross -- for $20-60 a month. They're pros, just scam artists. But you can do it yourself, and plenty of people on these and other boards can help. Good luck.
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| | Friday, October 27, 2000 - 11:12 am I don't know how they can be "pros" when they can't get the CRAs to pay for their mistakes.
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| | Friday, October 27, 2000 - 12:41 pm With a good letter to the CRA's, those old dings will come off. If not on the first letter, more than likely the second will do the trick.
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| | Friday, October 27, 2000 - 01:07 pm I hope you guys are all right about getting this old stuff off the reports. I think Christine is on to something. It seems a little strange that negligence of any kind by a company resulting in the smallest injury can result in huge payouts by juries and insurance companies, yet there is no big payouts from the CRAs. Lawyers tend to take a portion of the spoils and until there is some chance of them gaining large spoils from juries for CRA abuses, nothing will probably change.
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| | Saturday, October 28, 2000 - 11:04 pm Patricia, I completely agree that you should work on cleaning your credit but from what you say here I believe you should not be bad off at all for driving off with a new car - but I'm not a lender. The only thing I can see is the new job but if you still work in the same profession that can be all right. It is especially all right if you increased your salary in your job move. With your scores in the mid 600s and your husband's in the 700s you are about as good as it gets for a couple. You may try having your husband get the loan (if you are unsure about your mid 600) but here is another point to explore. There are 3 different scoring models (Emperica, Beacon and FICO.) Everyone can tell you (those that work in "merging" files) these three scores are almost always different. They can, and usually do, vary significantly (they vary within themselves daily as well.) You will usually hear mortgage brokers talk of a mid score (which is used in their industry.) The point is you probably have scores like this example: 605, 650, 670. There is a significant difference here and the 605 is a killer for an A (in say a mortgage - that elusive 620 you know,) but that 670 is a winner. For smaller loans many companies (especially auto dealers and some banks) use one report only. In my case my bank only uses Trans Union for small unsecured and auto loans. Can you guess which one of the 3 scores is my personal best. You got it - Trans Union. And when I need a new car guess where I am going. Guess why my bank is in fact MY bank? In your case simply find out your scores (all three.) Now that can be easier said than done but you can get an idea which score will be the best by looking at your 3 different reports. Then if you get the scores, start calling dealerships (if you wish to finance through the dealer) or your bank, credit union etc. Ask them which credit bureau they use - they'll tell you if you get the credit department. Then match that lender (dealer if you are going to finance through them) with your best score - that 670 winner score! Remember the dealer may pull the credit or the financial institution may pull it, but the dealer knows which one it is. In some cases they may pull multiple report - go to the next town. Also you may have to buy a Chevy instead of a Honda, unless you finance through you bank etc. Then you have a cash deal with the dealer and he has no business pulling your report - don't let him. But from what you said I truly feel you can drive off the lot with a new car if you do your homework first. Let me know how good your mileage is when you get it. Frank
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| | Sunday, October 29, 2000 - 01:26 am Frank, you're right about getting the various credit scores. I can see why the banks, CRAs and Fair Isaac really don't like that. When I brokered mortgages I always got all three Scores. I'd look for the programs with the Score(s) that worked. Unfortunately the CRAs shut off everybody who advertises providing Scores to consumers.
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| | Sunday, October 29, 2000 - 06:15 pm Here is something else you need to look out for when buying a car, especially if your black!http://news.excite.com/news/ap/001022/03/financing-discrimination
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| | Monday, October 30, 2000 - 04:00 am There is only one solution to a low credit score and that is a high credit score. Going to "more flexible" (sub-prime) lenders merely results in large costs. I'm sorry that the original person has a 580 and 560 score. What exactly is the problem with their credit profile that they score so low?
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| | Tuesday, October 31, 2000 - 10:16 am When you say my husband "are as good as it gets as a couple" does that mean his good credit balances out my mediocre credit or that he can get the credit for both of us b/c he has higher scores?
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