Cheap car loan

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
jcarte29
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Postby jcarte29 » Fri Apr 03, 2015 3:54 pm

CarefulBuilder14 wrote:A 740 is pretty easily obtainable with just credit cards for someone with a clean history. I've only had credit cards, and I'll have a 740 again pretty soon (as my accounts and inquiries age a bit more). An installment loan would certainly help you to get to 800 more quickly, but you don't need an 800. The best mortgage terms usually only require a 750 or 760, and you can certainly get there with only credit cards.


You're spot on...and on the flip side thats where we would see that in the car business and have concern. We would call that a "740 thin file." and it has everything to do with what you point out, of how easily attainable that is with the right mix of credit cards and perfect pay.
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daniel2304
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Postby daniel2304 » Fri Apr 03, 2015 7:38 pm

Unbelievable!!! Could you all believe that I just got into a car accident and my car now probably is total loss??
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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Apr 03, 2015 9:39 pm

jcarte29 wrote:You're spot on...and on the flip side thats where we would see that in the car business and have concern. We would call that a "740 thin file." and it has everything to do with what you point out, of how easily attainable that is with the right mix of credit cards and perfect pay.


I had a 759 before going for PRG, as an example. I still dislike the principle of needing a credit mix for the best FICOs. The ability to pay cash to purchase something outright - a car, a house, an education, etc. - just doesn't seem to make a person riskier when he or she does need to borrow later. I guess FICO has their statistics that say otherwise, though.

I can at least find consolation in the fact that I will be able to get a mortgage at a good rate (when I'm confident I'll be staying in an area for 7+ years).

daniel2304 wrote:Unbelievable!!! Could you all believe that I just got into a car accident and my car now probably is total loss??


Sorry to hear that. Glad you're okay, though.
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daniel2304
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Postby daniel2304 » Sat Apr 04, 2015 12:26 am

Yeah, I'm okay. The other driver is at fault. I'm just frustrated. Thanks for saying nice things!
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

jimmy.lgx
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Postby jimmy.lgx » Tue Apr 07, 2015 11:35 am

I had a really great experience with USAA as well. I can't remember but I'm pretty sure they offered me .99% as well.

JamesMS
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Postby JamesMS » Tue Apr 14, 2015 1:18 pm

Do you know anybody that currently banks at AACU? If so, their car loans come with very good interest rates, especially on used cars, compared to other banks around here.
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jcarte29
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Postby jcarte29 » Tue Apr 14, 2015 1:28 pm

CarefulBuilder14 wrote:I had a 759 before going for PRG, as an example. I still dislike the principle of needing a credit mix for the best FICOs. The ability to pay cash to purchase something outright - a car, a house, an education, etc. - just doesn't seem to make a person riskier when he or she does need to borrow later. I guess FICO has their statistics that say otherwise, though.

I can at least find consolation in the fact that I will be able to get a mortgage at a good rate (when I'm confident I'll be staying in an area for 7+ years).


May seem strange, but that's every bit of what I have learned in the car business. My cousin and I (who also sells cars) call it "pay to play." Same could be true with credit card gardening, right?
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

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CarefulBuilder14
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Postby CarefulBuilder14 » Tue Apr 14, 2015 8:09 pm

jcarte29 wrote:Same could be true with credit card gardening, right?


I'm not quite sure what you mean by this. What's the connection between gardening and having a credit mix?

I'm not bothered by missing out on a few little FICO points. Depending on where I end up (and how much house I buy) I can probably make a down payment large enough (at least 15%, maybe 35% in a low-cost area) to get the best rate.
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Postby flan » Tue Apr 14, 2015 8:54 pm

daniel2304 wrote:
I guess what you was trying to say is that although with a high credit score, I still need to pay a high rate of interest car loan to be able to get a cheaper one next time?


Not really. If you've got 740 scores, and five years of history, you can get a best rate loan from a commercial lender.

Don't believe anything any employee of a car dealership tells you; their job is to make money for the dealership, by taking it out of your pocket. One of the ways they do that is lying about financing.

Line up financing from your bank or CU before you step foot on a lot. Then, if you decide you're going to finance with the dealer, you can tell them to take a hike if the rate they offer you is not as good. Many car dealerships pad the interest rate they offer (bank says you qualify for 2.5, they tell you 4.5) and pocket most of the difference. Even if they only pad 0.25, that's $5 a thousand borrowed on a 4 year loan.

Frankly, the only reason to finance with a dealer is if your credit sucks (they have better contacts with lenders, and can find anyone a loan), or if there's promotional financing, or if there's an incentive contingent on a loan from the captive finance arm. (It's becoming pretty common for rebates to be contingent on such a loan, and many makes have incentives to the dealer for arranging such a loan. That money should be reflected in the sales price (pre tax!). In the case of the incentives, you need do do the math to see if it's worth going for, based on the rate you'd get elsewhere, and the rate you'd pay the captive financer. (and, of course, your ability to refinance the loan in two months...) If you have good to better than good credit, you will do just as well or better from a bank/CU, and you're their customer.

jcarte29
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Postby jcarte29 » Wed Apr 15, 2015 9:12 am

flan wrote:Don't believe anything any employee of a car dealership tells you; their job is to make money for the dealership, by taking it out of your pocket. One of the ways they do that is lying about financing.

Line up financing from your bank or CU before you step foot on a lot. Then, if you decide you're going to finance with the dealer, you can tell them to take a hike if the rate they offer you is not as good. Many car dealerships pad the interest rate they offer (bank says you qualify for 2.5, they tell you 4.5) and pocket most of the difference. Even if they only pad 0.25, that's $5 a thousand borrowed on a 4 year loan.

Frankly, the only reason to finance with a dealer is if your credit sucks (they have better contacts with lenders, and can find anyone a loan), or if there's promotional financing, or if there's an incentive contingent on a loan from the captive finance arm. (It's becoming pretty common for rebates to be contingent on such a loan, and many makes have incentives to the dealer for arranging such a loan. That money should be reflected in the sales price (pre tax!). In the case of the incentives, you need do do the math to see if it's worth going for, based on the rate you'd get elsewhere, and the rate you'd pay the captive financer. (and, of course, your ability to refinance the loan in two months...) If you have good to better than good credit, you will do just as well or better from a bank/CU, and you're their customer.


Thank you for trying to insult car dealers like me, and trying to make up for it in the last paragraph with secondary financing. Some of us aren't all bad, or lyers, or try to "stick it to yah." I've been in the car business 4 years and going, and I care about my integrity and honesty to a customer. My track record, which you have no idea about, but are more than welcome to look it up, backs me up on this.

I'm an open book to my customers, if they can get a better rate from their credit union, who am I to stop them from taking that? I send them in the vehicle they want to buy to that bank so they can bring back a check. But I don't get paid extra if they finance with my dealer's banks, and while my business manager does, he has the same values.

Granted, we don't work for free, I don't expect anyone to believe we do. But it's more than just making a buck. It's about earning your business in the future, and your familys, friends, so on and so forth.

Sorry, I'll step off my soap box now. Carry on.
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]



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