What is the car credit market like right now?

Discussion in 'The Okie Corral' started by silentpoet, Feb 18, 2010.

  1. silentpoet

    silentpoet

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    Thinking about getting back into sales and was curious what the car credit market is like right now. I know some areas are real tight on credit, but I have not checked on the automotive market lately.
     
  2. redbaron007

    redbaron007 Some Dude Lifetime Member

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    The market is very tight! Credit for autos is there, but qualifying for it is very tough. LTV is also very critical. The days of financing full price are few and far between. FICO scores have to be high, some 750 minimum.
     

  3. JohnBT

    JohnBT NRA Benefactor

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    I heard a radio ad today. Richmond Hyundai has money for 60 months at 0%. Now maybe it's different this year and you have to have a job to qualify, but maybe not.

    I'm a numbnut, I bought a 2010 Toyota Highlander Limited last month and paid cash. What the heck, the money was making nothing sitting in savings and checking. Well, $16.5 of it was from my '06 Avalon so it wasn't sitting long. She wrote me a check, so I don't know what rate she would have paid at the credit union or bank.

    I know, not what you wanted, but it's more fun than a plain old ttt.

    John
     
  4. silentpoet

    silentpoet

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    Thanks, I was afraid it was tight. I may have to try and get on at a tote the note lot. Or look at other markets.
     
  5. JohnBT

    JohnBT NRA Benefactor

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    750? Jeez. That's tough. Mine was down to like 765 the last time I checked years ago and they had marked me down for owing nothing, bouncing nothing, paying everything off every month and having money in the bank. That's okay, it's been nice not having a mortgage these past 12 years or whatever it's been. 750 = we don't want to sell too many cars.

    John
     
  6. the iceman

    the iceman Proud Veteran CLM

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    Would you be able to secure a loan through a bank for $XXXXX amount of money, then go shopping?
     
  7. silentpoet

    silentpoet

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    Allot of the time that is the best way, from a shoppers point of view.
     
  8. 22GlockTx

    22GlockTx

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    I just bought a house in June of 2009. Usually after such a large purchase, you credit score drops like a rock. It was 650 when I purchased it. I got the house at 5%.

    This past October, my wife and I decided we would try to purchase a new car for her. We had a 2007 Tahoe, that was financed at 11%. I purchased it new 3 years ago at that time, and was trying to make up for my poor credit decisions in the past. I didnt think we would get financed. Anyway, we went to the stealership, and talked with the salesman. We liked the Honda Civic for my wife. During negotiations, they came back and offered 3.9% financing. I told them at that point after making the deal I would take it. They said I didnt have to put any money down, but I wanted to put a 1000 dollars down just to get the payments a tad lower. It was a done deal.

    Forward now to just a few days before Thanksgiving. I was tired of putting fuel in my Tahoe. On top of that, someone had rear ended me. Their insurance refused to put OEM parts back in. I was threatening to get a lawyer but they wouldnt budge. So I went ahead and got the aftermarket replacement parts. I then decided to try my luck again and see if I could trade this beast for lower interest rates. So I began looking at the Civics just like my wife got. The only problem was it was a little small and Im 6 foot 1 and 290lbs. I went up to look at the Accords. I test drove and went back to the same salesman that helped us the month before. This time the negotiations took a bit longer due to my trade in. They were low balling, and I was refusing to sell it myself as I just dont want the hassle of dealing with people. We finally came to an agreement, and they said that they would try to get it financed through Honda's Silver plan I believe. Which would give 2.9% financing. They came back and said they couldnt do the 2.9% but got 3.9% again. They also said no money down, but again, I put down a 1000 just to reduce payments a little bit.

    Overall, we got the two cars for about 20 bux more per month then what I was paying on my Tahoe. Im pleased and ultimately shocked. When we purchased our Tahoe, it took them forever to find a lender that would lend us the money for it. We waited for about 2 hours till they finally found one that would do it at 11%. This time around we had no trouble getting it financed and got 3.9%. I dont know what my fico score was, but Im sure it wasnt any better then 650 when we had purchased the house just a few months before...
     
  9. JohnBT

    JohnBT NRA Benefactor

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    Here is my guess. You have to find out who is the most desperate this week.

    John
     
  10. econjon

    econjon

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    I just bought a Honda Odyssey and did an auto loan for about half the amount through a credit union, paid the rest in cash. I didn't really have any issues qualifying for the loan since I have a high FICO score, but the whole process seems to be a lot 'tighter' than when I've done loans through the same CU in the past. In the past I'd apply, they'd call to let me know I'm approved, and I'd head over to sign the papers and leave with a check made out to the seller. They trusted that I would make the purchase and provide them with the title.
    This time around, even though the amount borrowed is the smallest I've taken out a loan on, they wouldn't even consider cutting a check until I provided them with a signed copy of the bill of sale, copy of both sides of the signed over title and a few other things. I didn't have the guts to ask the seller to sign over the title BEFORE I could provide them with payment, so I borrowed the difference from another source and then brought the title in after the fact and essentially did a title loan.
    I can't say I blame a lender for wanting the signed docs up front, I just don't know how someone without additional resources could convince a seller to basically go through a transaction a day or couple days before they'd get paid.