Anyone else worried about getting approved for financing?

Hey everyone,
Im planning on getting a 2SS/RS in black as soon as they come out. The past couple months I have been demodding my current F-Body and selling off the parts to help pay for the new camaro I will be getting. Im really starting to worry that the time will come and I wont be able to get approved for financing on the new one. I WILL BE PISSED IF I SELL MY CAR AND THEN AM NOT ABLE TO GET A NEW ONE. I almost want to hold off selling it unitll im approved, but I wanted to use the money I get from the sale of my car as a deposit on the new one. Anyone else in the same boat as me?

The big thing to a sucessful financing plan is to put atleast 20% down,* If you can do this financing is ALMOST always a cinch as long as you don't have a super bad credit.* Also Shop around for the best rates, I just bought a new vehicle and apr's ranged from 7.9 to 5.99 for 48 months.

By the time the camaro makes it to our dealership floor who knows what the situation on credit will be. Its just to far away to tell. I can say for sure that right now there is no differance in getting financing on cars as its been in the past. I know this cause I am a the finance director of the dealer I work at. I could get just about anyone finanaced ( all week long all I have seen are credit scores below 600, just yesterday deliverd a car to someone that just discharged there bk last month). So what I'm saying is don't worry about financing. If your dealer has a halfway decent finance dept. It will get done.

Well 20% of 35k is 7k. I am hoping to put down atleast that much. My goal is 10k

I think you are pretty safe man. I almost pulled the trigger on a new Toyota pickup last month, and they wanted to give me 4.9% with no money down. FWIW, my fico is currently 664. This truly is a buyers market right now, and 6 months from now I can't see the situation being too much different. Having money to put down really is the key, and the more the better. Good luck! :thumb:

Don't know the specifics about your situation, but I got pre-approved for a Shelby GT-H today w/ my credit union. 807 CS. I think credit is out there so long as you're not a high risk.

my credit score is almost 800 and i plan to put about 15k down so no not really worried. i'm also not counting my current camaro as going toward the money down on the new one, but will be selling it to fund the daily driver :cool:

Don't know the specifics about your situation, but I got pre-approved for a Shelby GT-H today w/ my credit union. 807 CS. I think credit is out there so long as you're not a high risk.

I'm in the same boat as you..804. The way I look at it is...less buyers, less markup. My only concern is leaving enough in the bank after getting the monthly down to below $500. I'm not loaded, just smart with what I've got.

NO.....I'll buy with cash unless mortage rates are down to 4%, and if so I'll mortgage the paid off house so I can get deductions again. I don't know what my credit rating is and don't care. I busted my butt and paid everything off in the past 10 years because I saw this big financial mess coming on when the democrats put NAFDA through. And I took all my money out of stocks/mutual funds nearly two years ago and locked it in to CDs when it was obvious the mortgage/housing crash would come.
It was common sense at the time that NAFDA would wreck this country. Does anyone remember who Ross Perot was?

Financial experts my azz.....all the wall street morons are overpaid (espcially Larry Kudlow...he should have been fired from CNBC years ago).

Nope I plan to put $10-$15k down plus I have no CC billes just the house and my Suburban, I already paid off the 06 Silverado :)

At this time GMAC requires a minimum score of 700 to qualify for financing with them...there are other lenders that are more agressive than GMAC and they have better rates too.

700... Ouch. I think im just below 600. Looks like I was right to be worried.

Don't be. You don't have to finance with GMAC. As a matter of fact, most dealers, and even GM themselves, are pushing people away from GMAC.

I realize that I bought a Ford, but in July, I had absolutally no problem getting my new truck. Yes I put 20% down, but our credit score is below 550 (have about 1 year left to pay off all of the debt that we incurred when 9/11 killed our business). Yet, we got tier 2, and a great rate with Ford Credit (have good history with them).

The point being, your down payment will do your talking. Also, don't cave at the first place that says yes.............. hold out, and compare the terms from a few lenders. It is even more important when your credit isn't flawless, and your score isn't high.

nope

Like the others are saying, you should be fine as long as you put a decent amount of money down. Money down = more trust, as you've obviously got actual physical capital. It can make up for a mediocre credit rating.

I'm planning on a second year camaro (obviously I'm going to wait and see what happens with GM now that the senate shot down the emergency money, but I expect even if they declare bankruptcy, business will continue as usual for at least the core brands, like Chevrolet) and have been busting ass to make sure my credit is as good as can be for somebody my age. I'm 24 and sitting at a FICO of 769.

Does anybody know what happens to your credit rating if you pay off 55k of student loans all at once? I'm interested if this will boost things further. Doesn't it boost it more to make regular payments instead of all at once? I'm going military as soon as I graduate and am getting my schooling all paid for after the fact by them.

i believe making payments always looks better than paying off in one lump sum.

Like the others are saying, you should be fine as long as you put a decent amount of money down. Money down = more trust, as you've obviously got actual physical capital. It can make up for a mediocre credit rating.

I'm planning on a second year camaro (obviously I'm going to wait and see what happens with GM now that the senate shot down the emergency money, but I expect even if they declare bankruptcy, business will continue as usual for at least the core brands, like Chevrolet) and have been busting ass to make sure my credit is as good as can be for somebody my age. I'm 24 and sitting at a FICO of 769.

Does anybody know what happens to your credit rating if you pay off 55k of student loans all at once? I'm interested if this will boost things further. Doesn't it boost it more to make regular payments instead of all at once? I'm going military as soon as I graduate and am getting my schooling all paid for after the fact by them.

Well to tell you the truth, nothing changes as far as rates go for anything over a 740 after that they are all the same.
Now keep in mind a credit score is only a part of the story when it comes to getting a car loan. What else is on toyr credit I.E. any other car loans, like payments or amounts financed, time on job time on residance, loan to value, debt to income, credit to income ect. Student loans don't count unless they are bad. I know that sucks but thats how banks look at them.

Well to tell you the truth, nothing changes as far as rates go for anything over a 740 after that they are all the same.
Now keep in mind a credit score is only a part of the story when it comes to getting a car loan. What else is on toyr credit I.E. any other car loans, like payments or amounts financed, time on job time on residance, loan to value, debt to income, credit to income ect. Student loans don't count unless they are bad. I know that sucks but thats how banks look at them.

+1

I've seen people with good credit scores (700+) not be able to get financed without a co-signer for a vehicle because of a lack of credit history. I've also seen people with HORRID credit (500-530) get financed because they make good money ($175,000+).

Even with 700+ on established credit is tough if your a first time buyer.

+1

I've seen people with good credit scores (700+) not be able to get financed without a co-signer for a vehicle because of a lack of credit history. I've also seen people with HORRID credit (500-530) get financed because they make good money ($175,000+).

Even with 700+ on established credit is tough if your a first time buyer.

Oh, I have established credit. I've purchased 3 vehicles, one of them new, and made all my payments, as well as maintained a credit card which i've been using for everything and then paying off every month. I've been bustin ass to try and get established :yes:

Good to hear about the other stuff though. Makes me wonder what military does in terms of "time on job" etc.

I am not worried. I have good credit and have had a couple of auto loans. I have a decent credit history and my score is in the high 700's last I checked. Regardless, when I bought my GTO, I put about $14k down. At that point, it is easy to get a loan for the rest :).

First my response to the original question..

No I am not worried about getting financing.. becuase i can afford the car and have amazing credit.

Second.. my advice...

If your worried about getting financing. You are not financially stable enough to afford the car. Plain and simple.

Two words...

"Debt Ratio"

Credit scores will play a role but it comes down to what you make and what you pay out.

...and I love it when dudes brag about their credit scores.

Its like the guys that talk about their 1/4 times and/or HP without timeslips or dynosheets.

Pay your bills and debt off or get it as low as you can ....if you got the money to put down that's only gonna make it better.

Good luck and be smart,
Ivan

Some things that might be valuable to teach in our schools are how to handle money, how to negotiate loans.

Let me share a few tips I have learned about buying cars and how to raise your credit beacon score.

First of all, close all non-essential credit card accounts. You would be surprised how many folks have a stack of Visa or Mastercard type cards with zero balances. SHut them down and be sure to advise the card company to place the comment "Closed at card holder's request". Every open credit card is considered at the credit limit, not the present balance. The thought behind this is the card holder "could" go on a shopping spree or a spouse could max the cards in a vindictive move. Close accounts, credit score goes higher.

Pay any bills on time, if it's an insignificant seeming amount that's late, it's still considered late. Current is reponsible, late is considered lax... score goes down.

Locate you own financing through a pre-approved bank voucher at the best possible rate. You don't actually borrow the money until you buy a car. A dealer will almost always negotiate a better rate with another institution. At the worst, you have your ducks in a row and a loan in hand. Either way, you WILL save money and avoid a hassle.

Agree to direct payment from you bank account to the lender. It's usually going to drop your interest rate up to a half point.

Don't close down TOO much though, because even if you have a 0 balance on some of these, they still help the aforementioned debt ratio.

First my response to the original question..

No I am not worried about getting financing.. becuase i can afford the car and have amazing credit.

Second.. my advice...

If your worried about getting financing. You are not financially stable enough to afford the car. Plain and simple.


Its a good thing I don’t take offense to comments made by people who know nothing more about me than a few sentences I typed on a message board.

First of all, close all non-essential credit card accounts. You would be surprised how many folks have a stack of Visa or Mastercard type cards with zero balances. SHut them down and be sure to advise the card company to place the comment "Closed at card holder's request". Every open credit card is considered at the credit limit, not the present balance. The thought behind this is the card holder "could" go on a shopping spree or a spouse could max the cards in a vindictive move. Close accounts, credit score goes higher.


I've actually heard the exact opposite.
I'm no expert by any means, but I've read that you should leave your accounts open because they help you somehow. I guess just because it shows you have a higher credit limit. Here's just a random post about it on creditboards.com, but it doesn't really go deep into it at all, just tells you not to do it =)
http://creditboards.com/forums/index.php?showtopic=2070

I've actually heard the exact opposite.
I'm no expert by any means, but I've read that you should leave your accounts open because they help you somehow. I guess just because it shows you have a higher credit limit. Here's just a random post about it on creditboards.com, but it doesn't really go deep into it at all, just tells you not to do it =)

Correct, I good part of your FICO score is your balance to credit limit ratio. If you have a few CC with balances and several without, do not close those credit lines. If you do close it will increase your balance/limit ratio and decrease your score. A good target is a 20-30% Credit Utilization.

Ex. 1

CC#1 $500bal.-$1000 limit =50% utilized
CC#2 $0 bal-$1000 limit= 0% utilized
Total Utilization= 25%

Ex 2- Close Acct with 0 bal
CC#1 $500bal.-$1000 limit =50% utilized
CC#2 (CLOSED)
Total Utilization= 50%

Correct...but it is still better to have 1 card with, lets say a $30000 limit than 3 with #10000 each.

Every open credit card is considered at the credit limit, not the present balance.
I've never heard this before, Paul. It makes sense, though. Do you have a link or something for more details?

Don't close down TOO much though, because even if you have a 0 balance on some of these, they still help the aforementioned debt ratio.
If what Paul is saying is true, then open credit cards would hurt the debt ratio.

Open credit accounts (other than credit cards) with zero balance would help.

If what Paul is saying is true, then open credit cards would hurt the debt ratio.

Open credit accounts (other than credit cards) with zero balance would help.

You don't want to close down all of your unused accounts because the debt/available credit ratio would increase, even though you would not technically owe any more than you did before you closed the account. An increase in that ratio will correspondingly decrease your credit score.

See #1
http://articles.moneycentral.msn.com/Banking/YourCreditRating/4creditScoringMyths.aspx

I've never heard this before, Paul. It makes sense, though. Do you have a link or something for more details?


If what Paul is saying is true, then open credit cards would hurt the debt ratio.

Open credit accounts (other than credit cards) with zero balance would help.

It appears there's two schools of thought on it. I know I keep only two CC's at any time. Cancel accounts of zero balance whenever there's a third. I don't pay interest on CC's. When they go to a percentage rate, I close them.

CC companies make money off the seller. Handle your cash and debts well and you won't be in a credit card with interest deal. Ratio is simple enough through a high credit limit on a card and manage the balance. Never being late is much more important, IMO, than having a wallet full of cards to make you look solvent...;)

I will still highly recommend having your financing in place before you buy. Let the dealer try to beat your deal rather than hope they will "get you done".

It's never hurt my beacon.

I will still highly recommend having your financing in place before you buy. Let the dealer try to beat your deal rather than hope they will "get you done".


Thats true. My credit unions CRUSH the dealers every time, to the point where I don't even let the dealers try anymore, they've never been able to beat the CU's on the cars that I've bought.

Well to tell you the truth, nothing changes as far as rates go for anything over a 740 after that they are all the same.


Correction: that would be anything over 750.
750 - 850 u can pretty much name your interest rate!

I've never heard this before, Paul. It makes sense, though. Do you have a link or something for more details?


his theory is not true. the more cards you have open GENERALLY brings up your score, so long as you have < 50% of your credit used.

closing accounts generally hurts credit.

Correction: that would be anything over 750.
750 - 850 u can pretty much name your interest rate!

most places is anything above 715 or higher.

Thats true. My credit unions CRUSH the dealers every time, to the point where I don't even let the dealers try anymore, they've never been able to beat the CU's on the cars that I've bought.

most credit unions don't offer 0% financing though.

his theory is not true. the more cards you have open GENERALLY brings up your score, so long as you have < 50% of your credit used.

closing accounts generally hurts credit.

What you say is probably true. I have 2 zero interest cards with pretty high limits, only use one, roll it to another zero interest when the "introductory" rate is about to rise, close the account "At customer request".

I can see how a debt utilization percentage could push a score up. No doubt, things have change in the past 14 years since I worked retail in car sales as personal training for getting into the automobile business. Back then, having high open lines of credit through revolving and CC accounts, when compared to income, would make getting a loan at a decent percentage rate difficult. This change could be why there's been a horrible problem with credit defaults...

Paying on time, for EVERYTHING, and above the minimum payment amount will go a long way toward your desirability as a credit risk.

Shop a loan before you close on a car. Let the dealer beat your rate.

only down side to most credit unions is that some,depending on where you live, dont transfer your credit score to the credit bureau and they sometimes wont transfer your credit score if for some reason you move out of town. other than that credit unions are great for deals. my banks always beat my credit union on rates.
dealer banks also have very low rates, sometimes lower than credit unions, due to the amount of loans they do every day. banks will start to offer better rates depending on how much business they can get out of the dealers.

most credit unions don't offer 0% financing though.

Most dealerships won't give 0% on a GMS ordered car either, only in stock models. I have to order all my stuff because the dealers don't stock what I want generally.

Most dealerships won't give 0% on a GMS ordered car either, only in stock models. I have to order all my stuff because the dealers don't stock what I want generally.

Not true u as a employee are entitled to all incentives that are available

Most dealerships won't give 0% on a GMS ordered car either, only in stock models. I have to order all my stuff because the dealers don't stock what I want generally.

Not true u as a employee are entitled to all incentives that are available

Not an employee, but they run 0% very infrequently, and when they do, they don't do it for 2 months, the time it takes to put an order in and get the car. And even if they did, usually it's stipulated that it's only on in stock cars.

Hopefully with the government intervention to get credit flowing and the interest rate drop to zero getting financing for anyone above 650 shouldn't be a problem by the time the Camaros are rolling off the assembly line.

considering I'm not workng I know I won't be able to get one, :(

his theory is not true. the more cards you have open GENERALLY brings up your score, so long as you have < 50% of your credit used.

closing accounts generally hurts credit.

When I was buying my house (6th house I purchased) I was advised that I needed to close out some of my cards due to the amount of debt I could have gotten myself into. My wife had several cards and we ended up closing around 35 cards altogether. Now this was for a house loan and not a car loan so I have no idea what course to take but I know I pay zero% interest on my two cards I have now and when the introductory time stops I will just switch to another zero% card as I seem to get a couple of offers every week or so. The best advise I can give a young person is to TAKE CARE of their CREDIT. I used to pay 28% on loans but once I learned how to manage my money it is a lot better keeping a lower interest rate and paying the balance or at least the minium each month to build your credit score up.

Good Luck to the young ones buying the new Camaro. I'm glad for once in my life to be over 25 knowing that my insurance is going to also be fairly cheap compared with the 16 to under 25 group who's insurance may run them MORE $$$$ than their car payment. I would check out the insurance rates on the new Camaro before digging yourself into a hole. JMHO

Good Luck to the young ones buying the new Camaro. I'm glad for once in my life to be over 25 knowing that my insurance is going to also be fairly cheap compared with the 16 to under 25 group who's insurance may run them MORE $$$$ than their car payment. I would check out the insurance rates on the new Camaro before digging yourself into a hole. JMHO

Im 24 and that is the exact reason why I have waited to order mine. I havent looked into it but i wouldn't imagine any insurance companies giving quotes on camaro's yet. I'm curious to see how much the past camaro's influence the new ones as far as insurance rates.

Im 24 and that is the exact reason why I have waited to order mine. I havent looked into it but i wouldn't imagine any insurance companies giving quotes on camaro's yet. I'm curious to see how much the past camaro's influence the new ones as far as insurance rates.

the best way to find out how much ins is going to be is to quote prices on a mustng gt500/gt, and challanger srt8. those will get you the best and closest rates. then price a base model vette. that will probably be the max it could be. the other cars will be more accurate though.

I didn't even think about the Challenger, but I got one on a 2008 Vette just to get some sort of figure. Progressive has it in their system, but no pricing yet.

Well, I think the only way I'll buy a 30k+ dollar car is if I get very LOW or no interest financing. So.....we will just wait and see.