Car loans... (1 Viewer)

[Brian Harnish]

Okay, guys. In the quest for my new car, I've applied for auto loans online (not in person yet) with my cosigner but failed (despite excellent credit with my cosigner). HOWever...

...my cosigner just received a pre-approval for a car loan after both of us were declined (from the same company). Can I use that as legal leverage (e.g. discrimination) to get them to approve the loan?

 

[Malcolm R]

Discrimination based on what?

If you have poor credit, the bank doesn't have to make you a loan even with Bill Gates co-signing.

 

[Brian Harnish]

That's the only thing -- I have above-average credit (over 600). I only have one credit card (after cancelling out my other credit cards having paid them off) and I always pay my bills on time every month. There's no reason why I shouldn't be approved with a cosigner (my mom had MUCH worse credit than I did (yes, even the b-word, but everything has since been discharged) when she got approved for her new car loan a long time ago). My income per month is a little low, and that's why I need a cosigner.

See, I'm getting myself my own DeLorean at last (okay, the "new" car thing was a misnomer; my bad) and it seems like people won't even look at us as far as used person-to-person purchases go. I haven't had that much trouble getting approved on my own for new car loans, but a used person-to-person purchase seems to be a problem even with my cosigner.

I just don't get it.

Perhaps I should just move out again (yeah, I moved back home temporarily -- LONG STORY involving two car burglaries and identity theft) instead...it'd be a lot easier (and more fun...hehehe. ) than a DeLorean. I dunno. Perhaps I should just wait and get a DeLorean when I'm rich and have money coming out of my ears. I have a perfectly good car right now, with excellent mileage and no car loan debt (and other very minimal consumer debt) to speak of.

Argh. I'm pretty upset at having to have moved home so maybe a new car (or a DeLorean) wouldn't be such a good idea at this time.

Y'know, I'm going off on a lot of different tangents here. Let me explain what started this whole moving back home deal:

Quite a few folks should remember my car burglary and identity theft crisis from October last year. Flash forward to January of this year.

In mid-January I was going out to my car at 1:15 a.m. to go get some food (as this time I was out of food at home and had to go out). I walked in on a guy breaking into my car (I saw him in my front passenger side). I'm thinking to myself "What the F&^@ are you doing to my car, arsehole?". He gets out of the car, is about an arms and a half length away from me when he asks "Is that your car?" I said "No, it's not don't worry about it.", and ran up to my apartment to call the police.

So, flash forward to now I've gotten a nice promotion at work, will be able to subsist while living in my own apartment. I just have to find a better place with better security where my car doesn't get broken into twice in four months!!!

I feel very bitter about the whole thing, but I'm hoping to move out again by the end of May. I think, reflecting on it a bit, I probably should not get a car at this time. I think I'd probably get pissed at myself if I couldn't move out again for five years. :frowning: :frowning:

 

[Malcolm R]

I'd definitely forget about the new car, find a new apartment, and begin saving like crazy.

 

[Brian Harnish]

Malcolm- Thanks! That's exactly what I'm going to do!

 

[Chris Derby]

For future reference, this will more than likely drop your credit score. Two of the factors are the amount of credit extended to you and utilization. Closing all your cards that you've paid off not only lowers the amount of credit you have, is also raises your utilization.

Part of the problem on the car loan could be the car. Those aren't exactly new. I would think that banks would generally see collector cars like that as a significant risk. Remember, the bank is thinking "what can we get for that if we have to repo it and wholesale it?".

 

[AjayM]

That's quite a bit different than buying a "new car", night and day different. You say you have "Above average" credit with a score over 600, but what is the actual score? "Average" credit scores are in the 680'ish range, if you fall below that you have "below average" credit. On new cars that's not to much of a big issue, you can get low interest car loans with scores in the low 600 range without to much of a problem. But I doubt that is really what is hurting you here (but certainly isn't helping either).

The other thing that's killing you is that not only are you buying a "used" car (and a very used one at that in terms of age), you are buying a "specialty" car that is fairly rare and it's value is hard to determine (you can't crack open NADA and look up the value of the car), you'd need to investigate "exotic" car finance options, they typically will help finance older/classic car purchases where regular banks will not. Of course their standards of lending are usually more stringent than a regular bank. A quick google search should yield a few results, but here's an example;

http://www.classiccarfinancial.com/

 

[Todd Hochard]

You're a young guy with no assets, an income a little too low, a FICO in the 600s, and trying to buy an OLD used car on a note, and you think you're being discriminated against?

C'mon. You lean on that crutch any harder, and it's going to break.

I'd go with Malcolm's advice- forget the car for now, and save, save, save. I bought a few old Camaros over the years the old-fashioned way- CASH. You will almost always have a hard time getting a loan for an old car. Your best option is to simply not need one.

Todd

 

[Philip_G]

I don't get car loans, my credit union will loan me money, basically no questions asked. Someone like peoplefirst.com wouldn't touch me even with a cosigner, yet I've got a mortgage, and am closing on another soon, go figure.

I drive crappy cheap beaters anyway, too cheap to finance cars anymore.

 

[Brian Harnish]

Well, I have a better idea: Work hella hard at building web sites freelance (which I enjoy and kick arse at anyway), concentrate on making enough money to afford a car and pay cash for it instead of financing. Yeah. That way I can do both: Move out AND get a new 2005 Ford Mustang (or a DeLorean). Heheh.

 

[Peter Burtch]

DeLorean?

They are neat cars, but now you have me truly confused, Brian. I thought it was a done deal when you recently posted you were already approved for a loan on the Accord(?) I guess you change your mind a lot .

I went back and read your old thread about the breakins. Sorry to hear about that.

Personally, I would follow the advice you've been given to wait a bit longer for some of the fun stuff that costs $$. I am kicking myself for not saving more $$ in my 20s. It would have made things a little easier before my wife & I were able to buy a home.

best,
Pedro

 

[Brian Harnish]

Peter- Well, when your cosigner agrees to cosign on a loan for your dream car, then, yeah, that tends to change your mind quite a bit.

And I was approved for a loan on that Honda (without a cosigner), but now after I've thought about it (especially after having my cosigner agree to sign on my DeLorean), I don't want a car that everyone and their brother drives.

Also, I'm not going to go for the loan route, though. I'm just going to make money like crazy and pay cash for my DeLorean. After thinking it through logically, being chained to a car payment for five years is not my cup of tea. I'd rather move out into a much better apartment by the end of May and be able to buy my dream car with cash(essentially do both) a few months later (or even a year if that's what it takes) than do one or the other.

There are many legal ways of having everything you want in life (which I didn't think about with my previous tunnel vision towards a DeLorean), and I'm goin' after all of them.

 

[ClintS]

If it were me (and its not). I wouldnt buy any new or semi valuable old car and not have a nice tidy and SECURE garage to park it in. Might want to target purchasing a house prior to the car purchases. Incidentally a house is a MUCH wiser investment and will build your credit like crazy if you make your payments on time. And as a sizeable side benefit you will be building equity (also known as net worth) rather than flushing a car payment down the toilet.

 

[Peter Burtch]

Clint-

I agree 110%. And once you get some equity going the toys are easier to fit in a budget. Parking that car on the street or a shared garage doesn't make sense to me either. But Brian sounds like I was at 25. Strong willed .

-P

 

[Dennis Nicholls]

Why don't you get the DeLorean, go back in time, and buy up a lot of winning lottery tickets knowing the winning numbers in advance?

 

[Patrick Sun]

Probably can't get the DeLorean up to 88MPH nowadays...

 

[Brian Harnish]

LMAO!!

 

[Matt Butler]

Ive never driven a DeLorean but I sat inside a restored one a friend has/had in Oct. Those damn things have NO elbow room whatsoever!!

You have good taste with the 05 Mustang though. Me wants too!