Credit Reports & Buying a new car (1 Viewer)

[Moe Maishlish]

A friend of mine is in the process of buying a new car, and just got turned down for the special 0% financing rate that was being offered. According to him, it turned out that his credit history wasn't good enough for him to be eligible for the 0% special, and now he's in trouble, as he's already sold his car, and was expecting to have the new car ASAP.

This got me thinking - I'm planning on buying a new car in the next year or so, and expect to take advantage of the same kind of 0% deal (I'd like to buy a Tiburon, and get 0% financing for 48 months... just like the deal they have on in Toronto right now). Of course, I don't want to get stuck in the same kind of jam that my buddy is in, so I'm going to run a credit-report on myself to find out what my rating is. I know that credit ratings can be affected if you cough the wrong way, so I want to make sure everything is above-board before venturing into new-car (or mortgage) territory.

Does anyone know what kind of credit-rating score is needed to qualify for the 0% financing? Are there any other specifics with credit-ratings that should be known?

Moe.

 

[Zen Butler]

First of all, unless you have a FICO of 750+, O% is highly unlikely.

Also remember, they like short term pay-off for 0%, not 48-60 mos.

680+ FICO score should get you a good APR% on a 36-60 mo loan.

Take your credit reports with you to the dealership/when purchasing. (To avoid scam)

Most likely if do not own a home, your not at 750+

Don't move right before you go in to buy a car.

Keep your CC balances down.

 

[Ryan Wright]

First of all, unless you have a FICO of 750+, O% is highly unlikely.
Also remember, they like short term pay-off for 0%, not 48-60 mos.

(sigh) .. someone hasn't been paying attention to recent dealer incentives. The economy sucks, people aren't buying cars, so most automakers are handing out 0% for 60 months like candy on Halloween.
Moe: Let me guess, your friend tried to buy a Mitsubishi? When we bought our 2000 Montero Sport, our credit scores were over 700. They told us, "You qualify to buy any car we own" - including the $50k Prowler on the showroom floor, which we couldn't afford, but due to our high credit they would have sold to us anyway. So we bought the Montero and we got it on a 0% deal. The 0% was only for a year, but a year is a year, and we refinanced it with our credit union afterwards.
Anyway, a few days after taking the truck home, the dealership called us up and told us we didn't qualify for the 0% deal. They'd sell us the truck at 9.9%, but the 0% for the first year was out. They wanted us to come in and sign new loan papers.
I said no. Actually, I believe I said "Hell no." They tried to claim it wasn't their fault, that Mitsubishi Credit turned us down. I told her, "I'm not signing a new contract. You either make this happen or give me my car back." The response? "We don't have your car. We already sold it." My response? I told her if she couldn't work the deal according to the original terms, she damn well better not have sold my car, because there was going to be hell to pay.
She called back a few days later and had "pulled some strings for me." Yeah, right.
Here's the deal: Get pre-approved under their 0% plan BEFORE you sell your car. Once you take delivery of the vehicle and sign the contract, if they try to come back, get very mad, yell, and threaten. Problem solved.

 

[Zen Butler]

Here's the deal: Get pre-approved under their 0% plan BEFORE you sell your car.

Good advice

 

[Micah Lloyd]

Ryan, Could you clarify? They were trying to get you to sign a new contract?!? What nerve! They're just as bound to the one you both signed as you are. You had nothing to gain and everything to lose by signing a new one. Or am I missing something?

 

[Dave E H]

Man, I bet they do trick people with that bait and switch. What b*stards!

 

[Ryan Wright]

Ryan, Could you clarify? They were trying to get you to sign a new contract?!? What nerve! They're just as bound to the one you both signed as you are. You had nothing to gain and everything to lose by signing a new one. Or am I missing something?

No, you pretty much nailed it. They told me I was qualified, I signed, I took the vehicle, and a few days later they tried to change the terms of the contract.

Of course, when I refused and threatened them, they quickly backed off. Made me mad, though, and I wrote a scathing letter to some third party service that was hired by Mitsubishi to send questionnaires to new owners.

 

[Todd Hochard]

.. someone hasn't been paying attention to recent dealer incentives. The economy sucks, people aren't buying cars, so most automakers are handing out 0% for 60 months like candy on Halloween.

I'm with Zen. It's not happening here like that, either. Looking at the fine print in the paper, just about everyone wants to keep 0% at 36 mos.
And, I've noticed that the cars everyone wants have suspiciously had a few mid-year price increases. Looks like they covered their "generous" 0% offer.:rolleyes
And, many of those "contracts" have contingencies in them, so caveat emptor. When you sign, that includes the stuff you forgot to read.
Todd