No Versa for me…

[aidan80]

At least not right now anyway which is disappointing after all the emails and talking I’ve done to the blood thirsty dealers! I thought I’d apply with a bottom feeder for a vehicle loan thinking I’d get approved and guess what.. the dirty b@stards refused me! I’ve a credit score in and around the 700 region although I’m sure it’s down a few points now, never had a late payment, always paid 2x or 3x the minimum, have less than 1% debt to income ratio and make enough to pay for the car a few times over in one year? I think what got me kicked out is I’ve only been in the US for 4 years and only had a credit history for about 3. I might as well be 21 trying to get a loan without a parent to guarantee it.

I suppose best thing to do is work on my credit file as much as I can then reapply with my credit union. I think if I show a clean credit record and a healthy balance in my savings they might bite in a few months time.

[GapRunr]

Go to a different bank, preferably one that did not need a bail out. I was refused at one bank for $5,000 then approved at another for $20,000.

I wouldn't give up yet, especially if you are trying to build your credit in this country. The best way to do that is a car payment.

Good luck!

[steed77]

Work with your Credit Union... F the Nissan financing. Get your $$$ in-hand and go shopping.

OR the smart thing, do what most don't do... Pay CASH... save now, put that would-be payment in your bank and when you get there... go shopping. A car is a loosing asset, pay upfront and F the man (credit score folks).. ok off my soap box.

[aidan80]

Go to a different bank, preferably one that did not need a bail out. I was refused at one bank for $5,000 then approved at another for $20,000.

I wouldn't give up yet, especially if you are trying to build your credit in this country. The best way to do that is a car payment.

Good luck!

I don't want to go to another bank just yet I don't want to look desperate for cash. What knocked me out (after being robbed $15 to find out) was my debt vs credit rating! I've a crappy $1,000 credit card I maintain on purpose about $400 - $500 on it so I can make payments and build up a payment history well I've done that it's all nice and perfect only the bank now sees I'm using close to 50% of my available credit which can only mean disaster!

I'll pay off the balance tonight and let it sit to work it's way into my credit file for a day or so then talk to my bank about some a car loan. I think if they ok me for $14,000 or so I can get that dealer to cut another $300 off his price.

[aidan80]

Work with your Credit Union... F the Nissan financing. Get your $$$ in-hand and go shopping.

OR the smart thing, do what most don't do... Pay CASH... save now, put that would-be payment in your bank and when you get there... go shopping. A car is a loosing asset, pay upfront and F the man (credit score folks).. ok off my soap box.

I plan to work with my Credit Union and yes I agree about the nissan financing! I hope I can get my $$ then shop let em fight it out over the last few dollars.

I agree the smart thing is to save up then buy outright but.. I need to buy a house in the next few years. I'm pissing away money on rent so in order to buy a house I'll have to buy a car and get robbed but I'll get a much better loan later on for a house and that's the only debt I want to see ever.

I'm not a fan of banks their own greed almost chocked the entire planet and right now we're all paying for their evil and greed. Those people make me sick and it sickens me to have to deal with a bank which is why I went for a credit union.

[Shad0wXCalibur]

Some lenders are ***holes and are too strict on what they lend out. It's good for them but doesn't help the honest folk. There are lenders that are more than happy to work with you though. I've already got one car loan out under me (the Versa), haven't had credit for 2 years yet, and my cards are close to maxed out. My fiancee needed a car and we went to a used dealer and they got me approved (her credit is trashed) for a Honda CR-V through a local finance company and the interest isn't low but it is certainly acceptable. If I could get 2 car loans, I'm sure you can do something. Also, how big of a down payment do you have? That's a big factor. I had just barely enough saved up for the down payment they wanted to approve me for the CR-V. The Versa was co-signed by my dad since I had NO credit at the time and my down payment wasn't quite big enough for them.

[silverarrow27]

Some lenders are ***holes and are too strict on what they lend out. It's good for them but doesn't help the honest folk. There are lenders that are more than happy to work with you though. I've already got one car loan out under me (the Versa), haven't had credit for 2 years yet, and my cards are close to maxed out. My fiancee needed a car and we went to a used dealer and they got me approved (her credit is trashed) for a Honda CR-V through a local finance company and the interest isn't low but it is certainly acceptable. If I could get 2 car loans, I'm sure you can do something. Also, how big of a down payment do you have? That's a big factor. I had just barely enough saved up for the down payment they wanted to approve me for the CR-V. The Versa was co-signed by my dad since I had NO credit at the time and my down payment wasn't quite big enough for them.

I agree with this statement. I have my Versa, co-buyer of my brother's RSX(His credit was trashed also), and owner of a house that was just finalized weeks ago. All bought within 8 months time.

[aidan80]

Yes some lenders are thieves in suites! I’ve no doubt if I poked around I could get approved but I don’t want approved and stuck with a lender that’s eating me alive on interest and pushing my payments so high I have to extend the loan term and end up trapped in a long term loan until it’s paid. I’ll try my credit union see if they have anything on offer and if they will let me buy out early without forcing me to pay a fee.

Now the thing both you have is someone to co-sign I don’t. I actually just earlier in the year split up from my wife and I’m originally from Ireland so I’m short on people I know well enough that would co-sign lol As of right now I don’t have enough to put down as a down payment. Although one dealer claimed all he needed was $100 - $200 lmao! Which is another reason I might just wait one more month I’d easily have that down payment if approved for a loan I’d sell my other car as quickly as I could which should bring in another $1,700 - $2,000 so I could if I was really, really lucky have something in the region of $4,000 to put down if I got preapproved and sold the other car first. That’s quite a few if’s worst case I’d have about $2,000 - $2,300 in hand. Month after I could bring it up to around $3,500. I'm taking into account christmas and everything else. The longer I wait the more I can save up but the longer I wait the older my current car gets lol and the harder it'll be to find an 09 at a decent price as the 10's will flood the place.

[GapRunr]

OR the smart thing, do what most don't do... Pay CASH... save now, put that would-be payment in your bank and when you get there... go shopping..

An even better solution if you are trying to build credit is to save up the money you need, then use that money to get a secured loan at your local credit union. The loan will be very low interest since you are securing it with cash. You'll end up paying a little interest but will help your credit rating quite a lot.

For people who have good credit ratings AND have the cash, sometimes its better to put the cash into a long term investment and then finance the car. While the interest rate on the car will be higher than the interest you are earning on your investment, the car loan interest is calculated against an amount that is decreasing every month when you make a payment, whereas the lower interest rate on your investment is calculated on an amount that is increasing every month. 2 percent less on a larger amount of money may actually be more money. Does that make sense? I'm not sure if I am explaining it right.

Let's assume an amount of $20,000. If you finance it for 5 years at 4.9%, you will pay $2,590.54 in interest for a total loan cost of $22,590.54 . If you invest the same $20,000 at only 3% for the same 5 years, you will have $23,232.34 at the end of 5 years.

So, if you have the cash, it's cheaper to finance. Kind of weird to think of it that way, isn't it?

[aidan80]

An even better solution if you are trying to build credit is to save up the money you need, then use that money to get a secured loan at your local credit union. The loan will be very low interest since you are securing it with cash. You'll end up paying a little interest but will help your credit rating quite a lot.

For people who have good credit ratings AND have the cash, sometimes its better to put the cash into a long term investment and then finance the car. While the interest rate on the car will be higher than the interest you are earning on your investment, the car loan interest is calculated against an amount that is decreasing every month when you make a payment, whereas the lower interest rate on your investment is calculated on an amount that is increasing every month. 2 percent less on a larger amount of money may actually be more money. Does that make sense? I'm not sure if I am explaining it right.

Let's assume an amount of $20,000. If you finance it for 5 years at 4.9%, you will pay $2,590.54 in interest for a total loan cost of $22,590.54 . If you invest the same $20,000 at only 3% for the same 5 years, you will have $23,232.34 at the end of 5 years.

So, if you have the cash, it's cheaper to finance. Kind of weird to think of it that way, isn't it?

That's an excellent idea and that's what I would do if I happened to have the cash available. I could save it but that's a lot of saving for something I'd like to get soon lol

[Codelicious]

Work with your Credit Union... F the Nissan financing. Get your $$$ in-hand and go shopping.

OR the smart thing, do what most don't do... Pay CASH... save now, put that would-be payment in your bank and when you get there... go shopping. A car is a loosing asset, pay upfront and F the man (credit score folks).. ok off my soap box.

My initial plan was to do this BUT my bank said that it would be absolutely stupid to get the money from the bank because you'd need collateral and the interest rates are sky high.

[frankoV]

the interest rates are sky high.

Sky high interest rates in this economy? What are you guys paying down there???

Interestingly enough, when I got my V the Nissan rates were lower than the banks . . . I figured they'd want both my wife and me to sign but they said "don't worry about it; your signature will be enough" . . . and it was. This on top of the fact that no one at the dealership had seen my face yet -- I did everything via e-mail, drove out one Saturday, signed my name, and drove away.

btw; sky high rates are what I paid for my first car/loan. Like an idiot I wanted a new[er] car and went out of my way to get it even though I had decent wheels. 17% [yup you read right] -- early 80s.

IDIOT!!!

[steed77]

Not sure on rates... I think my local Credit union has 3.25% on a new car loan.

Anyway, good luck. There are many options you can go. I do vote for doing what others don't... pay cash.

Also If you had 20K cash, I would hope you can make more than 5-7% on it. I don't see how not paying now is better. You can slice and dice it 1000 ways, but at the end...it's your call.

[aidan80]

I’d love to pay up front but just don’t have the cash. What I really need to do is build credit more, so I can stop pissing away money on rent and build a house! A small affordable car should do just that for me. Now if I can get approved at a decent rate and I’m a first time buyer so I won’t get the best rates plus if they allow me to pay off early or make extra payments that would be great.

I really need approved because these prices just keep dropping, latest dealer is offering $13,822.48 out the door, inc tax, title, tag, dealer fee’s and a discount that does not include bogus stuff I’m not eligible for. The dealer is even willing to drive over an hour just for me to test drive and give me a demo of the car.. He must feel he can sell it there and then and he must really wanna make that quote or get that bonus!

[Bubs daddy]

If you really want a house...I mean REALLY want a house, don't buy a new car. Save your money for the house because you'll need a substantial down payment.

Run the car you have into the ground and make small repairs to it while you're saving for the house.

And as someone mentioned, yes, rates on loans are very low these days. Only moderate or higher risk borrowers would be paying higher interest loans today. Or borrowers with high debt to income, spotty job history, low down payment, lots of other reasons to be rejected or placed in higher rate bracket.

In the recession around 1980-81, people were paying 16% for car loans with GOOD credit. Interest rates today are extremely reasonable for people with good credit.

Best wishes on whatever you decide.
Modified by Bubs daddy at 5:35 PM 9/25/2009

[aidan80]

If you really want a house...I mean REALLY want a house, don't buy a new car. Save your money for the house because you'll need a substantial down payment.

Run the car you have into the ground and make small repairs to it while you're saving for the house.

And as someone mentioned, yes, rates on loans are very low these days. Only moderate or higher risk borrowers would be paying higher interest loans today. Or borrowers with high debt to income, spotty job history, low down payment, lots of other reasons to be rejected or placed in higher rate bracket.

In the recession around 1980-81, people were paying 16% for car loans with GOOD credit. Interest rates today are extremely reasonable for people with good credit.

Best wishes on whatever you decide.

Modified by Bubs daddy at 5:35 PM 9/25/2009

I'd be happy to save and save for a house but when it comes time to go to the bank and I'll have to go there for the rest of the money I'd rather do it with more of a credit history at the minute I've not much in the way of credit because I've avoided unneeded debt. My current car is 11 years old soon to be 12 while it's in great shape I feel now is a the time to get another car. I should admit I'm still tempted to buy used but too many out there with way too many miles for only a few thousand less than new.

Well rates are very good today for car loans. If and that could be a big if I get approved by my credit union then I'll push onward. If I get shot down I might just give up on the car and save the money.