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Discussion Starter #1
Quick Question.

I have two Elises on order. One I have paid for...but the second, we're going to have to get a loan for. We had some expenses we didnt forsee.. :( I'll have to rely on a loan. I have loads of cars I can sell later on, but I NEED to know I can get a loan on this second car before we place the order by this friday.

So I went to my bank where Ive gotten every other loan Ive ever applied for.

The bank is stymied. They dont have the Elise in their NADA book and she's afraid even their corporate headquarters wont have info on a 2005 car. I printed out all the specs on the car so she could try to answer any questions they may have but she's worried they're not going to know what to do with it and as such, deny it.


Also, next problem. Most banks, when they give you a loan, only give you 30 days to decide if you're going to use it. So...if I were approved for the loan I'd need to commit to it within 30 days...I wouldnt mind paying a little interest for a few months without the car just for the peace of mind..BUT... they would need a VIN number to complete the transaction. VIN and title, which of course I would have neither because I dont have the car.



So...has anyone ever applied for a loan on something like this before?

Any hints, ideas? Where to go? What to do? Best deal?


Thanks
Jenn
 

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out of curiosity, why do you need to secure the loan now when you're not going to be taking delivery of the car until June or July? Can't the bank just check your credit rating and let you know whether or not you would be cleared for a new car priced at $39K?
 

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Discussion Starter #3
Basically I want to KNOW that I'll have the funds available. And I thought the same thing you did...why cant they just look over my portfolio and tell me if I'd get the loan.

For some reason she says no. She said I would have to "apply" for the loan.

I have excellent credit, Im pretty sure I make enough money and I have $7,000 down on it..

I dont get it.
 

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HELOC?

As suggested in other threads, are you in a position to get a Home Equity Line of Credit (HELOC)? These come with low interest rates, are tax deductible (generally speaking) and you can set them up in advance but pay nothing until you actually take money out.
 

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Discussion Starter #5
Yes we do have a home equity line of credit but right now thats been extended towards home remodeling.




I would say this is a bridge that is going to be crossed by more than just me unless everyone on this forum has $45,000 in cash to pay for their cars.


Banks wont make loans without VINS, so I guess there are going to be a lot of people ordering cars without the money, then hoping they can come up with it when the car gets in? What if you lose your job in the interim or something else happened and you've got a custom ordered car out there. Plus on top of it all banks dont have these cars in their systems so they make balk at more than a few of us...
 

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Banks are scam operations...

I just got off the phone with a bank that is in charge of a certain retail store's credit cards because they sent me my first statement 15 days after payment was due. I have perfect credit, and I've never gone a month in my life without completely paying off every one of my credit card bills, and now these people are threatening to put this on my credit record.

Sorry for the pointless rant, I just had to get that off my chest, I hate banks.
 

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HI Jenn,
Peoplefirst.com has pretty good rates and also flexible about the loan, as I recall they base the initial loan app on you and not the vehicle and will tell you how much you can borrow. So it depends on your credit score (which is based on outstanding debt, credit, income, etc.
Chris
 

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Discussion Starter #8
Thanks Chris, I appreciate the heads up! I may try them.

Of note to everyone here....everytime you apply for a loan they remove 5 points off your credit. Yes...thats right. People who apply at multiple banks "shopping" for home loans etc often really mess with their credit and dont even know it. It replenishes itself after a year ( I think) but in the interim it can really be a detriment to your credit rating.

Thats why Im trying to do this right on the first try. You should too.
 

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You may want to think about an unsecured line of credit. A colleague got one at 4%, and bought a new M5 with it. Cheaper than a car loan, and no lien on the vehicle.

I have a 20k unsecured line, which was pretty easy to get, but I've never tested my credit worthiness with a line big enough to fund the purchase of an Elise.
 

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I've never apply for a auto loan before. So what does the bank or credit union will need in order for them to fund the loan? I call a local credit union and they told me all I need to provide is the purchase order for the car I am buying when I am ready to apply for the loan. Anyone have experience and can tell me the procedure?
 

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OneFastMiata said:
Thanks Chris, I appreciate the heads up! I may try them.

Of note to everyone here....everytime you apply for a loan they remove 5 points off your credit. Yes...thats right. People who apply at multiple banks "shopping" for home loans etc often really mess with their credit and dont even know it. It replenishes itself after a year ( I think) but in the interim it can really be a detriment to your credit rating.

Thats why Im trying to do this right on the first try. You should too.
OFM,

While your post is correct, it's not exactly accurate. ;)

Credit inquiries occur in many different forms. When you apply for credit, the institution requested your information will ask for a full report and sometimes a merged report of all 3 of the credit bureaus. The amount of inquiries do adversely effect your credit scores, such as your Fair Isaac; however, the amount they will affect your score is not a fixed 5. There are many, many different credit score indexes, and they are used very differently between companies. Some companies look at just the credit score, some at the report, some at both.

So in summary, folks that will be shopping for a loan should try and stick to less than 3 companies when running credit. My biggest suggestion would be to transfer any CC balances to a spouse's card that you (the applicant) does not have the right to use. Do this 60 days before you apply for a loan and you should be pretty good.

NOTE: I'm qualified to speak about this since I work for a large bank. I support the system that decides who is worthy and who isn't (it's not my fault) :D

BTW, I'm going to use PeopleFirst (aka CapitalOne Auto Finance) for my Elise.
 

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Discussion Starter #12
No offense to me. The branch manager told me that, I was just repeating it.


So, what criteria do the banks use?

Any suggestions on getting a loan for a car that noone has heard of?

Insights?
 

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Genjuro said:
BTW, I'm going to use PeopleFirst (aka CapitalOne Auto Finance) for my Elise.
So, is that the "large bank" you work for? ;)

OFM, why not just apply for "pre-approval" to satisfy your curiosity? You won't need a VIN number to do this, although the bank/credit union may still be left scratching it's collective head about valuation of an Elise. Perhaps ask for pre-approval for a loan on another $40k-ish car (Z06, Z4, Boxter, et al.) to test the waters?
 

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I have several companies pulling my credit report for a house refi as we speak. I have an online, updated account to view my active credit report. I just checked, and the new credit inquiries have not affected my scores (all three: Experian, Equifax, Transunion). When I inquired about affecting scorese, the mortgage broker said that for some people, inquiries will not affect scores, and can actually *increase* scores. Don't know if this a latter part is true, but that's what I was told.

Anyway, this may or may not be of use, but here's the some language on credit scoring from my online report:

What Factors Can Raise Your Credit Score

# You have a good cushion of available credit between your current balances and credit limits on each of your open revolving trades. This is helping to increase your credit score. This cushion shows lenders that you are unlikely to overextend yourself financially. If you keep paying your bills on time and keep your credit balances low, you will likely continue to enjoy a positive credit rating.

# You have a good cushion of overall available credit between your current balances and credit limits on your total open revolving trades. This is helping to increase your credit score. This cushion shows lenders that you are unlikely to overextend yourself financially. If you keep paying your bills on time and keep your credit balances low, you will likely continue to enjoy a positive credit rating.

# Your average credit limit for your major credit cards, such as VISA or MasterCard, is high. This tells lenders that you have enough financial experience to be a good credit risk, and they will be more likely to see you as a good credit risk. Keep paying all your bills on time and minimizing your outstanding balances, and you should have no trouble obtaining the same high credit limits on future credit accounts.

# You have at least 2 or more open major credit cards, such as VISA or MasterCard, on your credit report. This often tells lenders that you are a responsible borrower and they may be more likely to see you as a good credit risk and extend you credit.
And

What factors lower your credit score:

# Late payments on your credit accounts count negatively against your credit score, and your payment history shows one or more payments that were late by 30 days or more. If you want to improve your score, one of the best ways is to pay all your bills on time, every time. Although negative information can stay on your credit report for seven to ten years, by paying overdue bills and making on time payments, lenders may recognize your good efforts to improve your credit habits.
I'm not banker, just passing along some info.
 

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Discussion Starter #15
Here's a question.

If you apply for a loan, and you're turned down does it show up to other potential lenders? I dont want to muck anything up.


The bank called and I have to wait till tomorrow. :(
 

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Multiple applications filed within a set time period will only count on your score as a SINGLE credit application. So if you apply with wachovia, suntrust, cap one, your credit unit, amazon, quicken, and some other places in one day for credit cards, you have one request. Though if all of them open up accounts for you, that WILL go on your record, and if there is a human review they will ask questions about it.

If you apply for a loan from peoplefirst (capital one owns them now) eloans, your bank, and your credit union you are cool. They will prequal you, and your status only shows one application. Again this is up until you actually establish the account, then that shows on your report.

I strongly suggest for everyone here to get your credit report with at least one agency. My credit unit uses equifax primarily, as such I check there for errors at least once a year. I have found plenty, including 5 90 day late notices from sears on an account that had a 0 dollar balance. (their computer systems were showing 12 dollars on the account for quite a few people) I didnt find this out till AFTER I purchased a car, and had to pay 20% interest until it was fixed 2 months later. Then I got 6.5%...

Scot
 

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scot said:
M
I strongly suggest for everyone here to get your credit report with at least one agency. My credit unit uses equifax primarily, as such I check there for errors at least once a year. I have found plenty, including 5 90 day late notices from sears on an account that had a 0 dollar balance. (their computer systems were showing 12 dollars on the account for quite a few people) I didnt find this out till AFTER I purchased a car, and had to pay 20% interest until it was fixed 2 months later. Then I got 6.5%...

Scot
Great advice. I pulled my credit report for the first time ever (I'm 35 and have been an avid consumer, ahem).

Anyway, I found 2 credit cards, one from JCPenney and one from Montgomery Ward that are to this day "open". However, I haven't used either in over 10 years, and thought they were closed. In fact Montgomery Ward is out of business!

At least I was pleasantly surprised with a 782 score.
 

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Very good score! About those retail cards. They do NOT help your score, but closing them won't do much either as long as you dont have many of them. Basically if you have one at each store you have ever shopped at, you are in for trouble. If you close them, the score will still take months to come back up. Its a double edged sword.

My advice is to NOT get retail CCs unless you absolutely must. That 10% off today only deal may bite you in the butt a year down the line.

Scot
 

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here's a credit-related question:

when i pull my credit score through Equifax, it shows the "balance" on my Citibank card as $1000. This was my closing balance last month. I don't carry a balance, I pay the card 2-3 days after the statement closes, every month.

Does this mean that Citibank is reporting my balance incorrectly to Equifax?
I saw the same thing last time I looked at my report - that particular credit card shows my end-of-month balance, not what is actually carried for any length of time.

This basically means that if I use that card at all, it has a negative impact on my credit score. Pretty annoying!
 

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Alright,

Here is my summary... I hope this helps just a bit.

While I don't work for PeopleFirst, I have this to say about them.

They offer exactly what you, and I, are looking for. Their program qualifies the buyer. They send you a blank check that you can write out to any dealer for ANY car. It's all about the amount. Now, they do follow up at time of purchase to insure that you aren't buying a $2000 used car and claiming to purchase a new $40k car by checking the VIN number of the vehicle you have selected.

BTW, I just called them to back up this information after I typed the above.

If you apply for a loan, and you're turned down does it show up to other potential lenders? I dont want to muck anything up.
No, the credit report does not show why the account was not opened, it will simply show the inquiry.

Multiple applications filed within a set time period will only count on your score as a SINGLE credit application.
I know that this isn't true with Equifax. They will show ALL inquiries on your credit.

when i pull my credit score through Equifax, it shows the "balance" on my Citibank card as $1000. This was my closing balance last month. I don't carry a balance, I pay the card 2-3 days after the statement closes, every month.
Updates to credit reports take around 45 days on average. Don't worry about unless it stays on there...



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To sum it up, the way credit reports are built and used is so crazy you wouldn't believe it. I've seen credit models for scoring that simply make you shake your head and wonder who in the hell thought up such wacked out rules.....

I'm going to contact PF about 20 days before my car shows up.

BTW, all 3 of the credit houses are EVIL!!! :D
 
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