Oh thanks for the heads up, I was going to apply with Chase in the morning but now I see where corporate bank auto loans are going....ugh I am 24 and am I really going to daddy for a co-sign????

Oh well he owes me, he wouldnt let my 2 dirtbike payments be in my name so he could get a better rate on a boat from Yamaha...bastard haha

 

Well when I got to my office this morning I had an email from the same dealer apologizing for the confusion and told me I am approved for 2.9 for 60. Sweet, no college graduate program for me!

 

My FICO was 650 and my MF ended up being .00272.

 

FICO 740 should qualify you for best rate. Thats a fact.

Some lenders lower minimum FICO for Tier 1 but 740 is the norm.

 

btw, APR will always be lower if financing through the financing arm of the manufacturer if you're buying new from the manufacturer. They make money on both sides; the finance charges and the sale of the car.

Loans directly from the bank and/or credit union only make sense on private party deals or used cars.

There isn't a single bank that'll give you less than 5% on an auto loan currently whereas almost every manufacturer is offering between 0 and 4% for up to 72 months when dealer financing.

 

And depending on incentives, it may be better to take a cash incentive in lieu of a subsidized interest rate and finance through a major lendor. Remember, everyone's situation is different. Just because it may never benefit YOU, does not mean it will universally not benefit everyone.


No, that is not a fact. Any college grad with 2 credit cards with a $1000 dollar limit on each with low balances and no late payments will have a score over 740. A lot of them will in fact be over 780. Do you think they will get an auto loan at tier 1? Sure, if they put themselves in an equity position on the car (e.g. 15k down). Otherwise, the lenders will pass, or give a higher rate.

On the other extreme, someone with a 650, but 40 active trade lines, all in good standing, and low balances and high limits, will definitely get a tier 1, even though their score says otherwise.

Score is only one factor in the equation of a loan, just how price is only one factor in purchasing a car. We're not in the middle of a housing bubble any longer. They don't JUST look at score.

 

credit history, debt ratio, combined loan to value, and collateral dictate approval. FICO dictates pricing.

Thats a fact.

 

Are you a Credit Analyst? Are you in the Finance industry? While what you state is generally true, it is not always the case.

 

yup. ur right. there are always exceptions since lenders have different thresholds and limits. but it is FICO that determines pricing.

That's pretty much all its good for. Of course, a FICO too low in and of itself can be a deal breaker. But generally, its because of the root causes of the FICO score. ie: one's credit history.

 

What that's not true, for the most part there will never be huge cash and low APR. So ALWAY take the loan from the car dealer. They will be <5% and you will still get low rates...even if you did use the cash off.