Car financing… tier 1 credit but finance guy says I don’t have enough credit lines??

Submitted by Happy2helpnlearn t3_yhy6rs in personalfinance

Hi all. In the home stretch for purchasing a used car. Had my credit pulled yesterday by the finance guy at this dealership. I call him today (he was supposed to call me yesterday) and while I’m on the line with him he’s working on the #s. Tells me I asked for a 6 year loan. I corrected him that I always wanted a 5 year loan. Then he asks how much I want to pit down on a 36k vehicle. Without telling him I have 7k, he offers to run scenarios for 3k and 5k down. He starts telling me the monthly payment and I immediately ask him what the rate will be. He tells me 8 something.

I ask him what my credit score was, he tells me 723 Experian. I call BS on him, I subscribe to Experian and it’s 793. He says it doesn’t matter, I only have 2 accounts open. Not enough credit. I’ve had an auto loan before (over 10 years ago) and I know I have 3 CCs currently. Two have been open over 10 years. All have perfect payment histories paying off balances each month. I own my home free and clear.

I tell him to call me back when he works on his numbers. I’m pretty mad but respectful by the end of the phone call, and he knows he’s not talking to some babe in the woods. He asks permission or check further banks. I tell him I’m shocked he hasn’t tried anything but his automakers credit and he says Chase is over 11% for used cars. (He tried his automakers credit department which is a different brand from the car I’m buying). I tell him what’s that? Pulling my credit yet again? Whatever. Go ahead.

What’s the best place for me to go for a used auto loan?

What rates are being offered these days?

Is this guy as nuts as I think for offering me 8%/60 months?

Should I get a co-signer or is he just wasting my time because the dealership needs to make an extra 12k off me because I have no trade in?

Why does it have to be this hard?

PS I’m not posting this on r/autosales because that sub is full of car salesmen and they tear up posters for being skeptical of the auto business and finance departments.

I happen to like the car I found and would like to buy this particular one. I’ll walk if I have to but would hate starting over and running another credit report again.

Thank you for your help in advance.

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Trick-Read-3982 t1_iugat89 wrote

Go to a credit union and/or your local bank to get your loan. You have more leverage if you are already approved with financing you arranged yourself. If they want to finance your car, they can beat your terms.

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Trick-Read-3982 t1_iugbriq wrote

Also, I looked at the Chase website and I’m seeing around 7% for their rates for very good credit. Looking around I see credit unions at 5-6.5%. You can do better, but you need to do legwork yourself and not expect them at the dealership will give you reasonable rates or truthful information.

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Happy2helpnlearn OP t1_iugcq0i wrote

Thanks to you and the reply above. I went into the dealership and had a pretty stress free experience with the saleswoman and the test drive. Haven’t bought a car in a long time from a dealership and forgot how sleazy the finance departments can be. Thought my credit score was enough to elevate me above bait and switch shell games.

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sonnyfab t1_iugavev wrote

>by the finance guy at this dealership

He's probably lying to you.

>he was supposed to call me yesterday

So you've verified he's a liar already.

>he’s working on the #s.

Or he's just lying to you about working any numbers.

>He tells me 8 something.

Did you get a firm number or just this BS?

>I call BS on him

How much evidence do you need that he's a liar?

>He says it doesn’t matter,

Right, because he doesn't care about your credit score because he's a liar selling you a shitty loan.

I stopped reading. I'm sure the rest of your post made it clear you knew he was a lair and you completely ignored him and found some other institution, like a bank or credit union, to finance your purchase.

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MsTrkDrvr t1_iugawuq wrote

Talk to a loan officer at a local credit union.

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123456478965413846 t1_iugog5h wrote

>I ask him what my credit score was, he tells me 723 Experian. I call BS on him, I subscribe to Experian and it’s 793. He says it doesn’t matter

This is the one thing that probably wasn't him playing games. You have like 50 different credit scores, some will be higher and others lower. So you could see a 793 and he see a 723 and both be telling the truth. But a 723 should get you there best rates so when they said it doesn't matter, they were also telling the truth.

Everything else is BS to get a higher interest rate loan sold and get a larger commission. Just get a loan elsewhere and watch as he magically is able to convince the bank to com in at the same rate or a hair lower.

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Old_Travel8423 t1_iugo1h1 wrote

You need to shop banks for financing. Average used car rates look like they’re around 5.5% for good credit buying used. https://www.businessinsider.com/personal-finance/average-auto-loan-interest-rate

Find some local banks and some national banks, get a few quotes. Sounds like this guy doesn’t know what he’s doing.

If you really want to annoy him, make sure the loan he’s getting you is prepayable without penalty and then get refinance quotes from banks. Get the lower price they give to people who finance with their crappy credit company, and refinance it the next week when the paperwork is all settled. They’ll probably lose out on the financing charges /bonuses.

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limitless__ t1_iuht3h9 wrote

I give dealership finance one chance to be above-board and get me a good rate. If they don't, I just go to my local bank/credit union/online service. Last time I got a loan through lightstream and had the money in the bank within 24 hours. You should be able to get around 6% with a credit score of 750+.

Do NOT get a co-signer and don't worry about credit dings.

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Happy2helpnlearn OP t1_iuhyj57 wrote

Thank you. I too gave the dealership one chance to be above-board. Never heard of light stream but I’ll be googling it. Thanks

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Happy2helpnlearn OP t1_iuizaed wrote

I’m curious about your last line. May I ask why no co-signer and why not worry about multiple pulls on my credit report when that will lower my score? Thanks

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GayMormonPirate t1_iugl5fe wrote

Try applying for auto loans at Capital One, Sofi, and local credit unions (you don't typically have to be a member to get a quote and you'll join if you accept their loan offer).

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THEbushyEFFECT t1_iugpgo0 wrote

I bought a car today at Carmax and they had the best financing rates out of 3 other credit unions I had checked before hand, 4.5% and I have a similar credit score to you.

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Shadow14l t1_iuh0eeg wrote

Almost all car salesmen are slimy. But he can’t really lie about your credit score. The main reason it’s different, is because he’s looking at your Fico Auto credit score which you’re not going to generally see.

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NoleScole t1_iuha6hr wrote

I applied for financing at my local credit union (got pre approved rates before applying, at several credit unions and I also looked at their rate for excellent credit score to worst credit score and for the length of the loan. They usually have it broken down and displayed right on their website). I also applied for financing dept at the car dealership to find the best financing deal. Then I compared what I did myself and what the guy got from the dealership got for me (do credit union application first, then approach the dealership with what you got). I got 4.3% at credit union and 3.5% at my dealership. So I went through the dealership.

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dwinps t1_iuidy40 wrote

Go work your own financing, car dealers are looking out for themselves

There is no one credit score, you auto loan score very well could be lower, won’t count a loan you had 10 years ago

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Happy2helpnlearn OP t1_iuigsn2 wrote

Thank you.

I will say that he told me specifically my Experian score was 70 points lower than what it was. I know there are 3 bureaus with all different scores. Kia pulled my credit 2 months ago and my 3 scores were sent to me in the mail, middle being 816. No credit changes since then. And I subscribe to Experian.

I’m going to a local credit union today. Thank you very much for the help.

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dwinps t1_iuihubt wrote

There is more than one score type at any one credit bureau

There is not a single Experian score

Which doesn’t mean the dealer wasn’t lying but they might not have been

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