So I'm Not Able to buy a BRZ... - Page 2 - Toyota GR86, 86, FR-S and Subaru BRZ Forum & Owners Community

NemesisPrime909 · 08-13-2013, 12:08 PM

Quote:

Originally Posted by carbonBLUE

This^^ i have no credit and put enough down to get a 1.98% for 6 years... money talks bro...

what would you recommend would be a good amount?

20%-30% of the total cost?

mav1178 · 08-13-2013, 12:14 PM

Quote:

Originally Posted by NemesisPrime909

My credit score is in the 620's not super good but not super bad either.

Uh, not sure what you're using as comparison but 620 isn't that good, not with only 2 years of self employment history.

By comparison, I'm ~740-750 and I don't get the best rates available on the market for me for auto loan purposes. The numbers are one part of a bigger picture.

-alex

mav1178 · 08-13-2013, 12:14 PM

Quote:

Originally Posted by NemesisPrime909

what would you recommend would be a good amount?

20%-30% of the total cost?

If you have low credit you need to be putting down more than 50% if you want to finance.

-alex

ZionsWrath · 08-13-2013, 12:15 PM

Just for reference I had a credit score in the low 700s, have a "standard" job (not self employed) but limited credit history since im young and was employed at my job less than a year. I could only get 22,500 financed with ~3.5%

It seems most places use the same formula because multiple came back with the same maximum of 22,500 and only the APR fluctuated.

It would seem to me if they won't finance you AT ALL, you have some credit problems? They should tell you how much they can finance not just flat out deny you if your credit isn't horrible.

carbonBLUE · 08-13-2013, 12:17 PM

Quote:

Originally Posted by NemesisPrime909

what would you recommend would be a good amount?

20%-30% of the total cost?

Quote:

Originally Posted by mav1178

If you have low credit you need to be putting down more than 50% if you want to finance.

-alex

i put around 50% down but im a no-credit guy which is better than a low credit guy i guess?

mav1178 · 08-13-2013, 12:38 PM

Quote:

Originally Posted by carbonBLUE

i put around 50% down but im a no-credit guy which is better than a low credit guy i guess?

There's a lot more to what type of financing you're offered than just a simple credit score. The down payment could be less, but you end up with less of a convincing argument that you are not a financial risk with your car purchase.

You can make all the money in the world, but if you're overleveraged on your finances, you'll only get subpar financing.

Conversely, some people can get away with a relatively low income and very low/attractive APR, simply because they have no debt or even a mortgage to their name.

-alex

NemesisPrime909 · 08-13-2013, 12:47 PM

Quote:

Originally Posted by mav1178

Uh, not sure what you're using as comparison but 620 isn't that good, not with only 2 years of self employment history.

By comparison, I'm ~740-750 and I don't get the best rates available on the market for me for auto loan purposes. The numbers are one part of a bigger picture.

-alex

like i said not super good, and not super bad. the reason being is I avoid credit cards and had to resort to doing borrow against loans in order to build up said credit. granted that's a much slower way of building credit, but i prefer it to credit cards.

I'm also 24 and have zero debts. everything I've ever borrowed has been paid off.

ZionsWrath · 08-13-2013, 12:50 PM

Why wouldn't you just get a small credit card and pay off every month?

Since I was 18 or so I had a student card through Chase bank had a 1,000 limit. Would just buy gas and food on it and pay it every month. Sure I forgot once in a while but apparently it was good enough. I'm 25 now.

mav1178 · 08-13-2013, 12:54 PM

Borrowing on loans from a consumer credit perspective is the slowest way you can build credit. You're better off with a $500 limit c/c, use it for gas/groceries, and pay it off in full every month.

You'll have more credit in 6 months with this than loans in 3 years.

-alex

Edit: this will help you. http://www.myfico.com/CreditEducatio...YourScore.aspx

carbonBLUE · 08-13-2013, 02:05 PM

Quote:

Originally Posted by mav1178

There's a lot more to what type of financing you're offered than just a simple credit score. The down payment could be less, but you end up with less of a convincing argument that you are not a financial risk with your car purchase.

You can make all the money in the world, but if you're overleveraged on your finances, you'll only get subpar financing.

Conversely, some people can get away with a relatively low income and very low/attractive APR, simply because they have no debt or even a mortgage to their name.

-alex

I saved 40 bucks every week for 5 years plus my trade in to get it at 50% down payment, wasnt hard, its like drinking one less day of the week for that time to have the car. I wanted to payments where they are at, could have payed for the car in full but i needed to build credit so i made it easy at 200 bucks a month...

ZionsWrath · 08-13-2013, 02:09 PM

Quote:

Originally Posted by carbonBLUE

I saved 40 bucks every week for 5 years plus my trade in to get it at 50% down payment, wasnt hard, its like drinking one less day of the week for that time to have the car. I wanted to payments where they are at, could have payed for the car in full but i needed to build credit so i made it easy at 200 bucks a month...

Sucks when you are an alcholic and drink every day ^_^

Good thing I only drink Natty Ice and Svedka kekekeke

rmjjensen · 08-13-2013, 02:11 PM

I'm self employed - had no issues buying the car but I did put a lot down (mainly to get a low monthly payment) and was given 1.49% interest rate (my credit score is in the 760s).

To be honest I think your credit score is more the issue. With the recent financial crisis banks have tightened their lending standards a lot. Have you tried going through Capital One? They are usually the bank of choice for anyone getting denied through other means:

http://www.capitalone.com/auto-financing/

Oh, and also, I recommend signing up with Quizzle ...it's a free service that can provide you a lot of detail on your credit report - perhaps there's something on there that shouldn't be and is negatively affecting your score. I highly recommend their service: http://www.quizzle.com

mav1178 · 08-13-2013, 02:26 PM

Quote:

Originally Posted by rmjjensen

Oh, and also, I recommend signing up with Quizzle ...it's a free service that can provide you a lot of detail on your credit report - perhaps there's something on there that shouldn't be and is negatively affecting your score. I highly recommend their service: http://www.quizzle.com

You're also entitled to one free credit report per year:
https://www.annualcreditreport.com/cra/index.jsp

-alex

08-13-2013, 02:11 PM	#26
rmjjensen Senior Member Join Date: Jul 2012 Drives: 2013 Subaru BRZ Limited in WRB Location: Wilmington, DE Posts: 204 Thanks: 17 Thanked 86 Times in 48 Posts Mentioned: 0 Post(s)	I'm self employed - had no issues buying the car but I did put a lot down (mainly to get a low monthly payment) and was given 1.49% interest rate (my credit score is in the 760s). To be honest I think your credit score is more the issue. With the recent financial crisis banks have tightened their lending standards a lot. Have you tried going through Capital One? They are usually the bank of choice for anyone getting denied through other means: http://www.capitalone.com/auto-financing/ Oh, and also, I recommend signing up with Quizzle ...it's a free service that can provide you a lot of detail on your credit report - perhaps there's something on there that shouldn't be and is negatively affecting your score. I highly recommend their service: http://www.quizzle.com __________________ My Audio Build - 2 12s in a false floor and bangin. I love my BRZ

08-13-2013, 12:15 PM	#18
ZionsWrath Thanks Join Date: Apr 2013 Drives: BRZ Location: NY Posts: 4,163 Thanks: 5,989 Thanked 3,100 Times in 1,498 Posts Mentioned: 38 Post(s)	Just for reference I had a credit score in the low 700s, have a "standard" job (not self employed) but limited credit history since im young and was employed at my job less than a year. I could only get 22,500 financed with ~3.5% It seems most places use the same formula because multiple came back with the same maximum of 22,500 and only the APR fluctuated. It would seem to me if they won't finance you AT ALL, you have some credit problems? They should tell you how much they can finance not just flat out deny you if your credit isn't horrible.

08-13-2013, 12:50 PM	#22
ZionsWrath Thanks Join Date: Apr 2013 Drives: BRZ Location: NY Posts: 4,163 Thanks: 5,989 Thanked 3,100 Times in 1,498 Posts Mentioned: 38 Post(s)	Why wouldn't you just get a small credit card and pay off every month? Since I was 18 or so I had a student card through Chase bank had a 1,000 limit. Would just buy gas and food on it and pay it every month. Sure I forgot once in a while but apparently it was good enough. I'm 25 now.

08-13-2013, 12:54 PM	#23
mav1178 Senior Member Join Date: Apr 2013 Drives: 2005 Toyota Camry Location: 91745 Posts: 6,562 Thanks: 493 Thanked 6,099 Times in 3,030 Posts Mentioned: 95 Post(s)	Borrowing on loans from a consumer credit perspective is the slowest way you can build credit. You're better off with a $500 limit c/c, use it for gas/groceries, and pay it off in full every month. You'll have more credit in 6 months with this than loans in 3 years. -alex Edit: this will help you. http://www.myfico.com/CreditEducatio...YourScore.aspx

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