BRZ Financing Question

[NGNG]

There was a thread not long ago where everyone was detailing how they paid for the car. I think it ended up being closed as it got off track, so I'm posting this question in a new thread. Not trying to revive that discussion, I have a specific question in regards to financing.

I noticed there were a lot of members who put 0 down on the car with NO CREDIT HISTORY and somehow got a great rate and the loan to begin with. To me that's highly unusual, so I'm wondering how you guys were able to secure it? Is this type of financing through Subaru? Did you have a co-signer, or, and not to get into your personal business but were you able to show a high income as the key factor?

Personally I work part-time in internet marketing and spend the rest of my time as a freelance contractor/consultant. So it's hard for me to provide the verification lenders typically require when it comes to additional income. So I usually only provide my part-time job income, which I doubt is enough to secure the line that I need. Though I can afford it, I'm wondering if I would be able to prove it.

I'm looking to put 5-10k down and finance the rest. If there's people out there putting 0 down with no credit history, I'm thinking I may have a shot? No credit history leads me to believe young and avg income... Maybe I'm wrong, any advice?

[shirker]

To clarify, are you directing your questions towards people with none or minimal credit history? It would help to know your credit history, not your exact FICO score or anything but whether you have history and if its fair/good/great.

I put a low down payment on mine with <1% interest. I have good credit history but I think it helped a lot that I listed a high annual income. Never had to verify it.

My advice to you, provide your best estimate of what your income really is, be it from verifiable sources or freelance work. Worst thing that could happen is they question you, and you have to speak to a loan officer to explain your situation to persuade them and provide any evidence they might deem satisfactory.

[DeeezNuuuts83]

Generally speaking, they won't approve your monthly payment being more than around 25% of your monthly income. So good credit or not, regardless of how much interest you have to pay, it needs to be no higher than that amount. Usually they don't verify it unless it's really close or if your credit is really bad or if it doesn't make sense for you to make a certain amount given what you do.

[thill]

My advice (and maybe you are already doing this) is to secure financing outside of the dealer in case the dealer comes in high. If you are not a member, join a credit union. They tend to be easier to get low interest loans on and more flexible. Also check out Bankrate.com. If you put a sizeable amount down and try to stay with 48 months financing (60 might be fine too) you should be able to get a good rate. And obviously your credit rating/history plays a big role. When do you plan on buying?

[suaveflooder]

If you must finance, I agree with above. Credit Union will almost always give you the better rate and they are pretty easy to get a loan through.

[NGNG]

I wanted to buy at the end of this month with 5k down. The 25% wouldn't be an issue with 60 months on my part-time alone. But, my credit is probably only fair right now, not poor, but not high either. So I may have to wait a few additional months. I was just thinking if people with no history are getting 2% with 0 down there might be a way through a good down payment or cosigner, or someone out there is being extremely lenient.

[Whitigir]

If you want to know whether you are Approved or not, what % rate, and %down payment. Use this Site and apply. It is Roadloans

Click here. I have used it, and It is a very Safe and Secure Service

It is the same as Dealer Service, which runs your profile through all the Banks, and whichever approve you, it will list it out. Instant decision in 2 minutes max.

[strat61caster]

Recent college grad and military discounts offer decent rates. Might contribute to what you've perceived as people without the credentials getting decent loans.

[DeeezNuuuts83]

And also Scion's financing program is a little less strict, since their target is the younger crowd who may not already have a 730+ credit score... that is, if you are also thinking of people who have bought FR-S.

[shirker]

Originally Posted by NGNG

I wanted to buy at the end of this month with 5k down. The 25% wouldn't be an issue with 60 months on my part-time alone. But, my credit is probably only fair right now, not poor, but not high either. So I may have to wait a few additional months. I was just thinking if people with no history are getting 2% with 0 down there might be a way through a good down payment or cosigner, or someone out there is being extremely lenient.

Yeah, the reason I asked about credit history is because credit unions are fairly strict about credit history, with unions like PenFed, which I got my loan from, being notoriously conservative (read difficult to get into). Your best rates will be through credit unions, aside from that possibly dealership financing. If you can afford to wait on getting the car, it might pay off to build up your credit history, and perhaps snag up a deal on the MY14.

[NGNG]

I got approved for an frs, going to go test drive one this weekend.

[suaveflooder]

Originally Posted by NGNG

I got approved for an frs, going to go test drive one this weekend.

Congrats!!! Make sure to post pictures!!

[drew_dice27]

Congrats on your pre-approval.
To answer your question though, it really depends. You do free lance work which is hard to prove that you have stable income. When paychecks aren't steady and or consistent, financial institutions usually ask for recent taxes to see if you've been making money doing what you say in the past years. The more you put down, the less you finance, the smaller the risk for the banks so they'll reward with lower rates. Banks usually like to see your debt to income below 40% and loan to values below 80%