9 year post BK with upcoming car purchase....

[californiano]

Hi all!

Filed for BK7 in 2003, discharged same year.

Purchased a new car in 2007 with 9.9% rate (trade in)

Purchased a new car in 2011 with 3.9% rate (trade in)

Now I find myself needing to buy a new car for myself (the last 2 above is my wife's under my name) I am considering a 2012 Toyota Prius C. I have never financed or purchased thru Toyota.

Now, I checked my USAA bank's credit monitoring services on all 3 agencies and was surprised that 2 of them has 770 credit score (both still have BK on file till early next year) and one is 735 that one does not have my BK on it. Ever since BK, I have NEVER been late or missed anything!

My question is: Can I buy a car with no down payment (no trade in, since I'm giving my old car to my kid)? I am planning to use $2k to cover tax and tags with my Visa (Not sure if Toyota dealership accepts credit card for such purpose?). I make over 75k a year and I only have 1,500 balance on my VISA plus $12,000 for my wife's car loan balance. Will I have issue with Toyota dealership when applying for finance thru them?

Or is it better to apply my Patelco Credit Union and see how they offer APR if too high, will dealership beat that? since its double credit inquiry pulls!

Lastly, any suggestions?

Thank you!
californiano

[justbroke]

With that credit score (above 720), you should be able to get the so called "Tier 1+" credit from any auto dealer or your credit union. My credit union typically gives 1.9% on new cars. Some manufacturers are offering 0% on 60 months for "well-qualified" customers which is Tier 2 and better. You should have no issues. I would apply at the credit union AND the car dealership at the same time (same couple of days). Compare the offers and select the best.

At the car dealership, you can use a credit card to split the payment if you prefer to pay the estimated tax and tags with the card.

[ksgirl38]

I'm pretty sure you can go to the Toyota website and apply for credit there to see where you stand, but I can't see why you wouldn't get the 0% financing. If not, I'd try negotiating for it.

[goon]

I agree with applying to both, and somebody correct me if I am wrong but as long as the inquiries are of the same type (auto loan) and same timeframe (couple days) it only counts as one hit anyway, correct?

[AngelinaCat]

Consumer Advocate, Clark Howard, always recommends going to your credit union or bank, and get pre-approved for a loan, BEFORE walking into any automobile dealership. He says that 99% of the time you can always work a better deal for yourself doing that, than trying to deal with the finance people at a dealership.

Good luck!

[justbroke]

I agree with applying to both, and somebody correct me if I am wrong but as long as the inquiries are of the same type (auto loan) and same timeframe (couple days) it only counts as one hit anyway, correct?

This is correct, and I believe that if the lender uses the "newest" FICO model, it allows 14 days for both auto loans and home loans.

[californiano]

Ok,

I just got confirmation from dealership that they have my new car ready for this Saturday. My question is when is the best time to apply thru my credit union to see what rate they offer before I try using dealership application for finance probably thru Toyota Financial or other banks.

Let me know...kinda nervous thou'!

[justbroke]

I just got confirmation from dealership that they have my new car ready for this Saturday. My question is when is the best time to apply thru my credit union to see what rate they offer before I try using dealership application for finance probably thru Toyota Financial or other banks.!

You should have already submitted to your credit union. If USAA is anything like NFCU, they can even give you a "draft" check, for you to use. (It's basically a "blank" check good up to a certain amount. ) The draft check is your approved credit, with your rate already set, terms, and can be completed up to a certain amount. I'd apply for the maximum that you need so that your draft will say something like "good for any amount from $10,000 not exceeding $25,000".

Congratulations.

[californiano]

JustBroke,

I plan to apply at Patelco CU (California) since I'm a CU member but I am not eligible to apply for auto loan at USAA (non-military accounts).

Other thing is can I apply like GoldenOne CU for auto loan if I'm not a member???

[justbroke]

Other thing is can I apply like GoldenOne CU for auto loan if I'm not a member???

It depends on the credit union. Some allow you to apply for credit and membership at the same time.

[californiano]

Ok thanks but I think one CU would be enough?

[justbroke]

If you are already at a particular CU, with deposits (share account, direct deposit), a history, and other credit products, they are usually your best bet. However don't be afraid to shop the rate! All the inquiries within the 14 days count as one inquiry. (Note: after the 14 days, the inquiries each count individually and are no longer "pooled" as one inquiry... so don't go crazy.)

I might be inclined to check a couple. Also, be wary of dealerships. They will, sometimes, submit your loan to multiple lenders and banks (as many as 3-5). Each could run your credit. That's why I like coming there pre-approved either through my bank/CU or through the Manufacturer's credit services. I always tell them I'm not filling out an app, and that they are not authorized to run my credit.

[californiano]

Applied thru Patelco CU yesterday morning. Still in *Pending* status today ugh! They said they are understaffed and probably would be in few hours but that was yesterday!

Another thing came up...I did notice Toyota web site where people can apply for pre approved thru Toyota Financial is this a good idea? or wait to apply at the dealership this Saturday?

[californiano]

Hmm...kinda disappointed...Patelco offered 5.04% for 60 months WTH? My USAA credit reporting service says I have Experian of 770 while Patelco pulled they said 718! I have 9 years of perfect credit no late payments no blemishes since my BK7 was discharged 7/2003

Am I doing anything wrong or what's wrong with this picture? Remember I got 3.9% last year thru the auto manufacture's financial company.

[Chad334]

USAA are considered FAKO scores, they are no FICO, your scores via the dealer would probably be higher as they use auto enhanced. I would assume getting pre-approved through the toyota website wouldn't hurt, because you have a 2 week period to shop around for auto/mortgage rates and it only impacts your score as 1 inquiry.