Mom approved for auto loan -- mom and I turned down?!!

[sillywalks]

I'm a wee bit frustrated. My mom has offered to help me get a car to replace the one I have that has 185K+ miles on it before bankruptcy. My credit is in the toilet (mostly due to investment home going back to the bank).

Mom got approved through Capital One for $28K at 3.65% -- pretty decent. She has great credit and 1 mil+ in assets. I talk to Capital One (she hates doing it) and mistakenly stated honestly that I would be the primary driver. The representative said they could not approve the loan because both of us would need to be on the loan if i was primary driver. She said to reapply with us both on the loan.

I reapplied, and we were DECLINED!! I don't get it. Mom has an income of $110K a year (annuity,ss,etc.) and plenty of assets -- obviously they have no problem giving her a loan. But, what difference does it make if she is giving me the car and holding the loan? Obviously, she is not going to be filing bankruptcy and there is NO risk of her defaulting -- whether I am listed or not!

And why will they not approve the loan with me as a co-applicant -- again, she is obviously not a default risk? I should add that my income is $63K...

I just don't get it. And, I don't know what to do at this point. I was hoping to get the auto loan through a bank so that I could purchase a used, low mileage car.

Ugh.

[justbroke]

Capitol One is not the only fish in the sea! When applying for financing, do so with multiple banks within a 2 week timespan since they will count as just one inquiry as far as FICO is concerned. Every lender has different amounts of risk they'll accept and you don't fit the underwriting guidelines for Capitol One.

[pavlikclan]

If whoever i was applying with had credit like that I wouldn't even LOOK at Capital One. Go to a dealership and maybe she can get 0 percent interest or better.



Ok I just realized how incredibly stupid that sounded................How about maybe she could get 0 percent interest which would BE even better . It's late. Time for bed!

[oregonpilot]

ahhh pav......i love it!!!

[free2breathe]

hahahaha, thanks for that laugh. That was priceless
I guess when you are in the midst of the bankruptcy world, it's ok to dream of 0% or better!

[tcreegan]

Hi all, Hi sillywalks,

How about your Mom buys the car on her own. Then she goes to the DMV and adds you to the title. Might work??

Been a long day, hope this makes sense to someone...

Tom in Colo

[sillywalks]

Thanks, guys. I will try elsewhere -- she has been approved through Toyota, but that pretty much means a new car. Don't get me wrong, I would love a new car! But, it's just that much more expensive. Still, I would keep the car until the wheels fell off, plus Toyota care come with a new one. Maybe it's the best thing.

Tom -- I think the problem is Capital One wants the primary driver to be on the loan (why, I don't know). Pfffft. Their loss! ;)

Have a great morning. We are snowed/iced in here. Pretty!

[keepmine]

Thanks, guys. I will try elsewhere -- she has been approved through Toyota, but that pretty much means a new car

If her credit and finanials are that strong, she needs to go her local bank or CU an get preapproved for a loan. That way, you can buy whatever you want-new or used.
Lenders have really tighened credit standards in the last few years. Your best bet may be to just use her credit and financials to get the loan and let her add you to the title later.

[frogger]

The representative said they could not approve the loan because both of us would need to be on the loan if i was primary driver. She said to reapply with us both on the loan.

That is complete and total bovine dung. It doesn't matter who the car is titled to or financed to in your situation. The only thing that matters is that the car is insured, and you are listed as the principal driver.

[sillywalks]

That is complete and total bovine dung. It doesn't matter who the car is titled to or financed to in your situation. The only thing that matters is that the car is insured, and you are listed as the principal driver.

I completely agree, frogger, except I would call it rabid mutant fruit bat guano. ;)

[dneil]

ummm, I think this is because cap one doesn't allow co applicants. You need to just apply without your mother. I was just on their site because I applied for a credit card to start re-building my credit. They have a 1-800 number on the site... personally, I would call them and ask them if it would be a better idea to just apply for a car loan on your own. Go to http://www.capitalone.com/contactus/...ME_H1_23_T_CU1 look around and find the customer service number. Hope that helps you By the way, I got the credit card

[sillywalks]

ummm, I think this is because cap one doesn't allow co applicants. You need to just apply without your mother. I was just on their site because I applied for a credit card to start re-building my credit. They have a 1-800 number on the site... personally, I would call them and ask them if it would be a better idea to just apply for a car loan on your own. Go to http://www.capitalone.com/contactus/...ME_H1_23_T_CU1 look around and find the customer service number. Hope that helps you By the way, I got the credit card

I tried that, deneil, and I was turned down. Their website allows you to apply with a co-applicant, so I assume they must allow them?

Glad you got your CC.

[tcreegan]

Hi all,

The 'primary driver' clause is just Cap 1 'procedures' that the frontline troops follow...and they get paid to follow the script, not make independent decisions. Seeing this in most megaconglomocorps these days. Same lack of initiative can also work in your favor...I'll bet even money that if Mom finances the car, then adds sillywalks to the title later, Cap 1 will either never notice or ask for a signature w/o asking who the primary driver is....it will go to a different department w/ a different script.

Worth a try maybe....

Tom in Colo

[sillywalks]

Hi all,

The 'primary driver' clause is just Cap 1 'procedures' that the frontline troops follow...and they get paid to follow the script, not make independent decisions. Seeing this in most megaconglomocorps these days. Same lack of initiative can also work in your favor...I'll bet even money that if Mom finances the car, then adds sillywalks to the title later, Cap 1 will either never notice or ask for a signature w/o asking who the primary driver is....it will go to a different department w/ a different script.

Worth a try maybe....

Tom in Colo

Hey, Tom! I tried to tell the representative that mom would be the primary driver instead, but of course she was having none of it at that point. I even asked if mom gave me her car and drove the Rav herself -- but no go. I guess it was not meant to be with Capital One!

Best wishes from sunny....um, I mean snowy and icy Georgia!