Didn't qualify for loan.

[CivicEX16]

I only look at the bottom line for the value of the car. I told the finance salesman not to talk to me in monthly payments. Talk to me for the total value of the car. I negotiated the price of a 2016 Civic EX (No Sensing or extra features) down to $20,000 clean. This includes taxes, fees, registration etc. I walked out of the dealership twice when they refused and they called me back with the price I wanted.

I was almost sure my credit was OK for a loan. I have a FICO score of 750 and never defaulted on payments, ever. All lenders they ran my loan request through, including a couple of federal credit unions, denied my loan. They financed me through some Honda-partnered crap at an 11.74% for 72 months interest rate that will add a total of $5,500 to the total price of the vehicle. I wanted to cry. The guy says he's going to try his hardest to get me a better rate, but I doubt he can. Wants me to come back Monday. He says that FICO scores don't matter. Just the fact that I never had a major loan before is reason enough to disqualify me. Essentially you are a nobody unless you've taken out a significant loan successfully, however you can't take out a loan if you've never had one to begin with. He says he's going to continue trying otherwise I'm going to have to stick to the rate for at least a year and try and refinance at a later time. No I will not! I refuse to pay a single extra dime. When I said $20K OTD, I meant $20K OTD. I'm not letting the loan sharks get any more of my money. It's going to hurt, but I'm going to have to end up paying it all on a lump sum. I wanna cry.

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[Ant918]

Something sounds wrong here, I financed my 2016 Subaru WRX Limited ($38000 car) at 2.9% and up until then I've never had a loan before(credit score around 760) That sounds ridiculous that they're telling you almost 12%. If you have good credit there's no reason for that it seems like something is suspect. Do you have a good income? I know that Subaru actually required two pay stubs from my job for proof of salary.

 

[myriad46]

Can you get a co-signer? How old are you? No offense, just trying to figure out that rate. Brutal.

 

[CivicEX16]

Can you get a co-signer? How old are you? Or offense, just trying to figure out that rate. Brutal.

No I do not. I am by my lonesome self. I am 33 years old.

 

[CivicEX16]

Something sounds wrong here, I financed my 2016 Subaru WRX Limited ($38000 car) at 2.9% and up until then I've never had a loan before(credit score around 760) That sounds ridiculous that they're telling you almost 12%. If you have good credit there's no reason for that it seems like something is suspect. Do you have a good income? I know that Subaru actually required two pay stubs from my job for proof of salary.

My income is modest. Nothing extraordinary, but neither am I broke. I make around $45K after taxes. The dealership wants me to come back Monday with my paystubs to see what they can do.

 

[bhorn]

Have you talked to a local credit union? Your bank? Get some other offers. I had quotes from two places (and pre approval) before I ever walked into the finance manager's office.

 

[slowride]

You are getting jerked around. You can secure your own financing and suggest you do so.

 

[Dba12913]

Shop around banks to get quotes and use that as leverage. That helped me a lot.

 

[CivicEX16]

Have you talked to a local credit union? Your bank? Get some other offers. I had quotes from two places (and pre approval) before I ever walked into the finance manager's office.

My bank denied me and so did a couple of local credit unions. However, I ran the check through the dealership. I should put a stick up my ass for that.

 

[bhorn]

My bank denied me and so did a couple of local credit unions. However, I ran the check through the dealership. I should put a stick up my ass for that.

I'm confused. Did you actually walk into these other financial institutions and sit down with the loan officers? Or did you only talk to the dealership guys?

 

[CivicEX16]

I'm confused. Did you actually walk into these other financial institutions and sit down with the loan officers? Or did you only talk to the dealership guys?

Just the dealership. The only one I did myself was my bank. They denied me both at the dealership and in person. I started getting desperate and I had no one to drive me around town to shop for lenders. I don't even know how I made it to the dealership on foot 6 miles away. But I figured it should be a one stop shop. My bank manager confirmed they work with the dealership I went to.

 

[silverrascal]

This just doesn't add up. You've got income and decent FICO. Can't understand how you're being denied a decent loan. I wouldn't accept a loan rate higher than 2.9%. Walk away and find another deal, IMHO.

 

[Jamm_95]

I think that's crazy high, I was even approved and I'm only 21, no co signer and a FICO score at the time of 670 I think. I was approved for 3.74% but for 72 months.

 

[2hot2handle]

Only thing I can think of is you have a high debt to income ratio.... if not, you're definitely getting screwed from all angles.

 

[CivicEX16]

Debt to income? I'll bring that up to the finance manager Monday. See what he says. Although, I'm curious to know how they calculate these things as I don't have any outstanding debts or expenditures that would warrant a loan failure. I know I'm being screwed with the interest. I don't really know if that has anything to do with the dealership. Wouldn't it be the lenders making the profit on the interest? What does the dealership have to do with that profit? If they have a connection there's definitely something sketchy happening here. If I don't get anything below a 3% come Monday, I'm just showing up at the dealership cash in hand and paying upfront. I'm tired of having my credit record run up the wazoo for all to see just to get rejected.

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