@#^@^ Financing !#%!

AgTitan06 · 09-20-2006, 06:53 PM

I just purchased my Titan on Friday. I signed papers that stated my interest rate of 6.99%, monthly payments, and term of 48 months. The loan was for $16,000. Nissan financing did not know who he was going to get loan through for me yet, but I still signed everything. He just left the lienholder blank. Anyways, I got a letter today from some bank saying they are rejecting my loan, but approve me for 9.99%, which obviously would increase my monthly payments...I am 22 yrs old, but my credit score is 760, I have almost twice the amount of the loan amount in my investments, and I make over 10 times the monthly payment per month. I don't see why they are having problems...I just graduated and started my job, but I still don't see what the problem is, since I have excellent credit and more than enough cash to pay it...I just e-mailed my salesman to see what the he11 is going on......I am ticked right now.

**Carbeaux** · 09-20-2006, 07:24 PM

Quote:

Originally Posted by agfrontier01

I just purchased my Titan on Friday. I signed papers that stated my interest rate of 6.99%, monthly payments, and term of 48 months. The loan was for $16,000. Nissan financing did not know who he was going to get loan through for me yet, but I still signed everything. He just left the lienholder blank. Anyways, I got a letter today from some bank saying they are rejecting my loan, but approve me for 9.99%, which obviously would increase my monthly payments...I am 22 yrs old, but my credit score is 760, I have almost twice the amount of the loan amount in my investments, and I make over 10 times the monthly payment per month. I don't see why they are having problems...I just graduated and started my job, but I still don't see what the problem is, since I have excellent credit and more than enough cash to pay it...I just e-mailed my salesman to see what the he11 is going on......I am ticked right now.

A couple of things come to mind. Give the dealer a chance to find a place to hang the paper at the rate they quoted you. At that credit score, and with as much equity as you have, 6.99 should be very doable. If the dealer can't (or won't) find that rate for you, it's time for you to shop for yourself. Best place IMHO is a credit union. They might even get you better. Good luck! And congratulations on the Titan!

The Boogieman · 09-20-2006, 07:33 PM

With the spike in interest rate, your payment went up from 345/month to 350/month.

That's $240 over the life of the loan.
I wouldn't worry about it. If it's too bad, refi through a credit union. If you've got the $$$ to pay for it, but want the loan you may be able to do a secured loan for like 3.6

maybe my #'s are off, but I think they're right on. hope it helps. btw, what'd you graduate with, and what do you do if you don't mind me askin?

**Carbeaux** · 09-20-2006, 07:39 PM

The difference is from 383 to 405. That makes 22 times 48 which is 1056 dollars difference. I used this loan calculator if you want to check:http://ufcu.org/tools/calculators/index.php?loc=menu

Click on loan calculator and enter the numbers. Maybe I keyed them wrong. And this IS a secured loan. It's secured by the truck as the colateral. A truck in which the lender would have huge equity. Use this same site and pull up auto loans, and you can see this credit unions rates. They're pretty low. And sorry it's a UT credit union, but it's one I know off the top of my head.

LANDMAN · 09-20-2006, 07:46 PM

That, My Friend, is the old bait and switch. You could tell them to come pick up the truck because those terms are not acceptable. If it is 240 over the life of the loan they are counting on you just going with it. Then finance boy has earned his keep for the day.

I think you have some leverage in the situation.

RedHotTitan · 09-20-2006, 07:48 PM

Quote:

Originally Posted by agfrontier01

I am 22 yrs old, but my credit score is 760, I have almost twice the amount of the loan amount in my investments, and I make over 10 times the monthly payment per month. I don't see why they are having problems...I just graduated and started my job, but I still don't see what the problem is, since I have excellent credit and more than enough cash to pay it...I just e-mailed my salesman to see what the he11 is going on......I am ticked right now.

I personally find that amazing..a beacon score of nearly 800 at 22? With approximately 4 years of valid credit history, all inquiries should still be coming back with a negative comment of "length of open accounts too new" or something along those lines regardless of your payment history and established credit. I, too started early with good credit habits, and I did not have a 760 at 22...whatever you're doing, you're doing it right.

Secondly, the amount you make per month by itself is meaningless. It's your income to debt ratio that the bank cares about...you could make $100,000 instead of $50,000, but it doesn't make a difference unless you factor in outstanding obligations.

Hope that gives you some perspective, and good luck to you.

vegashd · 09-20-2006, 07:49 PM

I would simply call a credit union and get yourself a 6% loan

AgTitan06 · 09-20-2006, 07:51 PM

North Texas - Bachelor of Science in Accounting
Texas A&M - Master of Science in Accounting (will finish up next year)
Auditor in public accounting firm

AgTitan06 · 09-20-2006, 07:59 PM

Quote:

Originally Posted by RedHotTitan

Secondly, the amount you make per month by itself is meaningless. It's your income to debt ratio that the bank cares about...you could make $100,000 instead of $50,000, but it doesn't make a difference unless you factor in outstanding obligations.

I don't have any other debt. I have had no late payments, and I pay my credit cards off every month. I was lucky enough to have my parents pay for my undergraduate, and I am just paying for my graduate degree with scholarships and a small student loan. Anyways, I will call them up tomorrow and see what's going on.

AgTitan06 · 09-20-2006, 08:03 PM

Had I know this, I would have taken the 1% financing instead of the $2750 cash back. We'll see what they say tomorrow.

The Boogieman · 09-20-2006, 08:21 PM

I'm sorry, been cramming for an accounting exam the past 3 days and it's apparntely not looking too hot for me right now

@ 6.99% = 383.07/month
@ 9.99% = 405.72/month

$22.65/month split

What's it cost to refi if you're stuck @ the 10? I forget what kind of a loan it was called, but mine is secured against $10,000 that I have in a savings account. My credit union uses this as colateral(sp?) and has my rate around 3.6 or something wicked low.

I don't know if the $10,000 has to be cash, or what, but it's something to think about.

I hope practicing accounting is more enjoyable than studying it.

**Helinut1970** · 09-20-2006, 08:27 PM

Here is another way they might get you so watch out!

Getting the right car loan: You may agree to a certain interest rate and payment when you're negotiating for the car, but dishonest dealers may still try to pull the wool over your eyes when it comes time to sign the contract.

They'll raise the interest rate and lengthen the term of the loan -- but keep your payments as promised. You'll fall for it if you only make sure you're paying a certain amount each month, without realizing exactly how long your shackled to those payments or what comprises them. Check that you're getting the rate you were quoted, before you sign.

You have fallen for the bait and switch. You should have never left the dealer without getting the loan first. Go in, in the morning and lay the keys on the desk and tell them you have cleaned the truck and you want the paper work back. They wont give it to you because they own the paper. But they will get the point. Tell them you will not sign a loan. Beware they may try to make you pay for use on that truck. Make sure you read the paper work they gave you because in your hast you may have signed a paper that states you do have to pay for the use at an ungodly amount. If thats the case, bend over and take it up the butt. Your screwed!!

**konigfritz** · 09-20-2006, 08:29 PM

With that Credit score you should be able to find a loan in the 4-5% range.

buzzkillwill · 09-20-2006, 08:29 PM

So, let me get this...

You have a credit score of 760, work as an auditor, but didn't secure a loan prior to going to the dealer...yeah, okay.
Well, you shold never leave financing to the dealer, unless of course, you're pre-approved for a special interest, or no-interest program.
Like others have said, try a credit union, or try your bank.

The Boogieman · 09-20-2006, 08:41 PM

Quote:

Originally Posted by agfrontier01

Had I know this, I would have taken the 1% financing instead of the $2750 cash back. We'll see what they say tomorrow.

Actually, in an 'either or' the two end up being about the same (again, I think).

If you pay 1% interest on $18,750, you'll pay $398.65/month

If you pay 10% interest on $16,000 you'll pay $405/month

you done right, because with this, you can refi else where and lower your payments. For every % point you can drop, your loan will drop about $7.50/month; or $340 over the term of the loan.

good luck