BSSN

Well, I don't know how wierd this is, but it is Z06 related, and is as cautionary as it is a question to the rest of you...has this happened to you?

Originally, I spoke with my bank half a year ago about financing my Z06. They said no problem, present to us with 10-20% down, and a credit score of 705 or greater.

So, time came to buy as my downpayment was saved, and I came to them. They then informed me that they would not entertain the idea unless my credit score was "near 800". As in 780+, according to them.

Lame.

So I went to a different institution, showed them my proof of income, downpayment, etc. etc. etc.

Well, I wasn't a 705+, and was only mid 600's. They were still okay with it, I just wasn't getting their "A-Tier" rates. Well, okay, fine. I wanted the car. So they took the loan to a committee, voted, and approved me. They called the dealership owner and told him "We are behind your client 100%, unless his own finances tank, order him the car."

So the dealership orders the car Jan 10,2011. I am overjoyed. I go watch them build the car, etc'. It's great!

Anyway, this monday (The 7th) I walk into that bank to sign paperwork. They inform me that they had to pull my credit again, as it had been over 30 days. Okay, how am I doing? Well guess what. My score had gone WAY up for 30 days. I was well over 700 and qualified for their "A-Tier". GREAT!

So I told them the term I prefered, and asked to sign. They said they would put the deal togather and I could sign that afternoon. Okay, I work nights, so I went home and went to bed. They called at 1500hrs to tell me that their system was down and that it might wait until tomorrow. Sure, whatever.

Anyway, I got a call at 0830 from that bank manager the next day (Jan 8). He told me "I'm very emberrassed. Our bank has a new policy as of yesterday that prevents us from making auto loans of over $50K. Again, I feel horrible about this. I have actually taken your deal to our #1 competitor, and I am pretty sure they will sign you immediately."

So...I took him up on his "offer", and his #1 competing institution did sign me, immediately, at a better rate/term.

So what gives?! Do banks normally do this kind of junk? Have any of you had trouble financing over $50K due to "institution policies"?

*These are all credit unions, btw.
*I finally secured a great rate and the check has been cashed out. WIN! for me, but MAN it was a PITA!
*I don't think the banker was lying, as he seemed legitimately mad that they wouldn't go ahead and sign the deal. He DID hand me over to their competitor and bundle the deal up very nicely!

seamus2154

Any lending these days is crazy. Mortgages are even crazier as of late....ask me how I know. The rules change everyday for lending.

nspec

thats crazy but never heard anything like this before.

LS24me

I borrowed from Pen Fed for my Z... 3.25% (now it is 2.99), no problems. They did not have any requirements for down payment, I set the down payment to achieve a payment that I thought was tolerable.

The entire process was very simple and painless. I highly recommend them, do a search on Slickdeals.net.... you will find the ways of becoming a member.

titletaker

GMAC has always been good to me, even since Ally took over. I think a big help is when they see a good chunk of change for down payment.

VetteVinnie

Never had this problem. I have a long-term relationship with my credit union to the point where they'd finance 100% if I wanted. And having credit scores well into the 700s doesn't hurt.

Mid 650s? And then suddenly to the 700s? Something doesn't jive there unless you had an old negative item that suddenly dropped off. Scores don't jump 100+ points overnight.

bass mechanic

ive run into this before, i got an offer from capitol one for a refinance auto loan for like 4% i was like SWEET! i began filling out the application online to find the offer was only for 30,000 or less.
i also refinanced my home recently. my loan officer was trying to put a loan together through wells fargo bank. WFB said that my debt to income ratio was too high! the highest they will take is 48% DTI (which is not true because a vast majority of my income is buried in my business as i am self employed) but fine.. so he gets me a loan through universal lending and we closed last month.
before i even got my first statement they had already sold the loan to WFB!!!
i am not sure the banks even know how to lend money. they buy a loan that didnt meet their underwriting guidelines!
whatever, i got a 4.25% interest rate for 30 years fixed!
saved me 300 bucks per month on my mortgage payment.
i seriously don't get it. it seems like the banks don't even know what they want.

MarkRx

credit unions are they way to fly. once established with one, then the benefits really start to come alive. i've never put money down on a car purchase with the exception of placing an order on a new corvette. my current A.PR is 2.85% i'll never do business with chase, wells fargo, etc again.

tim414

AirBusPilot

I've always financed through the dealers, they have always beaten the best rates offered by banks, and the process usually just takes minutes. 0% is what the current car is financed.

tim414

blkvette1

I got in on GM's 0% - sweet.

Put enough down to never be "upside down" and drove away.

jbp8653

Usually the best and easiest. Just need to be carefull on being up sold on products.

OneBadZ06

That's the problem, right there. Credit Unions do not follow standard banking practices. Unless you go with a 0% factory deal, going with a national bank is the best bet. Use Lending Tree to find the best deal. While the quickest way is through the F&I (Finance & Insurance) guy at the dealership, its typcially not the lowest rate as the dealership will always have a deal with the lender and add 1/4%-1% to the rate for themselves, industry practice. In most states, they do not have to disclose this.

It is also fairly standard that any lender loan offer is only good for 30 days, as you experienced. Most will underwrite the deal again, sometimes you win, sometimes not.

Glad it worked out for you in the end.

Enjoy your new ride.

Vito.A

I used Pentagon Federal Credit Union as well. I have purchased several Corvettes from them. Do the aplication online and they approve it the same afternoon. The 2.99% is the best in the country. They then FedEx the package to you and you can pick up your car the next day.

AirBusPilot

Dealers get a discounted rate, and that rate is somewhat negotiable. Tell the F&I guy that you are already approved at your bank with "x" percent (just find the lowest rate advertised), and the dealer will almost always beat that rate. Even if they tell you'll they will just match it, it's still a better deal because of less hassle. This assumes you have decent credit.

Vette5.5

Lending is a whole lot different than it used to be. Time was, I could just walk into my credit union, sign loan paper's for the full car amount, and be on my way in a few minute's. More recently on my $25K daily car with half down, they really raked me over the coal's, and my credit rating's very good. Think credit union's may be some of the strictest now, as really can't afford many bad loan's.

30YR W8T

True, dealers get a discount rate based on volume sales / finance opportunities, but even the dealers discount rates differs from one of their lending institution to the other. However, in my experience it has always been better to finance when possible through the manufacturers credit group because the rate is fixed up front if you qualify and you know exactly what it is. If you let the dealer finance your car, you are normally just giving them more money as they will try and get you to sign at a higher rate than what they could really give you. When that happens, that extra finance percentage goes right into their pocket.

I too have 0% on my car that I purchased in 2009, and timed that purchase for that specific reason. Prior to the 0% the manufacturer was offering 2.9% which was better than anything you could get from a bank or credit union for that matter during the same time frame. The hard part in getting a good finance rate is you have to be patient and sometimes wait for the car you want. Understandably this is not an easy thing to do and the dealers play this game very well with each new model that comes along...

AirBusPilot

Yep. You need to be educated on what the best rates are before you attempt financing thru a dealer.

TARANTULA