Financing Question
Thread Starter
Intermediate
Joined: May 2014
Posts: 27
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Financing Question
Let me start by saying I don't have any debt except my house and I'm not a 1%er but I am a 5%er so I do well for myself. I also have a credit score of 810.
So, I went to get pre-approved for a auto loan with my local credit union and I got approved for a 1.99% rate for 72 months. However, they wanted me to put 10% down due to the size of the Auto Loan. That's not a problem but I thought that was excessive. Is that normal or does anyone else have a recommendation where I can go and not put so much money down. I'm all about leveraging my money and I'd rather not put 10% down if I didn't have to.
So, I went to get pre-approved for a auto loan with my local credit union and I got approved for a 1.99% rate for 72 months. However, they wanted me to put 10% down due to the size of the Auto Loan. That's not a problem but I thought that was excessive. Is that normal or does anyone else have a recommendation where I can go and not put so much money down. I'm all about leveraging my money and I'd rather not put 10% down if I didn't have to.
Team Owner
Joined: Mar 2012
Posts: 49,195
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From: Best Island in the U.S.
St. Jude Donor '12 thru '17
Our credit scores are close to yours. Our CU doesn't require any money as a down payment on a car to get their lowest interest rates. Of course, we do keep a fairly sizable balance with them between checking and savings accounts, which may be a factor. Most lenders have no problem loaning 100% of the value of a new car even to new clients with lower credit scores. Might be time to find a new CU to keep your money at.
Thread Starter
Intermediate
Joined: May 2014
Posts: 27
Likes: 0
Our credit scores are close to yours. Our CU doesn't require any money as a down payment on a car to get their lowest interest rates. Of course, we do keep a fairly sizable balance with them between checking and savings accounts, which may be a factor. Most lenders have no problem loaning 100% of the value of a new car even to new clients with lower credit scores. Might be time to find a new CU to keep your money at.
Team Owner
Joined: Mar 2012
Posts: 49,195
Likes: 3,886
From: Best Island in the U.S.
St. Jude Donor '12 thru '17
CUs only exist because of members who deposit money there, which is probably what you're seeing.
Pro
Joined: Oct 2008
Posts: 569
Likes: 53
From: Michigan Thumb
Have your dealer's finance guy try to beat the rate. My local C/U was offering 1.99%/72 also but I needed to do direct deposit, auto pay, etc. My dealer got me 1.64%/72 instead through one of their lenders with no strings. I did put about 30% down, but that is what I intended to put down anyway.
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Thread Starter
Intermediate
Joined: May 2014
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Drifting
Joined: Oct 2008
Posts: 1,793
Likes: 63
From: Staten Island/NJ NY/NJ
Did you try to call them and have them re-evaluate it ? look at their loan terms most say you can borrow up to 115% LTV
Race Director
Joined: Apr 2014
Posts: 13,004
Likes: 773
From: "Shitcago"
Let me start by saying I don't have any debt except my house and I'm not a 1%er but I am a 5%er so I do well for myself. I also have a credit score of 810.
So, I went to get pre-approved for a auto loan with my local credit union and I got approved for a 1.99% rate for 72 months. However, they wanted me to put 10% down due to the size of the Auto Loan. That's not a problem but I thought that was excessive. Is that normal or does anyone else have a recommendation where I can go and not put so much money down. I'm all about leveraging my money and I'd rather not put 10% down if I didn't have to.
So, I went to get pre-approved for a auto loan with my local credit union and I got approved for a 1.99% rate for 72 months. However, they wanted me to put 10% down due to the size of the Auto Loan. That's not a problem but I thought that was excessive. Is that normal or does anyone else have a recommendation where I can go and not put so much money down. I'm all about leveraging my money and I'd rather not put 10% down if I didn't have to.
Any credit score over 720 will normally get the best rate going.
I'm guessing they want 10% down because you are a new customer, they want some equity in case the car get's stolen or totaled.
I'm paying cash for my Z so I could give a damn about banks and CU's.
I've paid Cash for my last 8 cars over 20 years, and paid cash for my house. I hate debt
Drifting
Joined: Sep 2008
Posts: 1,268
Likes: 21
From: Durham NC
I got my loan through the Credit Union Loan Source based out of Georgia. I was not a current customer prior to getting the loan and my score was 770-something. I didn't put anything down, either, just because I like keeping as much cash as possible on hand for investment opportunities that may arise.
Drifting
Joined: Jul 2011
Posts: 1,860
Likes: 85
From: Graniteville South Carolina
So you think 10% down is unreasonable? Try putting yourself in the Lenders shoes.
Any credit score over 720 will normally get the best rate going.
I'm guessing they want 10% down because you are a new customer, they want some equity in case the car get's stolen or totaled.
I'm paying cash for my Z so I could give a damn about banks and CU's.
I've paid Cash for my last 8 cars over 20 years, and paid cash for my house. I hate debt
Any credit score over 720 will normally get the best rate going.
I'm guessing they want 10% down because you are a new customer, they want some equity in case the car get's stolen or totaled.
I'm paying cash for my Z so I could give a damn about banks and CU's.
I've paid Cash for my last 8 cars over 20 years, and paid cash for my house. I hate debt
Intermediate
Joined: Apr 2014
Posts: 39
Likes: 0
So you think 10% down is unreasonable? Try putting yourself in the Lenders shoes.
Any credit score over 720 will normally get the best rate going.
I'm guessing they want 10% down because you are a new customer, they want some equity in case the car get's stolen or totaled.
I'm paying cash for my Z so I could give a damn about banks and CU's.
I've paid Cash for my last 8 cars over 20 years, and paid cash for my house. I hate debt
Any credit score over 720 will normally get the best rate going.
I'm guessing they want 10% down because you are a new customer, they want some equity in case the car get's stolen or totaled.
I'm paying cash for my Z so I could give a damn about banks and CU's.
I've paid Cash for my last 8 cars over 20 years, and paid cash for my house. I hate debt
Burning Brakes
Joined: Sep 2013
Posts: 828
Likes: 40
From: Mountaintop PA
Team Owner
Joined: Mar 2012
Posts: 49,195
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From: Best Island in the U.S.
St. Jude Donor '12 thru '17