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Auto Loan denied after purchase. need advice

85 49 September 16, 2019 at 02:09 PM
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My wife recently purchased a new vehicle. They approved her that day for financing. Few days later she got a call from the finance guy to submit proof of income. He came back with that the paper work wasn't enough and asked if she would put the vehicle under her company name. She sent in that paperwork and that didn't work as well. They said she would need to find someone to cosign for the loan.

We asked to see the denial letter from the bank. The finance guy said she wasn't denied but the back placed her at a $435 max monthly payment.

Is he trying to scam her to get her to come resign at a higher interest rate?

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#2
Quote from STran13
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My wife recently purchased a new vehicle. They approved her that day for financing. Few days later she got a call from the finance guy to submit proof of income. He came back with that the paper work wasn't enough and asked if she would put the vehicle under her company name. She sent in that paperwork and that didn't work as well. They said she would need to find someone to cosign for the loan.

We asked to see the denial letter from the bank. The finance guy said she wasn't denied but the back placed her at a $435 max monthly payment.

Is he trying to scam her to get her to come resign at a higher interest rate?

One never knows with car dealers. Why not have her go to a bank herself and get a car loan? If you need a discounted rate (which means a higher price in reality) to buy a car on a loan and\or are over the limit, then you likely are over-extending yourself and should think about other less costly options imo. Buying a new, expensive vehicle via a loan is one of the absolute worst investments around imo.
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#3
They should be able to show you the paperwork from the bank, whether it's a a denial or "conditional approval" or whatever.

Actually, as far as I know, the bank is required to mail you that letter directly as well. You could try calling the bank directly too.

If they try to change the terms, you can always just offer to give them the car back and undo the deal. If they screwed something up or are trying to scam you, they'll probably "figure out" a way to make it work. If they legitimately can't get the loan approved, they're going to want the car back anyway.
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#4
Quote from STran13
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My wife recently purchased a new vehicle. They approved her that day for financing. Few days later she got a call from the finance guy to submit proof of income. He came back with that the paper work wasn't enough and asked if she would put the vehicle under her company name. She sent in that paperwork and that didn't work as well. They said she would need to find someone to cosign for the loan.

We asked to see the denial letter from the bank. The finance guy said she wasn't denied but the back placed her at a $435 max monthly payment.

Is he trying to scam her to get her to come resign at a higher interest rate?
This should teach your wife to check her credit score before going to buy a car and make sure she can afford the new car before she keeps up with the JONES!
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#5
Quote from YanksIn2009
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Buying a new, expensive vehicle via a loan is one of the absolute worst investments around imo.

Getting a car loan is mistake number one. It's a good way if you wish to stay poor. You can't call a purchase an investment if the item value only goes down with time. A car is a liability and nothing more (exotic / rare vintage cars are exceptions but 99.9% of people don't have to worry about that).

With interest rate keep getting cut, the lenders are trying to lend money out. It's borrower's market. If you get rejected applying for a loan, just go to one or three credit union because they are easier to talk to than large banks. Or do a self-reflection on how many years you have been spending above your means that even lenders who would write up a loan for a dead dog thinks your debt-to-income ratio is too risky to get their money back in the future.
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#6
Quote from teetee1
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Getting a car loan is mistake number one. It's a good way if you wish to stay poor.

100% agree, which is why I always recommend getting a 1-3 year old used vehicle and paying cash if you can. The price is substantially less and you often still have a part of the manufacturer's warranty in play. And there really is little to gain in owning that car for the first 15-30k miles when many cars these days will last 150k+ miles if you do proper maintenance. Those first 1-2 years are not worth the added expense.
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#7
guess i better not say what i was going to say.. something about mind readers and assholes
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for those that hate spelling mistakes www.walmarts.comCool

bulb save money by checking your insurance every 2 years (and not every 20) Thanks Liberty Mutual for reminding me to shop. The $842 increase this year sums it up. Across the board increase for Ohio....whatever
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#8
Quote from Mydiscover
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This should teach your wife to check her credit score before going to buy a car and make sure she can afford the new car before she keeps up with the JONES!
this...but folks like this make me rich
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#9
There's absolutely nothing wrong with financing cars if you have good credit and a good solid job with steady income. ALWAYS check your credit before going to the dealership. I usually have financing wrapped up and preapproved before I go to the dealership. If they can give me a better rate than so be it!
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Quote from PaulW9311
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There's absolutely nothing wrong with financing cars if you have good credit and a good solid job with steady income. ALWAYS check your credit before going to the dealership. I usually have financing wrapped up and preapproved before I go to the dealership. If they can give me a better rate than so be it!
There is everything wrong with borrowing money. It works ONLY if everything works. Jobs and income are not something that always work or under your control. I like cars, but I like it a lot better not being anxious about the market and recession or losing sleep thinking what happens if I lose my job.

Credit worshipers are loved by lenders because of their inability to tell the difference between spending power and borrowing power. That's why lots of people live paycheck to paycheck and are happy about their high credit scores, seeing low monthly car payment figures, or getting good interest rates. While they are being taken advantage of the banks with interest, and can lose things they owe money to if they can't make the monthly payment, they still think they are more sophisticated in personal finance than others.
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Last edited by teetee1 October 6, 2019 at 12:10 AM.
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#11
Quote from teetee1
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There is everything wrong with borrowing money. It works ONLY if everything works. Jobs and income are not something that always work or under your control. I like cars, but I like it a lot better not being anxious about the market and recession or losing sleep thinking what happens if I lose my job.

Credit worshipers are loved by lenders because of their inability to tell the difference between spending power and borrowing power. That's why lots of people live paycheck to paycheck and are happy about their high credit scores, seeing low monthly car payment figures, or getting good interest rates. While they are being taken advantage of the banks with interest, and can lose things they owe money to if they can't make the monthly payment, they still think they are more sophisticated in personal finance than others.
Can't disagree with much of that except the " While they are being taken advantage of the banks with interest..." part. While there are some exceptions I don't see that anybody is "taken advantage of" If they accept the terms of the loan and the interest rate is unreasonable then that is their own fault for what it ends up costing them. If they are incapable of understanding the terms then they probably should have somebody else handling their money for them.

Otherwise I'm with you on the rest of it.
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I like what she said, not what it means.
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#12
Check if a credit union can finance. I recently used https://www.andrewsfcu.org/. With auto pay, loan interest rate is less than online bank's Savings interest rate (YMMV)
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Last edited by nvgroups October 6, 2019 at 11:46 AM.
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#13
Your entitled to your own opinion but whats right for you isn't neccessarily right for everyone. Sure its always best if you can buy with cash but its not always practicle. I own my own home, I'm single and put both my kids through college and am collecting 1 pension already and working a full time job earning in excess of $150K a year.If I can get a low enough interest loan I will finance a car and pay it off early and have done so MANY times! I have a more than adequate savings setup and hardly live paycheck to paycheck. Don't assume everyone who finances is living paycheck to paycheck!


Quote from teetee1
:
There is everything wrong with borrowing money. It works ONLY if everything works. Jobs and income are not something that always work or under your control. I like cars, but I like it a lot better not being anxious about the market and recession or losing sleep thinking what happens if I lose my job.

Credit worshipers are loved by lenders because of their inability to tell the difference between spending power and borrowing power. That's why lots of people live paycheck to paycheck and are happy about their high credit scores, seeing low monthly car payment figures, or getting good interest rates. While they are being taken advantage of the banks with interest, and can lose things they owe money to if they can't make the monthly payment, they still think they are more sophisticated in personal finance than others.
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#14
Quote from PaulW9311
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Your entitled to your own opinion but whats right for you isn't neccessarily right for everyone. Sure its always best if you can buy with cash but its not always practicle. I own my own home, I'm single and put both my kids through college and am collecting 1 pension already and working a full time job earning in excess of $150K a year.If I can get a low enough interest loan I will finance a car and pay it off early and have done so MANY times! I have a more than adequate savings setup and hardly live paycheck to paycheck. Don't assume everyone who finances is living paycheck to paycheck!
Right back at you. There is no shortage of people doing stupid things. Everyone is different, the way that worked for you (finance cars) for reason you did not provide will not work for everyone. Leading people into risks of getting their car repo'ed because they are not in your financial position is worse than a bad opinion.
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#15
Quote from PaulW9311
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Don't assume everyone who finances is living paycheck to paycheck!
Agreed. Personally, I buy new cars. I know I am tossing money away when I do, but I can afford it. I haven't paid over 2% interest on a car note in over a decade. Three of those cars were 0%.

You might scoff seeing someone in a $100K car thinking they waste their money, but you don't know their finances.
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