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Auto Loans Frequently asked Questions
Question:
"We had a discharged bankruptcy last
August. How to I find dealerships that help people with past
credit problems. I know our credit has improved a lot since
last year."
Answer:
You can apply online and your application
will be processed by a dealership in your area that
specializes in financing after bankruptcy. If you would like
to apply directly with the dealership please email us your
zip code and we will send you the contact information for
the local dealer.
Question:
"Can a person who has filed for bankruptcy, still
get an auto loan? And if so, how long must a person wait
after filing chapter 7 before they can get an auto?"
Answer:
In some cases you are eligible for financing after
the initial meeting of your creditors (341 meeting, first
court date). In every case you are eligible immediately
after the bankruptcy is discharged.
Question:
"Hello, I have found the vehicle that I wish to
purchase, but am having trouble securing an auto-loan if not
purchasing from a franchise dealership. The dealer that I
wish to buy from is licensed, but it is a private
dealership. Can you help?"
Answer:
The lenders within our network are indirect lenders.
That is to say they only provide loans through their dealer
partners. In your case we would be limited to the lenders
availed to the independent dealership that you mentioned.
Question:
"A dealer called me to say that I could be
financed there. Are my choices limited to one dealer? I have
a bankruptcy discharged in May and want to reestablish
credit but do not want more queries on report."
Answer:
For quality control and monitoring we limit the
number of dealers in each area. We do have multiple dealers
in most major metro markets. In either case your loan
request is processed by the closest dealer. In the past we
listed the dealerships name, phone number, and contact
person on the site. Unfortunately we had to remove them
after receiving numerous complaints from our special finance
managers within the dealerships that they were receiving far
to many telemarketing calls from online marketing companies.
Question:
"I would like to apply for a loan for a purchase
at a local non-franchised dealer. Will this be a problem?"
Answer:
If you apply with us we cannot process you loan
though every dealer. Our dealer network is limited to
maintain the quality of our service. Provide us with the
name of the dealership and we'll let you know if they are
part of our network. Nationwide, however, we only have a
handful of independent dealers within our network.
Question:
"I have a question regarding a local dealer. I
have a car picked out but I'm not sure how your loan process
works. If I get approved do I have to use a specific dealer
or can I go to the one I already am interested in?"
Answer:
We work within a network of indirect lenders. Your
local dealer would actually be the one processing your loan.
If you are looking for a lender that would provide funds for
you to purchase from the specific dealer you mentioned you
should search for a direct lender or let the specific dealer
process your loan. We have not had success finding a direct
lender that does a decent job with bad credit financing nor
have we had luck convincing dealers outside of our network
to sign up with the indirect lenders that do a good job
lending to people with credit problems.
Question:
"I wanted to know if you do in home financing and
if so what are the requirements. I don't have good credit."
Answer:
We do not originate loans. Most lenders that provide
financing for people with sub-prime credit are indirect
lenders and only purchase finance contracts from licensed
auto dealers. There is not a lending program that offers
Direct Loans to people with high risk credit that we
recommend.
Question:
"Do you have any no money down loans that would
require not even tags and taxes to be given at time of
purchase? My son is 18 and has no credit and needs a car but
we don't really have tax or tag money."
Answer:
There are no money down programs. It is unlikely
that your son would qualify by himself. If he applies on his
own he would most likely fall into a First Time Buyer
program. Most FTB programs require at least 15% of the sale
price, not including taxes. If a parent with fair credit was
listed as a co-buyer you should qualify for a zero down
program.
Question:
"Do you finance 100% on a new vehicle? I don't
have money for a down payment."
Answer:
There are zero down payment lending programs. You
may also qualify for lending programs that require a down
payment if you are purchasing a new car with a rebate or you
have a trade in, regardless of it's condition.
Question:
"My credit score is 534 with a voluntary repo. I
will have a co signer with a cosigner with a score of 550. I
am willing to put money down but need 30 days to come up
with it. I need to get the vehicle today."
Answer:
The information provided is not enough to determine
if you would qualify for a loan. As far as the down payment,
differed down payments (30 days) have to be disclosed on the
finance contract to comply with the Truth in Lending Act. If
it is not it is considered an attempt to deceive the lender.
Most lenders do not allow differed down payments. Based on
the information you provided I would guess that you would
not qualify for a zero down payment program.
Question:
"I would like to know what credit reporting agency
you use to pull credit reports. Also, is there a minimum
beacon score you must have to qualify for a loan? I do not
want to pull my credit report if not necessary."
Answer:
The authorized dealer in your area will generate a
credit inquiry to determine which lender programs you
qualify for. The reporting agency used varies by location.
Also, the lender that your application is submitted to will
also generate an inquiry. Most lenders now use a service
that merges all three major credit reports. The authorized
dealer in your area has access to lenders that ignore the
credit score on the credit report. If your score is less
than 525 (average), however, your auto loan request would be
limited to these lenders.
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New Home Loans >> Auto Loans Frequently asked Questions
