Auto Loans Frequently Asked Questions
Q.
I have found the vehicle that I wish to purchase, but I am having trouble securing a bad credit 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?
A. The lenders from 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 available to the independent dealership that you mentioned.
Q. 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 am already interested in?
A. We work within a network of indirect lenders. Your local dealer would actually be the entity processing your loan. If you are looking for a lender that would provide funds for you to purchase from the specific dealer you are interested in, you should search for a direct lender or let the specific dealer process your loan. We have not had success finding direct lenders that do a good 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.
Q. I would like to know what credit reporting agency you use to pull credit reports. Also, is there a minimum beacon score I must have to qualify for a loan? I do not want to pull my credit report if it won't be necessary.
A. 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 (on average), your auto loan request would be limited to these subprime lenders.
Q. Can a person who filed for bankruptcy still get an auto loan? If so, how long must a person wait after filing Chapter 7 before they can get a car?
A. 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.
Q. A dealer called me to say that I could be financed there. Are my choices limited to one dealer? I have a bankruptcy that will be discharged soon and I want to re-establish credit, but I don't want more queries on my report.
A. For quality control and monitoring, we limited the number of dealers in each area. We do not have multiple dealers in most major metro markets. In either case, your loan request is processed by the closest dealer to you. In the past we have listed the dealership's names, phone numbers, and other information. Unfortunately we had to remove them after receiving numerous complains from our special finance managers within the dealerships because they were receiving far too many telemarketing calls from online marketing companies.
Q. I would like to apply for a loan for a purchase at a local non-franchised dealer. Will this be a problem?
A. If you apply for financing with us, we cannot process your loan through every car dealer. Our dealer network is limited to maintain the qualify 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 in our network.
Q. My credit score is 534 with a voluntary repo. I will have a co-signer who has a score of 550. I am willing to put money down but I need 30 days to come up with it. I need to get the vehicle today. Is this possible?
A. The information provided is not enough to determine if you would qualify for a loan. As far as the down payment, deferred down payments (30 days) will have to be disclosed on the finance contract to comply with the Truth in Lending Act. If it is not disclosed, it is considered an attempt to deceive the lender. Most lenders to not allow deferred down payments. Based on the information you provided, it is very probable that you would not qualify for a zero-down-payment program.
Q. Do you do in-house financing? If so, what are the requirements? I don't have good credit.
A. 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 we recommend which offers Direct Loans to people with high risk credit.
Q. Do you have any no-money-down loans that wouldn't even require tags & taxes to be paid at the 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.
A. There are no money down programs available. It is unlikely that your son would qualify by himself for one of these programs. If he applies on his own, he would most likely fit into a First Time Buyer program. Most FTB programs require at least 15% of the sale price, not including taxes, to be paid as a down payment. If a parent with fair credit was listed as a co-buyer, you may qualify for a zero down program.
Q. Do you finance 100% on a new vehicle? I don't have money for a down payment.
A. 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 have a trade-in.
Q. We had a discharged bankruptcy last August. How do I find dealerships that help people with past credit problems? I know our credit has improved a lot since last year.
A. 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.
A. The lenders from 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 available to the independent dealership that you mentioned.
Q. 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 am already interested in?
A. We work within a network of indirect lenders. Your local dealer would actually be the entity processing your loan. If you are looking for a lender that would provide funds for you to purchase from the specific dealer you are interested in, you should search for a direct lender or let the specific dealer process your loan. We have not had success finding direct lenders that do a good 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.
Q. I would like to know what credit reporting agency you use to pull credit reports. Also, is there a minimum beacon score I must have to qualify for a loan? I do not want to pull my credit report if it won't be necessary.
A. 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 (on average), your auto loan request would be limited to these subprime lenders.
Q. Can a person who filed for bankruptcy still get an auto loan? If so, how long must a person wait after filing Chapter 7 before they can get a car?
A. 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.
Q. A dealer called me to say that I could be financed there. Are my choices limited to one dealer? I have a bankruptcy that will be discharged soon and I want to re-establish credit, but I don't want more queries on my report.
A. For quality control and monitoring, we limited the number of dealers in each area. We do not have multiple dealers in most major metro markets. In either case, your loan request is processed by the closest dealer to you. In the past we have listed the dealership's names, phone numbers, and other information. Unfortunately we had to remove them after receiving numerous complains from our special finance managers within the dealerships because they were receiving far too many telemarketing calls from online marketing companies.
Q. I would like to apply for a loan for a purchase at a local non-franchised dealer. Will this be a problem?
A. If you apply for financing with us, we cannot process your loan through every car dealer. Our dealer network is limited to maintain the qualify 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 in our network.
Q. My credit score is 534 with a voluntary repo. I will have a co-signer who has a score of 550. I am willing to put money down but I need 30 days to come up with it. I need to get the vehicle today. Is this possible?
A. The information provided is not enough to determine if you would qualify for a loan. As far as the down payment, deferred down payments (30 days) will have to be disclosed on the finance contract to comply with the Truth in Lending Act. If it is not disclosed, it is considered an attempt to deceive the lender. Most lenders to not allow deferred down payments. Based on the information you provided, it is very probable that you would not qualify for a zero-down-payment program.
Q. Do you do in-house financing? If so, what are the requirements? I don't have good credit.
A. 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 we recommend which offers Direct Loans to people with high risk credit.
Q. Do you have any no-money-down loans that wouldn't even require tags & taxes to be paid at the 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.
A. There are no money down programs available. It is unlikely that your son would qualify by himself for one of these programs. If he applies on his own, he would most likely fit into a First Time Buyer program. Most FTB programs require at least 15% of the sale price, not including taxes, to be paid as a down payment. If a parent with fair credit was listed as a co-buyer, you may qualify for a zero down program.
Q. Do you finance 100% on a new vehicle? I don't have money for a down payment.
A. 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 have a trade-in.
Q. We had a discharged bankruptcy last August. How do I find dealerships that help people with past credit problems? I know our credit has improved a lot since last year.
A. 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.
