m a x i m u s

that sux. sounds like you want new, but how about considering a certified one? it'll be much less, which means your note will be much less, so you may have better luck getting approved.

dc5itr888

is this your first " big" purchase?

I was in a similar situation and I just ended up putting the money down cause I really wanted it.

Hope everything works out in the end for you

CoolBDPhenom03

Try a smaller bank/credit union. They can be more flexible. I'm with MeriWest, which is mostly SJ based, but they partner with Patelco. If you want an actual bank, I've heard good things from First Republic Bank. Seriously though, go online to PenFed.org.

Sidv22

yeah...try penfed or technology credit union in santa clara/san jose. Their customer service is top notch and interest rates are low.
and try to see if you want to buy a lightly used one instead.

fortytwo

I just tried First Repulic Bank. Unfortunately they don't do auto loans so would not work out :/

fortytwo

Again, thanks for the feedback folks.

My friend is willing to cosign. They just denied it because his history is like mine. He's also with WF with 80kish on that account.

It's insane.

Just got off the phone with WF, told them they would not see my next paycheck and they "counteroffered".

22k, for 3.49%, which is what I wanted to put down pretty much.

Gonna try Penfed but I don't have much hope either and then I'll stop (denied will hurt my credit I believe).

jrcart

Simply unbelievable, I am not a financial expert but I am a business owner that has made millions of dollars and I would be more inclined to give a guy like you with limited yet perfect credit a loan for $60k on an $80k car than give a $50k loan to a guy like my friend that went through the divorce and has a foreclosure and bankruptcy on his credit from early 2012. The fact that you are 27 years old and have no credit card debt tells me you are responsible, I dont even want to tell you guys how much debt I accumulated in my early 20's. You are 27, make $140k and have a debt to income ratio well under 50% and zero credit card debt. This is just mind boggling for me to wrap my head around. How long have you been employed with your current employer, is all your income verifiable? Trying to grasp this, I feel for you man.

jrcart

Jump on it, go sign the papers tonight, 3.49% is a good rate, but not great in todays rates but definatley not bad, under the circumstances I would jump on it. Get the car at the 3.49% and you can still shop around with other credit unions and banks, if you find something better you can refi but at 3.49 I would be contnent.

Sidv22

That because he lives in the bay area and chances are that he works for a tech company and he has mentioned that he's a foreign national and too without any reasonable credit history. During the previous economic meltdown in 2008-09, tons of foreign nationals working here in the US on H1B visas, packed their things, simply parked their cars at the airport and left forever after losing their jobs.
your friend might as well be a US permanent resident with all his roots deep in place and the banks might feel that they have more reason to trust a citizen with a bad history than a european with no history at all.

fortytwo

It's exactly what I thought. I'm not on a H1B, I'm actually a permanent resident. I have access to citizenship next year, not that I want to get into an immigration debate, but I'm not exactly "fresh out the boat".

My current income is new (started last month) but just small a difference with the previous one (startups) where I worked for one year. Before that, I worked for another startup as well, but in that case the bump is more significant.

They asked about my tax return etc, which I'll gladly provide, paystubs whatever they want, but they insist on having more debts. "1500" is too low for my credit card limit and they told me I should have raised it and opened another one to make it "easier", so they can take "less risk".

To me, it's just garbage. I ask 60k. I have 60k on the account. I ask for a loan on 48 months. I have 264$ in debt, a MS in Computer Science, a great income, a really cheap rent (especially for SF), 401k... Unbelievable.

At that point, it's not even about negotiating the car. I hate not being able to control my destiny, it's totally what's happening.

They want me to bump my limit in the meantime. I already have a hard time paying my groceries and a freaking 60$ phone bill, just because it makes no sense to me to pay with debt something so low and that I have in my bank account, but all this leads me to getting royally screwed.

If I jump on the 22k, the issue is that I will be too short (I still want to keep savings, you never know) with what I have in mind. Car is 82k everything included (taxes etc) so it's quite far apart.

fortytwo

I don't have a H1B, even though I'm French, my life is in the US. I am a permanent resident for almost 3 years now and I will apply for citizenship, FYI. Meaning, I contribute to the economy, trust me buddy

Sidv22

Fair enough. I was quoting an example. But i still feel that you need to bring that msrp down if you are buying a 2013. 2014's will be here in a couple of months.

norb

Why not start smaller. You're young, you still have time to get your dream car a bit later.

fortytwo

It's true. But I've planned on getting this car since 2010, and I just love the torque so much.

On my way back to the train, I walked in front a Cadillac dealership. I test drove a CTS-V from 2012 but new. 68k, felt too high to me. Plus it's not what I want anyway

fortytwo

I really tried to lower it down, especially because they have 19 of those if I'm correct! But they didn't care.

jrcart

Very good points that I did not think of.

_timothy

You should be able to walk into any credit union, ask for the min amt on deposit would be for the loan you want. If you collateralize as a cd, they will likely be more accomodating since you are securing the loan.

cmvash

I was in the exact same boat as you a year ago - 27 years old, making decent coin, low over head, minimal DTI, and high FICO.

From an underwriting perspective, you are being underwritten in cookie cutter fashion based on whatever your previous high balance was. Ie, if your highest auto loan was $30M, you would qualify for $45M.

Edit: I just read that this is your first auto purchase, which is your largest hurdle, but shouldn't dissuade you from trying.

Don't take it personally, it's just a stupid metric that you will find across the board from lenders. Don't go out and rock your credit with a bunch of inquiries trying to find financing.

I was approved with 10% down at 4.25% amortizing over 60 months through MB Financial. MB Financial can make anything happen that they want, it's the finance manager's call at the end of the day. Fortunately the finance manager saw reason over UW guidelines and made the approval the same day I requested it.

All that said, push for approval with MB Financial as you'll be hard pressed to find a lender that will approve you unless you've got a personal relationship with someone that has credit decision authority at a financial institution.

The dealer wants to sell you the car as much as you want to buy it.

Sidv22

Just recollected another thing that occurred to me when i bought my amg. Zeroed in on a c63 at a dealership and the salesman and manager gave me a tough time. Lowest interest they were offering was 6.99 with a 35% downpayment which was total BS since i had bought my Audi A5 more than a year before i bought my c63, 1.49% and minimum down from Audi financial. When i bought my audi, i was 27 too and it was my first big purchase. Needless to say, i refused the deal, walked into another dealership, the finance guy worked on my deal while i grabbed a burger at a nearby joint and i was approved at 1.99% from mbfs. This was just a week after i refused the first deal. If the dealers really wants it, i think he can really make it happen.

fortytwo

Well it gives me hope.

I'm not sure what would happen regarding my credit score though. MBF offered me crap, Wells Fargo counter offered me but I declined.

I suppose all this will count as denied or something with my credit score.

I got in touch with a dealership thanks to one of you guys. He's calling me tomorrow, so I'll see what happen.

Also, regarding lease takeovers, if I try to take over a lease from someone, I still see that MBF has to approve it. Would it be the same problem? If I find a lease to takeover on swapalease with not that many months for example?

Thanks again guys really great feedback.

biglee73

I purchased my c63 about a year ago and went to the dealer with my own loan from Chevron credit union at a rate of 2.79%. As my final pricing was being finalized they offered me from MB something close like 3% but I refused cause I knew I can get 2.79%. I told them I'll finance from MB only if you can match or beat the rate I came in with. A few clicks of their keyboard they matched the rate at 2.79% so the finance manager makes all the decisions.

The MB loan is through Bank of America.

SheryarYO

I would seriously consider going to a credit union. I couldn't get approved for a loan without a co-signer at wells fargo due to lack of credit history on a purchase this substantial. my sister told me to go to penfed. I opened up an account online for $5 and then went to their branch the next day and talked to a loan officer there. I asked her what I should be doing now to be able to get a loan for the car within the next year. she told me to apply for the loan with them to see if I'd get it and I was instantly approved with nothing down and 1.99%. granted, I bought the car used so I'm not sure if they'd ask you for a down payment or anything, but I believe they'll only finance for up to $70k.

definitely worth a shot though.

fortytwo

I'll try with PenFed then as the last try.

The only problem is that I don't think there is any branch and they ask for a lot of information that I don't have. They also ask for an exact amount apparently.

Will do it tomorrow. Waiting on a dealership and we'll see.

SheryarYO

just looked it up and penfed is mostly in the dc area. you can try finding another credit union closer to you. I think for the most part, they all work pretty much the same way...not necessarily trying to make as much profit as possible like a bank is.

CoolBDPhenom03

My car is financed through PenFed and they had to deal with my car being a private sale. I think they'll be one of the lowest rates you'll find if you get approved. The application process was easy and I got a firm answer in like 2 days with a check on the way in less than a week.

Btw, OP, once all of this is done, you should join some of us for some local Bay Area meets. Je parle français aussi