I was supposed to have this baby home last week, but bmw didnt approved my loan. My credit is fairly new but i thought that with my income it would be fine. Any suggestions? im in pain right now because i really want the car

 

open an account at a credit union and have them take your paycheck with direct deposit.... then save like 20$ a paycheck in your savings at that credit union..but you must open a checking and a savings and dont touch it for like 4-6 mounths they will give you a loan before a bank does if you do this exactly trust me...have them set up a payment plan where the money gets drafted directly from your checking and close those stuped store cards they kill the credit score... but you must pay them off first... good luck

 

Put more Money down on the car.20% should be enough unless you have a late payment history,try a cooper s if mini is capping you on payment or will only do a line call.Mini will only do a 720+ score if the residence is in broward , dade or monroe counties.(mini asked for proof of income on my deal even though I have a 850 credit score ,24 years on the job and put 30% down.intended to pay cash but the 0.9 apr was just to good to pass up)

I own Two New car dealerships so I should know how to get a contract cashed with the lender.

Tell Brad at south mini hello and watch out for Vlad in the business office ,he will try to sneak gap and etch in on your deal.

My Jcw was in the same spot in the showroom

 

I was putting $3000k down and i have a 650 credit score history, because 3 yrs ago in college i didnt pay my credit card for 2 months. I have been making $40k plus for about 2 1/2 yrs and they wouldnt believe me. I put my wife as a cosigner and she makes $33k per yr and the bank didnt believe us, even though we showed them paystubs, bank statements for an entire yr. I will try the credit union and see if it works

 

i have an account with penfed.org, is that credit union? im not really familiar with that...

 

mini will not do a 650 if you live in dade,broward or monroe.3k down is 10% you need at least 15% down for Mini select.Show them w2s from the past 2 years for your proof of Income.

Get a relative to Co-sign.

If you like the hyundai genesis coupe I can hook you up

I understand that Toyota is Dying to sell a car right now

 

Yup. me too. they are awesome. Basically type in your name, and bam... I had a 20000 check in my hand. Rates are incredibly reasonable too... i think they are at 4.75% at the moment.

 

I dont really like hyundais, but do you have any other make or model, any minis at your dealership hahahaha. I want this car soooo bad!!!!!!!!!!

 

Yeah i tried to get a $30k loan with them and it got turned down

 

I tried to set one up with penfed.org but you have to keep a minimum of $500 in your checking account and pay monthly fees for your savings, do you know of any other way to get it?

 

These days you need to be able to put a BIG down payment down....at least enough to cover the instant deprecation that occurs as you drive your car off the lot. With new credit, or a new job...I bet they will want more. It looks like the days of $0 down-payments are behind us!! So IMO, unless you can put down about $5000, you are SOL, unless you are willing to pay a much higher interest rate through a 3rd party....

 

Thats true. its simple to get 20K if you throw like 10 down.... 5 is usually good though

 

You should get on the Suzie Orman show, the "what do you want to buy???" segment and get some analysis of your financial position.

 

I'm sure if you just go to the bank you always use you can get a car loan. Then just go buy your car. Mini canceled my Mini USA credit card because they said I did not use it enough. I think they are just greedy and do not want you to pay your card off before you have to pay interest. I did use the card but paid it off every month. It is probably that they don't want to many 1 1/2 percent loans out there.

I bought my car using Mini Credit but paid it off withen the 90 days.

Go to a bank and you will see them jump at a chance to give you a car loan.
Ronnie948

 

Good idea!, im going to try to do this. Thanks for your help

 

With the state of the current economy, someone with a 650 credit score and only making 40K will probably not get a loan from anyone for a car loan at 30K.

In most cases a customer with a credit score like 650 will need to make at least double what the loan is worth and have low rent or housing costs.

Lets be realistic here the OP states he makes 40K a year that means he only brings in $3333.00 a month before taxes and then with the taxes taken out it will go down to about $2200.00. Now i believe teh OP lives somewhere near Miami as there has been talk of South MINI (they are in Miami FL). So rents around there start about $500 minimum for a studio apt. So minus $500.00 plus utilities (estimated, but cable, internet and phone alone will be better than $120 a month) $200.00 now lets subtract food for the month $400 ($100.00 per week and I can not eat on that little) so we are now down to a disposable income of only $1100.00.

With all that said most banks and credit unions will not (these days) loan any amount with a monthly payment of more than 1/3 of the income after taxes minus housing expenses which equates to about $495.00.

Now with a credit score of only 650 even to get a loan interest rate lower than 9% will be difficult.

3K down on a 35+K car still leaves a loan amount of better than 30+K. But lets look at the payments on a 30K loan.

30K at 6% for 5 years is $579.98 (with a 650 credit score probably will not get a 6% loan)

30K at 9% for 5 years is $622.08

Now unfortunately both those payments are well above the maximum payment that most banks and credit unions will lend.

**My information on what banks and credit unions will loan comes from my neighbor who is a loan originator (i.e. decision maker) for a local bank.

***Rent and utilities are calculated from online research of the Miami area for currents rents and utility payments.

**** Loan rate in Miami Fl are running around 7% for a new car loan researched via internet for people with good credit scores not fair.

And to the OP a credit score of 650 is actually in the fair range (640-680) but if it went below a 640 banks would not even look at a loan for you. You also stated that it has only been a couple of years since your last late payments. It takes 7-10 years before that will not be considered in the repayment of a loan.

Also sometimes having a cosigner on a loan can cause it to be denied especially if the cosigners score is lower than the borrowers.

Currently with a 703 credit score to get a loan or 30K I would get an interest rate of 6.75% from the banks around where I live (Massachusetts).

I really hate sounding negative here on this subject but would rather give the OP more a realistic outlook on the subject.

 

This is how they calculate FICO scores.

Your payment history – about 35% of a FICO score
Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. But a solid record of on-time payments helps your score.
[How much you owe – about 30% of a FICO score
FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be.
Length of your credit history – about 15% of a FICO score
A longer credit history will increase your score. However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management.
New credit – about 10% of a FICO score
If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score.
Other factors – about 10% of a FICO score
Several minor factors also can influence your score. For example, having a mix of credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores.

 

He also has decent income from his wife, you're aren't taking into the calculation.

I think you need more down payment too, for two reasons. The first is to get a lender to take you seriously, and the second is so that your monthly payment will make sense.

If you make that much money a month, you should be able to save up another $10k or so pretty quickly, walk in with $13K down and you'll be in a much better bargaining position - $3K barely covers tax and lic, let alone insurance - that's practically a 100% loan. In these times, there is no easy and cheap money, and I think that's a good thing. A lot of people get into financial trouble trying to buy too much due to easy credit, you can get in over your head in a hurry. What if one of you lost their job for example?

Just because you can make the monthly payments, is no reason you should.....

Back in the day people bought a new car by saving up the purchase price, then paying for the car entirely. It was a good way to do it for a lot of reasons.

 

Getting a loan from MINI isn't hard IF you have at least a 600 score AND have had some type of large loan in the past. You may require a small down.

If you have a 700+ score with a large credit history, you can easily get over 100% financing.

Of course late payments or repossessions/bankruptcy hit you hard.

 

Don't forget to let us know how you make out.

Good luck.

 

I would almost say look for a used one. Kind of wish i had lol. I mean its cool having a new off the boat one, but Id rather have gotten a used JCW and maybe had a few bucks for mods lol

 

Guys i really appreciate all of your comments and ideas. We are currently looking for an used JCW '09 for $26k with only 4k in it. I believe this is really good price. Im in talks with one of my relatives to help me cosign the car and i will put 3k down. I will be trying to get a credit union loan through penfed.org and do with the payment save plan, and according to the calculations, the loan would be $235 per month for 60 months with a 12k balloon at the end. This would be a heck of a deal. Iam going to the dealer tonight to check out the car and I keep you guys posted. I am eager to join the family. Thanks and let me know what you guys think

 

Lets do a little math:

$12,000 balloon
$235 per month x 60 months = $14,100
$3,000 down
Total: $29,100 without taking into consideration the time value of money or sales tax consequences for a $26,000 car. It actually looks OK.

Beware of balloon payments as you have to comeup with the money after 5 years or you have to see the car.

 

I paid less for a NEW 0 mile JCW from south motors

 

The MSRP price on a stock JCW is $28500, so if you paid less than $26k I doubt that. You either paid more down or worked for them