Here is a little story for you guys;
6 MONTHS AGO...
It is January '08 and I've just got my first full-time job right after finishing grad school. The first thing I do after signing my contract is to go to a Mini dealer (Mini of Boston). I wanted to get my car financed so I did everything I could to keep my credit score as high as possible. I ended up with 720. I configure my dream car with my MA after that, the finance manager comes in. We agree on a monthly payment and she's then ready to order my car. A few seconds before she does so, I ask her one last time: "Are you sure I will get financed?", she answers: "Sure, I wouldn't order a car if I knew you couldn't get financed!" When I leave the dealership, I'm already seeing myself driving that great car. This is going to be a long but worth wait...
A week before I receive the car (she is waiting at the distribution center), I visit my MA to give him all the insurance papers and make sure everything will go as planed. Indeed, I've already started working and I didn't want to lose any more time with administrative stuff. But guess what!!?? The financing part isn't working anymore and they want to negotiate all over again...they now would like me to pay for a one year lease, and if things are doing ok, they will grant me a loan (that's what she says)...eventually that's a deal breaker and I end up buying a Jeep liberty somewhere else.

TODAY
I can't drive that Jeep anymore. For the record I had a 04 MC when I was living in Europe...When I drive the jeep I don't feel anything at all and this is "driving" me insane! Although it is very useful during snow time and I didn't have any problems with it, the mpg is worse than ever and I can't stand driving an automatic transmission anymore!
2 weeks ago, I went back to Mini dealership, but this time in Peabody. They are very professional and are trying to work things out for me.
I guess I'll know on Monday if I will be able to buy my dream car...

I don't expect anyone to give me advice on financing, I read all the very useful information on NAM. I just wanted to share my story and try to understand why is this so hard to get what you want even if your credit score (although recent 2 years)
Thanks.

Dream car: MCS GBR/BL Premium Package, Winter Package, Black bonnet stripes, manual transmission, xenon lights, chrome line interior, rear fog lamps, 17" crown spoke wheels...

 

Sorry to hear about it. Have you tried financing through your bank?

 

Your credit score is damn good! Sounds like you've done everything right but the people you're trying to finance through are fruitcakes. Try a Credit Union ... they can usually do better than a Bank and are more tolerant of younger people who have just started their career. You'll get your baby ... be proud of your credit score!

 

Hi tried that and I was denied it back in February, I don't see why it would have change now...beside is it true that each time you apply for a loan you credit score decreases?
Another question for you. Could you tell me what LSD stands for in car descriptions?
Thanks for your concern Robin!

 

Hi, unless U are buying property, yes yr credit score will decrease a little everytime you apply. So be selective. 720 is good, but credit has tightened up across the board so 740-750 is a better goal....

LSD: Limited Slip Differential. ELSD: The new electronic version of the LSD that's available now on the JCW and in December for everything else.

Welcome to NAM!

 

i ams sure u will get it or save enough money and pay FULL in cash like me..

 

maybe...but by the time I get the cash the third generation will be released lol

 

I agree--credit union. Worst case scenario, MINI financing, with or without refinancing, depending on the changes in rates over the next year or so. And pay off any credit card debt.

 

Good luck, hope it all works out. I own a Jeep Liberty and a MCS manual. Sometimes the Mini just wears me out in bumper to bumper traffic and it's nice to drive the auto Liberty. Just sit back and press the gas....

 

thats terrible, with a score like that and those idiots cant hook you up? Makes you wonder whats the good score for? I hope it works out for you, they simply must of looked at your job experience because even with a great score, no job time is still no job time. I was financed for a hefty amount 8% because I had no credit, but the same job for 5 years. A year later I refinaced got 3.9 percent...Fixed at 40 months. (payoff)
just give it sometime with the job, and look at different banks.

 

I preface everything in this post with the following statement: I was in your shoes once.

The credit score is only a part of the process... In this climate, a 720 isn't good enough to guarantee financing, especially if it's 100% financing, or you have any 60 or 90 day-late stains on your credit report within the past 6 years. It's unfortunate, but if your dealer can't find financing (and they submit it to dozens of places at the same time), then there's a reason, and it doesn't look good.

As a point of advice, you shouldn't ever go to a dealer and not have your financing taken care of in advance. Their finance department is really good at getting someone to finance you, but they are not interested at all in getting you the best deal. They are interested in getting you the highest rate that you will accept. They make a lot of money on financing through banks that will give them a cut of the rate. The best thing you can do is continue to work on your credit score, make absolute sure you are not ever late again (be honest with yourself, man), and go to a local credit union to get everything done ahead of time.

Good luck to you, it's not as quick as you'd wish, but not as slow as you fear...

 

Thanks for your advice! and just for the record I've never been late for any of my payments because I don't have any payments to do. I zero out my credit cards every month...