A lot of banks are not lending out money to those peolpe with low credit scores. I have a 692 score and I am having trouble getting a mortage b/c the mortage market being down. Just put more cash down ont eh acr and you should not have a problem.

 

Thanks to some of the suggestions I think I will put more money down, but that's not what this thread was originally about - it was supposed to be about how the economic situation actually affects our ability to get auto loans in the real world, but somehow the posts were getting nasty. and when did "elitist" or "lower class" ever get into the discussion? This is totally obsurd! I don't think "elitist" will ever need to worry about getting an auto loan for 18k, and I never look anyone w/ less money as "low class" - unless they are acting like one. If this thread is turning out to be some sort of class wars then I want no part in it.

 

i wish financial institutions had expressed their "concerns" a bit sooner...

as much as i'd love to lay a smack down on the over-leveraged consumer, i place far more blame on lenders and financial institutions for this mess than the consumer -- they had the accountability, but failed miserably, to uphold their fiduciary responsibilities.

 

I'll let you know this week. I'm working on getting a check from the credit union for about half the cost of the car. I was approved for the loan, but I don't consider it a done deal until the check is in hand.

The news had me concerned that normal people could not get loans. I don't know if this was all hype to get the bailout bill approved or not.

 

I have crappy credit but I make a lot of money. I don't actually have any bad debt now, but I made stupid mistakes when I was younger and it will take awhile for my credit to even out. I also just bought a house last year with no money down, so I'm still a credit risk. My credit score will eventually even out as I just continue to pay old things off.

I got 100% financing on my Fit 2 weeks ago. My credit score is in the low 600's. I do make quite a bit of money though, and that got me by. They did request that I got an extended warranty on the car, and they also installed Lojack to make me less of a credit risk. But I did get financing at a not horrible interest rate without any problems.

Anyway, as far as no money down borrowing, it's all in what your priorities are. I'm young, and I like to have fun. I always pay my bills, and I put money in savings for emergencies, but I spend all my extra cash. There's nothing wrong with that if you're responsible and don't use your bills money for spending money. I could have put down a significant deposit, but I didn't want to. I'd rather pay a higher monthly payment but have that money available to me to travel with, or to do something fun with.

 

If you had over 710 credit score, Honda Finance's preferred rate is at 5.49%, good luck.

 

New Vehicleup to 36 mos.
37 to 72 mos.
73 to 84 mos.
85 to 96 mos.3.75%
5.25%
6.75%
7.25%

That is HIGH

 

honda told me that best rate was over 6%. they said any "specials" doesn't apply to the Fit. How do I negotiate the rates down? Anybody likes to share their experience?

I was thinking about going to my own bank as their published rates are lower, but I am afraid of being rejected due to my self-employment status. Last year I happened to deducted a lot of home office expenses so if they merely looked at the books it was rather low. I am afraid that if I do get rejected my score will go down when I go to the dealer again to try the loan. The dealer's loan officer did tell me that they would not require income docs based on my FICO score.

 

We did finance through Honda Finance and have financed through them before. Basically what they will look at is your credit score, so if you do have credit score better than 710, you can negotiate with dealer and mention the Honda Finance preferred rate. Well, that's what my dealer told me and beats other dealers' 5.9% rate. And for my case, it is the same 5.49% rate for either 48 or 60 months with couple thousand down. Good luck.

 

Bank of America is offering 5.19% on loans up to 60mo for new cars. 6.19% from 61-72mo. I refinanced through them a month ago and it was real easy to work with them. They had the best refinancing rates in CT as of a month ago. Not sure if they're one of the lowest for new cars but if the dealer is telling you 6+% from Honda then it looks that BoA is lower.