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Discussion Starter · #1 ·
Guys what the hell is going on. I'm supposed to get my tC on monday, and the dealer calls me while i'm taking a frickin nap and wakes me up, and says "Uhh theres a problem, we're gonna need a cosign". I have no credit, so when I originally went in I had my mom with HORRIBLE credit do the credit app, and they gave us a really high interest rate but I was like whatever who cares, it's a tC. So I thought all was good, put my deposit down, got this numbskull to get the car for me in like a week. Now the cars coming in and he says I need a different cosign because my moms credit is too bad. How could it go through when he ran it the first time, then randomly just call and say it didn't work. I have no one else to sign for me and I'm gonna flip out and choke the #### outta this dealer. I want my car, this is BS what do I do. And if he keeps my 500 dollar deposit then I'm going to be pissed. Help.
 

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Why do you need a cosign? I had NO credit when I bought my tC and they would have been happy to give me a loan at 13%... luckily my dad cosigned.
 

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i didn't need a cosinger, I have pretty bad credit. They have some kind of tear system. I was tear 3 out of 4 tears. I applied on line on a whim, the dealership called me back with in 2 hours siad i was aproved and asked when i want to come in for a test drive. got the car a week later. but as i was waiting for the car i got a letter in the mail saying i was my credit app was declind
. called the dealer,they said don't worie about it. then i had about 500 mi on the car i got an email saying i was declind
. i still have the car and have made 2 payments.
 

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Zygote is right. Your interest rate will be sky-high, but you should be able to get a loan without a co-signor.
 

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Originally posted by Wolo@Oct 8 2004, 12:19 PM
Thanks to tCrazy for pulling that child out of harms way!
not sure what it was but SOMETHING rubbed me wrong about having "ill eat a child" in the topic title and within the post itself........yea yea yea its a joke but, seriously better/more friendly wording can be used to make the point. - t
 

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Discussion Starter · #8 ·
Lol I dunno man I wouldn't really eat a baby, ahaha. Well anyway, wtf I have very little credit why do I need a cosigner? I'll pay 13 frickin percent I just want the car. My moms credit is so horrible I would be paying 13 percent anyhow. I don't understand why I'm not getting a loan, maybe because my employment at my current jobs are only 7 and 3 months respectively? I just started my credit but still, If people with NO credit are getting approved, I should be getting approved too with very little credit. Im really worried and pissed now.
 

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Regarding credit... if you have no or very little credit history (sounds like your case), you are a big risk for the finance companies. Since its their $$$ its up to them to decide whether they want to give you the loan or not. I guess in your case, its not.

Do you know if it was through toyota financial?? If so, have you tried to see if your bank would give you a loan?? If not, try that out and see what they say. Also are you putting a deposit down?? Usually the less you finance, the more of a chance they will give you the loan... cause it ends up being less of a risk for them.

Anyways... I hope everything works out for you.
 

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It was 2 months after I landed in the US and I got a loan @ 25%
Refi'd it @15% in 2 months, now 3 years later I get 4.09% for 60 months with no problems at all... How difficult can it be to build decent credit?
 

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Originally posted by imasaf@Oct 9 2004, 12:49 AM
Regarding credit... if you have no or very little credit history (sounds like your case), you are a big risk for the finance companies. Since its their $$$ its up to them to decide whether they want to give you the loan or not. I guess in your case, its not.

Do you know if it was through toyota financial?? If so, have you tried to see if your bank would give you a loan?? If not, try that out and see what they say. Also are you putting a deposit down?? Usually the less you finance, the more of a chance they will give you the loan... cause it ends up being less of a risk for them.

Anyways... I hope everything works out for you.
You would think all that would be true, and in the past it was, but it's really not anymore...

Most dealers and finance companies these days are perfectly willing to make a loan to just about anyone, including people who have defaulted on prior loans, at exorbitant interest rates. A large part of what I deal with at work are defaults on auto loans, and I can't count the number of loans I've seen at 15-25% with little or nothing down, and usually for 60 or 72 months.

The reason is because after the person stops making payments on the loan, the finance company repossesses the vehicle, sells it to itself or someone else at a fixed sale for a loss, and then comes after the buyer for the difference -- not between the value of the car and the amount paid, but between the amount paid and the amount owed, minus anything they were able to sell the vehicle for.

By and large, this arrangement allows finance companies to come out ahead overall, since (1) not everyone can declare bankruptcy to get out of the loan after the car is repossessed, and otherwise they still have to pay, (2) the interest rates are so high that they can sometimes make a profit even before the car is repossessed, and (3) the re-sale of the car once it's repossessed is fixed, so that they often make extra money that way, too.

That was probably more information than anyone wanted, but I just wanted to explain why finance companies will finance people who are very poor credit risks.

You should be able to get a loan from them one way or another. Just ask them what they need from you to make the deal.
 

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^^^ Thats good info... Marty. I agree that some finance companies work that way... but I also think others work in the traditional way.

Also if the dealers are working with a buyer with bad, no or little credit, they have to want to convince the finance companies to give the loan to the buyer. The dealers are not there to only sell cars... but also sell buyers who are on the fence as far as loans go to the finance companies.

Anyways... who knows what the exact details of woodyear's situation is. Maybe the dealer wants to give that car to someone else who has better credit or to one of his/her friends... and just told him he can't get a loan through them... it could happen.

Oh well... if they won't give you a loan... shop around to see who will.
 

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funny thing when i went with my parents is that they were gonna cosign because they thought i didnt have any credit but when the dealer did a credit report, turns out my credit was 757
soo tc is under my name only.
!!
 

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^^^ Huh?? Didn't you just post in the other thread that you wrote a check for 19K?? Why would you or the dealers even care if you were paying cash??
 

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Originally posted by imasaf@Oct 9 2004, 03:45 PM
^^^ Huh??  Didn't you just post in the other thread that you wrote a check for 19K??  Why would you or the dealers even care if you were paying cash??
Good catch!
------------------------------------------------------------
ALSO......

Dealerships determine APR by your credit rating or "score"... .... this is my own opinion -------------> I think they take the worst rating of the "BIG 3" credit bureaus and check which tier your credit score applies & that is your APR. According to one credit bureau... my g/f has a 701 credit rating as of 1 month ago which would be a 5% APR at SCION.... according to the dealership when they checked her credit score was only 623 which drops her down to 10.25% APR... not good!

Banks on the other hand go by if the vehicle is new or used AND what your debt to income ratio is... most banks won't let you go over 32% and right now my g/f has a 6.25% APR so I would go check with your bank before you go thru SCION.
 

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Discussion Starter · #16 ·
WTF if this dealer is turning me down on this car to sell it to someone else , then I'm gonna have to A. Murder him or B. sue the dealership because they are refusing to refund my 500 dollars also. First they approve me and then out of nowhere they call and say its not gonna work I need a different cosign, and that if I cannot find one then I just lose my deposit. Total bs and it sound illegal to me.
 

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Take it easy dude... i'm just saying different ppl have different experiences... who knows whats really going on...
 

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They cannot keep your deposit. It's illegal. Deposits are just to scare people...

I had my deposit at 2 different dealerships when I was shopping for my tC, ended up buying from the 3rd dealer. Took the money back from the first two - nobody said a word - they just can't... You can change your mind right before signing a purchase order and walk away with your deposit, and they will be stuck with their tC. (Not that they will have any trouble selling it)
 

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^^^definitely true about the deposit. I was in the same situation. The first dealer was jerking me around so I went elsewhere (while still having the deposit at the first place). When I went to another dealer and got my car there, I just called and told them I wanted my deposit back. You don't even need to give any reason why you're wanting it back. Anyway, I didn't check your profile to see how old you are or if you're in school or anything. But, the reason I mention this is because if you're at a big university, they usually have a credit union for their employees and students. So you could open a savings account (for as little as $25) and get your loan through them. Scion was going to give me something like 8.5% and I got the loan through my credit union for 4.5%. So check on that too...it's usually the best option for financing. Good luck!!!
 

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Credit Unions are the best to boost your credit ratings. I can hook you up with joining mine. There is a way for anyone to join, just need to know how. That's if your school or employer (or even parents) don't have a CU.
 
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