So I went to my credit union today and applied for a used car loan. I was approved but the lady informed me that they could not give me the amount I applied for to be spent on the car I listed on the application (00 ITR). Now is this just my credit union being a PITA or is this the case with these cars. I noticed that KBB and even NADA has a very low value on these cars and the bank said they can not approve the loan if this is the car I chose. I figured the kind of car I wanted to purchase really wouldn't make a difference but then again I also realize they aren't going to shell out 20k for me to purchase a 1992 Honda Civic. I know I have good credit so I'm assuming that obviously isn't the problem. Any help would be great. Thanks

 

Wait, so they won't give you any money or just the full amount you need? My bank gave me 10,500, then i took out an additional 1000 as a personal loan. because they'll only give you what kbb/nada says it is worth. my lack of cresit approved me for 85%.

 

Most will go by KBB, you will have to come up with the rest. Only recently has this been an issue as the car gets older, KBB thinks the value goes down.

You won't be able to get them to see it any other way, unless you have some serious collateral.

 

The R is 8 yrs old, most credit unions won't dish out the money for a car that old. Mileage is also a restriction for getting a car loan.

 

If you can't make up the difference between kbb and what the car is listed at... look for a cheaper car. That isn't exactly the smartest financial decision.

Credit unions are generally much more lenient than banks. BlueIntegraBoy is correct...

My credit union - they don't care about year, but they do care about it being under 100k miles.

 

Bank of Dadhasalotofcashandallowedmetoborrowagainstit lent me the money for my R. My next R will be financed through USAA, and they are willing to give me a good amount for an 01.

 

banks/lendors wont give auto loans for cars over 7 years old, its an industry standard

just take out a personal loan for a used car over 7 years old, if you got a credit like you said, you can still get a real good rate

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by 01-0720 &raquo;</TD></TR><TR><TD CLASS="quote">banks/lendors wont give auto loans for cars over 7 years old, its an industry standard

just take out a personal loan for a used car over 7 years old, if you got a credit like you said, you can still get a real good rate </TD></TR></TABLE>
totally agree

 

And a personal loan won't be questioned correct? I have taken out a 3, 5, and 9 thousand dollar personal loans out before with no problems what so ever. Hopefully the 6-8k jump will not be an issue.

 

Go to smaller local/regional banks. The larger and/or national banks can be a lot more picky about who they hand out money to. Smaller banks don't have this luxury...to the same extent. Many of them will lend on cars more than 7 years old, cars with imperfect title history, etc, and though the interest rate won't be ideal it's still a loan on something the larger banks won't even glance at.

Admittedly this is not a perfect strategy as the lending prerequisites change from bank to bank, region to region, month to month, etc, and the state of American bank isn't exactly "great" per se. But it's still starting with more chips on your side than if you were trying to go through First Citizens, BoA, or Wells Fargo.

To be honest a personal loan is probably the best idea.

 

no as long as your credit is good enough for the amount you want, they dont ask what its for , you can spend it on anything you want

 

Well the last personal loan for 9,000 had a rate around 12.xx% which I was told is not bad at all for someone my age on a personal loan.

 

I was able to get 100% of the kbb value but I didn't need that much. This was 3 years ago so the kbb value has probably gone down.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by eluam &raquo;</TD></TR><TR><TD CLASS="quote">Bank of Dadhasalotofcashandallowedmetoborrowagainstit lent me the money for my R. My next R will be financed through USAA, and they are willing to give me a good amount for an 01.</TD></TR></TABLE>

When I bought my 98, USAA would only give 10k.(I still LOVE USAA)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by 01-0720 &raquo;</TD></TR><TR><TD CLASS="quote">banks/lendors wont give auto loans for cars over 7 years old, its an industry standard

just take out a personal loan for a used car over 7 years old, if you got a credit like you said, you can still get a real good rate </TD></TR></TABLE>

You will have a much higher interest rate with a personal loan, even if your credit is "good".

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by BoostinEJ1 &raquo;</TD></TR><TR><TD CLASS="quote">Well the last personal loan for 9,000 had a rate around 12.xx% which I was told is not bad at all for someone my age on a personal loan.</TD></TR></TABLE>

When i bought my second itr my interest rate was 4.5. Like I said above, personal loans are gonna be higher.

IMO, take what the bank will give you and use cash for the rest. If you dont have the cash then dont buy the car.

 

Thanks for the advice

 

I just called my bank and I can still get a loan on a 98 ITR for $17K with 6.00% interest as long as the milage is under 100k. A lot of it has to do with your credit history and it doesn't hurt to have multiple accounts with the institution you are trying to get the loan from.

OMFG.... a Kendall spotting.

 

I don't know what banks/credit unions you guys use, but with mine I just call them up and say I need a used car loan for $XX,XXX. They then tell where I would like for it to be sent and I just fill out the car info when I purchase the car. I don't tell them what car I am looking at, I don't tell them any milage, and I don't have to tell them what year it is to get the loan. I have purchased both of my ITR's that way, without a hitch.

 

Wow, I can't believe there is this big of spread in lending practices. I work at a bank and our direct lending services are standardized. We have a few credit tiers and then the rate is based on the year of the vehicle; mileage is not factored (atleast not directly). However, we will only lend 110% of NADA retail value excluding taxes. This isn't to be a pain in the ***. Why would an institution lend money for something where they couldn't even get close to recovering a defaulted loan?

I would not recommend taking a personal loan to buy a car. The interest rates are ridiculous. These loans are intended for short term expenses, not financing of vehicles. I agree that if you can't afford the cash on top of the loan, not the car for you. Look for something where the value of the car is on par with your loan balance.

EG6-DC2, I am surprised your bank is still in existance with practices such as that... I am glad I do not work for that bank.

 

what I did was used Capital one Auto Finance when they had a option on used cars.

I got a limit of $20,000. They gave me a 12% APR which was [freak]ing high, so I used my credit card to pay it off with a fixed APR of 4.99 =]

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by emfollin &raquo;</TD></TR><TR><TD CLASS="quote">
EG6-DC2, I am surprised your bank is still in existance with practices such as that... I am glad I do not work for that bank.</TD></TR></TABLE>

I don't think my bank really has much to worry about. It is Navy Federal Credit Union, one of the largest military oriented banks. That might be the reason why they are a little more easy to deal with.

 

Depending on the bank or credit union usually if you qualify for the top tier or even second tier rate they will loan up to 125% or 135% loan to value which really helps with Type R's. For instance my 2000 Type R I just purchased for 22,000. The car blue booked out at 15,000 and my credit union loaned 18,000 so I had to put the rest down cash but still it saved me 3,000 more dollars that I would have had to come up with. Same thing with my last 98 Type R, I purchased it for 20,000 blue book showed 13,700 and they loaned me just over 17k. Ask your credit union if they do this otherwise you may need to take out a personal loan for the difference. Good Luck

 

I had a similar problem when I was looking to buy my friend's 98 ITR. No one would give me the loan because of the age. Eventually I found a 2000 and financed it with an auto loan through Bank of America. My rate is 8.2% and I financed 12,500 of it. Bank of America will give you a loan for anything 8 years or newer. And depending on your credit score/history you could potentially get a lower apr.

 

Go through a Credit Union they always offer the best rates on loans. My Credit Union would loan on any car 10 years or older and on my 2000 Type R I financed 18,000 for 72 months at 5.49 apr which is a great rate.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by EG6-DC2 &raquo;</TD></TR><TR><TD CLASS="quote">

I don't think my bank really has much to worry about. It is Navy Federal Credit Union, one of the largest military oriented banks. That might be the reason why they are a little more easy to deal with. </TD></TR></TABLE>

^Boo ya great bank

I got my ITR through bank of Nolan.... great bank no problems getting a loan, I set my own payments, only one of them though and its not close

 

an itr is a safe car to take a loan out on becasue they really dont depriciate value. they will always be worth money

i paid 15k for my 01 itr with 53k on the clock and i didnt have any trouble with it. now i have banked my the same bank for 9 years and have had 4 loans through them and also have pristine credit