[jd4jc]

Well, this is embarrassing. But I'd rather be embarrassed and maybe solve the problem than not be embarrassed and miss out on my Stingray.

I placed my order for a '15 in mid-July knowing that my credit was not great, but expecting that I would simply have to pay a higher interest rate. (My wife divorced me in 2010-11, causing a mortgage foreclosure and the charge-off of several credit card accounts.) According to Credit Sesame, my FICO score was 616 -- "Poor" but not very far from "Fair." My job situation is good -- same employer for 8 years now; income is very good; and, since all divorce-related payments to my ex-wife ended this past May and for the first time in many years I don't have any kids in college, my expenses are relatively low. I definitely have the disposable income to make even sizable payments, and I have at least $10K for the down payment. Very bad surprise this week when my dealer ran my credit and came up with a credit score of 491 (!). As a result, my dealer is having a very hard time finding any financing, and I am in danger of losing out on the car -- which is being built this week! The only avenue the dealer thinks will work is a co-signer. After much thought, I'm just not willing to do that, even if a family member or friend were willing. Payments won't be an issue, but the size of my Vette loan would be a severe hindrance to the other person's ability to, for example, get a mortgage or any other significant financing for the next several years.

Any ideas out there? Suggestions of "sub-prime" auto lenders? Other alternative financing suggestions? All help appreciated. Thanks.

 

[LT1xL82]

This is not the answer you want to hear, but with sincerity my opinion is reconsider the purchase.

With that credit rating, you will pay an extremely high interest rate, And until you have a long track record of paying on time, that loan will hurt your credit rating, handicapping your ability to meet an unforeseen future need for credit.

If you still want to proceed, some credit unions are very flexible on car loans to people with less than great credit ratings.

From my heart and brain: Really consider putting off this purchase. Don't accept horrible loan terms nor put yourself at risk of further damage to your credit rating. It can impact not only the terms of this car loan, but future loans, insurance rates, job applications... Is this Corvette REALLY worth it?

I'll reply to you on this forum or PM if you so desire.

 

[Ragtop]

Here's something you'll find completely unhelpful. Warning: If you are a 'sensitive' type, don't play.

 

[JoshuaKM1]

I think any rational and responsible member of this forum would advise against taking out a large auto loan if you have poor credit.

 

[Curahee]

Well, this is embarrassing. But I'd rather be embarrassed and maybe solve the problem than not be embarrassed and miss out on my Stingray.

I placed my order for a '15 in mid-July knowing that my credit was not great, but expecting that I would simply have to pay a higher interest rate. (My wife divorced me in 2010-11, causing a mortgage foreclosure and the charge-off of several credit card accounts.) According to Credit Sesame, my FICO score was 616 -- "Poor" but not very far from "Fair." My job situation is good -- same employer for 8 years now; income is very good; and, since all divorce-related payments to my ex-wife ended this past May and for the first time in many years I don't have any kids in college, my expenses are relatively low. I definitely have the disposable income to make even sizable payments, and I have at least $10K for the down payment. Very bad surprise this week when my dealer ran my credit and came up with a credit score of 491 (!). As a result, my dealer is having a very hard time finding any financing, and I am in danger of losing out on the car -- which is being built this week! The only avenue the dealer thinks will work is a co-signer. After much thought, I'm just not willing to do that, even if a family member or friend were willing. Payments won't be an issue, but the size of my Vette loan would be a severe hindrance to the other person's ability to, for example, get a mortgage or any other significant financing for the next several years.

Any ideas out there? Suggestions of "sub-prime" auto lenders? Other alternative financing suggestions? All help appreciated. Thanks.

Cancel the order. You say you can afford a "substantial" monthly payment. Take this amount each month and deposit it into a savings account. Take other steps to work on improving your credit rating. Set an objective of being able to order a new 2018 Corvette in three years. Just imagine the improvements that will have been made to the C-7 by then. If at all possible, pay cash. I know it will be painful to wait, but you will enjoy your car much more knowing it's all yours.

 

[Mobius]

Cancel the order. You say you can afford a "substantial" monthly payment. Take this amount each month and deposit it into a savings account. Take other steps to work on improving your credit rating. Set an objective of being able to order a new 2018 Corvette in three years. Just imagine the improvements that will have been made to the C-7 by then. If at all possible, pay cash. I know it will be painful to wait, but you will enjoy your car much more knowing it's all yours.

Solid and sound advice.

 

[Milliwatt Rob]

Cancel the order, and instead, look for a nice used, but not abused, Corvette that you can pay cash for, and drive until the credit situation improves. When it does, trade in your used ride on a new one.

 

[Rsmith]

I think everyone here has given you good advice. Cancel the order, put what would be your car payment into a "Vette" account for a larger down payment down the road. Benefits: smaller loan and thus smaller payments in 1-3 years which will then impact your credit scores less. And you have time to bring your credit scores up. Keep in mind, as mentioned in an earlier reply, a low credit score impacts more than just your loan rates.

 

[Ret9580]

@Ragtop.....that was hilarious and so true about Indian Casinos! @jd4jc....ex wives never die and they never get remarried.

 

[Georgio51]

Well, this is embarrassing. But I'd rather be embarrassed and maybe solve the problem than not be embarrassed and miss out on my Stingray.

I placed my order for a '15 in mid-July knowing that my credit was not great, but expecting that I would simply have to pay a higher interest rate. (My wife divorced me in 2010-11, causing a mortgage foreclosure and the charge-off of several credit card accounts.) According to Credit Sesame, my FICO score was 616 -- "Poor" but not very far from "Fair." My job situation is good -- same employer for 8 years now; income is very good; and, since all divorce-related payments to my ex-wife ended this past May and for the first time in many years I don't have any kids in college, my expenses are relatively low. I definitely have the disposable income to make even sizable payments, and I have at least $10K for the down payment. Very bad surprise this week when my dealer ran my credit and came up with a credit score of 491 (!). As a result, my dealer is having a very hard time finding any financing, and I am in danger of losing out on the car -- which is being built this week! The only avenue the dealer thinks will work is a co-signer. After much thought, I'm just not willing to do that, even if a family member or friend were willing. Payments won't be an issue, but the size of my Vette loan would be a severe hindrance to the other person's ability to, for example, get a mortgage or any other significant financing for the next several years.

Any ideas out there? Suggestions of "sub-prime" auto lenders? Other alternative financing suggestions? All help appreciated. Thanks.

Try to get a look at your full credit report and make sure it's one of the big 3 bureaus...Trans Union, Experian and Equifax. Your dealership is required to give you a hard copy of a single page report that shows your score. You want a look at all the detail to see which creditors are listed. You will see your month by month credit history for each creditor. A "1" indicates on-time payment. This could give you an idea of which creditors to handle first. If your score is in the low '600s', you have a shot. If, however, it is below 500, it may still be a stretch with a co-signer. I lost many deals because the primary applicant was just too high a risk. Simple rule of thumb we followed.... good/excellent credit can help FAIR credit but probably not a 500.

If there is a shot, perhaps thru a credit union where you have some decent history, you can attempt to reduce bank risk through the obvious... a very large down payment.

Other than that, and if the terms of any possible approval are ridiculous, I advise that you stand pat. Pay off small creditors and stay absolutely current on all others. If you can get a low limit credit card, use it often and pay it off religiously. Bank several hunge a month to further build down money. You will build your credit slowly but surely and C7s will still be around when you're ready. You'll have more down money, a better rate, and a reasonable term for the loan (60 months).

 

[Liner Boy]

The other issue is even if you can find someone to finance your Vette, the size of the loan will further erode your credit score. Given what your score is now, you would not want that to happen. Follow the advice from other posts in this thread. Cancel the order.

 

[lagunaDDS]

pay cash. sometimes having good credit is a curse. I've got good credit, but I'm in debt out my ears. If you've got good income, with everything else paid for, save for 3 or four months and pay cash. Has the car already arrived? if you've ordered recently it will take 2-3 months to arrive anyway. IMHO if it takes more than 3 months of 100% of your income to pay for car, you can't afford it; or need a bigger down payment to reduce debt amount. good luck

another option: with the last vette i owned the excitement (or novelty) gradually went down month by month. not sure where your at but maybe renting one in someplace like vegas might reduce the craving to buy one.. expensive to rent but a fraction of 60k+ dollars..

The other issue is even if you can find someone to finance your Vette, the size of the loan will further erode your credit score. Given what your score is now, you would not want that to happen. Follow the advice from other posts in this thread. Cancel the order.

 

[rdslon01]

pay cash. sometimes having good credit is a curse. I've got good credit, but I'm in debt out my ears. If you've got good income, with everything else paid for, save for 3 or four months and pay cash. Has the car already arrived? if you've ordered recently it will take 2-3 months to arrive anyway. IMHO if it takes more than 3 months of 100% of your income to pay for car, you can't afford it; or need a bigger down payment to reduce debt amount. good luck

another option: with the last vette i owned the excitement (or novelty) gradually went down month by month. not sure where your at but maybe renting one in someplace like vegas might reduce the craving to buy one.. expensive to rent but a fraction of 60k+ dollars..

I am sorry, but this post doesn't pass the sanity test for me. You wrote that if it takes more than three months of 100% of your income to pay for a car, you cannot afford it. Based on that, very few people could afford a Corvette. Would you care to elaborate?

 

[Ragtop]

mstunkel, if I rode in one before I bought, I would HAVE to buy one!!:roll eyes: Everyone I give rides to seems to feel the need to get one for themselves, lol.

 

[LT1xL82]

I am sorry, but this post doesn't pass the sanity test for me. You wrote that if it takes more than three months of 100% of your income to pay for a car, you cannot afford it. Based on that, very few people could afford a Corvette. Would you care to elaborate?

If he is saying someone with say a $100K/year income can only afford a $25K car, that is very conservative. If he is saying you could make $25K per year in car payments, that would be crazy high. I'm lost on this one.

 

[TNSQUIRE]

IMHO if it takes more than 3 months of 100% of your income to pay for car, you can't afford it; or need a bigger down payment to reduce debt amount...

You lost me on that one. So if you want to buy a car that costs $75000, you need to make $25K per month? I wIll respectfully disagree.

 

[lagunaDDS]

yeah, pretty much what I'm saying. ill admit i listen to way too much dave ramsey. Thats my general rule for any non investment "toy" purchases that will only go down in value. 75k car for me would require 25k per month (before tax) income; or a bigger down to reduce size of loan.

You lost me on that one. So if you want to buy a car that costs $75000, you need to make $25K per month? I wIll respectfully disagree.

 

[LT1xL82]

yeah, pretty much what I'm saying. ill admit i listen to way too much dave ramsey. Thats my general rule for any non investment "toy" purchases that will only go down in value. 75k car for me would require 25k per month (before tax) income; or a bigger down to reduce size of loan.

$300K minimum per year gross income to own a $75K car? That is SERIOUSLY conservative...and grossly over simplified.

 

[Ragtop]

If you did everything Ramsey told you, you would NEVER buy a NEW car.

 

[lagunaDDS]

waving white flag..

If you did everything Ramsey told you, you would NEVER buy a NEW car.