Does anyone have any experience with dealing with auto loans? Has anyone taken out an auto loan?

For future reference, what's involved in order to receive one?
I always see those pesky ads that approve everyone, no matter what the credit score. What is the truth to these?

Thanks.
... and someone buy my damn car. :P

Ya I have had a couple auto loans in the past, but it depends on how you do it. I went through a private credit union, so i had low interest and some other benefits. I havent ever dealt with any of the lending companies or dealers. If you have any questions feel free to ask, I will answer what I can.

i just went down to my local credit union and applied for one.

Does it hurt your credit score if you get declined?

Originally posted by saikou
Does it hurt your credit score if you get declined?

probably

i joined a credit union through my work and got a decent rate (for me, at least) im 23 and this was my first loan in my name. i got 7.65% and the best carmax could do was 13.5% or some crazy shit like that. i was like fuck that shit. i didnt check out my local bank though, i dont think they could have done much better than my credit union though

Originally posted by saikou
Does it hurt your credit score if you get declined?

i would think so since your credit score gets hurt if you are declined for a credit card. it's not too hard though, i was approved for 15k with 7% interest when i applied and i was only 20 at the time(i'm 21 now but i still work part time and go to school full time like i did when i was approved).

Your score gets hurt every time you apply for creit whether you are declined or accepted. I believe the only exception is for "pre-approved" credit cards.
As far as the deals where they accept anyone regardless of credit is their way of pawning off a car that noone really wants for outrageous interest.
Say you go to one of those places and walk around scoping out cars. One catches your eye and decide to talk to a salesman. What he will then do is make it seem like you're going to get that car. Then he'll say something like the bank won't do that particular car but they'll do this one. Since the person needs a car and has shit credit, they usually will take what they can get. Then they start fudging numbers ttill it's down to a monthly the person can afford. Most times, they won't even tell the person what the interest is unless asked.
Another thing I've heard of dealers doing is cutting deals with banks and inflating the interest so they also get a cut of that on top of the money they make on the car. And on used cars, thay make a TON. Say the bank will finance the car for 9%, they dealer will come back to you and say the best they can do is 11%.
It's always best to go to your own bank and get approved for the loan through them. If you've had an account with them for awhile and a steady job where you've been for awhile, they usually have pretty good rates.

Originally posted by eclipzGST
It's always best to go to your own bank and get approved for the loan through them.

That's what I did with the Evo. Then I walked into the dealership and told them I was pre-financed and if they wanted my money they would have to beat the rate I already had (3.75%). They got me to 3.2%. When banks compete for your money, you always win. ;)

This might be a stupid question, but, when you take out a loan Do you just take out a loan for a ballpark figure of how much you think the car will cost?..say if you were to get a base 350Z, you'd get a loan for 28K knowing the car msrp is around 27.6k..or would you first haggle a price at the dealer and then take out a loan for that exact amount at your credit union?
I know down payment, trade car value, tax, etc...would change these numbers but in a simple loan scenario....

Originally posted by Louis
This might be a stupid question, but, when you take out a loan Do you just take out a loan for a ballpark figure of how much you think the car will cost?..say if you were to get a base 350Z, you'd get a loan for 28K knowing the car msrp is around 27.6k..or would you first haggle a price at the dealer and then take out a loan for that exact amount at your credit union? I know down payment, trade car value, tax, etc...would change these numbers but in a simple loan scenario....

haggle and get a buyers order from the dealer. it will have the final price that is agreed on. then take that to the credit union

Originally posted by Louis
This might be a stupid question, but, when you take out a loan Do you just take out a loan for a ballpark figure of how much you think the car will cost?..say if you were to get a base 350Z, you'd get a loan for 28K knowing the car msrp is around 27.6k..or would you first haggle a price at the dealer and then take out a loan for that exact amount at your credit union? I know down payment, trade car value, tax, etc...would change these numbers but in a simple loan scenario....

i'm not sure if every bank/credit union operates like this but my credit union had some sort of KBB type of deal in their computer system that projected the value of a given car based on different variables. basically, whatever they thought the car was worth, they would give you a certain percentage over that amount for the loan.

Originally posted by eclipzGST
Your score gets hurt every time you apply for creit whether you are declined or accepted. I believe the only exception is for "pre-approved" credit cards. As far as the deals where they accept anyone regardless of credit is their way of pawning off a car that noone really wants for outrageous interest. Say you go to one of those places and walk around scoping out cars. One catches your eye and decide to talk to a salesman. What he will then do is make it seem like you're going to get that car. Then he'll say something like the bank won't do that particular car but they'll do this one. Since the person needs a car and has shit credit, they usually will take what they can get. Then they start fudging numbers ttill it's down to a monthly the person can afford. Most times, they won't even tell the person what the interest is unless asked. Another thing I've heard of dealers doing is cutting deals with banks and inflating the interest so they also get a cut of that on top of the money they make on the car. And on used cars, thay make a TON. Say the bank will finance the car for 9%, they dealer will come back to you and say the best they can do is 11%. It's always best to go to your own bank and get approved for the loan through them. If you've had an account with them for awhile and a steady job where you've been for awhile, they usually have pretty good rates.

the dealer told me that the credit bureaus give a 2 week window for people who are buying cars or houses to have their credit run without it affecting their score. the first time the guy ran my credit for my loan, it came back higher than before

Dude don't be sacred to get a loan, to buy a car, EVERYONE does it unless you have thousands saved up in some bank account. Even then you should take a loan. You will not build your CREDIT SCORE if you do not have a CREDIT HISTORY.
Having a C.C is not bad, not paying it is however. Having a good credit record will give you a good credit report and thus lower interest rates. Who ever tells you that having a C.C or taking out a house/car loan is a bad thing does not know what they are talking about.
As for taking out a vehicle loan, go to your bank, let them know you are interested in purchasing a vehicle (they will most likely ask you what kind), you can be as specific or as vage as you want. They will give you an answer either way. They will tell you what the max you are approved for is if you just ask for what you qualify for. If you give them a better idea as to what vehicle, they will be able to tell you if they can finance such a vehicle for you. Nothing to be scared of, just go speak with your bank.

Nobody in the history of car loans has had a higher interest rate than I had. Mine, at 19 years of age and no co-signer on a $7,000 eclipse gs was at 28%. I think I've got pretty good credit now though. I had it ran when I was thinking about buying a house, and they told me it was in the 720's and my car being paid off hadn't been posted yet.

Damn dude, whatd you end up paying total? I'm looking for a GST and I'm practically in the same position as you, though I might have a co-signer.

hey guys who went through the credit unions, did you have to put anything up as collateral? or did you not fill out that part of the loan? lol

collateral on a used car loan??? why?

was it required is all - who knows, why. Insurance to them you will pay it off or lose the collateral

Originally posted by .bs0d
hey guys who went through the credit unions, did you have to put anything up as collateral? or did you not fill out that part of the loan? lol

your car is collateral, at least it was in my case.

yeah, your car is the collateral. thats why sometimes they wont lend you the entire value of the car, maybe 80 or 90%, they want you to put some money into it right away so if you dont pay it, they can come take it and not lose money. plus they usually make you have full coverage insurance for the life of the loan