yur1279

Ok, My credit union is asking for a cosigner on my loan due to me having a limited credit history. I'm supposed to go tomorrow to order my car and was wondering if I should hold off untill i get approved for the loan, or order and figure out the loan while the car is on order.? any help is greatly appreciated.

tekman13

Order the car to get the order in. If the loan falls through you can always get your deposit back. (Double check with your dealer to make sure it is a refundable deposit.)

DanTheMans22

You can order it and figure out financing while it's being built. You don't have to worry about paying for the car until it arrives. Try going to lendingtree.com, you may get an offer there that doesn't require a cosigner. I am using them and got a pretty decent rate too.

yur1279

yeah, thats what I am planning I think. My mom put her name down, but I;'m not sure how her credit history is and if she will be approved. If that fails, I have to ask my dad and I know there will be no problem with his credit, so i'm sure I can get the loan, just not before I order. Thanks again guys

Karpro

If you have a solid cosigner and know you'll get approved just order. If not, see if the dealer can help. Remember, we (the dealer) have a little more clout with the banks than you do. You represent one or two car loans every 4-5 years. We represent a million dollars of business a month. When I bought my truck, I was able to get a better interest rate through the dealership at my own bank than I could get going in to see them directly. My banks employees are to to let the dealer arange the financing for them because the indirect lending rate is lower than the door rate.

Karpro

No offense, but thats not fair for the dealer or other customers. We only get limited amounts of these vehicles currently and tying up a unit of allocation without the ability to buy it serves no good purpose. If you are confident that you can get the loan, order it. If not, don't tie up a unit of allocation that the next customer could have built to their specifications.

Sure the dealer can sell it when it comes in, but it may also delay the next guy in line a couple weeks to a month or two because a phantom order(s) are ahead of theirs.

If you know you can get the loan fine, if not finish the pre-approval ahead of time.

yur1279

as a last resort I was going to use ford credit. Is it difficult to get approved through them?

upstate

The other danger you risk if you are cancelling the order because you can't get credt, well the dealer may pull together a loan at delivery at say 10% then you have no reason not to take delivery. You may loose your deposit, even if the rate isn't want you want, you got financing!

I8URVTEC

Ford credit shouldn't be that hard to get. I have never had a loan before b/c I am only 24 but they gave me my own loan for financing my GT without a cosigner and I got a pretty good rate of 3.89% for 60months. Ford credit actually had the best rate of all the banks and credit unions I checked out.

yur1279

you got 3.89% on a 2005 gt?

Radman

It also doesn't hurt to get pre-approved, and then see if the dealer can get you a better rate. Like Paul said, they have much more clout with the banks than you. If nothing else, you have your hiney covered if they can't find you a decent rate. FWIW, I went to lendingtree.com and got pre-approved at 4.39%. A couple of the rates were worse than what my credit union could offer though. YMMV.

Jason

yur1279

I was just looking at ford credit options and they have that chart at the bottom to show what you owe per month per $1000 financed. Is there any other fees added to that, it seems cheaper then the quote I got from my credit union.

I8URVTEC

Yup, Ford says then used Citizens bank or something to get me the loan.

Donna

Just as Karpro said I got ALOT better rate from the dealership through a local bank. I was preapproved with Ford Credit and thru AAA financing. The best I could come up with on my own was 4.54% for 60 months. The dealership got me 4.00% through a local bank. At the time I purchased my car (Oct 19) Ford credit was not offering anything even close. Good Luck to you!!

yur1279

Ok, i just got approved through my credit union for 4.5% for 60 months. So tomorrow i am now placing my order plus seeign if ford can beat that. Thanks for everyones help, can't wait to show you guys my car when it arrives!

Karpro

Congrats. Now spend the rest of they day reading all the posts about making sure everything goes smoothly with the order process. Signed paperwork with pricing, DORA, allocation, AQHA, etc....

Start the clock ticking!!

yur1279

somone should make a checklist of everything to go over with a dealer through the order process.

ace0215

main thing is get a DORA, and find out about their allocation and when the car will be pulled.

Karpro

And of course get it in writing!!