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Discussion Starter #1
Hello guys, this is my first time purchasing a mercedes Benz , in fact it's my first time buying a car.

Problems right now I'm facing are that my dealer submit my credit approval to mbenz and I got rejected.

I'm 21 and I don't have siblings here in the states so I can't have a co-signer
Most of my income is from overseas, and some minimum income I make a month.

What I need now is a bank that can approve me for a auto loan.
I haven't tried credit union , but I am planning to, I saw someone saying PenFed offers special auto loan with Mercedes on the other thread.

What is your guys suggestions?

I have the money... And I am trying to finance because I want to build up my credit.
I would put 10k, 15k down for the car..


Thanks
 

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Hello guys, this is my first time purchasing a mercedes Benz , in fact it's my first time buying a car.

Problems right now I'm facing are that my dealer submit my credit approval to mbenz and I got rejected.

I'm 21 and I don't have siblings here in the states so I can't have a co-signer
Most of my income is from overseas, and some minimum income I make a month.

What I need now is a bank that can approve me for a auto loan.
I haven't tried credit union , but I am planning to, I saw someone saying PenFed offers special auto loan with Mercedes on the other thread.

What is your guys suggestions?

I have the money... And I am trying to finance because I want to build up my credit.
I would put 10k, 15k down for the car..


Thanks
First thing is first...always know your credit score before walking into any dealership. You can do this at CreditKarma.com, as they let you check your score every month. Your best bet is to finance the amount you need through the bank, not the dealership. Unless you have top notch credit (700+) you can forget about a decent interest rate from the dealership. Banks and credit unions are much better with giving you a decent interest rate. The good thing is you have money in your back pocket that you can put down, which will make the amount you need to borrow smaller. Where you might be stuck between a rock and a hard place is with your overall credit history/credit score. That is pretty much the golden key to all of these things I just mentioned.

If you don't have much of a credit history, or your credit score isn't the greatest, you may be able to go the lease-to-buy route for now. A 35k CLA lease for 36 months with about 10-12k miles would run you about 12-15k respectively. You could pay cash for the lease....although that isn't the smartest route if you're a bad driver (if you total the car, your $$$ is gone) it will atleast get you in a brand new CLA and you'll have time to re-cooperate your money and get your finances in order to one day buy the car out. You have quite a few options, but it all depends on what you feel comfortable doing. I have leased cars in the past and I usually pay straight cash for the lease because #1 I have the money and #2 I don't like paying interest if I don't have to. If all fails, you can always wait it out, save up more money, and see what your options are at that point. Good Luck!
 

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I don't know whether you were rejected because you have no credit or bad credit. If you have no credit then you need to try to find a bank willing to take you on as a risk. That's going to be tough in today's environment. Banks were burned pretty badly over the past few years by loaning good money to people without credit or bad credit. The less you need from a bank the better (assuming you have soooome credit) although it's still a risk to them. Also, if you don't show any means of income you're also going to have a serious problem finding someone to give you a loan these days. As I recall you previously mentioned having an annual income of $15-20K(?). That doesn't lend itself well to a credit application when you want to buy a car worth twice your annual income and you can't show any other means of income.

If, however, you have bad credit then you're in for a heap of hurt for all of the aforementioned reasons.

I wish I had better advice for you but all I can say is pick up the phone and start dialing banks. Bank of America, Wells Fargo, Citibank, etc. Call the big ones. Call the small ones. Call the credit unions if you qualify for them. Oh, and if you have no credit, get a credit card and start using it pronto. Pay your bills on time and start building credit. If you have bad credit then you need to fix it and worry about buying a Mercedes another time.

-Eric
 

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Discussion Starter #5
I do have credit, A BMW dealer ran my credit check last week and it shows that my credit score is around 700-730.
But yesterday I applied auto loan through Bank of America which I have checking and savings with them rejected me again and it showed that my credit was 688. I'm not sure why.

Does each dealer have their own credit system? Anaheim mercedes rejected me. I think because my income is low and income from overseas didnt meet requirement. ( because I don't need 5 k a month from my family)
Will house of import reject me ?
Or don't bother trying dealerships, try banks now ?

Thank you all for replying
 

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I do have credit, A BMW dealer ran my credit check last week and it shows that my credit score is around 700-730.
But yesterday I applied auto loan through Bank of America which I have checking and savings with them rejected me again and it showed that my credit was 688. I'm not sure why.

Does each dealer have their own credit system? Anaheim mercedes rejected me. I think because my income is low and income from overseas didnt meet requirement. ( because I don't need 5 k a month from my family)
Will house of import reject me ?
Or don't bother trying dealerships, try banks now ?

Thank you all for replying
There are 3 main credit agencies -- Equifax, TransUnion and Experian -- that companies look to for credit rating information. One may have you ranked higher than another for a variety of reasons. Just because BoA rejected you doesn't mean another bank will. And, btw, MBFS might accept you -- clearly BMW did.

-Eric
 

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Don't keep going around and running credit apps. These hard inquiries will/could bring your score down.
Also hard inquiries stay on for 2 years.

Sent from my iPhone using Mercedes CLA Forum mobile app
 

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Discussion Starter #8
Don't keep going around and running credit apps. These hard inquiries will/could bring your score down.
Also hard inquiries stay on for 2 years.

Sent from my iPhone using Mercedes CLA Forum mobile app
I think you are right, it says too many inquiries after I applied for BOA auto loan. So my credit score dropped? Lol omg haha

I just realized I have credit card and auto insurance with State Farm, do you guys think I should try their auto loan? Will it be easier ?
 

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I agree. Don't ask too many times for credit in different places. That affects your credit score. It happened to me last year.

What I did with my Mercedes (as you, this is my first MB and the first time I finance a car), I went to a Credit Union (those people are very nice, and want to help) and got a very good pre approval with an APR of 3.24%. I was extremely lucky cause my credit score was 696 and since I was very close to 700 the guy gave me the 700ish rate.

With that I went to Mercedes and they tried to beat it. If I had gone to MB without the pre approval I am sure they would have killed me with the interest rate.

I know, this is a pain, but if we don't take care of our own money, nobody will :/
 

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Discussion Starter #10
Ok I should try credit union then because I think my credit score dropped due to too many inquiries ... I'm sad
 

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ya you shall go ask the local or regional credit union first, since they are always around the lowest.

Anyway, whats the best current APR% around Los Angeles area, if anybody has an experience to share?
 

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ya you shall go ask the local or regional credit union first, since they are always around the lowest.

Anyway, whats the best current APR% around Los Angeles area, if anybody has an experience to share?
The best last week in northern California was B of A @2.34% APR 48-60 months
Patelco Credit Union was @ 2.09%
 

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With the substantial down payment you shouldn't have a problem finding someone to finance you, the issue may be verification of employment and/or income, since you mentioned most of your income comes from overseas. I agree with the other's try a credit union let them know all the variables before they run your credit and have them give you a soft commitment if your score/income can be verified as you indicated.
 

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Unfortuantly do the information you provided you won't get an auto loan that high since it your first loan. Also what doesn't help you is that you don't bring in enough income by yourself. Also the secondary income you receive is. considered a high risk to the bank for the simple fact that they have no idea if you will be able to pay the loan off by yourself since you have no history of paying off other loans.

Sent from my HTC6435LVW using Mercedes CLA Forum mobile app
 

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Discussion Starter #18
Unfortuantly do the information you provided you won't get an auto loan that high since it your first loan. Also what doesn't help you is that you don't bring in enough income by yourself. Also the secondary income you receive is. considered a high risk to the bank for the simple fact that they have no idea if you will be able to pay the loan off by yourself since you have no history of paying off other loans.

Sent from my HTC6435LVW using Mercedes CLA Forum mobile app
I decided to put over 50% down for financing through statefarm bank.
hopefully everything goes well
 
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