Todays economy sucks...

So ever since they came out ive always lusted after the Terminator Cobras (03-04). When i was 15 i got a job, and created my "mustang fund" which pretty much became a pretty healthy savings account. Fast forward 5 years and here i am in the military and decide i want my cobra. Now this isnt some half ass "lets buy a car today" ive kept track of my income/bills/savings ect for months to determine if i can afford it. I even calculated monthly payments based on current avg. APRs diffent loan amounts, got a qoute from my insurance on how much that would be, calculated gas, everything. Yes, id probably cut out some expenses (like gym supplements, and cable) to keep me safely in the black, but i could afford one. So i look around and find a nice one, black, 35K, well maintained, mostly stock (a big plus for me because i like my cars a certain way and i dont want to deal with another persons mess) cobra for 19. Im willing to throw 5-10K of my own money in the pot which will still keep a heavy savings account, but still alot of money down. But i still need a 10-15K loan. So first i go to my bank, Bank of America, and they deny me due to not enough credit history, though the history i do have is in the 700 range. Go to the on base Credit union, well, Credit Union lady refuses my loan request saying 1) The car is too old to approve that much, and 2) "oh sweetie, your just an e3, you cant afford that car" then she goes on to try to sell me her sons wore out, riced out Del Sol. Look, im not an idiot kid that just decided i liked a cobra on craigslist that day, i saved, studied, created budgets, dont tell me what i can and cannot afford. She has no idea what i have in savings, my monthly bills, nothing. Shes a loan officer, not my accountant. And after ripping my dream car from me and smashing it it on the ground dont throw me a sales pitch for your sons crappy Del Sol. Im shopping 400hp muscle cars, not riced out economy cars.

I know the cobra isnt the most sensible car out there, but its one ive lusted after for years now. And the fact that just a short time ago joe shmoe off the street could get a loan for anything just really frustrates me that i cant get one now. Ive never lived beyond my means, always delt with cash. If i couldnt afford it id live without lifestyle. Not to say ive been living limited, ive put close to 10k into my truck over the years (rebuilt my own engine, custom interior, paint and body work ect) i have a nice tv, xbox360, but all of it ive worked for and paid off. This Cobra was whats been driving me to save and be finacialy responsible. And now it looks like its going to be longer till i can afford one, if i ever can. Im not sure how much longer muscle cars are going to be around (with enviroment concerns, gas prices ect), and who knows what life will throw at me (house? wife?? kid??? god help me...). Its not my fault their irresponsible practices blew up in their faces, i wasnt a part of that problem.

Rant over...just had to vent, and had to be polite to the credit lady. Dont need to get arrested by my co-workers...

Give USAA a shot?

I've never worked with a company so eager to make me happy.

Navy FCU seems to give money away like candy too. Don't tell anyone in the place you want a loan, just go open an account. There's three branch locations in Pensacola, just make sure you bring your military ID and maybe an LES and swing into one.

Then go home and apply for the loan online. Heck, you may even be able to join online, now. Just check navyfcu.org

Most E3s aren't that smart, or organized. Never have been.

My advice? Just keep saving a little longer. They'll get cheaper, you'll have more money, at some point it'll work.

Sucks. I've been there. Banks don't seem to understand cars very well. That or they understand them very well. I can't figure it out personally.

Most banks I know won't go full term (64 - 72 mo) loan on a car older than 5 years. Some no older than 4. They'll give short terms (36- 48 mo) but nothing longer. That might've been a factor in the current problem. This was true even when the econ was good!

I'd follow the other guy's suggestions above. I've found Credit Unions to be much more helpful than for-profit banks in most every aspect.

Xceler8x wrote: Most banks I know won't go full term (64 - 72 mo) loan on a car older than 5 years. Some no older than 4. They'll give short terms (36- 48 mo) but nothing longer. That might've been a factor in the current problem. This was true even when the econ was good!

I'd never go longer than 48 months term on a new car, let alone a used one. And then only at bargain bin interest rates.

Most credit unions have a process to appeal an adverse loan decision. At a minimum, they will escalate the request to a higher level for a second look, and will sometimes allow the member to make their case to a Loan Review Committee. The biggest credit unions (and Navy Federal is THE biggest) may be more cut and dried, but most of the small and medium sized ones will give you an opportunity to make your case.

I would suggest that you politely ask them to reconsider. Make your case by giving specific examples to show that you have demonstrated the ability to manage your money responsibly and prudently. Demonstrate that you can make the payment AND have enough money to meet your other obligations.

The reason they are gun-shy about a car of that age is that - for the most part - used car values drop off a cliff at 8-10 years. They don't want to do a long term loan on collateral that will be 'worthless' before the loan is paid. So you might also make a case that this car is a specialty vehicle that won't depreciate like most.

The culture of credit unions is to think outside the box, help the little guy and make loans that others won't. Even so, it still has to make sense to them. Speaking from personal experience, loaning E-3s money to by fast cars is USUALLY a recipe for disaster, so you have an uphill battle, but a battle that can be won if you make your appeal in a way that makes them comfortable that you won't be a high risk. Good luck.

you say you've created budgets, saved, etc. did you bring a copy of your budget with you when you went to talk to either of these folks? you can't just expect to be able to say "i know i can afford the car, can i have some monies?" and have them hand it over. the more organized and responsible you can appear, the better your chances of getting approved are. that said, most banks will have some kind of hard and fast rule regarding the age of the car and the amount they'll lend on it. you might have to take out a personal loan for it with a bit higher rate than you expected.

also, think about your debt/income ratio (the amount of money you make, compared to the amount of that money that will go to servicing debt). most of the time, a lender won't want to see that above 25-28% of your after tax pay (iirc, YMMV).

that said, good luck with it, maybe try finding a lender on the internet, or maybe find a bank thats familiar with "limited production" or classic cars. they might be more understanding of the loan on an older car.

If you're willing to cut out cable and gym supplements to make the payments, then go ahead and cut them out now, and add that money to your savings. Save a bit longer, and pay cash. The borrower is slave to the lender.

DILYSI Dave wrote: If you're willing to cut out cable and gym supplements to make the payments, then go ahead and cut them out now, and add that money to your savings. Save a bit longer, and pay cash. The borrower is slave to the lender.

Exactly what I was thinking. Save up and pay cash. The only thing I've ever financed was my house, and I will have it paid off in less than 3 years, at which time I'll be debt free once again.

Speaking from experience as an E3 who had a 400HP car... Don't do it. Make E4 (dunno what branch you're in, but it usually involves an A or C School, which means re-location) first. Keep saving, and then pay cash. I joined the military already owning 3 cars and promptly bought another 5 just because I could (don't get too excited, one of them was a $100 Escort).

I had two friends join the military as well (one a year earlier, the other a year later) and both bought brand new cars. One has totaled out 2 new cars in a row and now drives a used truck with horrible credit/insurance. The other takes care of his but is still in the hole on car payments and rents. I paid cash for an older car (because payments on something not brand spanking new SUCK!!!!!) and I'm the better for it.

Osterkraut wrote: Give USAA a shot? I've never worked with a company so eager to make me happy.

Agree, excellent company, but I am pretty sure they are only available to officers. I had heard they may be opening some stuff up for enlisted but I am not sure.

aircooled wrote: Agree, excellent company, but I am pretty sure they are only available to officers. I had heard they may be opening some stuff up for enlisted but I am not sure.

They had opened up to most enlisted already before I got out in '04. Wish I had signed up for their insurance before I got out, they don't let Vets join up and their rates are awesome.

Is this a private party sale? I bought a used car from a dealer not long ago and almost didn't get financing. Second the suggestions to go with a Credit Union, other than the apparently crappy one you were dealing with.

Also, you should (i.e. it is required by law that this happens) be getting an Adverse Action letter from the Credit Union in the next few days. This should spell out exactly why you were denied credit (and "oh sweetie you're just an e-3" doesn't cut it), and should also spell out how you can dispute it. If you don't get it, I would go to the credit union lady and politely remind her of her/her employer's obligations under the Fair Credit Reporting Act.

I think if you have to eat ramen noodles to afford it, then your chances of convincing them that you can and will pay for it are not good. It sounds to me like you just can't afford the car right now. Its not like those are THAT rare... they will be around. Youre young, high risk, both in accident terms and in credit terms. That car is gonna be expensive to fuel, insure, and maintain. I think you should keep saving a little bit longer until you really can comfortable afford one.

I had good luck with Capital One when I bought my Jag. I filled out an application online, and within a couple of days I had a blank check mailed to my house. I think they've made their car criteria a little more restricted, so no more 42 year old English fright pigs, but your Cobra might qualify.

I think you can only use the Cap One blank check at franchised dealers nowadays.

Everything happens for a reason, this car is probablynot 'the one'.

I agree with the cutting out the cable and other "extras" and put that toward the savings pot and pay cash. Cash may make the deal sweeter when it happens as well.

Good luck!

Xceler8x wrote: Banks don't seem to understand cars very well. That or they understand them *very* well. I can't figure it out personally.

HAHA! Yea, she probably knew id kill myself in the stupid thing...

Thanks for all the advice. I have USAA as my insurance, wasnt aware they did loans, also ill look into NFCU. But i also like the idea to cut extras and save more. I think ill do that first, then try for a (smaller) loan when i make e4 (Air Force), maybe at that point i can do all cash also.

I didnt bring in my budget, which i knew was a mistake as soon as things went downhill. I tried to tell her that i had planned it out, but honestly without the proof i knew i wasnt going to get anywhere.

I'll be looking for that Adverse Action letter in the mail. That should be interesting to see.

I called my dad yesturday, and he basically told me the same thing, that it just wasnt ment to be, and i should just regroup, re-adjust my budget, and try at a later date. He also told me (for the hundreth time...haha) about a certain green '69 Chevelle SS during the first fuel crisis, that if only he had more money, could get a loan...haha.

usaa shoukd be a good bet, but look around for other credit ubions

spdracer315 wrote: I called my dad yesturday, and he basically told me the same thing, that it just wasnt ment to be, and i should just regroup, re-adjust my budget, and try at a later date. He also told me (for the hundreth time...haha) about a certain green '69 Chevelle SS during the first fuel crisis, that if only he had more money, could get a loan...haha.

We should start a "One That Got Away" thread.

2 miles from my house was a big block 1971 Mustang with a 4 spd. The guy wanted $2k for it as he was hurting for money. The drivetrain was rebuilt and the car was rust free with the interior completely out. I was flat broke.

Then I went to college...can you imagine what kind of albatross that car would've been to me at a college?!

I tell myself it was good I couldn't afford it.

Hang in there and keep saving. I don't expect these to disappear anytime soon - and if they do, their price is going to drop like a rock first.

Pentagon Federal Credit Union for loans. 3.99 new or used for up to 60 months, easy to understand underwriting guidelines right there on their web site, friendly people on the phone.

LOL...I used to lust after cars in a similar way when I was younger. So I made a list of all the cars I'd like to own. It's funny, since then, a lot of the cars that I would have had to build have since been built. For example, I made the list in 1999, and it had an ERA Ford GT40 replica on it, and I even included the motor I wanted - a 4.6L DOHC motor with a blower - pretty close!

Since I made that list, some seriously bad-ass stuff has been built. I've scratched off a few things.

MikeSVO wrote: So I made a list of all the cars I'd like to own.

Haha, glad to hear im not the only one with a list! i get some pretty crazy looks if a friend stumbles across it, its fairly long, and its got some out there cars on it. Cars ranging from an lt1 roadmaster wagon (come on, you all know you love em!) up through a RR Drophead coupe. Its definatly only a dream sheet, but id like to knock a few of them off it at least...