1. GMC "CAR LOANS" AVAILABLE

    January 2, 2009 by mycarlady

    1/1/09 Las Vegas, NV

    The great auto bailout of 2008 has begun. GMAC has announced that they will now offer car loans to consumers with less than a 700 FICO score. WOW.  The reality is that the Big 3 have ignored dealers pleas for financing their customers, because a) they had no money to loan b) not giving car loans would pressure congress to give them the bail out cash.

    They got the cash, so now everyone with a 621 or HIGHER FICO score can get a car loan. Right? Wrong.  What they don’t say is now that they have a BANK CHARTER, will they use the FICO AUTO credit score, which heavily factors the consumer’s car loan payment history, or the “middle” score of all three credit bureaus, a general average of how the consumer pays all his/her bills overall?  The later could prove to be more beneficial to the car buyer with spotty car payment history but solid mortgage payment status.

    However, those individuals with housing foreclosures, bankruptcy. medical or heavy credit card debts  but good car payment records, could get tripped up on the “middle” score.   The winners will be the credit report repair companies that traditonally fix all three bureaus errors, with no particular attention to risk factors of FICO AUTO scores.  Add to that issue, many car loan companies have a credit bureau preference, which could affect which car a consumer seeks out, based on the credit bureau he/she shows more favorably.

    Dave Smith recently purchased a Mazda3 with a 650 Equifax credit score. Having been offered a 17% interest at the Toyota dealership, where his TransUnion and TRW AUTO scores were lower than 650. “The Toyota dealership said their banks like certain credit bureaus and those were not the ones I was highest one. The interest rate on the Mazda3 was 12.99%,” Smith added.

    GMC needs to make public, exactly which 621 FICO they will use going forward, the AUTO score or the MID-score of the general report. I’m betting they stick to the auto score, as it assess the likely default risk more accurately. Let’s face it, houses can’t be driven across the border (most of the time).

     

    Want to compare rates? CLICK here.

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    Sarah Lee is a veteran of the automotive industry. She writes on all areas of car and consumer subjects. Her company My Carlady helps save you thousands of dollars and time buying your next car. You can reach her at sarahlee@mycarlady.com

    Category: AUTOMOTIVE, CARS I OWN, CHRYSLER, GMC, women car buyers
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  2. Fixing Your Credit. Fact or Fiction Part II

    December 27, 2008 by mycarlady

    FIXING YOUR CREDIT, Part II.

     

         There are several variables to consider when deciding how best to clean up your credit. Cost, Time and significance of the issues at hand that have driven your credit FICO score down, will have bearing on what will and won’t work.

     

    First, let’s set one thing straight, Child Support, Federal Tax liens and Student loan defaults are not coming off your report unless you pay the charges. You will need a CPA or Licensed Enforcement/Registered Agent to discuss payment of these charges, cancellation or reduction of fees and a payment plan.  Once you have an agreement in writing from the respective agency, you can provide this to the credit reporting companies to reflect any change of status on the bureau.

     

    TERMINOLOGY: Debt consolidation, reorganization or negotiation all mean the same thing. Someone is trying to “work a deal” to discount the amount you owe.

     

    Credit Report REPAIR, means someone is disputing information on your credit report.

     

    1.  IF you need to have Debt negotiation, consolidation or reorganization done, you may want to consult a Bankruptcy attorney FIRST, before entering into service contracts that promise to eliminate late charges, cut owed amounts in half or “Settle for pennies” on the dollar.  These settlement companies, often disguised with not-for-profit sounding names, charge HUGE fees and will typically advise you NOT TO PAY any owed amounts, as they negotiate with the companies.  This will destroy your credit score (for many years) and most of your hard-earned money could be going to make small installments or toward the retainer for the attorney. (Part III How to Pick a good BK attorney.)

     

    In the current state of mortgage foreclosures, you should certainly consult a real estate/bk attorney before engaging a thrid party credit company to handle your mortgage discussions.  Third party dedt consolidators can entangle your financial situation and make it more costly and difficult for an attorney or mortgage company to negotiate with you.  Get the big messes addressed first, then the credit card and revolving debt can be addressed with certainty or be included in a Bankruptcy.

     

    2. CREDIT REPORT REPAIR. These firms use a system of demand letters involving carefully stated facts; Fair and Accurate Credit Transactions Act (FACT Act), and the FDCPA (Fair Debts Collections Practices Act allow for the appropriate dispute of specific “errors and ommissions”, creating a system in which to demand the credit reporting agencies fix or remove the “stated” errors within thirty days. The information must be reviewed, considered and responded to in a timely manner, and the credit report repair companies continue to contact the TRW, TRANSUNION and Equifax office, until a satisfactory reply is received. In many cases the information is removed outright. Sometimes more information is required from you on the disputed claim and testimonial information is required to vet the request to remove. This is not a quick fix, but steady, concentrated effort will show incremental changes. Over time, removal of these “issues” can boost the credit score accordingly. It is important that you speak to someone at the company, once they have viewed your report, to be clear on what items can be disputed and what the factor value will be on the overall score improvement. Beware of special “online” freebies for signing up NOW.  If it sounds too good to be true, thank the copy-writers, it probably is.

    Many such companies offer NO RISK, money-back guarantees, but you should read the fine print, as costly surcharges can be levied if you demand a refund. Many companies offer payment plans, which must be reviewed for interest and pre-payment penalty charges.

     

    This may seem like common knowledge, but many folks who find themselves in need of these services are often looking for a quick fix, failing to check these promises out thoroughly, with dangerous repercussions.

    If you would like information on specific companies I know of, please email me at: sarahlee@netadlinks.com

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    Sarah Lee writes about all everything cars. She is the author of: The complete Internet Car Buying Guide, Teen Drivers; what every teen & parent should know before driving or buying a car. A 20+ yr. veteran of the automobile industry, she seeks to be the ultimate car consumer advocate. Are you looking for a no hassle deal on your next car, new or used: You can email her at: sarahlee@mycarlady.com

    Category: AUTOMOTIVE, women car buyers
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  3. My Carlady News from the Street!

    December 16, 2008 by mycarlady
    Miles of Smiles Club and News from the Street…

    My predictions for 2009 and the Automakers bailout.
     
    The Detroit Big 3 will consolidate in 2009. Watch for Mercury to go away and Lincoln to become the luxury division of Ford, to be relocated to Ford showrooms. Ford dumps Saab. Chrysler will become Dodge-Jeep and maybe the 300, if any car remains. GMC will dump Pontiac, Saturn, leaving Chevy and GMC trucks to battle for position. Some cars will become collectibles and others will be obsolete. Which ones? That’s why you have me… Carlady@cox.net  
    Leasing: It’s not dead, but it’s seriously curtailed to specific cars in each automaker’s portfolio. Nissan: Altima, Toyota: Camry, Lexus RX350 and ES350, Honda Accord and Civic, Infiniti GS37, Audi A4, VW Jetta. These are the hot ones right now.
     
    USED TRUCK DEALS:  If you need a good work truck or Caliber these are being made available through one of my Miles of Smiles faithful friends.  If you are interetsed in making an offer email me: sarahlee@mycarlady.com I’ll send you pictures.

    1999 Toyota Tacoma 4X4 extracab SR5 with auto 184,104 miles 3.4 liter v-6
    2001 Ford F-150 4X4 supercrew XLT 155,236 miles 5.4 liter v-8
    2003 Ford F-250 superduty extracab XL, 2wd, auto, 5.4 liter v-8 gas, 82,000 miles
    2004 Ford F-150 extracab longbed XL, 2wd, auto, 5.4 liter v-8 gas, 95,900 miles
    2007 Dodge Caliber, 2.4 liter with CVT, 33,644 miles awesome condition! 
    2005 F-150 extracab 4X4 FX4 flareside, 64,200 miles, 5.4 liter v-8

    I still have the 2004 BMW convertible too! It would look great under the mistletoe or HanukCAR lights.

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    AUTO CREDIT ADVISORY 
    The auto industry is not making getting a car loan easy. Chrysler, Ford and GMC are not making loans to small business or consumers unless the buyer has 30-40% cash down and over 700 AUTO FICO scores. Chase, BofA, CapitalOne and local credit unions are picking up the slack, but VERY selectively. If there is ANYTHING derogatory on the credit bureau, you can forget a great rate. A great rate today is 6.99% for 72 mos. available only to those with 720+ Auto FICO scores. The special incentive rates offered by the car factories are only available to the over 700 FICO owners and you must have 20% cash down to cover tax and fees. Any negative equity from a trade must be covered with additonal cash down. In other words, the bank is only buying the wholesale value of the car AFTER rebate or 80-90% of the wholesale value under the most conservative cases.  Those of you with two car loans in your name, co-signed or otherwise, can expect to see a one person, one driver policy going forward.

    Second chance lenders have all but disappeared, leaving one or two demanding 25% interest and 3000 cash down. If you are currently in a bankruptcy forget the car loan until you are discharged. Those with discharged Bankruptcies can expect a min. of a 22% interest rate, 2000.00 cash down and a cap of $10,000.00 on the vehicle value.

    If you have low secured but high revolving debt (credit cards) of 40% or more, be prepared for a higher interest rate. CONSIDER THIS: The next wave of car loans to those with bad auto loan history or high revolving debt will be GPS moniters and shut-off devices in the cars. If the loan is late, the car won’t start. If you’re a month down, the car is ”located” and repo’d.  Welcome to my world. If you want to know how you can clean up your credit report and raise your FICO score, call me, I’ve got a great tool with a 100% money-back guarantee.  carlady@cox.net Subject line: CREDIT REPORT FIX
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    2009 Toyota Venza has arrived.

     
    2009toyotavenza 

    This compact crossover fits between the Matrix and the Rav. Slightly larger than the Dodge Caliber, this is a five seater packed with features and upgrades usually available in fancier models. No thrid row seat or tow capacity, but it drives like a Toyota, smooth and reliable. You have to like the nose on it. Available as a 4 and 6cyl, the price STARTS in the $25K range but quickly runs to $30K with leather. I’m not sure I can justify that price for the size compared to other Toyota/import products. You be the judge. Watch for my Venza car review on YouTube or my blog: www.everythingcars.wordpress.com later this week.

    Category: AUTOMOTIVE, DODGE, GMC
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  4. Fixing your credit report; Fact or Fiction p1.

    December 12, 2008 by mycarlady

    12/11/08  Las Vegas, Nevada

     

    FIXING YOUR CREDIT REPORT; WILL IT HELP?

     

    Fixing your credit report; Fact or Fiction.

     

    The auto finance companies use several ways of determining who will get approved for a car loan and who won’t, what the interest rate will be, how long of a loan term, and how much down payment is required.  Some car banks use one of the three credit reporting companies; TRW,  Transunion or Equifax.  Every car company uses one of these three, but some are now surveying all three and averaging the total score to create a median average. This may all sound fair, but in truth, if there are mistakes on your credit report, trouble is coming.  Negative information placed on your credit drives down the score, which is often duplicated from one charge-off to another, adding insult to injury. Since the FICO: Fair Issac Company that has controlled the scoring system for so long, is a private business, they do not share with the consumer or the government how the score is mathematically derived. Factors, are the common term, but the specific value or weight of one factor over another, is known only to the reporting company, not the consumer.  You may obtain a copy of your credit report once every 12 mos. for free, however, this will only show the status of your accounts, it will NOT show a credit score. A “middle” or median score from a mortgage-run report will not provide adequate risk-value or AUTO score rating for obtaining a car loan.

     

    Medical charges caused by insurance billing problems, pre-foreclosure, repossession or bankruptcy by an x-spouse, rent, cable and electric bills charged by landlords, student loans on deferment, all these items can backfire on the consumer, with little recourse but painful hours spent chasing the culprits that made the erroneous claim. I’m only speaking to the errors, mistakes or failed follow-up, not those delinquents that have earned every black mark on their bureau.

     

    Let’s go back to the original issue, how does someone get a decent auto loan interest rate when the car banks are using bad information to make a decision. Some car banks are now contacting previous auto loan finance companies to get the real payment history story, where previously it took sixty days before a car bank would report late.  ”Internal” history reports are revealing true account activity, much to the detriment of car loan shoppers.  This information, correct or not, is hard to dispute, so having a high auto credit score from the start may be your only salvation.  Using a service to keep your credit report tarnish-free may be your only recourse. Reviewing the credit report with the dealer, can often reveal what errors are there and allow you to provide documentation to disprove it. This “proof”, receipts, letters of reinstatement and satisfaction, can often help a lender reduce the rate, but sometimes, car bank declines are automatic, score-driven computer-generated results with no wiggle room.  In this case, one must gather all the evidence of erroneous claims, and prepare for a long battle of wits and letters with the three reporting agencies.

     

    Defaulted student loans, back child support and federal or state tax liens are the hardest to disparaging marks to fix.  Documents galore and letters from the claimant must be provided in triplicate before one of the bureaus will consider a correction. Oh, by the way, even with the Fair Credit Reporting Act allegedly allowing you to demand satisfaction where errors are proven, it could take months to see the score adjust accordingly.

     

    Since credit reporting agencies get paid to provide information, not correct it, and it costs time and money to actually provide the due diligence to check all the alleged “bad” information, expect the reporting companies to drag their feet in responding to your complaints.  There are hundreds of lawyers and companies pounding the credit reporting companies with thousands of demand letters every day. Get in line with your fifteen letters, twenty calls and fifty voice messages, they aren’t returning anytime soon.

     

    The best ways to handle problems already on your credit report are to dispute them immediately. If you see a previously resolved situation reappear as a negative, dispute it again.  California is just one of many states known for reclaiming liens and judgments previously corrected.  If you don’t have the time there are many private companies and law offices offering credit report correction.

     

    In the next edition of my FIXING YOUR CREDIT REPORT series, I will interview specific companies and their history of success or failure.

     

    IS credit report fixing a scam? We’ll find out as I continue to sniff around. If you have had any experience with this, please feel free to contact me and share your point of view and personal experience. Confidentiality is guaranteed.

     

     

    Sarah Lee writes about all everything cars. She is the author of: The complete Internet Car Buying Guide, Teen Drivers; what every teen & parent should know before driving or buying a car. A 20+ yr. veteran of the automobile industry, she seeks to be the ultimate car consumer advocate. You can email her at: sarahlee@mycarlady.com

     

     

     

     

    Category: AUTOMOTIVE, women car buyers
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