OK i have decent credit, 1 bad mark among several good. I asked my bank for a 7,000 loan for a car, they cited that bad mark as reason to deny the loan.
I have family that offered to put a new nissan350z up as collateral to help get me the loan. Is that enough motivation for the bank? A car worth 30g's as collateral for a 7,000 car?
2006-11-06 23:56:15 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
I have not tried to get the loan with the collateral yet
2006-11-07 00:17:33 · update #1
The car i want is somewhat rare and will only be found from a private party. Thats why i am dealing with my bank and not a dealer
2006-11-07 04:08:23 · update #2
It doesn't matter how much collateral it is worth. If you have bad marks, you won't get the loan. And even if you have good credit doesn't mean that they will except you. You have to have credit for an extended period of time, not just a year or two. My boyfriend did the exact same thing a couple of days ago. He has had great credit but only for like 5 years so they denied him. The only way for him to get a loan was to have a co-signer that has more credit than he does....like a parent for instance & to put something down as collateral. As long as you put the title of the car down as collateral then you will be able to use it as collateral, thats what my boyfriend did. So using the title of the car will work, but not just the car. It has to be something the bank can hold on to incase you and/or your co-signer doesn't pay for the loan, so they can get their money back & by giving them the title your stating that if you and/or the co-signer don't pay then the car will be in their possession and will no longer belong to the person who owned the car.
2006-11-07 00:07:27 · answer #1 · answered by lil_critter33 2 · 0⤊ 0⤋
That would make the family member who puts up their vehicle a co-signer. If they want to co-sign for you it would probably help get you the loan, providing they have good credit. If their credit is bad then the value of their vehicle usually does not mean a thing. Also, The vehicle may not be worth 30g's. They will look up the blue book value and they will only loan you 80% of that total.
2006-11-09 17:23:41 · answer #2 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
I'd say it was not good enough collateral. I can follow your logic, but at the same time, what is to prevent the owner(s) of the vehicle, from taking it somewhere, out of reach of the bank? In this case collateral should be something tangible, and immovable. That is to say a house or piece of land, which the bank can actually lay hands upon.
2006-11-07 00:08:07 · answer #3 · answered by Beau R 7 · 0⤊ 0⤋
1 bad mark? I am assuming the only reason you are going to the bank instead of direct to the dealer is that this purchase is being done privately. If not, you should check the local dealers...they have programs for just about any credit level and can get you into a car.
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2006-11-07 03:39:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, because you may spend your money on it. procuring a house would not improve your internet somewhat worth. It the two continues to be an identical (in case you paid in finished), or decreases, reason you at present owe extra money.
2016-12-28 15:10:04 · answer #5 · answered by mccloy 3 · 0⤊ 0⤋
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2006-11-07 00:47:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋