Using free credit score check via bank, I’m sitting on a 780 score( I know its not as rigorous as their score check). Honda Dealer told me that while my score is good I have no prior loan history. Meaning I would need to put $1k out of pocket. How true is this? Is it just specific brand dealers or is this industry standard.
1k out of pocket…that’s very good!!!
Good credit and no loan history are oxymorons.
I’d you’re curious, ask them to show you the ‘call’ from the bank. That should show the requirements they need to buy the deal.
They should show stipulations, agree.
Do you not know your actual FICO scores? A lot of those free scores from the bank aren’t FICO, let alone the auto enhanced scores. A lot use the Vantage model and they’re useless (like credit karma scores). You shouldn’t go into a dealer without this info. I doubt your real score is anywhere near what you think it is, considering no loan history.
Yes a thin credit file with limited history will probably need a down payment, and $1k in this situation isn’t bad. You shouldn’t have this problem on the next one though 
Funny enough, when I was about to get a new Volvo S60 T6 R-Design (but backed out of the deal), I never saw that much nonsense. They pulled my Experian, and got 732 FICO V8. I have had 2 years of car payments, low usage credit cards…and a 2k downpayment (to cover negative equity on trade). Lease was around $460 a month for this S60. Before even submitting the app to the bank, their finance guy said I need to show pay stubs, and can’t put “additional income” since I don’t have tax returns for the last 3 years on that extra income (beside salary). He also said that my 732 is a useless number. Also, since me and my father are both on my current lease contract, he said that since my father’s name is on the registration, I cannot get MD tax credit. Also he was unhappy that I had a credit dispute (which was solved) on my credit file with my car lease company. I walked out! I am happy I did that. 2 days later, I realized I don’t want that car at all.
This isn’t really true. You can have a high score with credit cards, but not have a car loan or mortgage history. BMW refused me with little history when I was purchasing.
credit cards are still a loan
A high score doesn’t always bear fruit.
I’ve had countless 700+ people who couldn’t buy a wet bag - I’ve also had people in the 500s who have paid off 3 cars w/ Ally and get bumped to A/B Tier.
So is a checking line of credit.
Generally lenders want 2-4 lines of credit w/ 24-48 months of history to buy a deal.
You can mix and match them how you see fit but a mortgage and two car loans is always going to beat 3 credit cards.
High credit amount also comes into play w/ some companies. I know Porsche like to see 10k on a card/credit line at some point.
The score is only one piece of the puzzle. It’s the context behind how you got to that score – types of dings (if you have any) credit history, revolving available credit, types of accounts, balances carried, etc.
This is something I have noticed as well - it’s something MB likes, too.
It also varies lender to lender. Definitely isn’t one formula for all. I got approved through Chase for a jag in 2018 while 6 months into first job out of college with no loan history and two cards with an average of 1.5 year history.
Depends on how anxious they are to make a deal. Did they ask for paystubs?
Nope! Was in and out of the finance office.
I’ve never been asked for paystubs. Have no clue why.
Also - if you’re a borderline case for approval or for bumping to another tier, the mood of the F&I person can play a role since they have the ability to try and push things through with their credit analyst.
Kinda but not what BMW wanted to see. I had a long credit card history but they still said it was good but thin credit. This was also during the recession though.
This.
2020202020
That is how it should be! I always get asked for paystubs (Even when my father cosigned my lease, with him having stellar credit), they still wanted my paystubs. When my friend got a car from the same dealership, but different F/I manager, and no car payment history, she didn’t need POI.
I’m more curious what the details of your deal are, maybe the $1000 down is so the finance guy already has an approval $1000 over what you have been approved for so he can sell you some blinker fluid refills.
Oh and ask to see the approval, I can almost guarantee he won’t show it