F@@k Nissan! (VERY VERY pissed!)
 

Right now, words cant describe how goddamn pissed I am!!!!!!!!!!!!!!
Ok, here's the story.

I was able to locate a yellow 370 with sport package, no navigation, brand new, literally my ideal combination! Test drove it on Tuesday. Went back to dealership, and made an offer for 1000 bucks below sticker (i.e. CAD 44500) and dealer accepted, no questions or hassle. So I filled the credit application for the financing with 8000 downpayment and the rest to be financed over 2 yrs at 5.9%.

So today I call the salesman to inquire about the status of my loan and he got the F&I woman to call me later today. She told me that my credit application was rejected cuz I don't have a history of credit and I can either get my parents to co-sign my loan application or she can try to put the application through a bank, but at a possibly higher rate!

I was pissed, but thought perhaps my credit score was low (I never checked it before). So I went and checked it online via TransUnion Canada and found my FICO score was 760! It was rated as "good" (which is just one step less than excellent, the max. rating they have) , and higher than that of 58% of Canadians!

So I called the woman again asking wtf is up! She said Nissan rejected it despite my high score cuz I have no history of borrowing large sums of money and that I have a few credit cards with small credit that I do not use (which is partially true, I rarely use credit cards, and the ones I have are low credit limit, like 5000 CAD or so, from my days as a student). What I unfortunately forgot to tell her, but is already stated explicitly on my credit history that I'm sure they read, is that I DID borrow a large sum of money. That was around 45 grand from the government for my student loan in university, and that I already paid off more than half of it (around 24 grand) since I started working as a pharmacist last January. Thus, she said, Nissan thinks I'm a high risk applicant and will need my parents to cosign. She later said she'll try and put it through the banks and will call me later to update me.

That's the story in a nutshell. I woke up today ecstatic that I'm gonna be driving my own 370 by the weekend, but now I'm just angry, upset, and depressed cuz of the BS treatment I received. I'm no teenage high school kid. I'm a 25 yr old pharmacist. No way in hell I'm gonna walk into a dealership dragging mommy and daddy behind me to cosign for me. And my good FICO score should be enough for them. I'm buying a Nissan, not a Ferrari or Lamborghini.

At this point, I'm thinking f##k Nissan and their cars. If that's how they do business, I will take my business to another company. If they don't give me financing at 5.9%, then congrats to them. I won't ever pay a single penny to Nissan for the rest of my life.

Ironic, because of the economy and the banks being stingy, no one would accept my loan BUT nissan. Hopefully it works out sir!

You seem pretty angry. You can't blame Nissan for not loaning you the money since you don't have much of a credit history. If this incident really upsets you enough that you would buy another car then the z isn't for you. The designers of the z are great people.

do you have credit unions in Canada? If so, join one and get your loan from them.

Why are you pissed at Nissan because you have little or no credit history? :confused:

Unfortunately these are things they don't typically teach in school about building your credit rating, etc. This is totaly normal and you will see more of the same esp with a poor economy as there will be less risky investments made when loaning money. It has nothing to do with you personally but you have no assets, a fair size debt and you are young and I suspect you haven't been at your job for three or more years - these are all gonna work against you. Swallow your pride and bring your parents in to co-sign and you'll be driving your car - thats a pretty minor thing between you and your car! I was only dreaming of driving a new Z 10 years ago when I was your age....

:iagree: Nissan really did not undermine you for if you read the fine print lenders' typically have the prerogative of denying you the loan, although days later.

Being the age of 25, I'm not surprised, because you it is most likely that you do not have a long credit history. That's very important when it comes to car loans, no matter the score, and your existing loan debt hurts a lot too, no matter how much you've paid off. You also haven't been at your job for at least 2 years, so yes, your situation makes perfect sense to me, even though it sucks. While in your mind you can afford this car, and in all reality, probably can, the empirical proof is against you. A Loan officer may not be willing to put their job in danger over the decision.

I was also 25 when I got my 370 in Feb, and had trouble getting a good loan for financing due to my short credit history, even with a score of 730. I was given an ok loan rate because of my available liquid assets, no loan debt, and having been at my job for 3 years already.

go through your bank, thats what i did, "if u got a checking or savings with a good long history of having money in it" and i got a good rate at just over 6%, if your going to pay it in 2yrs anyway whats a couple tenths of a percent.. its chump change

Ok, regarding the no credit history thing, I DO have a credit history. It's my student loan. It was 45k, i.e. more than the Z is worth, and paid more than half of it (24k) in a period of only 5 months. Doesn't that count for something?

Also, funny thing is that my own bank already had me preapproved for 18 000 no questions asked, without me even applying for more. The financial advisor in the bank said if I give him proof of income (i.e. paycheck stubs) he can get me even more, but he won't be able to match APR rates of car companies, so I didn't apply.

Besides, where is the risk for Nissan? With 8000 downpayment, and financing over only 2 yrs, at no point in time will I ever be upside down on the loan. Even if I default, they can repossess the car and sell it again, and still make a decent profit.

penfed denied me for the same exact reason(not enough credit history)
i did buy my previous car but was co signed by my gf at the time
so on the day i purchased the car nissan financing approved me
but 2 weeks or so i get the same letter stating the same reason

but i was lucky enough that my dealership found a bank to finance it
so im enjoying my z now


as far as your situation dont blame nissan
was you student loan 45k at one time or was it borrowed money broken down to semesters?? if so then thats not really borrowing a large amount, its small amounts that added up

so just keep looking for a bank but obviosly dont expect a lower interest

Guess you better get those pay stubs ready and head back to the bank then.

My credit score is 789 and Nissan turned me down. There isn't a good reason to any of their decisions. Instead I got a loan from a bank at 4%...worked out much better. Don't miss out on the great fun of owning the new Z just due to the Nissan lenders.

wow, that sucks! glad you found a way out of it. i guess its good they turned me down now rather than let me drive off with the car, and screw me over a few weeks later.

Student loans don't count. They are guaranteed. Granted Nissan can take back the car but they can't take back the miles and make it brand new again. Most student loans are guaranteed by the government so if you default the loaning institution is covered. In my humble opinion you shouldn't be looking to buy a 30-40k car if you don't own property. Priorities my man, get yourself a home or some assets so a bank starts looking at the collateral it can go after instead of writing you off as bad debt. What you do is certainly significant and important and congrats on being a pharmacist, very nice job, but being new to the field doesn't make the banks feel good about your prospects of being employed long term. If you were a pharmacist for 5 year with an income history consistent with that of a long time pharmacist it wouldn't be an issue but I'll bet that you haven't been a 'real pharmacist' for over 30 months. Patience is a virtue, your car will be waiting for you and so will we. GL!!

Nissan's lenders (more like everyone now) have been extremely stingy; and even if you're 25, unless you have an excellent history of revolving credit (constantly borrowing and paying large amounts, constantly being the word), a good percent of lent money vs available credit, a long history of having credit (think 10+ years of having a credit line), etc., you will be denied.
Not to mention the poor economy.

That's even more ridiculous, because when you think about it, say you're an accomplished, well off 40 year old businessman grossing a yearly income of 200,000 dollars. You have paid off all your debt and have no debt, period. You live in a home, fully paid off. You also have access to a grand total of 100,000 dollars of credit. Which is completely unused. People will call you and start cutting your credit lines because you have too much available credit versus loaned amounts... isn't that idiotic? Basically, the less debt you have, the lower your credit score. It's unbelievable.

Sure, it's not nearly as simple, and I'm probably completely butchering how it actually works, but that is true.

Also, just get your parents to cosign or go to the bank and figure something out. Just because someone denies you a loan doesn't mean you should fly off the handle. I admit, that's some ********, but you can't let trivial money issues (not so trivial nowadays) limit you from getting this wonderful car. If you're just going to stop because of this, you'll never get what you want. Perseverance and patience are virtues, and probably should be necessities. I have to agree with azn370z, if you're angry and not going to get a Z just because of this, than the 370Z just isn't for you.

Well, that's exactly the thing. They don't have to clean the car or take off the miles or whatever, with 8 grand down, and 2 grands monthly payment, I won't ever be upside down on the loan. Even if worst case scenario happens, and I default, they can just wholesale the car as it is and get more than enough money to settle the loan and bit more.

And no, I've only been licensed since last December. I just graduated last summer.

:iagree:

Find a Credit Union. Does the company you work for have one? Hospital have one? There might even be one for Pharmacists. They will treat you right, guaranteed.

John

Think about it this way; they're too lazy to fill out the paperwork and repossess. They'd rather you keep it the whole time and they just collect. There's really no other way to explain it.

If you pay... thus the crux of this discussion, LOL! They don't want the risk! Go back to your bank, end of story.

I'm totally on your side man, from your perspective it is a douche move on their part. You'd figure the 8k and a fat monthly would satiate the bastages but when it comes down to it, it's all about risk management. You've done what u are supposed to do, unfortunately the housing crisis has impacted every other lending practice in the WORLD. Greed begets greed and now the borrowers are forced to deal with the repercussions. Personally, I've lost about 2 brand new 370's in the worth of my Condo 5 miles from the nations capital. It is what it is. Take your 8k and ability to pay 2k a month in car payments and buy a condo or townhouse or home and you'll laugh at us car freaks in 5 years when you can buy a 911 cash while we're still modding our 370's. I certainly understand the desire to have this NOW, but you are in a unique situation, take advantage young man.

It doesn't sound like a "Nissan" thing neccissarily. It's just the way this world works. You have to use credit to establish credit and starting with a vehicle that is less expensive may be the way to go for now.

I'm not saying it's fair, it's just the way the cookie crumbles.

I work for a bank here in Canada and as said before Student loans do not go towards your credit bureau as a loan or credit card does. IF Nissan declined you I can guarantee a bank will as well. With what’s going on with credit right now banks are not looking to take on debt with someone that doesn't have a credit history.

Unfortunately banks have learned a lesson from the States, and are tightening loaning money.

And always look at the 5 C’s of credit

Credit History – History of paying debts?

Character – Will they pay?

Collateral – If they don’t pay what assets do they have?

Capacity – Can they pay?

Capital – Down payment or overall savings

Try BMW finance to get the Zed. That is how I got my car, the mx5. They were better thsan everyone else when i tried.

Damn, well now I'm worried. Just finished med school (went the PA route instead of MD) end of last year at 26 and I've been working now for only a little over 2 months. My credit score is 760 with a credit history back to when I was 18 but only for small stuff on small credit cards. I've been paying on my student loans for 2 months now as well. I'm having Nissan locate my Z for me now but now I'm worried when the time comes that I won't qualify. I know my mom will co-sign if I need her to. Should I apply on my own first or just have her co-sign from the begining? I was planning on using penfed per the AK post on how to get 3.99% financing. I mean I understand loan companies have to be more careful now but when you have someone who is making good money and has a good credit score as well as good credit history (even if it is short) it's BS they won't give out a loan. I guess we'll see what happens. So again, should I apply by myself from the begining or just have my mother co-sign up front? Thanks

Hey man - honestly if you had financed it for 5 years - they would probably have approved the loan... 37K in 2 years? thats like 1500 a month - I mean if you could afford to pay that off then you should just say 5 years and pay it off in 2. my 2c

If this were a year ago you would have been approved without a problem. Collateral doesn't come into affect with car loans. The vehicle is the collateral. It is a secured loan. Shop it around at different banks. You may even get a better rate. 5.9% for 24 months is far from a great rate.

why would bmw finance non bmw cars?

I just got turned down by penfed for the 3.99 APR loan.

I am also 25 years old, but I am putting down 25k dollars and financing 15k, but they still turned me down. My score is about 700 flat. I can pay it off but it wouldnt be a smart thing to do if i can get that 3.99 APR and invest the 15k.

Im going to resubmit my app and ask for 10k this time. Supposedly one big NO NO for anyone lending money is if you have other loans that you owe money on. penfed said they turned me down because I owe 5k on my 2008 Tacoma (worth like 19k), and 2k on a honda prelude.

oh well. best of luck, in this economy its whats going to happen.

Absolutely agree 110%. I had a Datsun 280ZX that I was happily dumping money into 16 years ago. My dad said it would be wise to buy a house. I was 21 at the time and I would have way rather spent the money on my Z but instead I buckled down and put a lot of sweat equity into my place and no more mods for my Z and definately not a new 300ZXTT. It was a struggle - got married had kids, etc and my dream of getting a new Z all but vanished. I'm not going to get into the details but suffice to say although I do Electronics Engineering and work on some crazy stuff I would never have gotten as far ahead finacially as I have with Real Estate. I encourage young people all the time to get into the market but most would prefer to spend their money now for instant gratification....

Anyhow 16 years later I could actually afford to buy my Z. Sacrifice now will pay off huge in the future....

So let me get this straight, your mad at Nissan because they wouldn't let someone with no credit history borrow almost $40k? No credit is FAR from good credit, and student loans don't help much.

I have a very similar story, but with a happy ending.

The 370z is my 7th car, but all my previous cars were bought cash only so I never put up a loan. Also since I'm very young I didn't think I'd get a good rate at all

First I went to Infiniti of Oakland to get a G37, I was planning on putting 15,000 down and the rest on a loan over 6 years. They approved me but gave me 18.9% APR. So I said screw that I'm not going to buy this.

After a few weeks I fell in love with the 370z so I was interested in buying that. I finally found the one I want and offered to buy this at VPP pricing and place 15K down. After a good week of talking to this salesman who "Guaranteed" that I would get the car for 9% APR, he calls me and says "Sorry we can't approve your loan unless you put 19K down"

This is ridiculous, if I put over 30% down on a car I should get approved no matter what. So the numbers came down to 19K down and 14.99 APR. I wouldn't take it. My credit score is 730 I make more than enough a month I should get approved for something better.

I decide, talking on the phone isn't going to get anything done, so I drove there (1hr 30 min trip) to talk to them in person. The guy still gave me the same quote 19K down at 14.99% APR. There was no way I would do that, I have the money but I feel like I'm getting suckered in so many ways if I accept this.

So the dealer asked to see my pay stub, so I called my work and had them fax over a copy to the dealer. About 5 minutes later they came back saying I was approved for 15K down and 6.59 APR (WAY better than what I was expecting for a 22year old first time buyer)

So I'm now at home with my Z Parked in front of my house. good luck to all of ya :D

Banks from accros the ocean seem really more complicated than in europe....
How can he have a credit history if everyone he meets for a loan give him the same answer? the snake eating his tail :icon14:

In the other hand, relax dude. It's just a car, if u really want it, you'll have it eventually :icon17:

I was approved for a 25K car loan when I was 19...having a credit card that I paid reliably since I was 18 was a very wise plan on my part :). 6 years later now, when Nissan came back with my loan application (you have to file with them also if your loan isnt already approved through PenFed), they just laughed and said, "Yeah, you're good" lol.

I put a credit line loan into effect when I bought my fiancee the Scion even though I had cash in hand with the full amount needed for the Scion.. I told my bank to take out a monthly loan payment for the amount of $5000, and all it does is pull money out of my account every month and build up my credit.. Its a great way to build credit. If you have more than five grand in a checking or savings a account they will approve you for a credit limit loan no prob. But you can usually get a credit limit loan for any amount that they can hold on to. As a guaranteed loan.. Its a great way to build up credit.

Dude, why would you even use dealer financing to begin with? Shop around and get financing from someone else, you'll usually get a much better deal. Dealer financing is another way they suck money out of people who don't plan ahead and get all their paperwork in order before they walk into the dealership.

You have to have a bit of history showing you know how to make payments on loans and credit cards.

It's not Nissan's fault that you don't have the right kind of credit to buy a 30K-40K car...

Student loans are the "joke" of credit.

Are you making payments on it now? More than likely not - so, that shows up as a huge debt on your credibility to be able to pay off more debt.

Why are they "joke" of credit?

Also, I already mentioned that I paid off more than half of it (24k out of 45k) in just 5 months since I started working in January.

I'm giving myself one moment of instant gratification, then it's off to the races to get that house XD

Not sure how it's particularly a "joke" of a credit, but if what people said before is true about getting turned down because you already owe lots of money towards other things (like cjanik with penfed), it kind of limits your position...