Posted 2008-10-26 10:58 PM (#93689) Subject: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
After looking at new trailers and hearing bad news on financing we have decided to go with a USED Sundowner (I think) and just pay cash for it or put it on short term.
We was wanting to go with a 4-STAR or Platium with an Outlaw package and putting 5-k down, but I am self employed and now the finance companies I have talked to told me that it is going to be next to impossible for me to get financed now with this buy out mess that is going on.
Has anyone heard anything different or is there any good news insight?
Posted 2008-10-27 5:29 AM (#93695 - in reply to #93689) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1283 Location: Home of Wild Turkey Whiskey
I borrowed $10K last week on a 6 month balloon payment. No problem at all, talked with my banker and he said "if you don't have a 680 or above Beacon score, you better have a great income to bebt ratio, or you won't be borrowing anything". If it had been like that all along, we wouldn't be bailing out Wall St. right now.
Posted 2008-10-27 6:37 AM (#93698 - in reply to #93695) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1416 Location: sc
Originally written by HWBar on 2008-10-27 5:29 AM
I borrowed $10K last week on a 6 month balloon payment. No problem at all, talked with my banker and he said "if you don't have a 680 or above Beacon score, you better have a great income to bebt ratio, or you won't be borrowing anything". If it had been like that all along, we wouldn't be bailing out Wall St. right now.
Exactly. Ive pretty much always "pay as I go".........when I do go into the bank there is no question if I can get the money.
Posted 2008-10-27 8:30 AM (#93700 - in reply to #93689) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Elite Veteran
Posts: 720
The banks have always wanted 10% or better down. Sometimes they didn't actually get it....Self-employed have often been required to prove income with 1040s.
Posted 2008-10-27 10:20 AM (#93705 - in reply to #93695) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
Anything under 20-k I have no problem getting on a sig. note or short term with a title The problem we are running into is 50 to 60-k on longer term and Yes, we are putting 10% to 15% down. I have not sent off a credit app yet, because the F @ I department told me that the lenders are wanting to see mid to high 700 beacon and in 2007 we when bought our last new trailer I was just over 700 and had a little trouble then because I am "self employed" was told then that most lenders will not even look at self employed.
Posted 2008-10-27 1:57 PM (#93726 - in reply to #93718) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
That would be something to think about.... I do know that before this mess we are in now, it was not near as hard to get something financed for self employed. Like I said, we just bought a new trailer last May a new Dodge diesel last July and a new VW bug this June. And really did not have much trouble at all and put absolutly ZERO money down on all of them. Now we are wanting to buy a nother trailer (ours is going back) and wanting to put 5-k down on a 50-k trailer and still being told "but your self employed"... I was even going to try the company we are at now, since the actual money finacned is going to be the same figure and they said I have great pay history but since I am self employed that I would have to re do the note. But if I actually had a so called pay stub or an employer I could keep the same note. Now how stupid is that?
Posted 2008-10-27 4:20 PM (#93731 - in reply to #93689) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Member
Posts: 34
GE Money Bank just notified dealers that for now they will no longer be loaning on the retail end. The other scary thing is flooring for dealers, some banks are also backing out of that side of the business, that means some dealers won't have flooring, which means that won't be able to have inventory. Pretty scary for our economy, I'm seeing a lot of busineses closing their doors. One more reason we meed Mcain/Palin running our country, I know I may ruffle a few feathers, but it's just my opinion.
Posted 2008-10-28 10:19 AM (#93791 - in reply to #93731) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
Same with the car buisness, anyone using a floor plan is having a hard time.. Thank GOD for being able to buy and sale cars and trucks using cash out of my a** pocket instead of having to use a back.
I know we don't have anyone running that could or would make a change, but I know the last 8 years with the big W in office, things on the buisness end as far as being a small buisness owner has gone down hill. But we sell cheaper end (3-k on cars and under 10-k on trucks) and sell CASH only and not have to bother with the banks BS and we have been steady. But no where near what it was 8 to 10 years ago!
Posted 2008-10-30 11:48 AM (#93950 - in reply to #93689) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Member
Posts: 16
Location: OR
GE Money is still lending retail paper, they've just scaled back what manufacturers they will make loans on. Financing is getting tighter but qualified applicants can still find available money, includind self-employed. Large national lenders are the bulk of the scaling back. Regional and local institutions are still available depending on your dealer's contacts.
Posted 2008-10-30 12:23 PM (#93955 - in reply to #93689) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
New User
Posts: 1
Location: WI
Financing is still available at GE money bank.. interests rates how ever have gone up.. Most banks now are asking for 10-20% down for little to large loans..
the self employed make it very diffcult but the best way i know of it being done is to not to list "self employed" but where is says employer put the name of your company/business and in the job title put what you do like
example Employer Bob's electic LLC postion/job title electrian. instead of self employed.. it may seem like you lying but your really not cuz your business in your employer and that looks like a more secure to the bank - if you questioned about it later they maybe want to see tax forms and such.. it is also VERY helpful and not all business can or do but try cut yourself a check every 2 week or once a month so it still looks like the busines is PAYING YOU!
Posted 2008-10-30 3:08 PM (#93966 - in reply to #93955) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
Been there done that! The problem is when they request a check stub with a year to date figure listed on it! I am in the car buisness and 90% of it is CASH MONEY and I pay myself with that cash.
Posted 2008-10-30 3:52 PM (#93968 - in reply to #93967) Subject: RE: WOW, has anyone else noticed the tight financing, what to do now?
Expert
Posts: 1351 Location: Decatur, Texas
Not really, I send all of my papers in monthly and my tax man files and fill out everything for me and sends me a 1099 form at the end of the year and have been doing it the same way since 1983! The last few years I have bought vehicles for other dealer and they send me a 1099 as well. But when i try and show the F&I people the tax papers, they tell me that is at acceptable since I have 2 or 3 1099's. They are telling me that is not really proof of income since it is not the same every year and not coming from the same dealers every year.
WOW, has anyone else noticed the tight financing, what to do now?
