Finance Center | Union Gap, WA
Turned Down Elsewhere? Bad Credit Car Loans in Yakima
A no from another lot or an online lender doesn't have to be the last word for buyers in Union Gap, Selah, Wapato, Toppenish, Sunnyside or Grandview. The denial letter spells out what that lender saw, and your next application can be built around it. Here is what to change before you apply again, and how financing works at Bud Clary Toyota of Yakima.
- 60 daysTo ask for your free credit report after a denial
- 4 business daysWashington's limit for a dealer to finalize financing
- Under $10KUsed cars listed on their own page
- SundaysSales open 10:00 AM to 5:00 PM
Why a lender says no, and what the letter tells you
Car loan denials usually trace back to a short list: a thin or empty credit file, recent late payments or collections, debts that look high next to the income a lender could confirm, or a loan that is large for the car's value. When a credit report played a part, the CFPB explains that the lender's notice should show the score it used, the key factors behind that score, which credit bureau supplied the report, and your right to a free copy from that bureau within 60 days.
Treat that notice as your to-do list. Keep it, and bring it when you apply with us, so our finance team starts from what the last lender flagged instead of guessing.
What to do differently on your next application
Work through these before you fill out another credit application anywhere.
- Pull the report named in the letterAsk that bureau for your free copy inside the 60 days and read every account line. Errors can be disputed with the bureau and with the company that reported them, and the bureau must investigate. For your regular free reports, the CFPB points to AnnualCreditReport.com, the official site.
- Put all of your income on paperA lender counts what it can verify. Regulation B bars a lender from discounting income because it comes from part-time work, a pension or other retirement benefits, or from holding public assistance income against you. Social Security, part-time and self-employment income may count; the lender decides. If you work seasonal orchard, packing-house or harvest jobs, last year's W-2s or tax return show the whole year instead of one slow month.
- Keep your shopping inside a few weeksEvery lender that reviews an application may pull your credit. According to the CFPB, auto loan inquiries made within 14 to 45 days of each other generally count as a single inquiry, so spreading applications across several months works against you.
- Ask for a smaller loanBorrowing less can change a lender's answer. A lower-priced vehicle, more cash down or a trade-in all shrink the amount you need. The lender sets any down payment, and the value of a trade can count toward it.
- Weigh a co-signer carefullySomeone with stronger credit may help your application, but the FTC warns that a co-signer must make the payments if you stop, and the loan can show up on their credit report.
- Send one complete applicationOur credit application goes to our finance team, who submit it to lenders for you. One complete application, with the denial letter and your income papers behind it, gives each lender the full picture the first time.
How dealer financing works at Bud Clary Toyota of Yakima
We arrange the financing; lenders make the credit decision. After you fill out our online credit application, our finance team forwards it to one or more lenders, which can include banks, credit unions and finance companies. That is the dealer-arranged process the CFPB describes. Each lender decides whether to offer you a loan and sets its own terms, and you repay the lender whose offer you take.
All credit types are welcome to apply at our Union Gap store, and Bud Clary's options include credit union direct lending next to traditional lenders. If your contract is written subject to financing, Washington law gives the dealer four business days to accept it or cancel it, and a canceled contract means your down payment and trade-in come back to you (RCW 46.70.180). The Washington Attorney General advises leaving the vehicle on the lot until financing is complete.
A negotiable documentary service fee of up to $200 may be added to the sale price.
What to bring when you come in
Lenders ask for different documents, so our finance team may need more or less than this list. Bringing it all saves a second drive in from the lower Valley.
- The denial letter from your last application, if you have one
- A valid driver's license
- Recent pay stubs, or an award letter for Social Security or other benefits
- Last year's tax return or 1099s if you're self-employed or work seasonal jobs
- Proof of where you live, such as a utility bill or rental agreement
- Your trade's title or loan payoff details, plus every key and remote
- Proof of insurance or your insurance agent's contact information
- Bankruptcy paperwork: a Chapter 7 discharge order, or, in an open Chapter 13 case, the notice or court paperwork your attorney files for the new loan
Bankruptcy in the Eastern District of Washington
Yakima County is part of the federal Eastern District of Washington (28 U.S.C. 128), so a Yakima Valley bankruptcy runs through that district's bankruptcy court and, in Chapter 13, its trustee.
During a Chapter 13 plan, U.S. Courts says the debtor may not take on new debt without consulting the trustee, because added debt can put the plan at risk. Talk with your trustee and attorney before you apply for a car loan, and bring whatever they give you in writing. After a Chapter 7 discharge, bring the discharge order; each lender sets its own rules on lending after a bankruptcy.
Cars that fit a tighter budget
Our used cars under $10,000 page changes as the lot does, and the full used inventory sorts by price. Every used vehicle at Bud Clary comes with a free CARFAX report, and the 3-day / 300-mile exchange lets you swap it for another if you change your mind within 3 days or 300 miles.
Have a car to trade? We handle the payoff with your lender directly, trading in lowers the taxable price of the vehicle you buy, and we'll buy your car even if you don't buy one of ours. Get a number first with Value Your Trade.
Ready to apply again?
Start the application online any time, or call our sales team Monday through Friday 8:30 AM to 7:00 PM, Saturday 8:30 AM to 6:00 PM and Sunday 10:00 AM to 5:00 PM.
Visit Bud Clary Toyota of Yakima
Bud Clary Toyota of Yakima2230 Longfibre Rd
Union Gap, WA 98903
Sales
- Mon - Fri
- 8:30 AM - 7:00 PM
- Saturday
- 8:30 AM - 6:00 PM
- Sunday
- 10:00 AM - 5:00 PM
Service
- Mon - Sat
- 7:30 AM - 6:00 PM
- Sunday
- Closed
Frequently asked questions
Why was I denied a car loan?
The lender's notice either lists its main reasons, such as limited credit history, late payments or income it couldn't verify, or tells you how to ask for them within 60 days. If a credit report was part of the decision, you can get a free copy from the bureau named in the notice when you ask within 60 days of receiving it.
Will applying again hurt my credit?
A new application can add a hard inquiry. The CFPB says auto loan inquiries within 14 to 45 days of each other generally count as one, so keep your shopping short and apply with a complete file.
Can I buy a car with no credit?
You can apply. With no credit file to read, lenders look harder at what you can document: steady income, how long you've held your job and lived at your address, and how much you put down or trade in. A co-signer with established credit may help if both of you understand they owe the loan when you don't pay.
How much do I need to put down with bad credit?
The lender decides, based on your credit, your income and the vehicle. A trade-in can count toward a down payment, and our finance team will tell you what a lender is asking for before you sign anything.
Do Social Security or part-time wages count as income?
They may count; the lender decides. Federal rules keep lenders from discounting income only because it is part-time or comes from a pension, and from counting public assistance against you. Bring award letters and recent pay stubs.
Can I get a car loan while I'm in Chapter 13?
Talk to your trustee first. U.S. Courts says a Chapter 13 debtor may not incur new debt without consulting the trustee. Yakima County cases are handled in the Eastern District of Washington.