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Smart Shopper Credit Scores and Vehicle Financing
945 messages, Last post on Dec 06, 2009 at 9:30 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: macarshopper (Mar 16, 2005 12:48 pm)
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on your offerred rates. We got a mailing from our (former) mortgate /(current) car lender with an offer of $50,000 pre-approved out of the blue in Dec. This was while I was "between jobs" too. The only reason I can think of was our credit score and history. When I called them about it it was for real (ended up spending about $35,000.00 at 4.3%) not "great" compared to some "new car" rates, but this was for a "pre-owned" car and I didn't have to bother with F&I at the dealership.
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Thanks for all the info/advice! I am printing it out and following up on it. Keep it coming 
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Replying to: kirstie_h (Mar 16, 2005 1:45 pm) |
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It's obvious that you have done your homework on what you can afford. I ran some numbers through Excel and $6000 financed for 36 months at 16.49% is $212 per month. I was curious about how much of the loan would be interest. For 36 months, your total interest paid using the above numbers would be $1650 - 27.5% of the loan amount and $2250 for 48 months - 37.5% of the loan amount. Saving 10% of the loan amount by reducing the term one year is pretty good. Also, by reducing the interest rate to, say, 10% - possible from a credit union - you reduce your interest paid to $970 on a 36 month loan and to $1300 on a 48 month loan. The savings are 11% and 15% of the amount financed! Add the savings up and by getting a better rate from a CU and shortening the term, you can save $1280 with a 36 mth/10% loan vs. a 48 mth/16.49% loan - all for $22 more per month. So - Get to a CU and get a low interest rate loan NOW. Also, there are many knowledgeable people here that can point you in the direction of a good used van (or are you looking for a minivan). Lastly, where are you in Montana? I lived in Billings for 15 years. Jason |
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I was just at a dealership and I'm still in shock! I had a case of identity theft a few years back and got it all sucessfully removed. In the meantime though I haven't been using credit and now have no history. I was told on a 14,000 car I would have to put down 5500.00 and accept 21% interest!! Is this really what I'm up against? This was a reputable toyota dealership and a salesman my family knows personally. I hope there are other options for me.
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... **A little history: Supported myself through law school and relied heavily (and stupidly) on credit cards. I also had several late payments - up to 90-120 days on a couple occasions. Once I graduated and got a year long judicial clerkship (AKA lots of prestige and low low salary), I realized the severity of my money predicament and entered a dept repayment program through Consumer Credit Counseling Services. This was two years ago. I repaid all my credit card debt within a year. I also purchased a home a year ago. I do have two credit cards again with a small balance but pay significantly more than the minimum and will have it paid off by the end of the year. In the last two years, no late payments etc. Also have been in a well paying job for the last year and a half as a prosecutor** ... ======================== You may also want to try: www.FreeCreditReport.com -- and perhaps take a look at Bankrate.com .. Even though "My Fico" states they give a window of 14 and 30 days, that sometimes doesn't make it true .. not that they are a bad guys or anything, it's just that the "real deal" credit reporting system is about 10 years behind the times, and getting worse ... In your case, you need to be actually looking at all 3 of your credit reports -and- be able to understand all 3 ... I have a feeling, if you have paid off all of your debts and they are paid in full the credit bureau's are not up to date - it's *common* .... Equifax doesn't always report like Trans Union and sometimes Experian will report some, none or maybe one loan you had in 2000 and maybe not the rest, or maybe the other way around ~ this isn't an equal opportunity deal .l.o.l.... I look at 200/300 credit reports a month and you would be amazed at what I see ... the Sears card that someone had in 1987, the Burdines charge that went sour for 3 months in 1992 ~ but was paid off, the mortgage that almost went into foreclosure in 94, the funny part was, the folks never owned the property, but it all accumulates and it goes on and on and on, most folks won't even bother until it becomes a big deal ... I think your paying extra interest rates because of not being able to look closely, not being informed, so study it and trying to change it .. remember, just because they are credit bureau's doesn't make them "accurate" .. I would say that 35%+ of the buyers today are rolling around with inaccurate information thats still effecting their bureau's ... take the time and get the proper info, it's take patience, time and energy and it can be a pain in the butt .. but hey, 5.9% sounds a lot better than $15.9% .. Do you think the mortgage companies are all over the radio and TV's because they are nice guys.? Heck no.! .. they are too busy making an extra 1/4 - 1/2 or a whole point or two on someone who "thinks" they may have less than perfect credit ..............  Good luck.! Terry. |
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Replying to: realtorguy (Mar 19, 2005 3:42 pm) That said, it's still new to most folks (even dealers) and they think it's some kind of ride at Disney World .. sadly, you know the difference .... you need to get all of your information and legal papers and drop by the local lender and Credit Union and get a loan .. properly done, you shouldn't have a problem .. you being a realtor, you should know a bunch of lenders, at least some good connections .... Terry. |
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"... the Sears card that someone had in 1987, the Burdines charge that went sour for 3 months in 1992 ~ but was paid off," No kidding. A few years back, I got a HELOC and the nice lady at the CU let me look over my credit report. There was a Chase account on there that I hadn't used in 10 years .. at least it properly showed "0" balance... When I called Chase to close the account, they said it was so far back THEY didn't have any records. In the end, they sent me a formal letter declaring that the account was closed, and it didn't show un my credit report next time. I've heard rumors that there is a new law that entitles anyone to one free report from each bureaus per year... it's a huge program, so it's phased in state by state. I plan on getting a report every 4 months, starting in April... that information can make or break a man in the right (or wrong) circumstances. It's a big deal. -Mathias
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Replying to: steine13 (Mar 20, 2005 8:00 am) You can look at "all" 3 reports at the same time on a glance .. "I think" it's $35ish(?) a year and they will report any movements 24/7 365 on any of the bureau's, which is a nice feature .. they will notify you immediately via email if your close to a credit limit on any of your Credit cards, or something "hinky" is moving around - and you can watch your Beacon (oop's, your FICO) scores on a daily, weekly or a monthly basis .... Terry.
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