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Smart Shopper Credit Scores and Vehicle Financing
935 messages, Last post on Jul 28, 2009 at 1:12 PM
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Replying to: oldfarmer50 (Apr 25, 2009 7:04 am) A salesman who gets one of these customers tends to lose interest quickly. My advice is to be as open as possible. Let the salesman know when you plan to buy, if you are pre-approved, answer his/her questions as directly as possible. |
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Replying to: boomchek (Apr 25, 2009 7:27 am) Well, he was at this same dealership for at least 2 years that I know of. He was the one I had talked to when this particular model first came out in 2006. He was helpful at that time so I made a point of going to him 2 years later when I was a serious buyer. Any way, it all worked out for both of us as I did buy...and I bought TODAY (meaning I did the test drive, the haggle and the purchase all on the same day). 
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| I am applying for a TSX lease within the next month. I have a credit score just above 700 and have always paid my credit cards and student loans on time. My downfall is my debt/credit ratio is currently around 40% as I slowly pay off two remaining credit cards from college expenses. My debt to income ratio is likely around 30%. I read that under 30% for your debt-income ratio is considered good and that over 660 on your credit score should be fine in order to obtain a lease. What worries me is the 40% debt-credit ratio though, where my debt to credit cards is around $1800 with credit limit of $4200. I have a small amount of money in stocks but dont' want to pay off credit cards that only charge me 10% when I'm earning 25%+ in the market right now. I also want this "cash" available to me if i truly need it down the road. With a debt-credit ratio that high and student loans of about $19,000 still and a salary aruond 65k, would I be approved for a $27k lease on an Acura TSX with 0 down and payments of $348/month or is there a good chance I'll be denied? Also, if I could manage to get a co-signer would that solidify my chances of being accepted? I'd prefer not to have to beg my parents to co-sign but I'm worried I won't be accepted and I don't want to lose out on the downed stock market in paying off all credit card debt. Please help! Thank you. | |
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Replying to: mcb345 (May 13, 2009 8:12 am) Sounds to me that, for the moment, your eyes are bigger than your resources. With a 65K salary, I don't see why you can't hammer away at the credit card debt before taking on an additional $350 per month for...what...3 more years? Your stocks are only a "bet". That's not real money until you cash it in. That could be reduced by 25% in a matter of weeks, whereas your debt remains constant regardless. Once you pay off your credit cards, you could start pecking away at the student loan, too. No reason why credit cards can't be kept down to $200-$300 a month through the course of your lease. |
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Replying to: mcb345 (May 13, 2009 8:12 am) 25% right now? Really? I don't buy it. But that aside, I'm with Mr. Shiftright.
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Replying to: verdugo (May 13, 2009 8:42 am) |
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Replying to: mcb345 (May 13, 2009 8:12 am) Also it not only depends on total debt but how much are you obligated to it every month. If your expenses every month are a high percentage of your income them you might need a cosigner. Keep in mind the cosigner also has to have very good credit and have good debt service ratio. Otherwise, the only other thing left to do is to actually go and try getting that lease. That's the only way you will know. Good luck.
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Replying to: boomchek (May 13, 2009 9:29 am) Thanks for the help. I actually was approved for the lease without a problem after I was told I could still get a co-signer if I was denied. And yes I did just get in to the market a few months ago and yes it 25% returns may not be sustainable in the long run but 25% in two months lends one to want to gamble a bit more down the road. The DOW won't be staying in the low 8000's for long!
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Replying to: verdugo (May 13, 2009 8:42 am) Our stock club also bought 2000 Ford shares a few months ago at 1.93/share. Sold 1000 of them at 6.02, and the other 1000 at 4.86. That said, I wouldn't view it as my sole or primary financial management strategy. While there are bargains to be had, it's too volatile - way more volatile than paying off existing debt! |
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