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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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I'm looking to get a car by end of month and am wondering what to expect. It would be my first car financed under my own name (prior to this I either paid cash for a car or had it under my mother's name) and my first financed car. I'm 37, make $ 72K/year (verifiable with pay stubs), live with my girlfriend and our rent is $880.00 per month (my share being $ 440.00). Up until December of 08 I paid everything in cash and did not have any credit cards. Realizing that if I ever wanted to get a house or a new car I would need to establish some sort of credit I went ahead and got 2 secured cards - each with a $ 300.00 limit and both have been paid in full the past 6 months. I just finished rehabing an outstanding student loan I had but the loan nor its default is on any of my 3 credit reports (they are over 15 years old). The remaining amount on the loan ($ 2800) is now being handled by the DOE and they tell me that it should show up on my report in the next 45-60 days as a positive trade line but am not holding my breath on that. My monthly minimum payments on that will be $ 50.00 per month which I can easily afford. Other than the 2 small credit cards there is nothing else on my reports. My Experian score is 722, my Equifax is 754 and my Transunion is 697. I am looking to get a car now as taking mass transit is getting a bit old (I haven't owned a car in over 5 years. I live in NYC where mass transit is pretty good). My question is what can I expect in regards to financing? I can put down $2500 on a car and am interested in getting a 2006 Lexus IS250 (based on autotrader.com searches the average price is $ 23K) or if possible a 2009 model. Based on my salary, my very limited credit history and my small debt to income ratio what are my chances of getting a car loan? I can easily pay a few hundred dollars a month on a car payment and still have money left over. Would I even qualify to be able to get a lease? These 4 hour round trip commutes to work is starting to get to me (been doing it for the past 18 months) and would like to be able to drive again. Any thoughts is greatly appreciated. Thanks! -P
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Replying to: penone (Jun 11, 2009 5:48 pm)
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Replying to: volvomax (Jun 12, 2009 12:09 pm) -P
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Replying to: penone (Jun 12, 2009 12:21 pm) Can't hurt. Sometimes the dealer can do better,sometimes they can't. |
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Replying to: penone (Jun 11, 2009 5:48 pm) To me a few hundred means $300. I think you are looking at way to much ride. Even on 72 months you are all over $400 a month.
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Replying to: joel0622 (Jun 12, 2009 12:38 pm) My issue is that - although I know I can afford it how do I convince a bank/finance company that I can with such a small credit history? I hope by being able to show the dealer how much I make and what my rent is they can see that I can afford a high monthly payment of $ 500 or $ 600. -P |
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Replying to: penone (Jun 12, 2009 12:57 pm) I got a good enough rate of return on the CD, and a good rate on the loan. You might discuss that kind of arrangement with a bank or credit union. Nex idea: How much do you intend to put as a downpayment on the loan? If you have a $20K car, and you put down $15K you shouldn't have any trouble getting a loan for the balance - plenty there for them to repossess- and your monthly payments will be minimal.... nice situation for establishing credit. |
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Replying to: penone (Jun 12, 2009 12:57 pm)
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Replying to: joel0622 (Jun 12, 2009 5:01 pm) -P
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Replying to: penone (Jun 13, 2009 4:06 am) Look at cars in this order from a finance standpoint 1. New 2. CPO 3. Used 4. Private Party. |
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