- #897 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [volvomax]
by penone
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Jun 12, 2009 (12:21 pm)
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Replying to: volvomax (Jun 12, 2009 12:09 pm)
Thanks volvomax for the reply. After doing a bit more research today I see that getting a lease at this time is definitely not an option with no installment credit whatsoever. But I do hope to be able to get a loan for a used lexus. I've read in other posts and in different articles that it's best to go to a dealer with a loan already in your hand. Is that the consensus?
-P
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- #898 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by volvomax
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Jun 12, 2009 (12:22 pm)
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Replying to: penone (Jun 12, 2009 12:21 pm)
I've read in other posts and in different articles that it's best to go to a dealer with a loan already in your hand. Is that the consensus?
Can't hurt. Sometimes the dealer can do better,sometimes they can't.
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- #899 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by joel0622
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Jun 12, 2009 (12:38 pm)
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Replying to: penone (Jun 11, 2009 5:48 pm)
I can easily pay a few hundred dollars a month on a car payment
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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- #900 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [joel0622]
by penone
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Jun 12, 2009 (12:57 pm)
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Replying to: joel0622 (Jun 12, 2009 12:38 pm)
By a few hundred I mean about $ 500 or $ 600. I take home about $3900 a month. After rent, student loan, food, cell phone, cable and electric, etc. I'm left with approx. $ 2500 a month give or take. I do tend to eat out a lot - do a bit of traveling and like to buy nice clothes but am willing to sacrifice that to get a nice car. I figure paying $ 600 on a 5 year loan (totaling $36K) I'd be able to afford something nice.
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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- #901 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by lokki
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Jun 12, 2009 (1:26 pm)
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Replying to: penone (Jun 12, 2009 12:57 pm)
I faced a somewhat similar problem of establishing credit after being outside the states for about 10 years back in the late 70 to mid 80's. I actually ended up putting up a CD as security on my car loan. I had plenty of cash but no credit.
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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- #902 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by joel0622
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Jun 12, 2009 (5:01 pm)
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Replying to: penone (Jun 12, 2009 12:57 pm)
I think you will be fine. We get people handled all the time in your situation. You are only at about 9% PTI if the payment is $600, and you have a good down payment. FYI it is easier to get financed on a new car then it is a used one.
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- #903 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [joel0622]
by penone
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Jun 13, 2009 (4:06 am)
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Replying to: joel0622 (Jun 12, 2009 5:01 pm)
Thanks Joel for the reply. I do have to say thought that I was surprised when you mentioned it would be easier to get financed for a new car than a used car. I would have thought it would be the other way around.
-P
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- #904 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by joel0622
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Jun 13, 2009 (6:28 am)
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Replying to: penone (Jun 13, 2009 4:06 am)
Always rememember this. The captive finance company is there to support the manufacture in selling cars. All the manufacture cares about is if a dealer is selling new cars, used does nothing for them. So in an effort to support the manufacture the captive buys more aggressive on new. You might even qualify for a first time buyers program on a new car.
Look at cars in this order from a finance standpoint
1. New
2. CPO
3. Used
4. Private Party.
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- #905 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [penone]
by Mr_Shiftright HOST
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Jun 13, 2009 (7:40 am)
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Replying to: penone (Jun 12, 2009 12:57 pm)
do you have a garage? If you are in the 5 boroughs and the car is staying outside on the street, I sure wouldn't buy anything too nice. (former NYC war veteran).
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- #906 of 935
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Re: First Time Buyer - Limited Credit - Low debt to income ratio [Mr_Shiftright]
by penone
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Jun 13, 2009 (10:20 am)
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Replying to: Mr_Shiftright (Jun 13, 2009 7:40 am)
Thanks for the explanation Joel. Makes perfect sense!
Mr. Shiftright - I'm born and raised in NYC (37+ years) but have to say that I would never ever let where I live determine what I own. Because I live in NYC I can't buy anything nice???? That's absurd! I do plan on getting a spot but mainly because parking is horrendous in my neighborhood and I don't feel like driving round and round looking for a spot.
-P.
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