Advice on auto loan

Sorin-

Auto loans are different than credit cards, due to the fact that the bank has a security interest in the car.

Your credit history is very similar to mine, though you are just a step ahead of me. I'm curious as to what happens with the whole loan, as I will probably be buying another new car in the next 6 months. Please keep us posted.

As far as the loan goes, if you have 2 or fewer inquiries in the past six months, and not too much other debt (housing, etc.), you will have no problem getting the loan. I think that 8.x% is awesome for someone with credit histories as short as ours. I currently have a cosigned auto loan with 7.0% interest, 60 mo. through my dad's credit union. That may be an option if you are a member/could join a credit union. Their rates are typically lower than larger banks, like First Union.

 

Try Ford credit. they were gre

That is if you are interested in Ford products

 

RE: Try Ford credit. they were

Yes, merkury is ford motor credit. nice car, get the optional wheels, and definitely the ford countour v6 motor

Here's a typical scenario:

You qualify for first time auto purchaser. This has lower income-to-payment ratio. IE. If you make $25000/your you can buy a $25000 (finance interest total) vehicle.

Thats about, $15K car, last time i checked, on 60 months terms with 10% down payment.

if your credit is established, you may be able to get 4-5 % lower interest, less than 10% down payment.

 

RE: Try Ford credit. they were

I would personally leave Ford Motor Credit alone. I have already posted my reasons on why (try doing a search). I'm hoping Junum can get that trade off of my reports (22 - 30 day lates, 1 - 60 day late, and paid after charge off). This is interesting seeing that the car was only financed for 48 months! Oh well...plus their customer service is garbage!

 

Yes. Apply thru the dealer.

When I went shopping, I knew i wanted a new Ford truck. I took with me every possible piece of info the credit manager could ask for including a telephone bill. I explained my bad credit to him and i had a lot of excellent credit on file too. I got a 2.9% 4 year loan.

I received Auto club pricing on the car. I left with my new truck in 1 hour.

As a side note: A second Ford dealer offered me 5.9% before we even picked a vehicle to get serious about.

I had a good down payment.

 

The interest on my $19,500 loa

over 4 years. A big savings

 

No subprimes.

You are not a subprime customer. Stay away from finance companies. You definitely should use your inquiry at a bank or like Jim said Ford motors. In other words a bank or lender which isnot a finance co which issues loans to subprimees. Good lUck..

roni

 

RE: Try Ford credit. they were

And don't forget their cars are crap. YMMV
MP$40 wrote:-------------------------------I would personally leave Ford Motor Credit alone. I have already posted my reasons on why (try doing a search). I'm hoping Junum can get that trade off of my reports (22 - 30 day lates, 1 - 60 day late, and paid after charge off). This is interesting seeing that the car was only financed for 48 months! Oh well...plus their customer service is garbage!

 

RE: Yes. Apply thru the dealer

In '98 my partner got a Ford - he had crappy credit from '93 (5 charge-offs, 3 paid), but excellent positives since, and he was able to get 1.9 with 0 down.

Just do as Jim suggested - show a little extra effort, document, and explain (in writing). It helps the dealer "sell" your case to the underwriter.

Good luck!

 

Try eloan.com. You may be able to qualify for their 7.30% interest rate. Since rates have went up recently, this is excellent. Good luck!

 

RE: Yes. Apply thru the dealer

Keep in mind, factory incentives etc, affect the outcome of financing and price..

fords aren't really in much demand, and if you pay Anywhere near the sticker, you're getting severely hosed.

On the other hand, about the BEST price i've seen anyone get on a particular VW i got, was $400 over invoice. Due to the shortage, and waiting list, the companies know you want it, and will rape you more on the finance, as well.

Ford offered us, like $5000 off invoice, or 2.9% financing.. After riding the vehicle, we had to decline

(not that ford is bad, i have a supercharged mustang 5.0 just not girl friendly..

Supply and demand, is certainly what affects the bottom line price, and the finance companies (ford motor credit) obviously are pushing price one way or another when they give you those loans.

 

RE: Try Ford credit. they were

You are right about ford"fix it or repair it daily".they have the worst cars now.I have a dodge shawdow,and it is the best car i ever owned.It has a low maintence,and it dosn't hardly breakdown like fords crappy cars.So i would stay away from ford.They will have you comming,and going.

 

RE: Bottom line

I wouldn't discount (no pun intended) Ford Credit so quickly -- 3.9% (incentive in New England) is a better overall deal than 7.3 - with an extra $1000 rebate.

$22,000 loan @ 7.3% @ 48 mos. = $3,434 interest

$22,000 loan @ 3.9% @ 48 mos. = $1,796 interest

Check out Edmunds.com to get a handle on incentives, invoice, dealer holdback, etc. Shoot for invoice...maybe a little over. Financing shouldn't play a part in the price- if it does, go to a different dealer.

Good luck!