Hiya-Got a 620 on both TU and Equifax. Thinking about getting a new car. Any idea what kind of interest rates I could get with these scores....especially through GMAC, Ford, or Chrysler Credit. Also what kind of down payment you think may be rquired. Looking at a new mini van, that sells out the door for between 22-26k, with MSRP of between 28-32k. Thanks, hopefully someone wcan save me a hard pull or two!
If you were looking for a Toyota, you would be looking at roughly 9-12%, depending on income and previous loan history. Your down payment is fine, but your Experian score is what is pulled. However, there is an occasion where they will pull from another bureau to find you a better rate, but you have to ask them to do so. It seems you are looking at domestics, which is great, but I know little about them. If other manufacturers use a similar scoring model, then this information might be of some use to you. Good luck with that car!
Find what you want, and talk to F & I before you let them pull. We got a Ford for 4.9 with EQ of mid 500's. But, we had good previous auto history. Ford is not score driven, GMAC is more so, thats the only two I know about.
you will find dealers make money on both ends. They may be willing to take a haircut on financing profit (and the finance managers do get cuts), if they get a better profit on the sales man. It goes both ways The car sales man and the finance manager are in bed together (ala kickbacks). Buying an upper class car from a manufacturer that only sells nice cars, can sometimes benefit you. Since a majority of their financiers are high scorers, they can stack your sale with a few others. IE joe@800, jill @ 790, Bill@760, you @ 620 = deal or no deal at all. Of course the creditors will take 3 near perfects and finance a less than perfect with decent APR to get the 4 sales. Dealers that tend to sell cars to "lower credit" folks will have a scale of uneven-ness. More lower credit folks than higher credit scorers. Thus may not be as effective. They are also more apt to be predatory on rates. When you think about it, the average joe that walks into an audi,bmw,mercedes dealer can probably cash out his IRA to buy his car, or charge the whole car on his home equity credit card. These folks do not need financing and can easily walk or get better financing. Matter of fact many of them are actually smart enough to use a broker (networking baby!) to get them a hot deal on markup by bypassing car salesmen and working nearer to the fleet/manager. I'd guess that 99.9% of rich people understand the fact that leasing is more financially sound than purchasing, given today's repair bills on even the simplest of automobiles, you may explore that option. What good is that nice truck if the maintenance still costs you an arm and a leg. Of course those long warranties say if you even miss one oil change by a mile, your 7/70,10/100 warranty is void and NIL. I will never purchase a new car again, i've twice lost 6K+ selling cars we purchased a year or so after we got them, got bored, crappy car(VW), etc. Good luck. remember, most creditors want to see a previous car purchase, of similar value in the past. Otherwise you might get stuffed into a first time car buyers program. credit unions rule, they usually will tell you straight up what your score to APR rate is on new cars. Might be worth a shot. But i'd seriously never ever buy a new car again. $12K down the toilet on depreciation, that could have been a down payment on a house.
I know some people who ALWAYS buy "ALMOST" new cars...3-5 years old... Major new car defects are already fixed...they get the car at a lower cost because the original owners get the LOSS... You MUST know what you are doing though... And at the first sign of MAJOR problems (like if you have spend more than $1,000 in one month)...you gotta' dump it and run...
