going car shopping in a few hours

If you get 5.9% or better with those scores, I'll eat my Chevy Blazer I just bought at 12%.

 

i had 580's score and chase approved me for 7% APR. $3500 cash down on a $26K car. Only wanted my drivers license and insurance card no proof of income or anything.

VAG credit also approved me for a 1.5% more..

 

1.Buy before the week ends. You get caught up in all
of their red tape on the weekend. "We've got to
talk to the bank..yadi, yadi, yadi..."
2.Do not take possession of the vehicle before they
have finalized everything. Sets you up for
disappointment.
3.If you can get financing before you go like from
your bank or credit union do so. Even if it is a little
higher in terms of interest rate. You'll still be
happy.
4.Shop around. If you like a surburban try to go to at
least 3 dealers, look for same options, and best
price.
5.Do not let the finance guy "stab you". They often
change the terms of your contract and let you sign
on some crap that you didn't want.
6.If you can afford to, finance for three years only,
do so. Why keep paying for something that
depreciates quickly?
7.If you do get financing from elsewhere. Stall them
tell them you need to think it over. Go to the bank
get the check and bring it back and tell them you
want it. Make them write up the offer. Take this
to the bank.
8. Do not let them charge the doc fee
(documentation fee). It does not cost $200+ for
somebody to create some papers fo you to sign.
This is the fee that goes in the pockets of the
dealership. Why would you pay someone to sell
you a car?
9. Negoitate, negotiate, negotiate. They have to get
these cars off the lot before the end of the year
or they have to pay addnl. taxes.
10. If I forgot anything, I am sorry.

 

Here's a good page about some things to watch out for with dealers. http://www.carbuyingtips.com/

 

Kellie,

I would recommend searching Supershawn's posts on this subject. He is a wealth of knowledge in the area of auto finance and has offered some fantastic advice.

I do not have much to add myself but wanted to wish you luck.

 

You should get financing before shopping.... you're looking at 15-20% with those scores.

 

You won't get the low financing from Chrysler unless you put a ton down (maybe 30-40%). Ford has been the most flexible for years but have started to tighten up. What kind of a car or truck are you pursuing KHM?

bkev is correct 550-600 scores will usually get ya 14-20% depending on down stroke.

Credit Union with pre-approval amount is best way to go. Do you have any relatives that belong to a CU? Thats all it takes to sign up with most of them. Anything in the 10-14% range would be good.

Good post from Kittw, especially #2. Dealers do this to give them time to work the banks and keep you from shopping around while they try 10 banks and several inquiries. Then after all the neighbors give you congrats you have to take it back or pay whatever rate they finally can get.

Shouldn't be much need to negotiate on a new vehicle. You can see the invoice online (consumer reports.com) or just tell the dealer you want to see it. Decide how much over you feel is fair and make a deal. 100. over is a done deal on most (except hi-line vehicles like acura or mercedes).

One more thing to keep in mind. This time of year the factories pay "dealer cash" to the dealers to move 2001 rigs. You can buy a 01 Grand Cherokee for 3 to 4k below invoice right now because of dealer cash. (I don't have my info on dealer cash at my home so email me for exact amount)

 

Best new car deal I know of is the 2001 Grand Cherokee. Get your own financing, tell them you want 4k back of invoice and you also pick up the free 7 year/100k powertrain warranty. This is a free 1500. add on. Only $50 deductable and covers engine, tranny, transaxle. This will probably end 12-31. You still get the 3/36,000 bumper-to-bumper also.

I still recommend used over new. I don't like that huge first two years depreciation. Right now used are super cheap with all the special rebates, financing, add ons, etc.

I paid (wholesale) 15K for a 1999 Grand Cherokee Laredo w/14,000 miles yesterday. That same rig new in a 2001 one will cost you about 28k depending on equipment.

Do your research, and get a good used car. That way your not 10K buried in 2 years.

 

KHM,

I was approved at the Toyota dealership with a TU 620, with a 6.5 yr old unpaid repo on the report, at 7.9%, 5K down on a 27K truck. My CU basically turned me down, approved for 15 K, about 9K short of what I needed, and don't even think of applying with Lending Tree, I got 3 hard inq off of one app with them, denied flat out by all 3 lenders. People First was no better, approved for 22.5K at 24% interest!

I think your best bet is the dealer, and maybe a CU if you have a history with them. I think for those of us who are somewhat credit challenged, the dealership is the best option, but play a little hardball with them going in before they pull your reports. Show them copies of your reports they intend to pull, and ask them what they think they can do for you before you let them pull a hard inquiry. That's what I did, and let them know I wasn't going to pay any "ridiculous interest rates like 10%" (which I'd of been happy to pay actually) before I gave them the go ahead to pull it. They came back with 7.9%, outstanding as far as I was concerned.

Good Luck

dan