My brother was turned down by Mitsubishi Credit for the 0-0-0 down payment, no interest, and no payments to 2004. The questions I have is: I am willing to co-sign the loan to get it approved. I have near 800 score. 1. How does the the 0 payment to 2004 report on my credit bureaus? Does it look like I am making auto loan payments still? 2. His credit union will refinance the loan in 2004 for him at 4.95 for 60 months. Will he have problems refinancing the loan just in his name with both of us on the title? Or will he have to pay taxes on the car again. Beacuse the car is jointly titled (We live in Michigan). 3. Has anyone ever dealt with Mitsubishi Credit on the 0-0-0 programs they offer? And how did you like it? Thanks for you input.
I have the 0/0/0 program with them, my cr's show it as a "paid as agreed" account even though I don't start paying until Feb 04. So far, I like the program. The only thing is they started sending me statements last year with 2004 due date, even though I don't have to pay until next year.
You shouldn;t have much of a problem with the 0-0-0, the refinance could be iffy if you didn't co-sign for your brother again to refinance. What are his credit scores like? Just remember this...if he defaults you are on the hook for the car and all of the payments!! Make sure you can afford this car payment should he default. My number one rule with family is this....never lend money to family, it only causes problems!! If I do lend money to family I make sure I really don't plan on ever getting it back should something arise. Mr brother stuck my father with a nice car payment when he defaulted on the co-signed loan too! Problem is my father who has perfect credit didn't find out until the car was repoed. My brother was intercepting the calls and letters at home so mty father had no idea. He did buy back the vehicle but I had a hell of a time fixing his damaged credit. He took quite a point hit and subsequently couldn't even buy himself a new truck when he wanted to because of this. Tac
1) Already been covered by another member. 2) On what figure are is the CU basing this refinance? You need to realize that CUs are typically only able to finance a max of 130% of the retail/resale value of a vehicle (based on figures from NADA, Kelly Blue Book, etc.). Depending on which Mitsubishi this is, the depreciation on the vehicle could be a killer for this deal. I have heard of numerous people taking the deal and then realizing that over the first year the vehicle depreciated in value so much that no financial institution could refinance. For that reason, the consumer is then left to pay off the loan at whatever rediculous rate kicks in at the end of the first year! If 0% interest is not available for the full term of the loan, then you are asking us to tell you it is okay to sign on for a very high risk deal! 3) No, I have not had any personal dealings with Mitsubishi Credit, but as I said before, I have read of numerous cases of people having to ride out a 13.9% interest rate auto loan for the better part of 60-months because they could not say no to themselves! Obviously you ahve an pretty good grasp of how to manage your finances (credit)with an 800 FICO score. So let me ask you, what is the benefit of co-signing for someone to effectively finance a car with at most a 5-year warranty possibly until 2009 (6-years)? I have pretty strong feelings on this because it is not sound financial strategy - "okay, this is just plain stupid", to quote Dave Ramsey (my favorite financial advise/author). For this reason, I feel pretty confident in saying that most of us are not financially responsible enough to take advantage of that 1-year, no payments period. If this were not true, then this discussion forum (and others like it) would not be near as lively day after day. What am I trying to say? Statistically, this means that during the first year of ownership your brother, who apparently is not the best money manager in the world not too mention is already credit challenged, is very likely to see his financial standing become worse instead of get better as he probably envisions as a result of this deal! Now I am will probably catch some flack for my opinion, but short and sweet (IMHO) for the most part, if your relative is not willing to make at least a 10% down payment and finance a new car for a traditional term of 4-years, then he really can not afford the car. Alternatively, if he is trying to make a stab at improving his credit, this is not the way. He needs to compromise by first readjusting his sites and either looking for something less expensive, or consider buying a slightly used version of the same model! Even better, why not completely readjust and keep the current vehicle and bank an extra car note each month for the next 6-months and then go pay 50% down on a good used car that can be financed for 24-months. At the end of that time, he can then sell or trade it in on a new car! Bet he wont go for that though because it sounds as if he has convinced himself that he needs to get someting new and worse yet, he wants it now! If you want a second opinion, take a moment and go here: http://www.daveramseyclub.com/forum.asp?sid=8&fid=4&style=2&items=75 Michael
