1st time buyer needs advice

[mcnamara69]

I am 24 years old, never had an installment loan before looking to buy a new car such as a 2011 Camry or Accord with 0-1.9% or similar promotional financing.

Annual Income is around 24k GROSS with 26% Debt to Credit ratio (12k/47k) monthly liabilities are around $500 which includes debt payments. Girlfriend pays the rent and other stuff, 7 year immaculate payment history, got 2010 w2's. FICO's are around 690-715 when checked last month. Wanna buy the car under my name and nobody else’s.

I was approved by Toyota Financial & Ford in March 2010 when applied online, but didn't go to the dealership to buy a car!

My down payment will cover sales tax 8.75% to be precise (Chicago) Registration and Tags + around <$500 towards the principle. I don’t wanna pay off my debt first, cuz once I am clean then somehow the testament will begin again with a higher APR and increased payments.

I don't want to go to the dealership and get smacked with a higher APR by the finance manager. Firstly, I don’t have any previous car loan; secondly, my DTI ratio is 26%

So, what do I need to take to the dealership? Do they ask for tax returns? Also, I don’t want any other lenders except the car manufacturer.

I just wanna go to the dealership, haggle the price a little bit and drive off without any BS. I’ve done a lot of research and I am sure these folks are cunning.

If it’s not the special APR financing, then I’ll stick with my current car until I get the APR I want.

If anyone have info on Financing Tiers pls share.

[cdtotten]

Currently, Honda is not offering any offers, so no promotional APRs. The best time to obtain them, would be to wait until the 2012s begin flowing in, and 0% will pop up on the prior year models. You can always check: http://automobiles.honda.com/current-offers.aspx for more information.

Keep in mind, when it comes to the difference between 0% and say 2.95% (which most credit unions are offering currently), it isn't as much as you would think:

$24,000 car (including tax, tags, title, etc.) @ 0% for 48 months  = $500/month

$24,000 car (" " " ") @ 2.95% for 48 months = $531/month

Sometimes its more advantagious to take the "cash back feature" offer, then the promotional interest rate if you can secure other financing. Not a big deal, but if you get your financing directly through the dealer, you will typically get hit with 2 inquiries instead of 1 with an actual lending institution. Reason being that the dealer will pull your scores, then the financing company will pull it a day later when they are writing things up.

Your income is quite low for the type of car you are considering. A new accord will run between $21-28k depending on options. Be careful not to over-extend yourself.

[mcnamara69]

I am looking for Accord LX which is around $19,400 plus uncle sam and tags, or camry LE for $20,500. So considering my credit and down payment would my income be an obstacle? Can i get their special APR?

Honda is offering 0.9% for 60 mos and Toyota is offering 0% for 60 mos.

[cdtotten]

I purchased a new accord last year, and in order to obtain their best financing rates, a 720 auto-enhanced score was needed (TU they pulled for me...both dealer and AHFC). Tier 2 added 3%, tier 3 added 9%.

As for income, I am not sure the exact ratio they are looking for, but $24k a year is very low for a $20k car

[janesmith1979]

I bought a 2011 Camry LE last November and got the 0% for 60 months financing. At that time, a credit score of 680 or higher was needed to qualify for the special financing, in addition to other criteria such as earning more than $1400 (or $1600, I don't remember which) per month.The dealer ended up pulling an Experian AUTO-ENHANCED score.

This was my first auto loan, my DTI ratio was higher than yours, but my annual income is about $50K.

They did not ask to see any tax returns but do take proof of income, your monthly bank statement, and a copy of your credit score and credit report would also be good.

Good luck!