Auto Loan chances?

[Anonymous]

So I am going to be buying a new(er) vehicle soon.  Looking at a 2011+ small sedan for roughly 14k.  I have roughly a 620 credit score.  This is all due to lack of credit and not poor credit history.  I'm 20 and only have one secured card with a $200 Ive had for 8 months or so now.  I am fully expecting to get a high interest rate on my auto loan which is no problem. I still live at home so my DTI is below 15%.  I also make around 32k a year.My questions now!!  How big of a difference does a down payment make? I can put down between $2000 and $7000 but I am leaning towards to lower side just so that I have money set aside still in case of an emergency! Also I am planning on applying for a credit card or 12 soon to raise my credit score.  Should I do this the same time as my auto loan inquiries? Also do you have any card recommendations for such a credit score?   Also should I run one of my quarterly credit score reports then as well? 

Lastly has anyone used the site lendingtree to find a lender? and how was your experience?

[djshifted]

I'm working on a loan myself, so unfortunately not a whole lot of advice there.  You may want to check out a local CU, especially if you do not have a poor credit history.

I can't say I've heard anything good about lendingtree.  They are in the business of selling your information to lenders, and from my understanding each lender they provide your information to can pull your credit report separately.  I would recommend staying away from them, and any company like that.

[Dj4Money]

 I agree with DJ. Depending on what you want, you can try First Time Buyer programs from the major automakers or Hughes Credit Union - https://www.hughesfcu.org/borrowing/vehicle-loans/first-time-buyer/

 They only require 15% down, that is more than manageable if you can put down between $2K and $7K.

 There was another thread about Hughes' First Time Buyer program and you won't get hit with a high interest rate actually.

  If you can afford $300 a month car payments with your down, you can get just about anything around $21K. Since your young I won't really recommend something high performance but something that is peppy is the Chevy Sonic LT with the 1.4L Turbocharged engine. Even with the automatic and shift paddles behind the steering wheel it's still fun to drive, great on gas and cheap to insure.

 You can pick either a sedan or hatchback.

 A Hatchback with 6 speed manual (the way I would get it), MyLink Radio, floor mats and the engine upgrade runs about $16,100 after rebate. If your employer has a discount program with GM you might be able to get it for less. I highly recommend using a car service like from Costco, Triple A, Cars Direct, etc. Less nonsense to deal with and if you got pre-approved then you treated as a cash buyer, so be tough and get the price you want, not what they want; never mention payment either, do the numbers ahead of time and you'll know your payment.

 The MyLink radio is good because you can link it to your phone and use Waze for Navigation, along with streaming audio from your phone.

 Good Luck and be sure to share what happen, also POST A PICTURE! I don't think enough people post a picture of their purchase....

[Anonymous]

Thank You!! Thats a lot of information there!  I really appreciate the tip and plan on trying hughes CU in the near future.  I'm probably going to go with the 6 speed RS cruze after looking around but I haven't driven the sonic just yet. I think I may need the extra room the cruze offers though,

[adabsi]

15% is pretty steep. Try a local community credit union as well. The smaller the better. They are usually very flexible with first time buyers and thin files. The local cu we use at
our dealership requires a minimum of 1 k down for
first time buyers with little to 0 credit history. I

wouldn't buy a sonic or spark. If you are looking at
compact vehicles like the cruze I would strongly recommend a Hyundai Accent or Elantra, they have great standard features if u like to mp3 or bluetooth and also have a great warranty, resale. Hyundai Motor Finance has a nice 1st time buyer program and they use your highest score out of all 3 bureaus. With you being a 620 I will give them a shot as well. Anyway best of luck in your end of the year shopping and make sure to check consumer reports for your recommendations and comparisons. Great resource.

[Dj4Money]

 Why not a Sonic? I can understand the Spark it's a really small car. Sonic's resale is holding steady too. I see no reason not to buy one, the are fun to drive, more torque than the Accent as well and because it's turbocharged there's always more where that came from. I don't dislike Hyundai, I like the Accent and Elantra. The Accent is fun to drive, but the Sonic is MORE fun to drive. The only advance is the Accent Hatchback has more usable space if that's a need. The sedan version is not good looking IMHO, I would pick the hatchback every time.

 The Elantra GT is disappointing since the Kia Forte5 is available with a turbocharged engine, basically the same cars.

 Look I am in the minority when it comes to things and I don't buy appliances most of the public does.

 The OP can get whatever he wants, I just made a suggestion just as you have but without the bias (our dealership).

 I would also agree with trying as many credit unions as you can, but the Hughes program isn't bad at all and since the OP said he had $2K, possible $7K to put down, the more he puts down the better, less principal to pay.

[Anonymous]

I appreciate the extra info from both of you! The least of my worries right now is the car I finally choose. I still have test drives to do!  I am just trying to get the financial parts in line and more importantly educated first!

[cartwrna]

They'll finance anyone, with a high interest rate lol. If you have no baddies you shouldn't have an issue with getting a good rate. With a 407 score and 14 collections I got a 20k loan on a 13' Avenger in May 13 with 18% interest rate. With a 504 score and 5 collections I got a 14' Charger RT @ 18.65% or 19% can't remember for 30k loan. Put $1000 down on Avenger and $600 down on Charger. Still have both but hoping to refinance once I pay down credit cards and last 2 collections fall off report. My score just broke 600.

[Dj4Money]

 Man there are at least ten cars I would get before the Avenger. That car is a painful reminder of the post Damlier-Chrysler era where it was owned by Blackstone, among others. 

 I wanna know how your getting away with putting down so little with sub 520 scores which is a few places min score?

  Just because your a first-time buyer doesnt mean you should get high rates. My own first car was 14.99% back in 1988; Hughes program is good - http://ficoforums.myfico.com/t5/Auto-Loans/Student-First-Loan-Success-Hughes-FCU/m-p/3054262#M40308

 4.5% on a BMW X3? Not bad, 15% down as well, especially on something $30K is reasonable. All you need is a score over 580. 

[cartwrna]

Idk how I got away with such low downs. GM Financial financed my Avenger, Exeter Finance on my Charger. Before the Charger Chase Auto financed an Edge for me, I did put 5k down on it though. The Avenger has been a great car. Currently at 14k miles with no issues as of yet. It's also packing the 283HP 3.6 Pentastar so pretty ballsy. Way faster then a 96 5.0 Stang I used to drive. And either way the new Charger RT makes up for the Avenger ;-)