My brain is a bit overloaded right now so I could really use some advice. We are unexpectedly in need of another car. We want to purchase it with my husband solely applying. That's important as I am not only self employed but have an opportunity to purchase a competitor company shortly ( we are in due diligence stages right now) Hubby and I have both rebuilt after the economy collapse.
However I am the main income earner. My husband is retired and receives SS and a pension. Our mortgage is in my name only. The only two accounts currently reporting on his reports as debt is $2,800 for Discover however, that is now paid in full we just missed paying in full when it reported last month and that will report as zero in the next couple of days. The other is a car loan with a pay off balance of $13,100 and monthly payment of $324. That car is not at all negative it's current trade in value is about $26k and we are keeping it.
His current scores are
EX
Fico 8: 693
Fico Auto Score 8: 703
TU
Fico 8: 680
Fico Auto Score 8: 699
EQ
Fico 8: 668
Fico Auto Score 8: 652
We need an SUV to replace the one that makes no sense to repair right now and have decided on a Ford Edge Titanium. Ford currently has financing deals, but I am typically a CarMax type of buyer as the new off lot depreciation to me is very hard to swallow. Thus begins my brain overload... I need some help to figure out what we should do as our best financial move please.
I found a 2015 Ford Edge Titanium at our local Carmax, no transfer needed price is $28,888 miles 11K, prior use rental.
At Ford Dealership a new 2016 Ford Edge Titanium at 41,066
Tax, Title not included in either...
Ford has 0.0% financing at 60 months or 1.49% for 72 months. Not sure if his scores will qualify or not.
Carmax.. not sure where financing would land but I am sure Carmax in house will pick up versus one of their lenders the current loan is through Carmax no late's actually another payment is not due until Jan 2017 as we round up and pay $400 each month vs. the $324. Carmax on;ine states EXCELLEnt credit gets between 2% and 5%.
My concerns are DTI qualification... another car loan will take his DTI to somewhere between 20% to 28% depending on the financing percentage and new or used Carmax. In either case, we will be cutting down $10k-$12,500, that being said... if we can get zero down we could pay off the current auto loan but doing that will just bring another loan with zero down up to about the same DTI. Is a 28% DTI too high to get either loan?
What is best to do.. buy the 2015 at Carmax, buy the new from Ford... put down the money or put nothing down and pay off the current...
Can his scores get us the 1.49% at Ford for the 72 months?
What kind of rate could we expect from Carmax based on his scores? The Equifax score is what concerns me... however Carmax pulls TU in our area... Ford I am not sure about.
The other thing I am not sure of is can he fill out application with household income versus his own for just what I move each month to our joint accounts versus business accounts? We can prove that with bank statements if needed..
We have never had a auto finance lender require proof of income but that would be our joint income and we can absolutely not involve me in this as my financing for the buy of this company is in place and I cannot place and I cannot add any debt just like you can;t when you are waiting closing on a home. Also if it matters we do not buy new cars until a car totally dies, we are not huge car folks... the car that does not make sense any longer is actually a 2000 Ford Explorer body looks like we rolled of the lot with it... but current repairs needed are about $6k on a car worth only $3k.
Hi
Thanks@ Okele... but Cap One at lowest offered APR of 2.49% (which they reserve and rarely even give to those with credit scores even over 760) is not an auto lender of interest to us as we can beat their rates all day long at our local credit union, USAA (which we have a long tem relationship with), any of our local banks and/or savings and loans, or even with US Bank. Many, many lenders are currently offering 0-1.99% financing right now. Cap One although not as bad as the Santander's of the world, will always overcharge interest regardless of score... Anyone with a score of 760+ that takes a 2.49% can beat it with research and proper ability to pay. Cap One would have most likely charged us at least 5% more likely 7%. The navigator only gives you a range not a guranteed rate for a firm rate you take a hard pull. We can easily beat that basically anywhere, based on scores and the down payment we had available. As we did and only took one hard pull for our 0.00%.
@ Rott161982 : Thanks without a doubt you were right, althoug we went GM versus Ford see below.
@ ScoreorbeScored, the boards here and forums are for helping people, While I will admit it was a bad and stressful evening for me and I overloaded my post, your remarks have no place in this community which is know for helping folks. not attacking them. If you don’t like a post and feel your ownly outlet is a negative post, perhaps refraining is a better option.
@sccredit: You are right and we talked to others that also had negative things to say about former rentals... I understand that the former rental is the reason for a lower Carmax price offering. Overall, it seems form many online reviews/forums a rental is a real risk and they take huge price hits.
All.. it was just a bad night for me as many that suddenly find themselves experiencing a unexpected expense. Sorry for the long drwan out post...
That being said, we found a one year old (2015) Cadillac SRX with only 8k miles, used as a dealer loaner from the highest rated Cadillac dealership in our area that has been in business for over 40 years... awesome price and obtained financing at 0.00% for 72 months as they consider it a new/demo type car so financed as new, no prepayment penalty so we will pay off within 24- 36 months. Put a $12,500 down payment on it.
We are happy, full GM warranty plus this dealer does free oil changes, car washe, tire rotations and a few other things for the entire time we own the vehicle... It’s less than 1 mile from our home so works well for us. We also got it for almost $4k less than it's current KBB or Nada retail pricing after negotiating.
Thanks all for participating in this incredible rebuilding and advice forum.
Be kind, we count on one another for advice in our financial journeys!
Oh and Thank @Jim044 as well. Thin you are very reight on many rentals. We really like the Edge Tittnium but could not find a deal to fit out needs. Thanks for your response we appreciate it!
