Chevrolet Equinox loan???

Anonymous · ‎05-04-2009

My family has outgrown my little saturn coupe and I want to get a car that has more space. I really like the 2010 Equinox on paper (due to be out on the road in the next month). I priced it at Edmunds with the options I want and it is about $24,500. I have a friend offering to get me a GM discount code (he's an employee) or I am a costco member and AAA. I am hoping to be able to get it for 23,500 with one of the discounts. I am HOPING that there will be incentives on it for at least $1,000 but idealy $2,000 (and I can wait for a little while if need be) I have $2,000 cash and a trade in that was appraised at a dealer for about $1000 over my loan on it. My credit score is about 650 Equifax and 645 Trans Union. (I am expecting a little bump since I just paid off a trade line. The last one I paid off raised me 13 points. It hasn't been updated on the reports yet but supposedly will in about 3 weeks) I have a $20 balance on my credit card with a $375 limit (5%).

My current car loan is in my parents' name since I lost my job almost 3 years ago and my car got repo'd. I GW the bank and they took off all the lates, updated it to paid repo status (I bought the car back within a week) I have been at my current job for a year and gross $640 a week (net 480) and 500 a month child support. I pay my parents $500 a month rent but don't have a contract. My cell bill is $100 and my ins. is $100. No other bills except groceries and gas. I am putting about $500 to 800 into my savings a month.

How likely am i to get a loan in this market? I know the repo will hurt but it is aged. My other 3 past car loans (still showing on my credit report) were paid as agreed, no lates. I looked on bankrate and with my score they have me around 11.5% in a 60 month loan. I'd love to get 8% and hope I will get the bump I need before then.

Anonymous · ‎05-05-2009

The GM discount will be the best option.

Rarely do new model years hit with high rebates. That is something you will need to wait for.

Waiting may kill the $1000 overage currently claimed on your trade in.

Your numbers seem a little "off"

You claim clear 480 a week.= 1920.

1920 -500-500-100-100=720 clear for "groceries and gas"

not sure how you are putting 500-800 a month in the bank.

Not sure you have enough clear to support a 400+ a month car payment. That would leave you with 300 a month for living expenses, assuming your car insurance does not change

Seems to me that you will be cutting it very close.

I would consider a used vehicle.

If you have your heart set on this car, you need to take the attitude of an enduarnce runner preparing for a marathon and Ramen noodle your lifestyle to save every scrap of cash you can, wait 10 months and put half down on this vehicle to give yourself a payment you can afford.

Anonymous · ‎05-05-2009

This might help.. I have sole custody of my son. Child support is coming IN not going out.

moondog7324 · ‎05-05-2009

Don't limit yourself to a particular make/model. If I was in your position I would consider a Kia Sedona or Hyundai Entourage - both minivans, both very safe. You could get a base model for <17,000. It's a buyers market- you loose that advantage when you go after a new model. There are plenty of 08's and maybe some 07's leftover in lots.

Anonymous · ‎05-05-2009

Thanks Moondog. I'll keep them in mind! I didn't really want to go minivan because of gas mileage. I will look into those though. I wanted to go SUV(CUV) because of the larger body and leg room. My 10 year old is 4 ft 5 and I'm 5 9 barefoot (6 ft in heels.. yes I'm female *grin*) Minivan is more than I need .. but I haven't ruled them out. I test drove an Equinox 09 model and loved it so I'd like to do the '10 since it will come in a 4 cylinder (estimated 30 MPG!!). If the price is right I'll be happy. If not, I'll keep looking to get what I want at the price I want. (ground clearance, leg room especially rear seat, a high seat, safety and protection.. I have been rearended 3 times in 4 years at red lights in my little saturn coupe.. my neck and back are paying for it)

My biggest concern is getting approved for the loan. I know everyone worries about it but I haven't applied for a car loan in 5 years and my credit has been damaged since then. Not sure if a 640+ is gonna do it in this credit market with only 2k down.

moondog7324 · ‎05-05-2009

I can't argue with your reasoning- I think you will get approved. When you go to negotiate about price- don't seem too committed to a particular car- use your best poker face (your the mom of a 10 byr old- you have one) show concern about chevy's pending bankruptcy- the power of a 4 cyl etc. do your homework.

Anonymous · ‎05-06-2009

Thanks moondog... I appreciate your opinion. I saw a 2008 Mercury Mariner hybrid online last night in my area (new) and the dealer said they are selling 2008's for up to 50% off. That is something I am going to go look at and consider also. I'd be curious to see how they drive. I like the idea of a hybrid but not the hybrid price. I heard the 2008 were not as nice as the 2009 though.. they did some reconfiguring. But at 20k +/- .. maybe I could overlook it *grin* I have a few cars that I am going to look at over the weekend even though I don't want to buy anything until June or later. I have exactly 2000 in my savings now.. and I'd rather have an extra couple hundred which I can have by the beginning of June.

Im SO looking forward to getting out of my little car. It was good for us when my son was 4.. which is when I got it... it was the perfect car seat car for a young single mom (25).. not so much for a middle aged mom with an "adolescent" as Im constantly getting reminded.. with a lot of friends that always want to hang out with us... and two retired parents that go alot of places with me.... LOL that mini van is actually starting to sound appropriate for the weekends.

moondog7324 · ‎05-06-2009

Another way to save money (in the long run) is by making bi-weekly payments. Example- your loan is for 400 a month- instead of waiting til its due- pay 200 every two weeks - you end up making the equivelant of 13 payments a month (26 payments, opposed to 12) but you are paying more money towards the interest. This works especially well if your employer allows direct deposit. I set up a checking account at a credit union specifically for my car loan, and have 165 deposite every pay- I get paid evry other week. then I have the payment- of 160 applied to the loan a few days later( to allow for holidays, tranaction times etc.) This has worked great for me. never see the money- never write a check- just check online a few times a month to monitor it.

Check you messages for some more advice.

Anonymous · ‎05-06-2009

I thought about that... I get paid every week and thought about getting a loan with my bank. My local credit union and my bank are actually fairly close in rates (within about .5%) at about 7-8% I'm planning (hoping)to get a pre approval through them for $20,000 so I'm not stuck with the dealers financing. I did that once and they saw sucker all over me. I agreed to 21% interest for a 6 year loan. I woke up and refinanced 9 months later to 11% and a 6 year loan. My credit is in much better shape now than it was then. Thankfully! It was 570ish then I think. I know it was under 600 because I moved about a year later and had a hard time finding a place I could manage.

My concern with the bank is I don't want them to take a payment with EVERY direct deposit as my son's CS is also direct deposited once a week. I started transfering that out to an account for him for college... (or emergencies) I assume they have a way of managing it so that only direct deposits with certain routing numbers are deducted. That is what my old bank did. Unfortunately, I lost my christmas bonus to a car payment one year because it was direct deposited. It's not fool proof.

Thank you for your insight!

valley_man0505 · ‎05-06-2009

@Anonymous wrote:
Not sure if a 640+ is gonna do it in this credit market with only 2k down.

GMAC now uses 621 as their minimum FICO score. However, I don't know what they would require for downpayment or what else they may want or not want to see on your reports. However, meeting the minimum FICO is a start.

ETA: There sure are a lot of "moons" on this thread

Message Edited by valley_man0505 on 05-06-2009 07:47 AM