Considering Car Purchase

[pt145]

I'm considering purchasing a CPO 2012 Chevy Malibu with 28k miles for $15,600 OTD plus financing. I would trade in a 2003 Ford Excursion in fair shape with 152k miles ( I was offered a trade value of $4,000 but I would accept $5,000) and I also have $2,000 to put down. I make $27k year + a PT job I just started which is another $400 per month. I don't pay rent, I live with my grandfather & the house is owned by my parents.

Ideally I would like the car purchase to go like this which I think is fair. The dealer & I are off by $1600 but I didn't try to negotiate since I had to go to work.

Purchase price $15,000

Trade                   -$5,000

Cash down        -$2,000

Total financed     $8,000 over 48 months.

The last time I pulled my Transunion report here was August 2013 MyFico score was 679 with a high util of %54, its now much lower. My current Walmart given  Fico score is 669.My credit history is as followed.

Company                                                         Balance           Status

Charge Account Capital One / Kawasaki       $0/10,001        paying as agreed  (7 months old)     

Charge Account Gecrb/Wal-Mart                   $452/3100       paying as agreed   (1+ year old)    

Credit Card Wells Fargo Card Service           $0/1100           paying as agreed (2.5yrs old)

Credit Card Capital One Bank USA Na        $0/0                 Payment after charge off June/2008

Credit Card Gecrb/Paypalsmartconn             0/600               paying as agreed (4 months old)

Credit Card Gecrb/AmazonCC                      $225/900         paying as agreed  (4months old)

Other Hsbc Retail Services Loan                    $0                    Paid (6yrs old, paid 2yrs ago.)

 Your oldest account was opened
6 Years, 1 Month ago

Average age of your accounts
2 years

Also reported to Experian is a Collection account in the amount of $4,000 that is 3yrs old. This creditor is a sleeping dog & I dont wish to awake it unless its to settle the origial amount of $2000.

Is there anything I should do before applying for fiancing or would it be best to wait & for another 6 months or ?? I dont need need the car, my truck runs fine but is a gas hog. I would not go through with the purchase if i had to pay more than %10 interest as it would no longer be economical.

Any advice is Welcome

[pt145]

I got a impatient & applied for the auto loan with 3 lenders, I was approved & offered the following terms for $8000. They all pulled Experian since they all mentioned the collection account.

Bank of America 4.42% @ 48 months: contingent on me paying/ settling the collection or they would not do business with me.

WellsFargo 9.5% @ 48 months or 9.7% @ 60 months.

Arizona Federal Credit union 4.42% @ 48 months. I'm shocked & happy I'm getting a decent rate, at least I think its decent.

Now I have what I need to negotiate with the dealer, hopefully we can close this $1600 gap so I can get a new car.

[Shogun]

Absolutely go with the CU offer.  They generally are more forgiving and offer better interest rates.  Good luck on your purchase.

[Cadillac-XTS]

+1

[pt145]

Okay so I purchased a Certified Pre-Owned 2012 Chevy Malibu with 28k miles for $15,6993 OTD I'm financing $8,993 @ 4.24% for 48 months through Arizona Federal Credit Union. The car I originally wanted was sold so I moved from the LS to the LT & I only ended up getting them to give $4700 for my trade. My stated credit scores were EXP 669 & Trans 719. The dealer offered me a 3.1% interest rate through another company if I bought a $2400 extended warranty, I passed on that offer even after he lowered it to $1400. I'm already getting decent warranty coverage thru GM about  3yrs 20k bumper to bumper & 4yrs 70k powertrain. It wasn't the most positive experience (salesman) & but overall its the best deal I could find.

Did I do ok on the interest rate? I think i did considering my EX score.

[Epcot]

Congrats on the Malibu. That's a really good interest rate, especially compared to the rates the others offered.