First Time Buyer!

[Leighqee]

Hi Everyone!

I am looking to buy a 2012-2014 Volkswagen Passat base model.

The model I am looking at retails for around $12,900- $19K

basics info:

Annual income is $45K

I have two credit cards, 1 with a $500 limit, and the other with $2200 limit

My credit score generated from myFICO as of 03/2014 Ex 718, Eq 766, Tu 788. AAoA is 1 yr. No baddies. 

I would appreciate any help/advice on what to do with buying my first car. I am looking to buy a decently used car priced from $12-19K. Trying to get a loan without putting any money down and of decent interest. Have seen awesome success with DCU this forum but Seth telling every case is different. What are my chances of getting the 1.74% and probably 19K?

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[Remember0]

What's NADA retail on the car you want?

You'll definitely be approved for 65 months @ 1.74 (1.24 if you do direct deposit). And a 20k loan won't be an issue as long as your DTI is fine. What's your rent/mortgage and minimum monthly payemtns that appear on the latest monthly statement across all cards (even if paid in full every month)?

The only question is if the collateral is worth enough. DCU will lend upto 100% of NADA retail. Over that, you may need a down payment...so negotiate well to ensure your price including all dealer extras (gap, warranties, other ripoffs you really ought to say no to) and taxes+title+license is UNDER NADA retail.

[Leighqee]

Thanks for the reply. NADA price stands @ $17300. That car that am eyeing honestly is well below that NADA retail. Rent stands @ $750, minimum payment on both credit cards wld be $25 but I pay fully each month. DTI ratio has been below the 30%.

[Remember0]

Don't negotiate on out the door price, but as long as OTD price is below NADA Retail, DCU will absolutely lend you all of it no problems w/ no down payment required. And you're right, your DTI is no worries at all. You should be good!

Read here if you feel like wasting time/want to read about negotiating (the intro) and dealer extras: http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

For used cars, find 3 or 4 dealerships with similar ones and play them off of each other. Also if you want to know how much the dealer paid for the car, you can look up Manheim MMR if you have a friend who is a dealer. Else the wholesale value is typically right around KBB Trade In Very Good Condition plus or minus like 500 dollars for the sort of car you're looking at!

EDIT: After you arrange DCU financing if you don't want the dealer to pull your credit and rack up inquiries for you, you essentially have to bite the bullet and freeze your reports. (It'll cost $30 to freeze all 3 and another $30 to unfreeze later on).

[Leighqee]

Thank you.