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Valued Member
felyasocal
Posts: 50
Registered: ‎08-29-2013
0

First Time Buying (Always leased)

So as the title suggests, I am looking to buy a car for the first time ever. I’ve leased about 6 cars in the last 18 years, but never actually purchased one and of course, I have some questions =)

 

  1. Should I first find the car(s) that I am interested in before applying for a loan?
  2. Will lenders user my FICO score or the FICO Enhanced Auto Score? (Are they going to let me know which report they pulled and what scores they got?)
  3. Is it worth dealing with private sellers? (since I can save on the total cost of the car, but they tend only accept cash)
  4. Should I apply for a loan from just one financial institution or is it OK to apply to a number of different ones? (what’s a good number and which financial institutions)
  5. Should I avoid CarMax?
  6. If I do buy from a private party with a loan, do I have to pay taxes later on at the DMV with money out of pocket or how does that work since I am not paying taxes like I would at a dealer?

Any other tips would be greatly appreciated. As I mentioned earlier, I have NO experience in buying cars. I can haggle over a lease price with the best of them, but unfortunately my credit is still about 680 and the FICO Enhanced Auto BS Score can’t even be checked. Otherwise I would lease because it makes more sense to me.

 

Thank you!

Regular Contributor
Hoya08
Posts: 126
Registered: ‎06-05-2013
0

Re: First Time Buying (Always leased)

[ Edited ]

Purchasing a car is not as daunting as you think.

 

1.  This is a tricky question: a) if you know what car and you want and how much it costs, then that's great.  b) if you DO NOT know, then have an idea of how much the car you may want costs and then get a loan pre-approval

2.  I'm not sure about this since I've never had an issue with obtaining the best rates available.

3.  Yes, it's worth dealing with private sellers.  The price is often less than what you'll negotiate with the dealships.

4.  You may apply to as many as you wish.  Try to pit one lender's rate against another or against the dealership.

5.  I am partial against CarMax, but there are numerous "happy" stories online about CarMax vehicles.

6.  You will pay taxes regardless of purchasing from a private seller or dealership.  The question will is whether the lender will approve a loan in excess of the vehicle market value to assit in covering taxes.  Some lenders will provide loans up to 120% of the vehicle market value.

Epic Contributor
Creditaddict
Posts: 22,067
Registered: ‎10-23-2007
0

Re: First Time Buying (Always leased)

What kind of cars you been leasing?

are you looking to buy the same kind?

you have lease now about to end or no car currently?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Member
felyasocal
Posts: 50
Registered: ‎08-29-2013
0

Re: First Time Buying (Always leased)

Well, have things changed or have things changed? LOL

After everything I went through with this research, I was finnally able to actually lease what I wanted and got an amazing rate with almost no drive off cost for a 2014 Acura TL with Tech package. Leasing is great and this car is amazing. I might just buy it out once the lease is over =)

 

Thank you for the answer to my original questions!

Epic Contributor
Creditaddict
Posts: 22,067
Registered: ‎10-23-2007
0

Re: First Time Buying (Always leased)


felyasocal wrote:

Well, have things changed or have things changed? LOL

After everything I went through with this research, I was finnally able to actually lease what I wanted and got an amazing rate with almost no drive off cost for a 2014 Acura TL with Tech package. Leasing is great and this car is amazing. I might just buy it out once the lease is over =)

 

Thank you for the answer to my original questions!


Nice, congrats.

what score did they pull? Tier 1?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Member
felyasocal
Posts: 50
Registered: ‎08-29-2013
0

Re: First Time Buying (Always leased)

Lol. Quiet the opposite. They used Experian and the Auto score was under 600. I used someome with better credit as a coapplicant and they approved me. The dealer was shocked, but i serious got amgreat deal. $43k car for $1000 total drive off and $400 a month for 35 months.

 

I am honestly not sure how these scores work these and if they are even legit or there is something else at play here. I've had another car lease under my name formthe last 6  months and had flawless credit for rhe last year and still my Auto score dropped and standard FICO is stagnant. I am doing everything by the book. I have done my resewrch. 

 

Sad, but true. And thank you!


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