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Regular Contributor
SoulSmilen
Posts: 165
Registered: ‎03-13-2007
0

Ford Motor Credit / First Time Buyer anyone?

Eq 661

TU 661

Exp 642

 

Monthly Gross 6000.00

DTI now at 33% (high figure, not counting child support)

UTL on revolving high @ 90%

 

First time buyer for auto - I've always paid cash with the occasioinal personal loan.

 

From what I can tell, FMC pulls Equifax in TX

Ford also has a First Time Buyer's program

 

22K is about what I'll need for the Escape I want.

 

I originally started looking at used vehicles and while I hate the thought of losing the value the minute I drive off the lot on a new vehicle, maybe it's not such a raw deal right now. I will have to look at both options and see which one costs less over the loan period, etc.

 

Does anyone here have any input on the FTB program or advice on my circumstances regarding applying for a loan?

 

Thanks in advance! 

Frequent Contributor
moondog7324
Posts: 488
Registered: ‎04-09-2008
0

Re: Ford Motor Credit / First Time Buyer anyone?

YOUR APPROVED! But do yourself a favor- before you go apply get that utilization down below 25%-I bet your scores would be 690's to 710's- you may get a sweetheart interest rate. Read edmund.com advice on auto buying- It's a buyers market-
Regular Contributor
SoulSmilen
Posts: 165
Registered: ‎03-13-2007
0

Re: Ford Motor Credit / First Time Buyer anyone?

Thanks moondog... I will probably drop my UTL down by 4-5K (brings it to about 60%) before applying but that may be about it. I'll be better off using that 4-5K for that rather than a downpayment, correct?

 

I will also pay off the balance of an installment loan and although I know that won't do much, if anything, for my score, it's peace of mind and another 150.00/month cut out of the outgoing monies.

 

I'm still a little confused about which way to go on Used or New, but I'll figure it out before then. I've spent so much time on Edmunds and other sites that I have a chair shaped behind today.. lol

Frequent Contributor
moondog7324
Posts: 488
Registered: ‎04-09-2008
0

Re: Ford Motor Credit / First Time Buyer anyone?

If you have an open installment loan, you may actually lower your score a bit- (scores like balance)-Im no expert,  But i think you get that util down, you'll be fine. rebates are at all time high. Another thing to consider is buying a base model- I've never been a fan of putting 17,000 of junk (options) on a 15,000 car/truck. As far as paying off cards or using as a down payment- thats up to you- how much you want your payments to be. Here's a neat trick I learned from my credit union: bi-weekly payments- workes great if you get paid every two weeks example: My truck payment is 300 a month- I make a payment of 150 every two weeks- ( i get 160 a pay deposited into a checking account at the credit union, use that account only for car payments- I have 150 credited to the loan every two weeks- a few days after it  deposits-I never see the money) in the course of a year you make the equiveant to one extra monthly payment- but that actually can shave your loan by 8-9 months-the key is you pay more towards the principle- my old car loan before I refinanced would not allow a payment to post earlier than a week- thus maximizing interest and profit on thier part.  www.nfcu.org  has some nice loan calculators
Frequent Contributor
moondog7324
Posts: 488
Registered: ‎04-09-2008
0

Re: Ford Motor Credit / First Time Buyer anyone?

When go to the dealer- keep this in mind- There far more cars than buyers- The salesman has a family to feed- HE NEEDS TO MAKE A SALE- more than you need to buy. Use it to your advantage- be prepared to walk if you don't get the offer you want- They created this problem- by artificially jacking up prices so you have to negotiate down- again your advantage- Be prepared to walk- if they call you back a better deal is in your future- if they don't call you may be at the bottom line. If you have good scores - bring a copy with you- if you have low scores- don't let them run credit check before negotiating-
Valued Contributor
Schoolbuskid
Posts: 1,926
Registered: ‎10-23-2007
0

Re: Ford Motor Credit / First Time Buyer anyone?

I say go used you may find something better than a Ford Escape for under 22k, i think you should check out www.texasdirectauto.com they normally have some pretty good deals, this is in Houston, TX , so  dont know how far that is from you...But good luck!

Established Contributor
Pappy214
Posts: 794
Registered: ‎08-05-2008
0

Re: Ford Motor Credit / First Time Buyer anyone?

Seriously, I agree with schoolbus, you can get a "used" (Certified Pre-Owned) Mercedes C-class for under 20k. Almost every dealer here in California has them for around 18k in fact. No offense to Ford but back in the 90's I owned a Taurus, it was the worst piece of junk I have ever owned.

 

Check out some other dealers and see what they have as a certified pre-owned cars. You would be surprised how good of a deal you can get.  

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