MAZDA CX7- Should i do it?

[heatblaze2010]

Hello,

So last week i went to the Mazda deaer and spoke directly with the finance manager about my situation and see if she could help me out but i am unsure if i should jump on this deal or not?

My current auto score(experian) she said was 664 but my regular scores are as follows

TU - 610

EQ - 580

In 2008 i got into a very bad loan of 23% interest rate a nd at this time i owe about $8100 and was only offered $3500 for my 2005 nissan altima which puts me upside down $4600. After working on it for about two days she was able to find a lender that would finance me on 2010 CX7 Touring at a 5% rate for 72 months at a payment of 460/month(which is in my price range). The only downer is they are asking for $6500 down which i have but i am gun shy since i originally got in to a 23% loan in 2008.

When we spoke i really didnt understand all the details but since she is adding lojack/warranty/ she gets an extra 2500 to add to the deal to minimize the what i owe and lower the price of the vehicle. She mentioned something about since the car is priced so low in the front end she has to make it up in the back end( i didnt understand). I dont know much about the car business on how they make deals work but based on my scores i know i could not get a lower interest than 17% or even try my local credit union. The reason i am trying to trade in the car is because i have a growing family and need a bigger car.

any advise would be helpful. Thanks

[Creditaddict]

I don't understand with a 664 auto score that she is using why you would not qualify for the Mazda .9% for 60 months.

[heatblaze2010]

She said the 664 was experian and the banks use TU>? I did have a potential co-signer but she said they must live with me in order to use them. She also said if i had one that lived wit hme with above 680 i would qualify for 1.9? I didnt know it was .09

[Creditaddict]

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@heatblaze2010 wrote:

She said the 664 was experian and the banks use TU>? I did have a potential co-signer but she said they must live with me in order to use them. She also said if i had one that lived wit hme with above 680 i would qualify for 1.9? I didnt know it was .09

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Why would a co-signer need to live with you? Something just does not set right with me with this information, but at the same time 5% is a great rate, but I would really try to avoid a 72 month loan term... you will just end up $5k+ underwater in the loan in a matter of 1 month.

[heatblaze2010]

That is what the term is for 72 month : /

[TheCreditKid]

Think of the long-run.

If it doesn't impact you financially then go ahead.

Most lenders now are offering 0%-3% on most new vehicles, so IMO 5% for 72 months is pretty steep.

Good Luck.

[Anonymous]

Certain banks DO have requirements on cosigners. Including if they live with the person.

Its also situational and can be case by case.

[heatblaze2010]

Financially it will not impact but having to drop $6k just like that it was the tough part, It took me a while to save that but then again we need the car. I was glad that i could not use a cosigner and get a good rate on my credit score. Great thing is we have this month to get it done according to the finance manager but are trying not to get into it just on "WOW NEW CAR"   since this would be our first "NEW" car.

Thanks everyone for the insight

[EBy2]

If your nissan altima doesnt have high miles that is low on trade in, also financing a car for 72  months puts in back  upside down, how much of the downpayment is going to the new car car. My advice would be to refinance the altima at a lower rate and pay it off. 

[nes]

a couple things

first in fore most, im glad you are looking into mazda's ive worked for a mazda dealership in sales for the past 2 yrs and honestly believe they are some of the most reliable vehicles on the market.

off the top of my head, your trade is worth more then 3500, and you definately dont want to roll 4100 in negative equity into a 72 month auto loan, 3 years from now, believe it or not you will probably be looking to trade and will be buried pretty bad into that cx7. give me some details on your car, dont let the dealership just tell you that your car is worth 3500, they probably think its worth 5k, that 1500 is gross  towards their car deal and if the sales person is on the same pay plan im on(or even a similar one) it will pay him another 450(not knocking the dealer, they are in the buisness to make a profit of course, he is just doing his job, doesnt make him a con artist, just makes another person making a living).

my suggestion, get more money outta your trade, avoid the lojack/warranties, if its new  then it already has a damn good warranty and i doubt you use it outside of the period. if you havto finance 72 months to keep the payment down then do it, but keep in mind you wont be trading outta this one for awhile unless you put that 6500 dollars down. and if you chose not to put the 6500 down, then get gap protection, best money you can spend(you can typically buy it for 400 or less, if the dealer hits you with anything more then you should put your negotiation shoes on)

oh and what package are you buying?