Hey all, I always been on the credit card forum but since I plan to buy a car soon I need some of the experts help. This is going to be my first car and I plan to buy a Honda accord( nothing fancy and its gets me to point A-B) I plan to get the 2014 model when it comes out. Base on looking at the website I want to get the EX-L version and based on the MSRP online it would cost roughly 35k?? I tackled on a few thousand because I have never been to a auto dealer before to bargain the price down. I assume the price for the 2014 model wud be the same as the 2013 model.
I have been saving modesty over the last 2 years while I was still in college and I manage to saved $28000 in cash. I should take a loan to pay remaining amount of the car? Or shud I wait some more until I have the full amount to buy it out? what would e your suggestion?
If I do take out a loan it would be less then $10000, would the banks even allow me? And what criterias do I need to meet?
My credit scores(FIco) 796,767,and 734, I have no outstanding debt or anything bad on my credit report and my annual income currently is 55k... Sometimes close to 60k due to bonuses I get.
I have been saving modesty over the last 2 years while I was still in college and I manage to saved $28000 in cash. I should take a loan to pay remaining amount of the car? Or shud I wait some more until I have the full amount to buy it out? what would e your suggestion?
If I do take out a loan it would be less then $10000, would the banks even allow me? And what criterias do I need to meet?
My credit scores(FIco) 796,767,and 734, I have no outstanding debt or anything bad on my credit report and my annual income currently is 55k... Sometimes close to 60k due to bonuses I get.
Based on your info I'd say you're good to go.
As far as what criteria must be met, that is up to each individual lender. Typically auto loans have to be at least $7500.
IMO I do think 35k for a car is a bit "fancy" for your first car and that money could be better spent elsewhere since you're so young (retirement funding/down payment for house/etc). You can get a pretty decent new car for 20-25k and buy it outright. Just something to think about.
Starting Score: 515