Auto Loans

[Gypsie77]

I was planning to buy a new/newer car in the summer/early fall of this year.  However, car trouble has made me fast forward my plans.  I was preapproved for $24,00 through the CapOne blank check with an interest rate of 7.07% if I purchase a 2012 or newer.  7.40 % for a 2011; and so on.  My question is do I have to put money down if I keep the cost of the vehicle, taxes, fees, etc within the approved amount.  I would not be trading in my old car as I want to donate it to a charity.  

[cjcharv]

Yes, you can use the blank check to buy the car and roll all the fees into the total. Therefore, essentially putting no money down.

I bought a car using the same blank check from Cap One and rolled everything up and wrote the check out for that total price. If you have an old car, you can always trade that in when you purchase this new vehicle.

I would however negotiate the trade in value first with the dealership before discussing a new car. Also, do your homework on what car you want.

Check out this great Reddit post about buying a new car as well;

http://www.reddit.com/r/Frugal/comments/l1fx2/car_salesmen_here_after_reading_a_thread_full_of/

[Gypsie77]

Thank you for responding cjcharv.

[Kevin5974]

What is ur FICO to get pre approved? It isnt showing on my mobile. Thanks and congrats!

[Gypsie77]

Ultimately I went with a loan through a local credit union.  I was preapproved through CapOne Blank Check with a 7.07 %.  When I got to the dealership I asked the dealer if they could get be a better rate through one of their preferred lenders.  I was then offered a rate of 6.99%.  After negotiating about things such as price and no money down we settled on a deal I could live with.  I shook on it, signed the paper work and drove off in my new(er) car.  Today the finance manager called me to let me know that he got me a lower rate via a local credit union.  3.59%!  Yippee skippee!  I signed the new sales contract this evening.  The dealer pulled my Experian (auto enhanced) score which was 700.  

[coreyb80]

Congrats on the great deal!

[MovingForward_2012]

Congrats!