I've been on the fence about getting a new (used) car, last week I paid off the remaining of my auto-loan. I only had 5 more months of payment, so not much saved in interest (other than my original big down payment) - no early payoff fee.
Anyway, I logged into my USAA account this weekend, and noticed a pre-approved auto-loan offer (4.19% rate). Unlike other banks (Capital One "pre-approved offers I get in the mail often), I've never been solicited by USAA to apply for a loan, so I'm almost thinking this is a genuine "pre approved" offer. However, my current auto loan hasn't cleared my credit report(s) so I'm thinking this is just a marketing stunt 
I'm thinking now that I have my car paid off, my DTI looks much less riskier. I don't know what lenders look for. I recently paid down some credit card debt, and I have some money on the sidelines I can use to further EASILY pay down my credit card debt.
Currently, once my auto loan clears my credit report, my DTI stands at 30%. I can easily get it down to 26% with some of the cash I have waiting on the sideline to further pay down cc debt. I know the smart thing to do would be to pay off the cc debt, and I just might do this first, but I really dislike my current car - for now I will just ponder.
Oh... I just want a decent nice car. Looking around the $15,000 range - Cruze LT, Malibu LT, '09-'12 Mazda6, '11 Sonata.
I'm a little worried about "1st year lunched vehicles" like the '11 Sonata and '11 Cruze, but for the most part they seem trouble free.
Down payment will be $5,000 (33% down) maybe less maybe more
I kept thinking about it day after day, so I finally hit the "submit" for my USAA pre-approval.
Well... Approved!
I'm not too happy with the terms, but greedy me wants out of my current car. 6.53% / 60 months 
Man, I feel like no one likes me here lol
After being approved with USAA, I decided to try Capital One and they both beat USAA's terms and dollar amount! 5.47% / 60 months - 1% lower than USAA. Honestly, not too bad considering my credit profile (I suppose).
Any car-shopping advice? Beside the generic stuff. So far I have:
- Insurance quotes - the quotes I receive online will cost me anywhere from $6 - $8 more per month than my current car; considering my current car is 8 years old and my replacment will be a 2011/12 I guess this is fair.
- I've decided to avoild model launch years, since they may have "issues" or kinks that aren't worked out. This removes Cruze and '11 Sonata from my list The '13 models are out of my price range.
- I will check to the best of my ability that the car has been serviced - easier said than done. The cars I'm looking at have up to 40,000 miles, so the only thing I may need to worry about is oil changes since transmission services aren't way past due.
- USB port... don't laugh, but this is important to me.
- Most dealers have Carfax free, but I will be running AutoCheck reports. I understand the data is only as good as what is reported, but pretty much all DMV actions are reported (registrations and titles), so I will at least avoid two or more owner cars. If a 2011/12 hase two or more owners, it just seems too fishy and decreases re-sale value.
- I will look for body damage to the best of my ability. Check panel gaps, discoloration, wavy pannels, doors/hoods open and close within tolerance. My last car shopping experience was interesting, a Nissan with a clean Carfax, but when I opened and close the right rear passenger door it rattled every time; then I noticed the gaps where just a hair off. Nothing wrong with a previouse wrecked car, so long as it was repaired correctly... hmmm, rattles are annoying.
Question, since I goofed and applied for financing too early (my current car's title hasn't arrived in the mail yet), is it still possible to trade in my car without the title yet? I know silly question, but my Capital One Blank Check is only good for 30 days.
@Volpes wrote:Man, I feel like no one likes me here lol
After being approved with USAA, I decided to try Capital One and they both beat USAA's terms and dollar amount! 5.47% / 60 months - 1% lower than USAA. Honestly, not too bad considering my credit profile (I suppose).
Any car-shopping advice? Beside the generic stuff. So far I have:
- Insurance quotes - the quotes I receive online will cost me anywhere from $6 - $8 more per month than my current car; considering my current car is 8 years old and my replacement will be a 2011/12 I guess this is fair.
- I've decided to avoid model launch years, since they may have "issues" or kinks that aren't worked out. This removes Cruze and '11 Sonata from my list
- I will check to the best of my ability that the car has been serviced - easier said than done. The cars I'm looking at have up to 40,000 miles, so the only thing I may need to worry about is oil changes since transmission services aren't way past due.
- USB port... don't laugh, but this is important to me.
- Most dealers have Carfax free, but I will be running AutoCheck reports. I understand the data is only as good as what is reported, but pretty much all DMV actions are reported (registrations and titles), so I will at least avoid two or more owner cars. If a 2011/12 hase two or more owners, it just seems too fishy and decreases re-sale value.
- I will look for body damage to the best of my ability. Check panel gaps, discoloration, wavy pannels, doors/hoods open and close within tolerance. My last car shopping experience was interesting, a Nissan with a clean Carfax, but when I opened and close the right rear passenger door it rattled every time; then I noticed the gaps where just a hair off. Nothing wrong with a previous wrecked car, so long as it was repaired correctly... hmmm, rattles are annoying.
Question, since I goofed and applied for financing too early (my current car's title hasn't arrived in the mail yet), is it still possible to trade in my car without the title yet? I know silly question, but my Capital One Blank Check is only good for 30 days.
Yes, you can trade in a car without the title in hand. I didn't have my title with me so the dealer said it will be an extra $100 fee for that. I said no the DMV charges like $20 at most for it, and F&I never brought it up again. Just had me sign a release of claim to the vehicle.
Best advice. Shop around and get dealers competing. You would be surprised how good of a deal you can get right now on a new car. It almost seems easier to negotiate on a new car than a used car. Look closely at resale value. Korean and american cars have a tendency to lose value quicker than similarly prized Japanese cars.
If you end up going new, a service like true car (usaa and most other similar banks have the same service) will get you in contact with many dealers to compete. The true car price is not the best price you can get, negotiate beyond that as well. The usaa price on a base 2013 cruze is under $14k and around $19k for a sonata. Just be sure those are the right vehicles for you. I would not buy them personally, but everyone has different tastes.
For a look at resale, you could expect to get about $11.5k on trade for the cruze after a year vs $13.8k on the sonata. So, clearly the winner in this regard is the cruze.
So, I would suggest you go with a new 2013 Cruze LS Manual. You can get at least $4k off MSRP through USAA and not lose out too bad on depreciation. Also, keep in mind USAA gives you a rate discount when you use their auto service. They also give you a rate discount for a new car if you call them up and talk to them.
5% for 60 months is still a major sub-prime loan. Keep working at it. Get a good down payment together and then rate shop letting them know about your down payment. Also, I suggest you go with a 36 month loan if you can get a lower rate out of it. You will keep out of negative equity easier.
What about a nissan sentra SL with leather, nav, and a moon roof? That will run you right around $20k.
Or, the eco auto cruze will run you just under $18k. They do not offer decent seats. Cloth is cloth, really no way around that. It get dirty and looks bad after by first oil change.
Or, a Subaru Impreza Limited with nav and moon roof will run you right at the top of your budget at around $23k. So, your trade and down payment would have to cover t, t, & l.
@Volpes wrote:Believe it or not, cloth isn't cloth. I know how to take care of cloth seats, my old Taurus looked almost like new (or what others would call "like new"). I have a steam/vacuum system; $550 system that I scored on eBay for $380 and I have had no problems with it for the last two years.
My current car has leather, and I'm done with it; too uncomfortable for me, and I hate the but wrinkle and slight cracking (they are tan so cracks are more noticeable). Most people complement me how good they look, but I see otherwise; I guess I'm a perfectionist.
I really don't want to debate the cloth/leather.
My budget is $16,000, not sure where you are getting $20,000.
No debating here. I intentionally bought a car with cloth seats 
I guess I would say they are "high end" cloth seats. The drivers side has decent power adjustments, but the passenger is lacking. But they are still cloth and will still stain like cloth. They are black and stains tend to show up on black, not as badly as white but still not great. Here is a picture like my car, but mine has nav:
If they get trashed I can have a factory identical leather kit installed for under a grand.
Does the steam vac have a vacuum type function? I am looking for a vacuum and steam woudl be awesome too. The vac I use now causes dust to fly everywhere.
I was just looking at your pre-approval as the budget. Your are being wise to spend less. Although, I hope you will be putting a good amount down as well.
A Honda Civic Si also has some pretty decent seats. You should check one out for a test drive. It will have to be a bit used to get under $16k.