Hi everyone
Have a few questions. I will be trying to purchase my first new car ever. I am planning on buying the new ford mustang GT. I have been able to bring my scores up in the last 6 months and now am in the 600's. Transunion auto enhance was pulled at a car dealership back in January and was 638. I have been back and forth with another salesman from another dealership and know they are not our per sey friends. Here's my situation. I have a 1978 Corvette that is near mint condition and has 27k original miles and even have many of the orginal parts from the car. Including the all the way down to the original wiper blades. I asked the salesman if I can use for a trade and I have a set amount am looking to put down on the new car which is 20% (this he does not know) I asked if they would give me cash difference from the down payment and what the car is traded for and he said yes they will do that. I know what I want for the car and if they are not able to make this deal happen, I will just sit it out and sell the corvette out right to someone. This dealership has not pulled my credit yet and I shared with him what was on my report. I have 3 degros from years ago (2009) and am currently paying on them on a payment plan, I also have the monthly statements showing that i am paying. They are due to fall off starting in september all the way thru next year. I have one late on a car payment during the recession and it was back in 2011 and that car is now paid off and has been since 2011. I have no credit cards. I plan never to have another credit card as it was a life lesson learned. I was slow pay on my house and 2nd mortgage up til last september. I am now current and have been for about the last 6 months. No lates.
I told him I planned to go to a credit union and get the best rates possible for my situation. He said oh we can get you probably into 4% to 6 % range based on a down payment. This was all a conversation based on information and nothing being held til a credit report can be pulled.
So, my question is how realistic can this all be? 8k down, auto enhance of 638 transunion and a trade with cash back and also possible 4 to 6 % interest rate? I want to be the best prepared for walking in and dealing with this dreadful experience. I know there is a possibility of not getting the car and I am also willing to wait another year if need be. This is not a need and have been working the last 7 years to correct my mistakes and make more sound decisions in life. I am willing to put more money into my 2003 truck to get by another year and also willing to walk away from the car if need be. Thoughts or opinions would be greatly appreciated. I have been reading these forums for the last 6 months and love the input and advice. Thanks again for taking the time to read and post. Oh and one more thing please. What about gap insurance? If I am putting down 20% and if something should happen to the car would the insurance cover 100% of loan or only what the car is worth after driving it off the lot aka depreciation? Okay am done now and thanks again
