topic Re: MAZDA CX7- Should i do it? in Auto Loans

MAZDA CX7- Should i do it?

heatblaze2010 — Wed, 05 Jan 2011 17:34:47 GMT

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

Re: MAZDA CX7- Should i do it?

Creditaddict — Wed, 05 Jan 2011 17:41:25 GMT

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.

Re: MAZDA CX7- Should i do it?

heatblaze2010 — Wed, 05 Jan 2011 17:47:52 GMT

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

Re: MAZDA CX7- Should i do it?

Creditaddict — Wed, 05 Jan 2011 17:57:32 GMT

@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

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.

Re: MAZDA CX7- Should i do it?

heatblaze2010 — Wed, 05 Jan 2011 17:58:42 GMT

That is what the term is for 72 month : /

Re: MAZDA CX7- Should i do it?

Anonymous — Thu, 06 Jan 2011 05:25:37 GMT

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.

Re: MAZDA CX7- Should i do it?

Anonymous — Thu, 06 Jan 2011 07:19:55 GMT

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

Its also situational and can be case by case.

i look at it Re: MAZDA CX7- Should i do it?

heatblaze2010 — Thu, 06 Jan 2011 16:27:40 GMT

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

Re: MAZDA CX7- Should i do it?

Anonymous — Thu, 06 Jan 2011 17:11:01 GMT

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.

Re: MAZDA CX7- Should i do it?

nes — Thu, 06 Jan 2011 17:42:21 GMT

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?

Re: MAZDA CX7- Should i do it?

Anonymous — Thu, 06 Jan 2011 20:07:42 GMT

Also... I would kelly blue book your 2005 Altima at least... make sure they are in the right ball park. Never take the dealer's first offer either, if you feel you have a good offer right now, tell them they need to improve it and let you know and that you'll check out the other dealers to see if you can get a better price.

Re: MAZDA CX7- Should i do it?

ibmrad7 — Thu, 06 Jan 2011 20:12:14 GMT

Why dont you try to sell it on your own. I am trying to get a BMW and no dealer gave me more than 7000 for my car, only one dealer came close to 8300.. I sold it on my own for 10400 , so no negative equity going into my next loan.

Re: MAZDA CX7- Should i do it?

heatblaze2010 — Thu, 06 Jan 2011 21:01:02 GMT

well i took it to another dealer and was offered 4500 as well as carmax who offered 4k, There is a dent on the left side which is probably why they are offering low trade in along with the 103000 miles on it. I am not sure what plan it is but the mazda is the s touring? I have tried to refinance but no bank would touch me b ased on my scores and credit history. looking around last few months i usually get high apr's which suprised me that i got a 5% on this car. We dont plan on trading in this car but going the full term but things can always change.

Re: MAZDA CX7- Should i do it?

Tazman81 — Fri, 07 Jan 2011 17:44:19 GMT

I would find out how much you would need down if you were not trading in your current vehicle (and if you didn't have your current vehicle loan).

Like some other's said, if you have to put down $6500, that means at least $4k of that is going to pay off your old loan, and then the other $2500 is going toward the lojack/warranty they are selling you, so nothing is being put into your new vehicle.

You said you needed a new vehicle because of a growing family. I can undertand that, but can you make your current vehicle last another year or 2? If so, i would take half of that $6500, pay down that high interest loan, then refinance the rest of it with a credit union for a low interest rate. Do it only for 1 or 2 years. That should seriously drop your payments. So then make the payments on your loan and then start saving the rest of it because if you have a family, you definitely need an emergency fund.

I will tell you, the best thing I ever did was started "trading down" on my vehicles to decrease my overall debt. it sounds like your current vehicle is still running well for you. You just need to get out from under that loan.

Are there any larger vehicles out there that would fit your needs that may have a cash back incentive? Does your company offer any incentive or have any type of partnership with a dealership that you could get a discount through? (usually it's through whomever they get their company vehicles through).

This is just my 2 cents. Getting a new card is AWESOME!!! believe me, I know first hand, but it's not so grade when you want another new card and then cannot because of a bad deal made in the past. I've had plenty of those moment where I've said, if only I had kept my other car for another year. I hope it all works out, but definitely definitely look around. And whatever you do, DON'T spend your emergency fund on a car! Getting a new car is in no way an emergency!

Re: MAZDA CX7- Should i do it?

Tazman81 — Fri, 07 Jan 2011 17:50:43 GMT

Oh, you mentioned that you went to carmax to get a value on your car, and they were already offering you more than the dealership, why don't you check their website to see if they have any vehicles that you like. Doesn't have to be the CX-7. Maybe they have one that you like and that cost less. That way, if you go forward with this deal, then you will be less in the hole in the future. They also have a number of different creditors they run your information throught to see what type of deal they can offer you. Oh, and check with your credit union to see what they may be able to do for you. Since you are already looking at vehicles, you might as well shop around in this window of time that you have and try to get the best deal.