topic Re: Chevrolet Equinox loan??? in Auto Loans

Chevrolet Equinox loan???

Anonymous — Mon, 04 May 2009 18:28:27 GMT

My family has outgrown my little saturn coupe and I want to get a car that has more space. I really like the 2010 Equinox on paper (due to be out on the road in the next month). I priced it at Edmunds with the options I want and it is about $24,500. I have a friend offering to get me a GM discount code (he's an employee) or I am a costco member and AAA. I am hoping to be able to get it for 23,500 with one of the discounts. I am HOPING that there will be incentives on it for at least $1,000 but idealy $2,000 (and I can wait for a little while if need be) I have $2,000 cash and a trade in that was appraised at a dealer for about $1000 over my loan on it. My credit score is about 650 Equifax and 645 Trans Union. (I am expecting a little bump since I just paid off a trade line. The last one I paid off raised me 13 points. It hasn't been updated on the reports yet but supposedly will in about 3 weeks) I have a $20 balance on my credit card with a $375 limit (5%).

My current car loan is in my parents' name since I lost my job almost 3 years ago and my car got repo'd. I GW the bank and they took off all the lates, updated it to paid repo status (I bought the car back within a week) I have been at my current job for a year and gross $640 a week (net 480) and 500 a month child support. I pay my parents $500 a month rent but don't have a contract. My cell bill is $100 and my ins. is $100. No other bills except groceries and gas. I am putting about $500 to 800 into my savings a month.

How likely am i to get a loan in this market? I know the repo will hurt but it is aged. My other 3 past car loans (still showing on my credit report) were paid as agreed, no lates. I looked on bankrate and with my score they have me around 11.5% in a 60 month loan. I'd love to get 8% and hope I will get the bump I need before then.

Re: Chevrolet Equinox loan???

Anonymous — Tue, 05 May 2009 12:49:22 GMT

The GM discount will be the best option.

Rarely do new model years hit with high rebates. That is something you will need to wait for.

Waiting may kill the $1000 overage currently claimed on your trade in.

Your numbers seem a little "off"

You claim clear 480 a week.= 1920.

1920 -500-500-100-100=720 clear for "groceries and gas"

not sure how you are putting 500-800 a month in the bank.

Not sure you have enough clear to support a 400+ a month car payment. That would leave you with 300 a month for living expenses, assuming your car insurance does not change

Seems to me that you will be cutting it very close.

I would consider a used vehicle.

If you have your heart set on this car, you need to take the attitude of an enduarnce runner preparing for a marathon and Ramen noodle your lifestyle to save every scrap of cash you can, wait 10 months and put half down on this vehicle to give yourself a payment you can afford.

Re: Chevrolet Equinox loan???

Anonymous — Tue, 05 May 2009 12:56:05 GMT

This might help.. I have sole custody of my son. Child support is coming IN not going out.

Re: Chevrolet Equinox loan???

moondog7324 — Tue, 05 May 2009 19:36:09 GMT

Don't limit yourself to a particular make/model. If I was in your position I would consider a Kia Sedona or Hyundai Entourage - both minivans, both very safe. You could get a base model for <17,000. It's a buyers market- you loose that advantage when you go after a new model. There are plenty of 08's and maybe some 07's leftover in lots.

Re: Chevrolet Equinox loan???

Anonymous — Tue, 05 May 2009 19:49:13 GMT

Thanks Moondog. I'll keep them in mind! I didn't really want to go minivan because of gas mileage. I will look into those though. I wanted to go SUV(CUV) because of the larger body and leg room. My 10 year old is 4 ft 5 and I'm 5 9 barefoot (6 ft in heels.. yes I'm female *grin*) Minivan is more than I need .. but I haven't ruled them out. I test drove an Equinox 09 model and loved it so I'd like to do the '10 since it will come in a 4 cylinder (estimated 30 MPG!!). If the price is right I'll be happy. If not, I'll keep looking to get what I want at the price I want. (ground clearance, leg room especially rear seat, a high seat, safety and protection.. I have been rearended 3 times in 4 years at red lights in my little saturn coupe.. my neck and back are paying for it)

My biggest concern is getting approved for the loan. I know everyone worries about it but I haven't applied for a car loan in 5 years and my credit has been damaged since then. Not sure if a 640+ is gonna do it in this credit market with only 2k down.

Re: Chevrolet Equinox loan???

moondog7324 — Tue, 05 May 2009 22:01:31 GMT

I can't argue with your reasoning- I think you will get approved. When you go to negotiate about price- don't seem too committed to a particular car- use your best poker face (your the mom of a 10 byr old- you have one) show concern about chevy's pending bankruptcy- the power of a 4 cyl etc. do your homework.

Re: Chevrolet Equinox loan???

Anonymous — Wed, 06 May 2009 13:19:43 GMT

Thanks moondog... I appreciate your opinion. I saw a 2008 Mercury Mariner hybrid online last night in my area (new) and the dealer said they are selling 2008's for up to 50% off. That is something I am going to go look at and consider also. I'd be curious to see how they drive. I like the idea of a hybrid but not the hybrid price. I heard the 2008 were not as nice as the 2009 though.. they did some reconfiguring. But at 20k +/- .. maybe I could overlook it *grin* I have a few cars that I am going to look at over the weekend even though I don't want to buy anything until June or later. I have exactly 2000 in my savings now.. and I'd rather have an extra couple hundred which I can have by the beginning of June.

Im SO looking forward to getting out of my little car. It was good for us when my son was 4.. which is when I got it... it was the perfect car seat car for a young single mom (25).. not so much for a middle aged mom with an "adolescent" as Im constantly getting reminded.. with a lot of friends that always want to hang out with us... and two retired parents that go alot of places with me.... LOL that mini van is actually starting to sound appropriate for the weekends.

Re: Chevrolet Equinox loan???

moondog7324 — Wed, 06 May 2009 13:59:29 GMT

Another way to save money (in the long run) is by making bi-weekly payments. Example- your loan is for 400 a month- instead of waiting til its due- pay 200 every two weeks - you end up making the equivelant of 13 payments a month (26 payments, opposed to 12) but you are paying more money towards the interest. This works especially well if your employer allows direct deposit. I set up a checking account at a credit union specifically for my car loan, and have 165 deposite every pay- I get paid evry other week. then I have the payment- of 160 applied to the loan a few days later( to allow for holidays, tranaction times etc.) This has worked great for me. never see the money- never write a check- just check online a few times a month to monitor it.

Check you messages for some more advice.

Re: Chevrolet Equinox loan???

Anonymous — Wed, 06 May 2009 14:16:13 GMT

I thought about that... I get paid every week and thought about getting a loan with my bank. My local credit union and my bank are actually fairly close in rates (within about .5%) at about 7-8% I'm planning (hoping)to get a pre approval through them for $20,000 so I'm not stuck with the dealers financing. I did that once and they saw sucker all over me. I agreed to 21% interest for a 6 year loan. I woke up and refinanced 9 months later to 11% and a 6 year loan. My credit is in much better shape now than it was then. Thankfully! It was 570ish then I think. I know it was under 600 because I moved about a year later and had a hard time finding a place I could manage.

My concern with the bank is I don't want them to take a payment with EVERY direct deposit as my son's CS is also direct deposited once a week. I started transfering that out to an account for him for college... (or emergencies) I assume they have a way of managing it so that only direct deposits with certain routing numbers are deducted. That is what my old bank did. Unfortunately, I lost my christmas bonus to a car payment one year because it was direct deposited. It's not fool proof.

Thank you for your insight!

Re: Chevrolet Equinox loan???

valley_man0505 — Wed, 06 May 2009 14:47:26 GMT

@Anonymous wrote:
Not sure if a 640+ is gonna do it in this credit market with only 2k down.

GMAC now uses 621 as their minimum FICO score. However, I don't know what they would require for downpayment or what else they may want or not want to see on your reports. However, meeting the minimum FICO is a start.

ETA: There sure are a lot of "moons" on this thread

Message Edited by valley_man0505 on 05-06-2009 07:47 AM

Re: Chevrolet Equinox loan???

Anonymous — Wed, 06 May 2009 15:09:40 GMT

Valleyman ... Good to know! I thought GMAC's limit was MUCH higher. I had heard rumor of 740.. in which case.. they really aren't lending! I couldn't find any info to back it up though.

I hadn't noticed the irony. You are right moonlitnight, moondog.. in a thread about the Equinox!

I am hoping that the bad stuff on my CR are old enough that there isn't too much of an impact. I lost my job a few times due to family health issues among other things.. in 2004 and 2006.. so those were not good credit years for me. I started rebuilding last fall and everything is paid off now. Just waiting for it to all update. I don't think I'll get much higher than MAYBE a 660 in the next 3 months or so... time to make a move.

Thanks for the information! That helps with my OCD about having to have all the facts before I apply. (I don't like to do anything that isn't a sure thing anymore... wuss!) I even called my bank with hypotheticals and asked about my chances based on my information. They said well you won't know until you apply but based on your info I don't see why you wouldnt get financing. They did however recommend I apply at the dealer also since they may have better rates! What a nice bank.

Re: Chevrolet Equinox loan???

valley_man0505 — Wed, 06 May 2009 15:44:20 GMT

Here is an article about GMAC's FICO requirements:

http://www.nytimes.com/2008/12/31/business/31auto.html?ref=automobiles

This article is from the end of Dec 08--as far as I know, nothing has changed since then. Good luck and keep us all updated. I will also be trying for an auto loan soon, so I am in the same boat as you.

Re: Chevrolet Equinox loan???

Anonymous — Wed, 06 May 2009 16:02:07 GMT

Wow valleyman.. Thanks a lot for the read. I had read that GM was avoiding BKY because their assets were too high, unlike Chrysler which filed for BKY last week.. I believe for restructuring... I had heard about Pontiac being wiped out by 2010... Too bad. I like the Vibe and Torrent... but the price on the Torrent was a deterrent.

So going to look at a Mariner on Friday. L4 Premier. I hate the color though and told the man such. Ice Blue. .. blah too close to white. They also have Kiwi Green. If it is a bright green its out. But if it is a lighter version of camo green that would be ok. I like red, blue, grey.. I'll even take black.

If not I may go look at the Black Hybrid (2008) .. listed at 35k.. but they advertised that 2008 are "up to 50% off" I think it may be safe to offer 20 or 22 as half would be 17.5 and they have 2 of them in stock. Unfortunately it's downstate about 2 hours from me. I'll just have to take a trip to the beach for the day to make it worthwhile!

The Equinox I like in Navy or Mocha.

What are you looking at?

Good luck with YOUR search.

Re: Chevrolet Equinox loan???

valley_man0505 — Wed, 06 May 2009 17:09:45 GMT

Right now, my plan is mainly to look at whatever I can afford and whatever I can get approved for. In about a year or two, my credit will be spotless since my baddies start to fall off little by little starting in December 09. I have 98 Mercury Mountaineer now with 107,000 miles on it and I just have one of those bad gut feelings about it right now.

I was originally hoping to get a used ('06 or '07) Silverado extended cab, but those are still about $25k. I scaled down my plans a little now to something in the $12-$18k range, which includes used Equinoxes and Trailblazers that are about the same age and mileage (15,000 - 35,000 miles) as the Silverados I was initially looking at.

Once all my baddies are gone (or mostly gone) next year and I have a little more cash and a more substantial trade-in value, it will finally be time for me to go brand new for the first time (probably Silverado or Avalanche).

Re: Chevrolet Equinox loan???

Anonymous — Wed, 06 May 2009 17:19:30 GMT

I seriously LOVE the Equinoxes. I had a 2009 offered to me for 18,500 the other day but i do not want a 6 cylinder so I passed. They are beautiful cars and can do anything a truck can do.

How do you like your Mercury?

If money and gas and the environment were no option, I'd want a sahara wrangler unlimited. *sigh* But I refuse to drive anything under 27 highway and I commute 7 miles to work each way in the city.. with trips up and downstate on the weekends (50 - 80 miles) about once a month.

The 2010 Equinox is a great compromise for me... as is the Mariner. I want to keep my loan at 20k or under because I have sticker shock otherwise.

I hope you find the car you want and the price you want! I know the feeling you are talking about.

Re: Chevrolet Equinox loan???

moondog7324 — Wed, 06 May 2009 19:20:30 GMT

Valley-man, I don't mean to hijack the thread, but...... If your looking at a used Silverado Ext. cab- why not consider the Nissan Titan King Cab- I bought one late 2007 brand new for under 18,000. The prices are even better now. It's a huge truck- all the room you need- the downside is horrible gas mileage. I would much rather buy a new car/truck that is a base model than buy a used 3 yr old vehicle with all the gadgets. I've never been a big fan of buying a 17,000 truck and putting another 14,000 worth of options on it. I'm in a fortunate situation that I have a work car- so I don't drive the truck much, so the gas mileage isn't that big of a deal.

Re: Chevrolet Equinox loan???

Anonymous — Thu, 07 May 2009 18:21:08 GMT

Even with 500 a month in child support you receive, with your listed income I think you are buying "too much" car and should set your sights lower.

Re: Chevrolet Equinox loan???

Anonymous — Fri, 08 May 2009 01:04:03 GMT

USMC --

Why do you think that? I have had a 350 car loan for most of my adult life... this will be 100 a month more

If I have 1920 + 500 = 2420 a month net (after health ins. taxes, 401k contribution, etc)

my bills are 500 rent, 110 car insurance (I pay 118 now it is going down to 110 according to my agent with the new car), 450 car, 100 gas (I do about 65 a month now but I budget extra), 100 phones, 20 medical and scripts (mine.. my son is on disability so his costs nothing), 100 groceries (part of rent goes to food util) 50 (gym and internet) 20 credit card then my outgoing is $1450. I live with my parents (disabled and retired) and take care of the house and do things for them so I don't have any other bills.. including util etc.. I do not have ANY other bills. occasionally the kid or I get new clothes or go to dinner but that is not very common.

That still leaves me with almost 1000 a month.

I do have a credit card which I use to build credit. I usually put my cell bill on there and then pay it off before the due date for utilization.

The car is 24900 MSRP. The gm discount tends to run 1500. I have 2000 - 3000 to put down and positive equity on my car. TT&T are 900. Through the calculator at 8.5% interest payment is about 450.

If I am paying 350 a month on my car now and putting away 500 to 800 a month.. how am I out pricing myself at $450?

I am just trying to understand where you are coming from.... I honestly don't understand. Even my father who is the king of "don't spend money" is tellin me to get out of my car and that this one looks like it should be good for me.

Thanks for your insight.

If you have any suggestions on a car I will be glad to listen to them. I want height and visibility, room .. my bf is 6 ft 7 I'm 5'9 barefoot. My father is 6 ft 4 so I need leg room. I don't want a gas guzzler (this one in 4 cyl. is 21/30 I prefer to stay in a 4 cylinder) even though I don't drive distance alot. and I tend to keep my cars at least 5 to 6 years. I have had this one 5 1/2. If I hadn't just done repairs to it .. new brakes and tires.. and some more are due in 6-12 months (sway bar) according to my mechanic.. and it wasn't too small.. I'd be keeping it. It just isn't practical anymore. We are taking two cars every where we go. When I get a bigger car we are getting rid of one of my parent's.

Re: Chevrolet Equinox loan???

Anonymous — Fri, 08 May 2009 05:14:52 GMT

@Anonymous wrote:
USMC --

Why do you think that?   .

If I am paying 350 a month on my car now and putting away 500 to 800 a month.. how am I out pricing myself at $450?

I am just trying to understand where you are coming from.... I honestly don't understand.   Even my father who is the king of "don't spend money" is tellin me to get out of my car and that this one looks like it should be good for me.

Thanks for your insight.

I have a problem whenever anyone takes a car payment over 400 a month, a car outlay over 560 a month and they do not gross more than 40K-50K.

Its just a huge amount of money to lock up. When the amount is greater then the rent outlay that makes me wince even worse.

Now everyone has their own circumstance, yours may put you in a better position then others-especially with a better stability then some in your circumstance. Personally, lf you need that car I would make the sacrifices now to save as much as possible to put down as much as possible to lower your monthly.

It's really nothing personal- I am just a huge believer that once you go greater then $400 monthly payment you need to truly evaluate the purchase.

Re: Chevrolet Equinox loan???

Anonymous — Fri, 08 May 2009 11:33:22 GMT

OOHHH ok. Thank you. I understand where you are coming from now.

If it makes you feel better... I make just over 33k a year (due for a raise in July to at least 34k) and child support is 6k a year which has me at 39.. pretty close to your 40-50k mark. The only reason my rent is so low is because I moved home to help with my family... and they in turn help me. Half of my parent's house was empty since my dad could no longer walk up steps and my parents moved down to the first floor. So my son and I moved upstairs. With my father and son both legally disabled living here is the best choice. I didn't work in my career field for several years trying to find out what was wrong with my son and getting him the medical care he needed. I managed without a lot of things. Going to doctors appointments during the day and waitressing at night when my mother got home from work. Then my father got sick 4 years ago and we added his appointments to my list. My mother retired about a year and a half ago and I went back to work. My son is now stable and we know how to take care of him. He has been back in school for 3 years now and we finally found a medication that helps. After the past 8 years of struggling I finally feel that I am "due" a little treat if I can afford it and especially if it will make things easier. Its been a long time coming.

I do understand where you are coming from though. I definitely am going to be flinching in the beginning writing out a check for over 400... but I'll probably break it down to weekly like I do my other bills since I get paid once a week and maybe that will help. I may try to wait a little for incentives but I also don't want to lose equity in my car and since it's a saturn and that maker may be gone soon Im not sure what is going to happen. Dealers may not want to touch it.

Thank you for your concern and for taking the time to explain to me your thoughts. I hope you understand my reasoning. I'm sorry if the thought makes you uncomfortable. Having been without much money for so long any loan over 20k makes me uncomfortable to and I am trying to do anything I can to get it under that mark (which will also put me under 400 a month) I may end up having to take more out of savings to put more down. We will see.