topic Re: first car loan w/o help - thoughts pls in Auto Loans

first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 18:33:41 GMT

DH and I are looking at getting a 2nd vehicle, new. Current car is paid in full [early!], and would be shifted to 'back up' car status, with the new one being the primary vehicle [reliability issues]. But, a work friend of DH went to a dealership and was quoted a rate of 12% for financing, which is something I'd like to avoid. Here's the info y'all will need:

No bankruptcies, charge offs, etc.

Credit cards currently empty, except 1 has balance of under $600 on it [high limit].

Have 1 account for furniture with a balace of $2800, we are paying that off this month [yay!]. Said charge account will then be closed. It is the newest of all our credit accounts, opened in May for sole purpose of taking advantage of 0% interest financing.

DINK of approx $77,000 gross [I've been here 3 years, DH has been working 1, both in steady industries].

No mortgage [we rent, no interest in buying a home right now].

Haven't purchased FICO score yet [at work, lunch break ], but used estimater thing and it put me personally at 730 ish.

I've had credit for 7 years, no late payments, etc. DH is from another country, has had credit for only 1.5 years, but no late payments, etc. either here or home country.

So, do you think we can get financing for say, 6% or so, assuming a car MSRP of under $18,000 and a downpayment of roughly $3,000??

Many thanks!

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 18:41:01 GMT

@Anonymous wrote:

So, do you think we can get financing for say, 6% or so, assuming a car MSRP of under $18,000 and a downpayment of roughly $3,000??

Many thanks!

Probably.

Most bank run at around 4% and over. so a 5.9% rate could be a best rate.

Usually if you are getting a rate less then 4 that is a promotional rate and is being bought by the manufacturer.

I do think it is highly probable that you would get a rate of between 4%-7 %, and do think that you could easily qualify for 0% if it is offered.

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 18:42:30 GMT

Many thanks! In my lurkings, I have seen your posts and find them quite honest and insightful [much of this is still new to me], so I very much appreciate your respoding.

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 18:43:53 GMT

Not a problem, and If I may say so- welcome to the forum.

I am somewhat curious why you would keep a "less reliable" paid off car?

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 18:57:06 GMT

Well, the less reliable but paid off car is darn great when it's not too hot or not too cold out, haha. Since DH and I commute together, it would be more for a back-up situation than anything else [it's a royal pain when you have to sit and wait all flipping day for regular maintenance on your only vehicle - we did find a better mechanic, which helps tons]. Since it'll be our secondary vehicle, I'm going to drop collision coverage on it [all the math tells me I should now, but want to wait].

We feel that there are times we really need a 2nd car. We work in a city about 15 miles from where we live, and about 20 miles from all our doctors and the like [plus traffic, which is higher than you'd think for such a small state].

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 19:06:51 GMT

@Anonymous wrote:
Well, the less reliable but paid off car is darn great when it's not too hot or not too cold out, haha. Since DH and I commute together, it would be more for a back-up situation than anything else [it's a royal pain when you have to sit and wait all flipping day for regular maintenance on your only vehicle - we did find a better mechanic, which helps tons]. Since it'll be our secondary vehicle, I'm going to drop collision coverage on it [all the math tells me I should now, but want to wait].

We feel that there are times we really need a 2nd car. We work in a city about 15 miles from where we live, and about 20 miles from all our doctors and the like [plus traffic, which is higher than you'd think for such a small state].

Dump the less reliable one as a trade in on the new car.

A unreliable car is a paperweight.

-dump it and make a 2 new car deal instead of one.

-dump it, buy a new one, then buy a certified pre owned used.

Any way I say dump it we are only going into winter where it will be cold.

I could see you buying two of either a FORD FOCUS, FUSION or an ESCAPE for the longer trips and snow.

Re: first car loan w/o help - thoughts pls

Anonymous — Wed, 19 Aug 2009 19:37:58 GMT

Funny you mention that...

If I had my way totally, we'd buy the new car, keep the semi-reliable for as long as we can [I prefer to drive cars into dust, the family car I learned to drive in was the same age as me], then get a cert. pre-owned of some type. I can say, though, this car did get me through the PA mountains during a nor'easter, so it's had a good run, just sort of showing it's age, I guess. Just doesn't feel right to keep having these issues [sure, just the battery last time, but brakes are almost annual expense, plus regular maintenance] with a car with abt 52,000 miles on it, KWIM?

Alas, the compromise of marriage and not being the big-time breadwinner [srsly, DH makes almost 2x my salary].