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Hi All,
I am interested in buying a MINI this summer. The total cost of the car is around $30,000 however; I have some problems. 1.) I have never financed a car before, 2.) I do not know if my credit will allow for me to buy a car and 3.) I have a few negatives. Currently, I looked up my credit score and this is what I found. Transunion 694 according to Transunion and 647 according to MyCreditKeeper, Experian 637 according to Experian and 647 according to MyCreditKeeper, Equifax 617 according to Equifax and 644 according to 644 according to MyCreditKeeper. I defaulted on a Bloomingdale's credit card in 2008 which I paid off in 2009, I defaulted on a AMEX which I paid off in 2009 and I defaulted on a BofA Visa which I paid off 2010. During that time 2 accounts went to collections which I paid off. Amongst my 3 credit reports the amount reported collected or highest balance varied and I was told to dispute them which I did earlier this month however; now I wish I just sent out GW letters. Maybe I can do that after my 30 days... (Any advice on that note?)
I still have 2 credit cards Orchard 96.04 of 300 and CapitalOne 604.97 of 1000. This month I will drop these amounts to 30% and have them paid off by the end of May. So the big question, what are my chances of being approved for a loan and about what rate would I be looking at? Oh and I have a trade-in that is worth $2600 but I am going to estimate that I might only get $2,000 for it and by June I will have saved a little over $3,000 which would bring my down payment to around $5,000. Any advice would be much appreciated. Thanks!
Oh and I am with Freedom Credit Union and PNC for banking if that makes any difference... I do not know if anyone knows about them with auto loans...
Your scores are not Fico scores or auto enhanced scores. So trying to make a determination based on those scores would not be very helpful. Having a few negatives will have some determination on the rate of the finance and will vary between lenders.
You mention the vehicle is in the 30K price range, and you are trying to get a minimum of 2K for your trade in and have saved about 3K in cash to put towards the down payment. You haven't mentioned what your income is which would help in knowing if you could afford that much car.
Simple scenario;
Car price of new vehicle -$30,000.00
Tax (based on 9.5%, your rate may be different) - $2,850.00
Total after taxes -$32,850.00
Total after trade in (if given what you mention) -$30,850.00
Total after cash downpayment - $27,850.00
Approximate Finance at different rates and years
5% - 7 years = $393.63 8% - 7 years = $434.08 10% - 7 years = $462.34
5% - 6 years = $448.52 8% - 6 years = $488.30 10% - 6 years = $515.94
5% - 5 years = $525.56 8% - 5 years = $564.70 10% - 5 years = $591.73
5% - 4 years = $621.37 8% - 4 years = $679.90 10% - 4 years = $706.35
5% - 3 years = $834.69 8% - 3 years = $872.72 10% - 3 years = $898.64
So depending on what rate you get and how much you make will depend on how much you can afford. You also have to remember that these figures do not include insurance, fuel, maintenance, etc etc.... which can increase these payments substantially.
@Anonymous wrote:
My income is 60K
Locking this thread. The same question is asked here: http://ficoforums.myfico.com/t5/Auto-Loans/I-can-help-I-manage-a-car-dealership/td-p/1234285/page/10