Aftraid to the pull the trigger

[Tooliebell]

We haven't bought a vehicle in 5 years.  I am looking at either an 04 or 06 Ford Expedition between $10,000 and $12,000.  Only debit is our mortgage and a couple credit cards, Walmart:  $1900, Cap 1 $600, Cabelas $600.  Credit score is 668, guessing the low because I applied for a Kohl's card 2 months ago, and the Cap 1 and Cabelas are almost at max.  I wanted to wait to do the car loan until I had the 2 small credit cards paid off but I'm getting antsy and these 2 vehicles are exactly what I want right down to the color. 

I don't think I can get this cards paid off until late October, early November (school clothes and new braces this month).  Is it smarter to wait?  If i can get my score up above 700 will I see a dramatic drop in interest rate?

Also, any advice at what price to go in on used vehicles?  I always think there is some wiggle room, is there a certain percent to start the haggling process?  The 2004 has 116k miles on it and the sticker price is $10995 and the 2006 has 116k miles and is $12300.

Thanks for any help you can offer

[Ditovera]

Credit utilization is a big part of your fico score, paying off those credit card balances and waiting after they report to the credit bureau is a better way. You will definitely see a score jump. Also I suggest you read the auto buying guide here on the forum for negotiations and such.

And this is FYI/ more of a personal opinion. Buying a used vehicle at 116k miles spending 10-12k is weird to me.Especially if you plan on financing most of it. You would end up paying way more long run /with no guarantee its going last you 4-5 years. I don't know as far as your personal needs for an SUV ( hauling,work or other) but if its because you need the room to move your family around I would look in to something newer and fuel efficient. Those expeditions will kill you on gas atop your monthly payments.

[Tooliebell]

Thank you for the advice.  I agree about the waiting,from what I have seen the used car market is abundant and I'm sure I can find what I want when I need it.

We do need a larger SUV for towing and the 3 kids we have; not to mention soccer teammates when needed.  Not being a big car person, could you recommend a better option for what I may need?  Husband is pretty particular about what he may be required to drive and doesn't want to drive the minivans or cross overs (acadia, traverse).  We looked at the Tahoe and didn't like it compared to the Expedition.  Driving is mainly limited to 12 miles one way to work and school town.

[Ditovera]

I agree, with your family size you do need a large Vehicle. Since vans and crossovers are out of the question I think you have limited options for efficient vehicles. I do know the Toyota highlander 2008 and up are good options. They offer good seating (7), dependability, fuel economy (19/24mpg) and cost about the same or less than the Tahoe or expedition. It may not tow as much but it could be something to look into. Honestly, it comes down to how the car will fit into your daily use and if fuel saving matter to you. I suggest you sit down and do some math for annual fuel cost of every SUV you are considering to buy based on its MPG and your daily driving. You could be surprised to see how much you guys could save by driving a "smaller" SUV over the length of time you plan to own it. In addition saving on the side can help you with a bigger down payment so you can buy a bit new and lower mileage vehicle. This can save you on repair costs down the road.....

[broseph23]

Is financing a new or newer car out of the question? I've had relatives drive those big expeditions before, and friends. And they will eat your wallet to the max in just gas. I do not reccommend spending that much on a gas guzzler with over 100k. The newer Ford Explorers get decent gas mileage for the size of the car, even new jeep grand cherokees (love these). The Nissan pathfinder since 2005 is a great mid-size SUV. Gas mileage is decent, around 16city/21 hwy, seats 7 people comfrotably, and extremely reliable. You could find many 2005-2007 pathfinders for under 20k with 40-70k miles. My dad bought his in 2005 with very low miles (like 10k I think) and currently it has I think 180k miles. Att around 165k was the FIRST major repair needed, which was the transmission. That's it. Regular maintenance is all that had been done up until that point. I think you would be making a huge mistake financing a large gas guzzler with high miles, especiall for that price. Who knows if that car will even last that much longer!