Hello all,
Just wanted to pick some of the smart peoples brain on here around auto financing...
My plan is to go ahead and pull the trigger on a new car in January. The question is will I have to pay cash or will I get financed.
Fico 8 scores are 633-670 but my auto enhanced scores are lower 570-600 because of a 120 day late reported in 2007 due to a separation that put a strain on things in 2007. The loan was caught back up and paid in full around 2009. I've since bought a 2010 x5 in 2012. It's a 35k loan and I put down 20k on the car. There is 1 30 late on the x5 loan (2/2013) due to bank transfers that were miss timed.
That 1 30 day late in 2013 is the most recent baddie on the report. I do have judgements from my country club and hoa that were paid and closed in 08/09 along with a loan modification but they are 2007-09. Everything is good standing now with low utilization around 20%. Just a slow process to rebuild! My regular scores were all below 550 so it's getting better over time! There's nothing I can do at this point except continue to pay on time and just wait for the scores to go up over time.
The details:
Car: BMW X5M
Price: 98k
Downpayment: Ideally I would like to keep it under 40k and finance the rest so I can invest the rest of the money. (Better returns!)
Mortgage: 2600
CC: limit 8k, balance 2k
individual income: North of 225k
Household: further north of 225k
Location: DC/MD/VA
So basically I am almost doubling the amount of the 35k loan with double the down payment to try and get the LTV at a good point. I know the rate won't be pretty but my current car is 9 % and my scores were lower then they are now...I can live with what ever the best rate available as I'll refi in a year once the scores go up...We've always had high and verifiable incomes since 2006 so hopefully that will help.
We've worked hard over the last few years on all parts of life (marriage, careers, children etc) and we are in a great place, she got first new one in July now it's my turn! A side note I always thougt new cars were a waste of money still do but hey, once in a lifetime while you can enjoy it why not!
Any thoughts on the best way to approach the deal would be great!
iscover-800
Thanks for the input everyone. I actually just pulled down a new 3B report and my auto scores are higher than what I thought:
FICO Auto 8: 628-679...Wish they still used auto 5 they are even higher at 689-710. ugg!
I did talk with the Sales manger and got a price of $500 over invoice so I'm pretty happy with that on a custom order too. Then add on the BMW car club $1500 rebate that will put the price under invoice actually, so I think it's a pretty good deal!
Thanks again...