CAN I GET A CAR WITH THESE SCORES?

[Anonymous]

Right now I drive a paid-for 1997 Ford Explorer. It drives fine but the repairs are starting to add up so it's finally time for something new. I built a Jeep Wrangler Unlimited online that I want and it costs about $27,000. I don't want to pay more than $350 a month and I have around $6000 to put down. Is that possible given my current scores (in my sig)? If not, does anyone know what kind of interest rates I might be looking at or if I can even be approved at all?

oh and fyi, i'm a state employee so I have access to two credit unions and my mom is military so I can apply for a loan through USAA (air force benefits).

Message Edited by greeniac1015 on 06-13-2008 09:43 AM

[Anonymous]

You should have no problem getting a loan from your credit unions, but consider the following.

Not knowing what your sales taxes are - 27k to start, 6k in downpayment, you are looking at a 21k loan before tax.

At a phenomenal 6% interest rate you are looking at a monthly payment of 400 on a 60 month loan. You would need a 72 month loan to get your payment down to 350. With taxes and fees it might be impossible to get it down to 350 unless they have a promotional interest rate or you can talk the price down.

It may be possible, but unless it is your dream car I would recommend against it. That is a long time to be scraping up 350 dollars, and with American cars being as unreliable as they are you might have significant maintenance costs in 4 years as well.

Best of luck to you no matter what you decide!

[Anonymous]

I would say RUN, do not walk but RUN, from buying a vehicle that size. Gas is headed for $5 a gallon by the end of summer, and more next year. We are entering a PERMANENT oil shortage.

Buy a Hyundai or Toyota instead.

[Anonymous]

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TheNewWorldMan wrote:
I would say RUN, do not walk but RUN, from buying a vehicle that size. Gas is headed for $5 a gallon by the end of summer, and more next year. We are entering a PERMANENT oil shortage.

Buy a Hyundai or Toyota instead.

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http://www.cbsnews.com/stories/2004/03/08/eveningnews/main604651.shtml

I agree with what you are saying in buy a smaller vehicle.  But I disagree in buying a Hyundai or Toyota.  I think American vehicles have came a long way.  I think a Ford Focus or similar US made product would be a great buy and should also go a long way toward helping our economy rebound. 

[Anonymous]

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monro411 wrote:

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TheNewWorldMan wrote:
I would say RUN, do not walk but RUN, from buying a vehicle that size. Gas is headed for $5 a gallon by the end of summer, and more next year. We are entering a PERMANENT oil shortage.

Buy a Hyundai or Toyota instead.

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http://www.cbsnews.com/stories/2004/03/08/eveningnews/main604651.shtml

I agree with what you are saying in buy a smaller vehicle.  But I disagree in buying a Hyundai or Toyota.  I think American vehicles have came a long way.  I think a Ford Focus or similar US made product would be a great buy and should also go a long way toward helping our economy rebound. 

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Here is an up to date link.  I admit Japanese are still ahead, but American cars are closing in on them.

http://blogs.consumerreports.org/cars/2007/03/2007_top_picks_.html

[Anonymous]

To each their own on cars, but aside from reliability, I personally prefer foreign styling and interior finish. That said, there are some great American exceptions to my own personal stereotypes.

[Anonymous]

If you want a SUV with decent gas mileage try a Ford Edge, it's in the same price range and I had one as a rental a couple of weeks ago and got 25 mpg, and that thing was sweet. But I agree with the others, go smaller if you can, cause $3 gas ain't coming back.

[catzcradle]

I'm not going to tell you NOT to get the Jeep, but I can agree with you NOT wanting to keep the Explorer! (I just got rid of one myself - three transmissions and many thousands of dollars later... grrr... I thought it was going to explode on the way to trade it in!)

Your scores are pretty close to what mine were a couple months ago when I applied for an auto loan. A credit union offered me 8.9% and a bank offered me 11.9% (ugh!) Financing through the dealership, I got approved for 9.9%... This was when my Experian was 610.

I raised my scores a little (640/657/670) and got approved for 7.9% from the dealership. I got a co-signer and got 2.9%

Anyway, you'll definitely get approved, but probably not for a stellar interest rate. If you have some old delinquencies or a high util, you might consider waiting a few months and writing a few GW letters or paying down some high balances. It could end up saving you a ton of money in interest - assuming your Ford doesn't explode before then