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Car buying

micvite
Regular Contributor

Re: Car buying

@aj2121 I mean I have a good amount of payment history, well that's subjective, but oldest account is 2 student loans from 2015, and I have a tendency to randomly make 20k payments on my auto loans so I guess that might look good? Ideally I'd like to qualify for the 0% down 0.9% apr but that's highly unlikely as you need around an 780-820 to get that, but was looking at a car with 139-146k msrp, not sure if I want to get the exhaust just yet. Dealership I was working with said they can probably do around 15-20k off msrp, I'll probably put 20k down so looking to finance around 100k or so. Loan term and interest rate don't matter tooo much, obviously if I get a low enough rate I might just stick with the loan instead of paying it off in chunks, but say I get a whopping 25% Apr? I'll just knock the loan out in 6 months and call it a day. Realistically I don't need the loan, it's just nice to be able to use that money to get a return rather than sink it into a depreciating asset. I can usually beat the interest rate by using my money for other things. 

Ex: 742, TU: 726, EQ: 733 03/31/2021
Discover it cashback: $4400
Citi DC: $4000
WF Propel: $2000
Amex BCED: $1000
Amex Gold: $2000
Cap1 QS: $1200
VS CC: $850
Kohls: $700
Synchrony car care: $800
Message 11 of 13
aj2121
Regular Contributor

Re: Car buying

With the discount and $20k down payment I think you will be at a pretty solid loan to value and that should be in the acceptable range for the banks. Most manufacturer financing arms consider 740+ to be excellent credit. I qualified for tier 2 with a 680ish with Chrysler Capital and my dealership was able to get them to bump to tier 1 (that bump required 6 or more auto loans to have been reported on my acount). I think you should qualify for a decent rate, but maybe not the absolute best. Best of luck and let us know how things work out!

FICO8 as of 4/9/21:
Message 12 of 13
micvite
Regular Contributor

Re: Car buying

@aj2121 Let's hope so, just paid off the last 5k on my current loan, did a random cap one prequal they only qualified me for around 65k I believe so I guess ill give it a few months and see what happens. I guess right now the biggest thing lenders are looking at is my past history... I went from a 760 score to a 540 with maxed out cards for like a year and a half and suddenly paid them all off and my scores jumped back and that's happened twice already so maybe it doesn't look all that great haha

Ex: 742, TU: 726, EQ: 733 03/31/2021
Discover it cashback: $4400
Citi DC: $4000
WF Propel: $2000
Amex BCED: $1000
Amex Gold: $2000
Cap1 QS: $1200
VS CC: $850
Kohls: $700
Synchrony car care: $800
Message 13 of 13
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