Confused - Questions

[paul88]

I need to buy a new car. My car I have now is paid off, so I owe nothing on that. My credit is kinda of spotty...scores range from 625-675. I have about $5K credit card debt with about $20K available. I have lots of student loan debt. I make $63,500. a year

My husband has spotless credit with scores over 800. His only debt is our home mortgage. That payment is 1$K a month (including tax and insurance). He makes around $44K a year.

I am completely clueless because I have never financed a car before. The car I am looking at is new and around $21K. We plan on putting down $5K.

Should my husband and I do a joing application or since his credit is so much better should we finance it in his name soley? If we did it in his name solely...would it be registered only to him? If the registration is in only his name...can I insure the car in my name??

Sorry so long...just really confused!

[Watchmann]

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@paul88 wrote:

Should my husband and I do a joing application or since his credit is so much better should we finance it in his name soley? If we did it in his name solely...would it be registered only to him? If the registration is in only his name...can I insure the car in my name??

Sorry so long...just really confused!

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Some good questions.  I'd get hubby to finance the car in his name since he has high scores, which means the car will be titled in his name.  That usually doesn't cause a problem unless you have specific legal requirements to need it in joint name.  I have one car in my name and one in my wife's, just because she wasn't there when I bought the one car, and I wasn't there when she retitled her dad's car that we inherited when he died.

If you both will be driving it both names will be on the insurance policy which means the premium will be based on both of your scores.  Insurance really isn't in any one person's name, it covers all the drivers listed on the policy. 

[SCF]

Ditto Watchmann,

Also, great job on the hefty down payment, between that and your husband's scores I would think you could practically dictate terms to a lender.  Shop around local CUs and banks, those rates they publish on their front page?  Those should be for you! 

And, FWIW, I drove a car that was titled in my father's name that I was listed as the primary driver on for the insurance.  I have also insured a used car that I bought privately before I actually had the new title (I live on the state border and it was a purchase from a friend, so there was an inter-state records delay that a business trip was not interested in waiting for), so I doubt you'll have any problem putting you as a primary driver on the car when it's technically owned by your husband, especially if he's on the policy as well.

Congrats on the new car, let us know how it goes!