First time buyer question

[Anonymous]

If someone has never purchased a car before, but has a FICO of 725 for TU, (and that is the report the dealer will pull), will they still get a good deal on the rates (Tiers), or will they get bit in the a$$ for not having ever purchased a car?

[Anonymous]

It depends.

Credit score is not as important in auto loans as much as the buyers credit profile.

Credit profile points that are considered will be:

• Buyer age/length of credit history
• current income
• length at job
• length at residence/type of residence
• exactly what other lines of credit they have open and in what amounts and durations
• do they have any negative entries

other points that will influence the deal will be:

• what kind of car is being bought (new/Used a Ford Focus to a Ford Explorer)
• what amount is being financed
• and most important: DOWNPAYMENT.

A decent downpayment can solve many problems.

Credit Score is not the end all be all.

A 725 score with a 1700 a month income will not get you a 45,000 car (or even any car pretty much) yest a 680 score and a 6,000 a month income will.

You need to figure out what the amount to be financed is and what kind of a car before anyone can offer you more constructive, focused advice.

[Anonymous]

My brothers particulars.

725 FICO (TU)

No Baddies Ever (because nothing has ever been in his name)

33 years old

1 year history (two CC's)

3 years on job

$3200/ month income

Still lives at home (no rent to pay)

$21k auto loan

$2k down

He is thinking about using Capital Ones blank check service. Are they good to use?

BTW I am living proof a low FICO does not matter when buying a car. With FICO of 545 I bought a CPO BMW 528i last year.  I put down an obscene amount and am paying 25% interest, but I love my car, and my payments are cheap. $366/mo and I only have 14 months to go!!! 

[Anonymous]

he should not have a problem. he should see if cap one will approve him around the same time he goes to a dealership to see if they will approve him so that all the inquiries will count as one.

he will probably not qualify for the best possible rate, but will most definately not get the worst either.

FYI: when doing a finance application for a car you should NOT put down that you live at home and pay no rent.

To the bank that could be a temporary situation and you could move out, be told to move out at any time , therefore incurring a monthly housing obligation.

He should say he pays 350 a month in rent. ( I am sure if he considers his personal contributions to the household each month he does contribute to the house. If he buys groceries 2 times a month for the family he is "paying rent.")

I stayed with my brother and his family for a few months when I got out of the USMC. His wife was upset I paid no "rent." I broke out the grocery bills I had saved with the items she had me "pick up" (that I did not use- CAT FOOD, DOG FOOD, ETC) when I was out- it was about 400 a month.