HERE I COME KIA!!!!!!! (Any pointers?)

[Anonymous]

I have been working on my credit since July 2013 and I have to say, it's been an interesting journey and I'm grateful for the lessons I've learned along the way.  My parents are really enjoying how often I call them up and tell them that they were right. Har har har. Anyways- I've been looking at cars for a while now, and have decided on a Kia Sportage. I'm a massage therapist that does a lot of house calls- stuffing my table, my cart, my mountain of sheets, etc in the trunk of a 2 door accord is not cutting it anymore. Imagine putting 10 pounds of crap into a 5 pound bag. Also, my 6'5 husband would probably enjoy getting into my car and not having his knees up by his ears or hitting his head on the roof.  considering my self-employed status, I am going to lease one as it will be a significant tax break for me. My husband is going to sign with me. (BTW- I consider the fact that he would sign with me an honor considering where I started with my credit worthiness... And his is absolutely spotless) 

I am just curious, if anyone can give me an answer, what type of interest rates or payments will I be facing with him co-signing with me? My auto fico as of 02/2014 was 611. His is 780+. I will be putting down approx $2500 which is the equity in my current vehicle. I'm also curious if there are any tips or pointers anyone has for dealing with Kia Finance... I just want to have as much research under my belt as possible And not have any surprises on Sunday when we go to the dealership. Or if you have any horror stories or a better recommendation, do tell!!!! 

Thanks In Advance!!! 

[Remember0]

Probably much better if he is primary and you're secondary.

Also a thought: why doesn't he just do this in only his name? It's not like it's any more risk for him...co-signing and having it in your name only are pretty much the same thing with respect to risk to credit, etc... In fact, I'd personally never cosign, but would buy it in my name if I were him. Plus you guys are married at this point, so I'm not as worried about breaking up, etc... I have a feeling this maybe because you might not be able to deduct if it's only his name? Not an expert on tax law though, I'd hope it's possible to deduct sine you're legally married and all?

[Remember0]

Also my tips on how to get the best deal are here. Hint: if you walk into a dealership without negotiating online, you won't get a good deal 99% of the time.

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

[Bigdave10000]

If you want to lease, KMF is the only option. If you want to purchase KMF is offering $500 + 1.9% @ 60, 2.9% @ 72. OR $1500 + 3.9% @ 60, 4.9% @ 72.  those are tier 1 rates. You will need your husband to qualify for both lease and purchase tier 1 rates with KMF. The good news is that usually KMF will only count your husbands score and not your score on a joint app.  Good luck the Sportage is a great vehicle. 

[Anonymous]

I do not want to put the loan in only his name because I do not want to pay for something without building the credit to go along with it. Yes, we are married, but improving my credit worthiness is important to me. God forbid if something should happen, I want to be able to step up and be a team player with my husband; not a liability or a burden. the tax deduction would not matter either in his name or mine....we file jointly and there are some business expenses of mine that come out of his account and are acceptable. I keep all receipts and statements like a crazy person and very detailed notes on my cash! I can prove it all... Don't want to mess with Uncle Sam!!! and also, thanks to you guys for your helpful responses. 

[coterotie]

Just so you will know, a lease is no better or worse for you from a tax standpoint if you are a schedule C filer.  On a loan you can still deduct the interest, insurance,  taxes, depreciation and upkeep expenses.  A lease may be problematic unless you know exactly how many miles you will put on the car during the lease duration as they typically structure the deals for low mileage drivers.

There are differences if you're driving a suburban or something else over 6,000 lbs as the ITC comes into play.

That being said, if you fall within the mileage parameters, a lease is easier from an accounting standpoint and also by forcing you to trade the car regularly, you likely minimize the expenses of upkeep,  Since you don't own the car, you don't bear any risk of owning a car which doesn't hold up well.