Honda Financing Question

[Anonymous]

My current car quit on me again this evening. Planning on going to Honda tomorrow to get a new 2014 Accord. I have been working hard to improve my credit, but needed a little more time. That said, I asked my mom to co-sign and she agreed. She has almost perfect credit. My question is, will my credit report show an improvement with on time payments or will it be just on her credit?

Also, when I have purchased cars in the not-so-recent past, you went in the dealership, work out a deal, get financing and come back in two days to pick up your car. I would think by now, you can drive off the lot same day. I don't want to risk my current car quitting on me again. Do you get the car same day now?

[04Cobra]

Have you tried going into the dealership and apply for financing solely? Honda has great financing deals at the moment. Adding an auto loan (installment loan) will definately help your credit mix. Do you have any experience with prior auto loan payments? If not, using your mom as a cosigner or getting a loan with a credit union or bank would be a good bet. Co-signer and buyer will both show up on credit reports.

Answering your second question, dealers use this tactic and its called "spot financing". Dealers still do it to this day and depending on where you live, there may be laws to protect you against this. You can basically sign and drive away with your new car in a few hours. Good luck

[Anonymous]

Thanks for your response. I did not try to get financing on my own just yet. I was recently denied for a mortgage refinance due to scores being too low. I have had some struggles in the past and am on the mend, but not quite there yet. My EX @ 634, EQ @ 638; did not pull TU. My auto past had a couple of 30 day lates, but overall, not that bad, also probably too aged to see most. Hoping with my mom's help, I can take advantage of the 0.9% financing and the Cash for Clunkers promo. I also have saved some down payment money. I just need to get this car today; I need a dependable car.

[barbaralee]

I think it would be worth it to try to get the loan on your own. You really want to avoid the co-signer route as much as possible, especially if it is someone like a parent, IMO. Your credit situation sounds volatile, and it would suck if your mom's perfect credit was jeopardized because you are suddenly unable to pay. 

Is it possible your mom can get herself  new car, and you get her old car? Or is it possible that if she does co-sign you do not do it for a brand new car in an effort to keep the cost down? How much of a down payment are you putting up and how much is the price range for your car?

BTW, I totally understand a parent's need or want to help, and the child being willing to take that help. My mom hated my old car, and was insistent I get a new car. When I decided against it she ended up buying a new vehicle and passing me her old car (she was the only owner and babied it). My husband's mother also bought his sister a "new" used car, but it has been difficult. I think in co-signing situations it has that potential to be a serious financial bind than what people realize.

[Forte747]

With your current scores, Proof of income and a Down Payment, you should be able to get a car without a cosignor. You may not get the advertised 0.9% unless the dealership has some pull with one of Honda's Loan Officers that can get you a Tier Bump but overall you are looking at a rate under 10%.

This will actually benefit you better than the savings of 0.9 with a cosignor.

[0REDSOX7]

So what did you end up doing?

[Anonymous]

I got my Accord! I ended up having my mom cosigning. With her doing so, I got a rate of 3.99%. I only want to use her as a cosigner for 6 months to a year. I am confident I can make the payment, that's not a problem. I just needed a little extra time for my credit score to rise. Trust and believe I appreciate her stepping out for me like that, and I will show her how much I appreciate it. This is the one time I needed to ask for help because I NEVER ask, and she reminded me of that. Too independent. Thank you for chiming in with your recommendations; I shall continue to learn here. You guys are great.

[SamsungHDTV]

Congrats and enjoy your accord. They're really nice nowadays. I also  own one.

[joedtx]

Congrats on your new accord I like mine.....btw the best way to 'repay' your mom is by making sure you setup an Autopay to make sure those payments come in before the due date that will make everybody happy.

[Anonymous]

Setting up Autopay is exactly what I am going to do. Because my car payment is due about the same time my mortgage is due, I am going to set it up to pay around the 25th of the month, so it will always be early.