Judge my situation - what kind of an auto loan/payment should I be looking at.

[ddk369]

I am 24 years old. Graduating from college with a mechanical engineering degree. I have an accepted job offer with a gross pay of $65,000 in Michigan. I will be living by myself and renting a 1 room apartment. I don't really have outlandish spending habits but I do enjoy having a nice car. 

My credit score is in the high 600s - low 700s last time I checked. I have about 11K in student loans and a $500 balance on my credit card. My car loan is currently $225 a month, I owe $9500 and the BMW I own is probably worth $12000-13000 , but I am trying to get a newer and better car. I have no other debt.  

What kind of a payment/auto loan should I get/will get approved for? I want to buy a car for around 30-31,000...is this a good idea?

[Creditaddict]

$30k at a low 3% over 60 months is about $540... are you comfortable with that?

What kind of car are you looking to buy? Are they offering 0% or something similar?

Are you a member of a credit union that has low auto rates?

[ddk369]

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@Creditaddict wrote:

$30k at a low 3% over 60 months is about $540... are you comfortable with that?

What kind of car are you looking to buy? Are they offering 0% or something similar?

Are you a member of a credit union that has low auto rates?

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I will put a downpayment of 5K +/- 1K. I would be most satisfied with a payment of $450-500. 

I am looking at either a used 2012 BMW 328I, 2012 Ford Mustang GT, new Ford Focus ST, new Hyundai Genesis, new Subaru WRX. I really want a brand new BMW 228I/328I but I am afraid I won't get approved and the monthly payments are beyond my comfort range. 

I am not a member of a CU. I am judging if people would be comfortable with this kind of an income and that kind of a financial situation. 

[Creditaddict]

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@ddk369 wrote:

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@Creditaddict wrote:

$30k at a low 3% over 60 months is about $540... are you comfortable with that?

What kind of car are you looking to buy? Are they offering 0% or something similar?

Are you a member of a credit union that has low auto rates?

---

I will put a downpayment of 5K +/- 1K. I would be most satisfied with a payment of $450-500. 

I am looking at either a used 2012 BMW 328I, 2012 Ford Mustang GT, new Ford Focus ST, new Hyundai Genesis, new Subaru WRX. I really want a brand new BMW 228I/328I but I am afraid I won't get approved and the monthly payments are beyond my comfort range. 

I am not a member of a CU. I am judging if people would be comfortable with this kind of an income and that kind of a financial situation. 

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well 2012 is basically new for BMW and BMW Financial probably has certified used APR special if you buy at a BMW dealership.

PLEASE cross the Ford Mustang off your list!

Hyundai has some great APR's and you would qualify.

not familar with Subaru to to much but our Kia dealership is also the Subaru and I think they are good cars these days and believe they have some special also... you can check the website for the apr specials.

I downloaded an app called EZ loan calc for my iphone that is designed for mortgages but works great for all loans since you put in term, interest rate and cost... add 10% or whatever for taxes, title, license, etc... basically probably if you are spending $30k and putting $5k down, your loan will probably be pretty close to $30k, I like to figure higher anyway so I know anything below my HIGH figure should mean they are not pulling something stupid on me.

[ddk369]

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@Creditaddict wrote:

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@ddk369 wrote:

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@Creditaddict wrote:

$30k at a low 3% over 60 months is about $540... are you comfortable with that?

What kind of car are you looking to buy? Are they offering 0% or something similar?

Are you a member of a credit union that has low auto rates?

---

I will put a downpayment of 5K +/- 1K. I would be most satisfied with a payment of $450-500. 

I am looking at either a used 2012 BMW 328I, 2012 Ford Mustang GT, new Ford Focus ST, new Hyundai Genesis, new Subaru WRX. I really want a brand new BMW 228I/328I but I am afraid I won't get approved and the monthly payments are beyond my comfort range. 

I am not a member of a CU. I am judging if people would be comfortable with this kind of an income and that kind of a financial situation. 

---

well 2012 is basically new for BMW and BMW Financial probably has certified used APR special if you buy at a BMW dealership.

PLEASE cross the Ford Mustang off your list!

Hyundai has some great APR's and you would qualify.

not familar with Subaru to to much but our Kia dealership is also the Subaru and I think they are good cars these days and believe they have some special also... you can check the website for the apr specials.

I downloaded an app called EZ loan calc for my iphone that is designed for mortgages but works great for all loans since you put in term, interest rate and cost... add 10% or whatever for taxes, title, license, etc... basically probably if you are spending $30k and putting $5k down, your loan will probably be pretty close to $30k, I like to figure higher anyway so I know anything below my HIGH figure should mean they are not pulling something stupid on me.

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Thank you that is good advice! I am trying to pre-apply for a loan this time before walking into a dealership - Cap1, BofA, WF, Chase, I hope to get a good rate/amount before I walk in it should save me some trouble. I am curious why you don't suggest Ford - Ford and Hyundai have very good APRs and their prices seem very good in conjunction with their college graduate offers. BMW FS is hard to qualify with so I'm wondering whether I will get Tier 1 or even Tier 2 rates with my credit scores. My current auto loan is with Ally/GMAC and I think they are also good too, unfortunately I can't pre-apply with them. 

[Creditaddict]

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@ddk369 wrote:

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@Creditaddict wrote:

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@ddk369 wrote:

---

@Creditaddict wrote:

$30k at a low 3% over 60 months is about $540... are you comfortable with that?

What kind of car are you looking to buy? Are they offering 0% or something similar?

Are you a member of a credit union that has low auto rates?

---

I will put a downpayment of 5K +/- 1K. I would be most satisfied with a payment of $450-500. 

I am looking at either a used 2012 BMW 328I, 2012 Ford Mustang GT, new Ford Focus ST, new Hyundai Genesis, new Subaru WRX. I really want a brand new BMW 228I/328I but I am afraid I won't get approved and the monthly payments are beyond my comfort range. 

I am not a member of a CU. I am judging if people would be comfortable with this kind of an income and that kind of a financial situation. 

---

well 2012 is basically new for BMW and BMW Financial probably has certified used APR special if you buy at a BMW dealership.

PLEASE cross the Ford Mustang off your list!

Hyundai has some great APR's and you would qualify.

not familar with Subaru to to much but our Kia dealership is also the Subaru and I think they are good cars these days and believe they have some special also... you can check the website for the apr specials.

I downloaded an app called EZ loan calc for my iphone that is designed for mortgages but works great for all loans since you put in term, interest rate and cost... add 10% or whatever for taxes, title, license, etc... basically probably if you are spending $30k and putting $5k down, your loan will probably be pretty close to $30k, I like to figure higher anyway so I know anything below my HIGH figure should mean they are not pulling something stupid on me.

---

Thank you that is good advice! I am trying to pre-apply for a loan this time before walking into a dealership - Cap1, BofA, WF, Chase, I hope to get a good rate/amount before I walk in it should save me some trouble. I am curious why you don't suggest Ford - Ford and Hyundai have very good APRs and their prices seem very good in conjunction with their college graduate offers. BMW FS is hard to qualify with so I'm wondering whether I will get Tier 1 or even Tier 2 rates with my credit scores. My current auto loan is with Ally/GMAC and I think they are also good too, unfortunately I can't pre-apply with them. 

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I wouldn't apply with most of those banks before going to the dealership because you are looking at specific cars with specific special APR's that if you qualify for will hands down beat any bank rate so you will just be blowing INQ's for no reason.

I have to say there is something about Ford Mustang that I just can't get past if you said Ford Fusion Hybrid I would have been all for it!

I think for long term car, the Hyundai is probably the best car out of your list and Subaru being the 2nd, then BMW... but if you can get a maintance plan (are they still doing that with BMW?) and it's certified then sure.

but resale on that ford! no.

I also suggest doing talking and maybe even applying before going in, but you should do it directly with the dealership you want to get the car at... many will practically work all numbers before you even go in.

[omar51o]

Hey an updates on your situation?

[ddk369]

Nope. My credit score went up a bit more but I was just last weekend approved for 2 higher limit credit cards so I am not sure if that will bring my score up or down (due to the inquiries). I'm trying to improve my credit profile and completely pay off the $500 balance I have on my credit card. The new cards are not going to be used very much at all, just safety net.

I have been closely looking at cars though, just don't want to jump in until I am out of school and actually working - I have focused on the Focus ST, Subaru WRX Hyundai Genesis, and 2012/2013 BMW 328I. I am also considering a 2008-2009 BMW M3 but that is a bigger financial risk and it is an older car. 

One issue I am having is figuring whether I should keep my car and buy something on the cheaper end (20-23K) or sell my car, which will take longer but should net at least 2-2.5K over my pay-off value, or trade it in (only break even). 

[omar51o]

Its really wierd how close our situations are. Im graduating 05/14 with an ME degree, currently an intern but I have a good shot at turning it into a full time job. My credit score is a bit lower (655 Equifax FICO 12/31/13). Im looking at something in the same price range. Let me know how your situation pans out. 

[ddk369]

Wow we are in a similar situation. 

Do you have any auto loans now? How's your credit history/portfolio. I feel that is an important first step to getting approved for a higher limit loan. 

I bought my first 2 cars cash. The one I have now, my 2008 BMW 328I, I could have bought for cash last year. I specifically applied (and was approved) for an auto loan last year with a high down payment so that I could get approved for a bigger amount this year (my scores were low 600s last year). I have been making the payments and it has boosted my credit profile significantly to the point that I hope (and think) I could get approved for a 30-35K amount (mid-high 600s). I have automotive ADD so I tend to switch cars every 1 - 2 years.