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Need a car and would appreciate some advice

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jed11
Member

Re: Need a car and would appreciate some advice

18-20 for the car.  Counting my trade-in (which is a real guess at this point because it's a mess) I could probably come up with half of it as a down payment if it would make a serious move in the rate.

Message 21 of 27
Remember0
Valued Contributor

Re: Need a car and would appreciate some advice

Gotcha. Yes, down paying even 5k would move the needle.

 

In my opinion, at this point given the FICO, go to the dealer. Say Cap One approved you @ 13% with no dp and you'd like to get under 6% because of your down payment (tell them what you want to put down)...see what they can get you.

 

Negotiate price first before mentioning financing! Read my intro here on negotiating cars: http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289... . The financing section of the link would probably help to so you don't get ripped off. For used cars, just do similar models and play the dealers off of each other ONLINE! Know that they paid around KBB Trade in Very Good for the car +/- 500 (if they won't negotiate tell them your friend who's a dealer showed you Manheim "MMR", use that term mmr...they're allowed a profit, not an egregious one.)

 

Also finally shop around. So if the dealer says 8%, I'd be inclined to see another dealer you've negotiated online with, and see if he can beat the 8%...

 

What exactly is your trade-in (make/model/year)? And what's wrong with it?

Message 22 of 27
jed11
Member

Re: Need a car and would appreciate some advice

Wow... lot of information there to digest.  I'm going to be on the road all day today, so I'll spend some time with this tonight.  Thanks for putting all this together!

 

My trade-in is a 1999 GMC Suburban 2500.  109,000.  It's decked out with all the extras.  As for the problems.  No AC, no heat, burns oil badly, door locks cracked or broken (can't secure vehicle), water getting in fuel line causing it not to start or run poorly until water flushes out.  I've had the service department go over everything and I don't have my list of parts with me, but it looked like it was going to be at least $3,000 and probably around $4,000 to make it right.  Which begs the question... at what point do you decide a 15 year-old vehicle's maintenance is too high and reliability too low to make it a vehicle you depend on everyday.  It's my thinking that using the repair bill as the down payment and what trade in value I can get on the Suburban for a new vehicle is the way I should be looking.  Let me know if you think differently.

Message 23 of 27
Remember0
Valued Contributor

Re: Need a car and would appreciate some advice

I agree, get rid of it. But I doubt you'll get even 1k for that truck as trade-in. Still like I said, even a 4 or 5k dp would move the needle enough for you. If you can, see what Carmax would give you for it before trading. No idea if you can *physically* get it to Carmax though.

Message 24 of 27
jed11
Member

Re: Need a car and would appreciate some advice

Follow-up...

 

Well, I got my new car yesterday. I took my preapproval with Cap One to my local credit union and they came back with an offer of 9% and no down payment. Then I went to the dealer and worked out my trade using the credit union. He suggested we try to get approval with Nissan because they are currently offerring a rebate with the car I wanted if they financed it. Nissan approved me with a slightly higher rate, but with the rebate applied my monthly payment dropped just a little below the credit union payment. So... I took Nissan's offer and drove off the lot with my new car.

 

I appreciate all the help here. It made a total difference in how I approached the whole thing.

Message 25 of 27
jed11
Member

Re: Need a car and would appreciate some advice

Gee, the new loan popped up on my credit report today and my FICO score dropped 5 points.  Why is that?

Message 26 of 27
Remember0
Valued Contributor

Re: Need a car and would appreciate some advice

Your AAoA declined dur to the new loan probably. Give it a little time. It'll recover, just remember to keep making good payments.

Message 27 of 27
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