What interest rate should I settle for?

[BGinVA]

I've done all I can, goodwilled (got rid of one) brought my cc utilization down to 6%, all that I have now to get my score up is time.  As soon as I buy my new vehicle I'm going in to gardening mode.  And I am buying a new car, I can afford a new car and don't want to buy used as I'd be no better then I am now with my 2003 Ford Windstar, as I have a 150 mile round trip commute to work (luckily I work from home all but one day a week generally) and have two long road trips planned this spring and fall of 600 and 1200 miles round trip respectively and don't want to worry about car problems. 

So here is where I stand, I have my mortgage payment of $1405 per month (23% dti), I only owe $66 total on my 3 credit cards, I have one personal loan that I pay $203 per month on, but plan to pay the balance of $6K off after the car purchase (as the car note will be revolving debt as well and I'm afraid if I pay it off before the purchae I'll loose points for lack of mix of credit).  The car I'm looking to buy is a 2012 Chevy Traverse, I'm thinking with the options I want it will run around $36K (hoping to negotiate it down a little more or get some good incentives).  I'm planning to put around $6 - $7K down and keeping payments around $500 per month (8% dti). 

The good things on my record, 3 mortgages paid as agreed (one was a refinance one was paid in full 5/04 and one is my current) 1 HELOC paid as agreed (paid 5/04)  2 student loans paid as agreed, 2 auto loans paid as agreed (one for $17K, one for $33K, although I paid off the $33k in 7 months, don't know if that will hurt me), 4 personal loans between $6k - $10K paid as agreed (paid off) 3 credit cards paid as agreed (6% utilization on one card $0 on the others)

Now the baddies 2 credit cards charged off in 2007 (Cap 1, HSBC) some lates on my past Mortgage (worse late 30 days, most recent 18 months ago) & Heloc  (worse late 60 days in Jan 2010 and a 30 day in Jun 2010), and then of course I have one collection agency reporting for the Cap 1 credit card mentioned)  All baddies are paid or settled (I didn't know about pay for delete back then). 

I've been on the same job for 13 years, have lived at the same address for 8 years and my monthly income income before taxes is $6011 and plan to put down 10%-20% down payment.  My current scores are listed below.  Anyone think I could get Tier 1 financing with compensating factors?  Or what rate should I be satisfied with if offered?  Thanks in advance!

[Anonymous]

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@BGinVA wrote:

I've done all I can, goodwilled (got rid of one) brought my cc utilization down to 6%, all that I have now to get my score up is time.  As soon as I buy my new vehicle I'm going in to gardening mode.  And I am buying a new car, I can afford a new car and don't want to buy used as I'd be no better then I am now with my 2003 Ford Windstar, as I have a 150 mile round trip commute to work (luckily I work from home all but one day a week generally) and have two long road trips planned this spring and fall of 600 and 1200 miles round trip respectively and don't want to worry about car problems. 

So here is where I stand, I have my mortgage payment of $1405 per month (23% dti), I only owe $66 total on my 3 credit cards, I have one personal loan that I pay $203 per month on, but plan to pay the balance of $6K off after the car purchase (as the car note will be revolving debt as well and I'm afraid if I pay it off before the purchae I'll loose points for lack of mix of credit).  The car I'm looking to buy is a 2012 Chevy Traverse, I'm thinking with the options I want it will run around $36K (hoping to negotiate it down a little more or get some good incentives).  I'm planning to put around $6 - $7K down and keeping payments around $500 per month (8% dti). 

The good things on my record, 3 mortgages paid as agreed (one was a refinance one was paid in full 5/04 and one is my current) 1 HELOC paid as agreed (paid 5/04)  2 student loans paid as agreed, 2 auto loans paid as agreed (one for $17K, one for $33K, although I paid off the $33k in 7 months, don't know if that will hurt me), 4 personal loans between $6k - $10K paid as agreed (paid off) 3 credit cards paid as agreed (6% utilization on one card $0 on the others)

Now the baddies 2 credit cards charged off in 2007 (Cap 1, HSBC) some lates on my past Mortgage (worse late 30 days, most recent 18 months ago) & Heloc  (worse late 60 days in Jan 2010 and a 30 day in Jun 2010), and then of course I have one collection agency reporting for the Cap 1 credit card mentioned)  All baddies are paid or settled (I didn't know about pay for delete back then). 

I've been on the same job for 13 years, have lived at the same address for 8 years and my monthly income income before taxes is $6011 and plan to put down 10%-20% down payment.  My current scores are listed below.  Anyone think I could get Tier 1 financing with compensating factors?  Or what rate should I be satisfied with if offered?  Thanks in advance!

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Incorrect, The car will be an installment line and will not affect your revolving utilization. 

I believe you should be in good shape to get a decent rate with your info. I believe the promo rate is 0% right now on those new. You lose a $1500 rebate, but you would pay way more than $1,500 if you got even a 3% rate at that amount to finance. I would go in looking for the 0% 

The interest rate for 72 months is 3.9% and you may be able to match that with the equity and downpayment you have. If you can take the higher payment at 60 months or less, the 0% is the way to go... If you have to go 72 you should really consider a less expensive vehicle first, but if you have your heart set on this one, then apply through your local credit union or bank and see what rate they give you. You can them use that rate in your negioation with the dealer. "I'll finance with you if you can beat the 3.9% rate for 72 months I am getting with ABC bank" that sort of thing. 

Understand that you will have a significant amount of negative equity for the first couple of years if you extend the term out, even with your downpayment. 

Here are the rebates Edmunds is showing on these right now:

Manufacturer to Consumer

Customer RebatesShow detailsCustomer Cash   Start End

$1,500 Cannot combine with 0-3.9% APR		01/04/2012	02/29/2012

Bonus Cash Type Start End

$500	Bonus Cash	02/15/2012	02/29/2012
$500	Loyalty	01/04/2012	02/29/2012
$2,000	Conquest	01/04/2012	02/29/2012

FinancingShow detailsSpecial APR Month Term Start End

0%	12	01/04/2012	02/29/2012
0%	36	01/04/2012	02/29/2012
0%	48	01/04/2012	02/29/2012
0%	60	01/04/2012	02/29/2012
3.9%	72	01/04/2012	02/29/2012

[BGinVA]

I actually meant to say INSTALLMENT, thanks for correcting that, I do know the difference just had kids interupting my train of thought while trying to type.  THANKS!