Hey guys, long time reader first time poster. I am wondering if you good folks would have any recommendation on the requirements to obtain a vehicle with no down payment. I currently own a Lexus is250 2008.. Only 51k Miles and I have received an offer from 6.8-7.5K from a few dealership here in West Palm Beach, FL. I owe 11k on the vehicle so although i'm upside down not by much. I'm currently in school to become a Project Manager and am currently working as a pipelayer and hourly pay is only $19 an hour. After taxes before overtime i'm bringing home ~1,350 every 2 weeks or 2,700 monthly. Sometime's I can earn much more with overtime. I have only been at this job since July(as i'm worried).
Recently we have a big job on the West Coast of Florida in which I will be driving from Ft.Myers to Palm Beach Tues/Thurs as I have Calculas(all other classes are online). I do detailing on the weekend's and have decided for me the best thing is to get into a Truck and eventually get a trailer so I can make a few hundred extra on the weekend's.
Me and my wife pay 1,350 rent but I am not on the lease(so I was thinking of claiming I have no rent when getting the new vehicle).
We are getting our first home in 2-3 years.
I am looking at a 2018 Certified RAM 1500 Sport for 31K with 6k Miles that I have fell in love with. I have been afraid to do a Hard Inquiry as I am up and down about waiting for income tax and having 5k to back as a downpayment. I currently only have 3.2k in my account and don't want to use all my funds ona downpayment.
Per Wells Fargo my Fico score is a 696. I have one baddie of $771 from Sprint that falls off my profile in July so I decided to not pay.( I was out the country for 5 years in Jamaica taking care of my grandfather who passed). I also have a 2k Student Loan.
3 Credit Cards. Capital One Platinum, Quicksilver One, and a Walmart card. All with $300 balances. No late payments on any nor any late payment on my car Loan.
My car loan is $332 per month but I alway's pay $350. I got back to the states in October of 2017 and since then I went from a 567 to scratching 700 as I stated. I have probably spent hundreds.. yes HUNDREDS of hours of reading through myFICO forums on different topics.
Sorry for the long read. Should I attempt to get the vehicle without a downpayment or save the Hard Inquiry for when I have ~5-6k for a downpayment?
All cards are at 0 minus my Plat card which I let report $1 every month as I read that's best.
Welcome to the Forums! Good job repairing your credit since your return from overseas.
In my experience, it's tough to get 0% financing on auto loans except for new cars and trucks. Almost unheard of for a used (even CPO) vehicle. For example, late last month I acquired a new 2018 Ford F150 because Ford Motor Credit was offering 0% down for 72 months. However, when I bought my CPO 2016 Mercedes, the lowest rate Mercedes Benz Financial Services was offering was 1.9% for 48 months.
So, you may be able to find a 0% loan but they usually are subsidized by one of the big automakers. If you really want 0%, you may have to purchase a new car. Your credit scores and income are probably marginal for a 0% loan but I would check with the dealership at the end of the month, when they really need to sell cars.
Would it be possible to get a loan on the truck with 0 down and rollover your inequity? Yes it would be, however I would highly recommend against doing that if a truck isn't a NECESSITY at this point in time. Wait until you recieve your refund, this will net you much better results in term's of financing. I wouldn't recommend putting $0 as rent, if anything the full rent amount should be split in half on the application which would be "your portion."