auto loan!!!!!

[Anonymous]

somebody please help ( my credit is not all that good but its also because i have not established any credit yet no credit card debt nothing. i have payed off a vehicle before it was 4 years ago one of those dealers buy here pay later paid it off no problem was never late, i checked my credit score i would thought paying off the car would help my credit score better than what it is.

So my question to anybody that can help i am looking to get a vehicle between 27,000 and 31,000 i am going to put 4,000 down for the payment i dont want my payments no more than 600$ is there a chance that i will get the vehicle with 4k down and payments no more than 600? what will be my interest rate.

[pipeguy]

Say a $30k sale, plus tax and title/tags/dealer processing less $4k 

Using these figures: $28000 financed at 6% for 72 months = $464/month. $28k @ 8% for 60 months = $567.75 per month. 

Through say DCU with strong scores $28k @ 1.99% for 65 months = $454.76 a month 

So bottom line is yes you should be able to keep your payments under $600, but I sure would NOT use the dealer for my loan. That said, you might wait 6-12 months and establish some basic credit because with no credit history you are going to get taken advantge of as far as rates and terms. 

[Anonymous]

thank you so much i have been worried about it well i need a new car i just got a good job this time around so if i can keep my payments no more than 600 ill be good insurance is pretty cheap for vehcile i want..

i thought with atleast no credit my rate was going be atleast 15%

thank you for your help 

[kimbersleep]

If you don't already have a relationship with a credit union, I would recommend establishing one. Often times it only takes $5 to open a share savings account.

Then work with the credit union to get preapproved for auto financing.

This way, you'll know what kind of rate/downpayment/monthly payment you would have if you decided to finance through your CU.

And when you go to the dealership, you can try to get them to beat that offer.

[Anonymous]

thank you kimbersleep you guys are really helping me becasuse i have no clue lmao

Kimbersleep do you have to be a member to the credit union for a period of time before you can apply for auto loan

[pipeguy]

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@Anonymous wrote:

thank you so much i have been worried about it well i need a new car i just got a good job this time around so if i can keep my payments no more than 600 ill be good insurance is pretty cheap for vehcile i want..

i thought with atleast no credit my rate was going be atleast 15%

thank you for your help 

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With "no credit or FICO score" you might very well not get a loan, which is why I said you might want to wait 6-12 months and establish some credit through credit cards or joining a credit union like DCU or PenFed and depositing a couple of thousand - then taking a "share secured personal loan" where you basically borrow your money on deposit and make payments (you can always redeposit the loan back into your share account and pay it off in total within say 6 months). 

Using your $4000 cash on hand, get a secured Credit Card through Cap-1, Bank of America, Discover, or a credit union ($500 deposit or so for each), then get a share backed "personal loan" through a credit union - in 3-6 months you should have a valid credit score and can apply for a regular credit card through a credit union or Cap-1 or Discover and close out all the secured loans.

@$28,000 at 15% for 72 months = $592.06 a month paying back $42,628 over the 6 years for a $28k loan, Given a decent credit score which you can achieve in 6 months, you should be able to get a 6% loan ($28k @ 6% over 72 Months = $464.04 a month or $33.410.94 over the course of the 6 years SAVING you $9197 in extra interest.

You can even refinance the 6% after 1 year of credit establishment to perhaps 3% so for the same note with 60 months left your payments will drop further due to less interest..

My advice would be to establish some type of credit for 6 months before you go for a car loan given you have NO credit at this point - lenders don't like that situation which means you can probavbly get a loan, but it'll cost you dearly (and that's not necessary).  

[Anonymous]

well i mean i have credit score which is low 520 but i understand what you saying in the long run if i was to get loan i will be paying alot of money so i need establish a lil more to be saving in the long run.( man o man what would i  do without forums to ask people 

thanks pipeguy 

[Anonymous]

I would get your actual fico 8 auto scores and post them here with any other relevent information such as income, debt to income etc and we can probably help guide you a bit.  Your post is far too vague to help you.  BTW paying off installment loans hurts scores because you no longer have installment account reporting.  If you have no installment loans or credit cards getting a car loan might be really tough.  Post your details and we will do all we can to help.  It's well worth the few bucks required to get your scores and plan based on that knowledge versus being in the dark.

[Anonymous]

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@Anonymous wrote:

well i mean i have credit score which is low 520 but i understand what you saying in the long run if i was to get loan i will be paying alot of money so i need establish a lil more to be saving in the long run.( man o man what would i  do without forums to ask people 

thanks pipeguy 

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Just saw the 520,  that makes this really tough if not impossible really.  I would suggest posting your details to the rebuilding section and let those folks help you get going, a couple of positive credit cards and a secured installment loan and you can have 600's in a few months and then you can get a decent car loan.  Last thing you want is a 20% interest car loan when with a little bit of work you can have a 5% loan.  On a 27k car the difference is probably over 10k in interest over the life of the loan between those two hypotheticals.