@LynetteM wrote:
@MrNoCreditMan wrote:
Update: Would you believe it, I was approved for a loan with my CU!!! I hate to sound all mushy but it made me feel so good to hear the officer say "the loan was approved!" I never thought I'd hear those words. So what I was told is that the loan would cover just 85% of whatever the lowest amount between the price asked and book value of the car. So I have to put a down payment on a car. This is for a used auto, but I got the hint that I can actually look for a new car. Is that true? Also, if I wanted to put little to no down payment (most likely a lease option), would the financing through the dealers be the best way to go? Thank you Lynette! You and many others have been very helpful.
Well...now you deserve even a bigger Congratulations!
A couple of things concern me, and were I you, I would give a call to the CU and clarify a couple of things. Do you have an approval amount? Usually, when approved for an auto loan, customers are told that they are approved up to a certain amount. You need to know a price range...so, call them and ask.
Secondly, you need to clarify new vs. used. If the loan is specified for a used auto, it seems that's what you need to buy. Please don't offer on a new vehicle without verifying if this is possible with the CU.
I don't like lease situations, so I am not one to advise on that. From your last question, are you considering NOT using the CU loan and applying through a dealership? What interest rate did the CU quote you?
Give us a few more details on what the CU agreed to loan you and how much they are going to charge (interest rate). It's hard to advise without that info.
Sure thing Lynette.
I like the flexibility of the lease in which I can change up cars every few years, and the payments are lower. But I do know that buying a car is the way to go where you'll have full ownership after the final payment. I'm still thinking about the lease vs buy.
The loan officer said I qualify for 5.75% APR, with an automatic 0.125% off since I applied through the internet, and a possible 0.125% if I add GAP insurance, and 0.125% off if I choose the payroll deduction for payments. So it's a possible to have a 5.375% APR once I sign on the loan. The amount, although I didn't ask, I originally applied for 20K ( I had asked for 29K the first time). The officer asked me, what kind of cars are you looking at? I gave a couple of car specs to the officer to determine pricing. I don't want to go over 21K, because then I won't be realistic in getting a car. 15% down payment is what I didn't expect. I was thinking maybe 5-8%. So I'm shopping around. And I'm thinking maybe shop around some more since I have a two week window for auto loans? Could I get anything better than 5.375? I'm new at all this, so thanks for bearing with me.
