1st car-brand new-need auto loan

[Anonymous]

   I am trying to figure out the best route for me. I am 23 in the military and living oversees. My plan is to purchase a brand new car by this summer-which is also when I return to the U.S. The total cost will be $25,000 (rounded off). I am going to need a loan. My credit scores as of 2/2008 are 612, 627 and 648 so does any one know what my chances are of getting a good loan w/low apr? There is one really bad acct on my credit report, but I have paid it off-Aug 07- and now waiting for it to come off my report and I know it takes 7 yrs. I spent the past 1 1/2 yrs clearing up debt and now all I have for credit cards are a Sears card and a Military credit card-yes both are now and have always been in good standing (never late/mispayment).

  Will it be a good idea to borrow the total amount of the vehicle and then put the down payment amount of $4,000 towards the loan? To get the best possible deal on this car I would have to start the process before I leave this country but at the same time I am not sure if I will be ready by then.This whole buying a car and getting a loan thing is extremely new to me, so all the info you can give is greatly appreciated.

 Thanks!

[Anonymous]

The whole car buying process takes 3 to 4 hours of negotiating back and forth once you find the car you want to purchase.  Do a lot of research on the vehicle by looking at "Carsdirect.com" because they tell you what the average dealer pays for the car so you know what the mark up is on the particular car you want.  Ask to see the Invoice on the car you want to buy and start your negotiating at that #, NEVER start with the MSRP or DealerInvoice (dealerinvoice being MSRP + some kind of dealer mark up)

I would suggest giving the $4k as a down payment.  Having cash money down will help you get a lower interest rate.

Use the dealership for financing because you will get a better rate with longer terms then using any other service (CU or Cap1) 

Negotiate Price, then Negotiate Interest Rate and Terms....don't let the dealer try to sell you on a monthly payment b/c they will get you with that trick.

I've bought 3 new cars in the last 3 years.......

[Schoolbuskid]

Also check out EDMUNDS.com they show invoice on any car that you want, also creditboards.com has a guy known as "MarvBear" who worked in the car business and tells people if they approved or declined based on your credit info/report. Its like you apping but not really! So go check it out and good luck!

What kind of car are you trying purchase by the way?

[Anonymous]

Are you buying from the car manufacturer overseas?  Are you in Germany by chance?  My dad did the same thing before he left Germany and got a great deal on a Mercedes...as far as financing I'll ask him what he did when he was over there..i think they have a special arrangement for military over there..i'll check and try and get back to you.

[Anonymous]

I am going to get a VW Jetta. I think by the time I get it they will be on the 2009's tho.

[Anonymous]

I am going to get the car from Autoexchange online and it is not a Mercedes. I have spoken to dealers from my home town and based on the info given to me, Im better off buying from here and doing stateside pick-up.

[pattycake]

With your credit scores, I would secure financing first. Try the military CU for a loan, as they are more likely to give you a decent rate. Sometimes a dealership will try to soak you if your scores aren't in the 700's. My son purchased a car in Sept (preowned, which have higher interest rates) at 6.99%, which is considered lower than average by getting his loan first, even though his scores are high.

Also consider a preowned vehicle with low miles. Right now, dealerships are fighting for customers, so you could save thousands on a nearly-new car.