Alright guys, I've been browsing the forums for a little while now, and was originally intending to buy a 2002 or 2003 Mustang GT... But on a recent trip to see some family in Louisiana, I had the opportunity to test drive an 06 Mustang GT and fell absolutely head over heals in love with it. So here comes the question, I'm looking to finance the car by myself but have never financed a car... I bought my last one outright. I was just curious some of the ages of you guys on here, your credit score that you got financed with and what kind of downpayment you put down, if at all... and how you financed your car. To give you a little background on myself, I'm 20 and have had a credit card since the day I turned 18. I have a 710 credit score, I also have 3 credit cards, one with a $1,400 limit, one with a $4,000 limit, and one with a $10,000 limit (The one with the 10,000 dollar limit is actually a Kawasaki credit card through which Kawasaki financed my ZX6R). I also had a motorcycle loan for the amount of $5,400 when I was 18 (this is the only thing my parents have ever had to co-sign for). I've never had problems getting approved for anything, but a 27,000 dollar car is a little different I think. Just to be on the safe side, I'm selling the motorcycle and paying off every last cent of credit card debt that I have before applying for the loan/ I just wanted to get some feedback from you guys and what your experiences were.

 

Well, I just turned 21, bought my car when I was twenty back in Feb. I have a 730 Credit Score and only 2 cards, both with $4,000 limits (which is good for me.) I got my car financed through a credit union for 5 years at 5.4%. The biggest concern on their part was my income. I'm a server at a local restuarant and yes my paychecks blow but my tips are where it's at. Basically they knew this so what I did was showed them deposit slips for every week of what I made in tips. They didn't really care since they couldnt trace the money but whatever it swayed them a little more. I'm not sure how or who you are planning to finance with but you really should have no problems If you have the income and can prove it. Basically it's am income to debt ratio they look at, so paying off your cards is a good idea, but leave a little bit on them so they see you actually do use them, and pay them off.

That being said, the last call Is really up to them, my bank gave me a $32,000 loan limit. If you know the roundabout price you are willing to spend call your own bank or credit union and try to get a pre-approval for that sum of money, so you will know If you can get the loan and what you can spend.

 

credit union ALL THE WAY...!!! where I live you can't beat the interest rate...

plus put as much down as you can.. to lower your monthly payment..

at the age of 20 you might want to call your insurance person and see how much that

is going to set you back... I am 43 .. no tickets.. no car accidents ( that where my fault ) you get the point..

anyway my insurance is almost $900.00 a year .. and that is for " casual driving"

just a heads up .. because you have to factor in all those things .. fuel.. insurance .. maintenance ..etc.

plus you will want mods.. and those are not cheap either.. lol



Rex

 

Float the CC balances around 30 to 40% of their limit and payoff the bike to get the most out of your score. Earnings are key when buying a car, a short job history and credit history aren't good... Bad credit with a good paying job that you have had for a few years wins almost everytime, Your score being over 700 is very good and with the right earnings
& steady job it shouldn't matter what else you are paying. Should be a easy deal for the loan officer to close. If you dont have the right earnings "according to them" a co-signer may be needed. But it sounds like you should be very confident in saying... "i'll take this one" and no your going to get it

 

This is what you do.

First go to a couple banks and or credit unions to try and get the best rate and terms possible. Also, try www.capitalone.com.

The reason you wanna get the best rate is obvious, but make sure let the dealership try and finance you for a better or identical rate. That is where your leverage will play a part. For instance, for taking their financing which actually was BETTER than capitalone, I asked for half off the extended warranty. I got it

You might leverage your way to an invoice price or something. Just make sure you go at the end of the month....last 2 days, and don't forget your other quotes. GL

 

I case you or someone close to you is military USAA is pretty good hassle free. I pretty much set my own terms. I don't know my exact credit score(idiot) but it must have been fairly decent when the dealer told me I could have whatever I wanted on the lot.

 

Well, like I said the biggest thing is getting the car financed, I make about 2,500 a month with no overhead except my utilities and my other payment. I'm lucky enough that I live in a house that was bought with investment money from my grandparents, so I don't have a mortgage payment. I'm a full-time college student so I only make about 1,100 a month while I'm in school, but that's more than enough to make a car payment, pay for fuel and live comfortably if I don't have much more overhead than that. The biggest advantage to being in school is that at the beginning of every semester my scholarship sends me a check to refund my tuition costs, so I'd be planning on using that check to pay my entire 6 month insurance premium for the stang.

 

Well, 27, financed one car before. Use to work for Delta, went thru Delta credit union, decu.org (Which anyone can now become a member) go a 4.0% interest rate. Basicallly, just looked at my credit.

A note on paying off your loans now. It won't matter now. Credit scores are based on the last 2-3 years I think and they look at trend, not necessarily if you're in debt. B/C they will know if your 40% of your max limit on each card and what months. As long as you don't have 30, 60 date late notices you're alright

 

how do you plan on paying your tuition?

 

I just went through USAA. 6.2% pre-approved, $50K limit, but my wife and both work and make good money. We both have credit scores over 700. The best rate Ford could give us was 7.99% which is ridiculous. I've seen some places offering 5.5%, but USAA has done me well in the past with insurance so it's in my best interest to use them. I had a $500 military discount from Ford, and wrangled about $1500 off the sticker price of my GT. Also put $3000 down...all of the above = $521 a month payment for 60 months.

Pay off both your credit cards first before you buy the car.