Hi..
my credit score is 656(experian) with bills payed on time and 85% available balance. negative item is a collection bill(medical) of $1600. How is the situation to buy a new car.(honda civic).
Bank loan, credit union...which is better. I can put 5000 as down payment.
2006-11-01 10:46:35 · 6 answers · asked by Maya 1 in Cars & Transportation ➔ Buying & Selling
you should be fine with 656.. credit union will probably give best interest rate
2006-11-01 10:54:57 · answer #1 · answered by tommy 4 · 0⤊ 0⤋
See what the dealership F&I guy can do for you. If it sounds high, call your bank or credit union. Usually what happens at the dealership is, they will use one bank all the time. It may not have the best rate around. The reason they do this is, the bank will give them a special rate on the their own cars on the lot. Just FYI, the cars sitting on a car dealers lot are NOT owned by the dealership, they are owned by the bank. Just like the rest of us. So, for a little know negotiation tool, ask the salesperson how long the car has been sitting on the lot. The longer the car has been there, you have a better chance of getting a good deal. They want to move that car ASAP and stop making payments on it. A car that just arrived, will be harder to get a deal on.
2006-11-01 19:03:37 · answer #2 · answered by pcnut4u 2 · 0⤊ 0⤋
You should have no problem. You are not an "A" tier, but with a 656 fico score and high balance along with a $5000 down payment, you should have no problem. Don't let any automobile dealer finance manager try to screw you. If they try to pressure you, simply tell them that you will go to a couple of banks to get interest rates, Then, they will have to match it.
2006-11-01 18:51:29 · answer #3 · answered by brucenjacobs 4 · 0⤊ 0⤋
I would check the dealers available rate vs. your present bank...and check the availability of acquiring the loan. If you belong to a credit union check them too but in your case id try and stick with a bank since theyll help you raise your credit score even if the loan costs more over time.
2006-11-01 22:33:47 · answer #4 · answered by Johnny 7 · 0⤊ 0⤋
Contact the collection agency and work with them on setteling the bill. You should be able to talk them down to $1000 but be sure that you send them a letter stating that you want everything negative associated with the bill removed from your credit. then take the remaining $4000 and put it down on a new car. Use the credit union...they can beat hondas rates.
2006-11-01 19:52:17 · answer #5 · answered by thewilsons4ever 1 · 0⤊ 0⤋
you will have no problems with getting a loan most places look at your last 6 mounths of bills,this is how loan companys can get away with charging more intrest on a loan like they will you but they shouldnt hit you to hard but yes you will be able to get a loan easy
2006-11-01 18:52:29 · answer #6 · answered by Rev.Howard 1 · 0⤊ 0⤋