i am shopping for a new car and am wondering what i should do to get the best deal? my credit score isn't great since i've been a college student for a while and just graduated a few months ago. i have a full time job now with great income and signed a two year contract with my employer. any suggestions?
2007-03-24 03:36:45 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit
If your credit score is not great, like under 640, you will fall into whats called Special Finance. You need to find a dealer in your area that has a Special Finance Department and they will assist you.
There are several things that factor into weather a lender will approve you. How much are you trying to borrow in relation to what the vehicle is worth by N.A.D.A., how long are you borrowing it for, how old is the vehicle, how many miles are on it, how much are you putting down, how long have you been on your job, how long have you been at your residence and most important, do you budget for the payment.
Only an experienced Special Finance Manager can help you with making this decision. They will look at what you are trying to buy and your credit and application and based on what they see, they should know what banks to submit you to for the best deal.
2007-03-24 03:59:04 · answer #1 · answered by ? 7 · 0⤊ 0⤋
First of all, I would avoid buying a new car. Buy a used car and save yourself thousands and thousands of dollars.
The second you drive a car off the lot you lose 20%.
There are plenty of excellent used cars out there, including some certified vehicles with warranty.
Don't fall into the trap of spending money on a new car, it will really cost you in the long run.
For example, if you get a new car at $20K, for five years, at 7% interest, you will pay about $23,800 for the car, with payments of nearly $400 per month.
Buy a used car for $12,000 at 7.5% for three years and your payments will be a bit less than $375 for month and you will pay a total of about $13, 400, a savings of over $10,000.
Plus, being lower in price, a used car will have lower insurance costs and for someone you like you, that is very significant.
I would also look at joining a credit union, they often give the best rates.
I have included links to loan calculator and a site for searching for credit unions.
2007-03-24 04:25:42 · answer #2 · answered by bladerunner6 2 · 0⤊ 0⤋
take your father with you, it always works for me
2007-03-26 16:43:55 · answer #3 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋