Auto Loan question

[coolred]

I am planning a used car purchase in my near future and I would like to have the financing ready before I start shopping. I am 22 years old and as of earlier this month I had a credit score off 700. This should go up a bit, not sure how much, when I pay off my credit card bill with my income tax refund. I have been doing some reading and edmunds says 620+, carbuyingtips says 680+ is the range for subprime borrowers. So does that mean with a score of 700+ I should be able to get a low rate? And if it doesn't then will a cosigner with excellant credit be enough to qualify me for something around 5%? From what I have seen the average used car loan intrest rate right now seems to be right around or just under 5%.

Also this will be my first non cash car purchase so what else do i need to know. I have at least 1 car in mind that I am interested in, I am sure I will find a few more when i really start looking. I know I need to go look and them and get a test drive and should get them looked at by a mechanic for any problems. Anything else I need to do? I have researched prices for the specific car I want, and will do so with any other cars I consider, how else can I get a good deal?

Keep reading my posts after relpies as I am sure I will end up with more questions as we go. Thanks


Also if anyone with carfax or whatever would like to run this VIN 1N4BB42D9VC521580 for me I would appreciate it, unless thats not allowed.

 

[AbsolutZero]

700 FICO score is great. I wonder if you need to be working full time for 2 years to get the lowest rates. How long have you worked?

I negotiated a 3.5 rate on a semi-hot car (Honda Odyssey) that we bought for $2600 under retail last year with the dealer. Getting pre-approved is a great way to negotiate.

http://www.carbuyingtips.com/ is what I used. Highly recommended.

 

[coolred]

Oh crap I never even thought of that. I work part time, will that be a problem? I ahve had my job for several years though.


I am currentlly reading over carbuyingtips right now.

 

[Red]

Coolred, I'm in a similar boat. I'm 21 with a credit score of 703. I'm on my second car loan, however (1st loan was a '98 Saturn SC2 for $12,000 @ 13% ... traded that in on my 2002 Honda Civic loan for $18,000 @ 4.9%)

Anyway, Over the past 17 months, I've knocked the 18,000 loan down to 12,100... which is a little less than the private party value. Keep in mind the two loans mentions were both co-signed by my father.

Having said that, I'm selling my Honda now and looking to get a loan on my own for $5,000 - $7,500 (about the lowest banks will go for car loans). A local bank told me that with my credit score (703) with 0 down I'd be looking around 6% for a $7,000 loan on a '99 Camry. So, that is where I'm at now... just waiting for my car to sell to pay off the loan/clear the title and then go out and get a new loan/car.

 

[AbsolutZero]

Not sure. When I was a full-time student with no job, I had my Dad co-sign the loan. Give the site a read and apply/call one of the online finance companies listed.

 

[Loggerman]

Don't say / show how much you really like the car.Everything is "OK",not sweet/cool/love it.
Make THEM sell the car to you.
Not bad / ok / I'll think about it. Should be your vocabulary "along those lines"

Don'y but the first one you see.
You're taking the time to be pre-approved--take your time buying.

Have fun,don't be afraid to BOOT-It,this may well be your car.

 

[Red]

Originally posted by: Loggerman
Don't say / show how much you really like the car.Everything is "OK",not sweet/cool/love it.
Make THEM sell the car to you.
Not bad / ok / I'll think about it. Should be your vocabulary "along those lines"

Don'y but the first one you see.
You're taking the time to be pre-approved--take your time buying.

Have fun,don't be afraid to BOOT-It,this may well be your car.

And to add to this...do almost all of your research on the phone / internet. My fiancee and I were 19 when we purchased two new 2002 Civics. When we went to the closest dealership to us the salesmen was a complete a*hole and didn't cooperate at all. I had tons of paperwork with me showing the invoice cost of the car and I immediately told him I was looking for a fair deal because I would be trading in two profitable cars and would be purchasing two cars immediately if we could work something out. He tried to lowball us on the tradein value and overcharge us for the cars. And he refused to show us the actual invoices for the cars.

We then called the next closest Honda dealership, and without disclosing my age, I told the guy on the phone the same thing. We played with some numbers and had a meeting of the minds. We traded in two '98 Saturns to him and bought two '02 Civics the same day. My dad had to cosign and didn't feel like driving 30 minutes to the dealership so the salesmen drove over to our house to have my dad cosign (but what salesperson wouldnt?). It was a good deal. The worst part of the whole deal is the fact that my fiancee and I were f*cking brainless to buy two brand new cars at 19. Now we're both selling the Hondas to get into much more reasonable loans ($5,000-$8,000ish) on used cars with cheaper insurance.

 

[AbsolutZero]

One tip I got from carbuyingtips and prices paid forums at edmunds was to contact big dealers in nearby states. In many cases you can get a better price by traveling one way (by plane) and driving it home. Houston Honda dealers have great deals! Carr's in Chicago is not bad. On the coasts, some might give you the "demand is high" runaround. It all depends on how hot the car is. Good luck.

 

[coolred]

Yeah I know not to give them those clues loggerman. And I know I can walk whenever i want. I do kinda want this 200SX SE-R I am currentlly looking at, but i will look for others that intrest me as well. And if I don't get a good deal then I will still walk away even though this would be my first choice assumign good condition.


One thing I am wondering about is pricing, I had a thread earlier asking about edmunds and kbb's pricing and how accurate they are. There don't seem to be too many 200SX's available for sale around here, so i am having trouble getting a market value on them.

One thing I wondered is say they gave 4650 as tarde in ont he car, me not knowing this offers 4500.00. They will then give me a higher counter offer most likely right? I mean i don't want to go offer that price and have them think I am messing with them and having them tell me to get lost. Like I said I am willing to walk if I don't get a good deal, but I don't want to miss out because they think I am lowballing them.

 

[coolred]

Not sure about flying out of state to get a car. I would hate to fly out there and then get the car checked out and realize its got a lot of problems then have to fly back and waste all that money.

 

[coolred]

Also it seem like they are asking a reasonable price, other 200SX's around here are going for a little bit more but some with less miles, others with high miles are going a bit cheaper. Although by around here I meant in surrounding states, so it could be a slightly differant market.


Also what other cars should i consider. I want a sporty/economical mix that is reliable and not too expensive, oh yeah nothing that will cost insane amounts to insure either.

 

[coolred]

Heres the car I am considering.

1997 Nissan 200SX SE-R

One thing I noticed is I see no mention of keyless entry which is standard on this car. IS that a bad thing, and if not then i could use that as a bargaining chip.

 

[Red]

I'd simply ask about it. And yes, you can use it for leverage... let's say you agree on an OTD (out the door) price of $4,400 and then say that you'll only do it if they provide you with a set of new keyless entry remotes (if the previous owner lost them or whatever).

 

[coolred]

Cool thanks, one other thing, I just did some more checking on autotrader. And this price seems really good. I mean there aren't many SE-R's for sale at least not on autotrader and of the ones I have found most of which have more miles then this they are asking 6500.00 or so. Even the SE and base models are asking about 5,000.00 for the same miles or around there. I am just wondering how much wiggle room then have. I'm not looking to break the bank here, I know they need to make money. I would be happy getting a couple hundred off.

I think i will give them a call tomorrow and ask them some questions I have and if I get the right answers I will setup a test drive. We are in the middle of a decent snow storm though so the test drive may have to wait, but at least that means no one else is likely to buy it any time soon either.

What about getting it looked at by a mechanic, my girlfriends dad knows a few people that could probablly do it for me, but will they let you keep the car for the amount of time a decent look over would take? Or should I just take it to a good local(close to the dealership) mechanic? I don't know much about this, but I really want to get it looked at so i can be somewhat sure its not crap.

 

[StageLeft]

700 IS a good score and you can get great rates. Remember that once you pay off your credit card it will take until the end of that cycle plus several days/weeks before it's actually updated to the credit bureaus. For MBNA my cycle ends on the 31st of each month and they update the credit bureaus around the 10th-15th of each month with my info.

 

[coolred]

Alright I ran a carfax report on this car. The good news is it came back problem free. The one thing I am not quite sure of is this info.



08/18/1997 NICB
Vehicle manufactured and shipped to original
dealer


10/30/1997 Ohio
Motor Vehicle Dept.
Westerville, OH
Registered as
personal vehicle


10/30/1997 70 Ohio
Motor Vehicle Dept.
Westerville, OH
Title #2502532371
Title issued
First owner reported


10/17/2003 85,419 Ohio
Motor Vehicle Dept.
Columbus, OH
Title #2506341902
Title issued
New owner reported


11/19/2003 85,516 Dealer Inventory
Columbus, OH
Vehicle offered for sale


I understand this to mean the car was manufactured, shipped and purchased in ohio. Where it was then registered and a title was obtained. It then got issued a new title for a new owner in October. Was this new owner the delaer it now sits at? It then states that on November 19th the dealer put it up for sale. With an extra 97 miles on it from when the second title was issued.

SO does this mean it was traded in in October to the dealer who currentlly holds it? IF so what happened between that time and the time it was listed for sale? ARe those 97 miles test drive miles or what? Or is the dealer not considered an owner in which case it was purchased by another person and driven for less then 100 miles then traded in. If that is the case that kinda scares me. Hopefully the first case is correct and the car has been int he dealers possesion for 3 months.

 

[Ryan]

Try USAA if you're eligible to get in. I have a FICO score of 695 @ 19, and they approved me for a 3.9% loan for 60 months

 

[alkemyst]

around 700 you are golden, age as long as over 21 shouldn't matter.

Part time or full time doesn't make a difference....length of employment and pay do. All a bank cares is do you make enough to pay and does it look likely you will continue to do so.

Getting preapproved is a great thing....some banks don't do it for 'used' cars.....if anything it's one less thing to have the sales drone hound you about.

Your rate will depend on year of the car. Your term is also usually dicated by that. Getting a good rate depends on the bank (or credit union, etc)....some banks specialize in used cars....also just having an account with them can sometimes save you 1/2 a point. (points don't really add up insanely on a car loan of 5 or less years though).

I have no idea on the actual car you are looking at, but Nissan 200's are relatively bullet-proof. Things like a clutch, tires, the like are wear items on any car, but the 2.0L engine and tranny is a good setup for longevity. Another plus is parts are easy to find. I will never buy another specialty market or new to market car...

Car dealers will play games no matter how common a car is. My brother is ready to buy a car it should come out to about $21k out the door (VW GTI 20th Anniversary, low mileage pre-owned/demo)...this is a fair price and dealers have agreed. However, three times now he has got to the point where he was ready to sign and they have added $1-2k into the deal trying to tell him it's processing fees. He is going to pay for it through a cashier's check the day of signing (not that the dealership cares as they get 'cash' either way)...so the dealership has no worry of the deal falling through on the back end. Not to mention he banks 6 figures a year so a loan would not be a problem for him on $20 something K...he has even had one sales guy checking out his MDX and grouping into the same class of the car he is buying (he will have two vehicles) saying 'wow! $20k buys a lot of 'truck' now....this is nothing like the Santa Fe I looked at...all this comes standard'

After a quick explaination the guy was then trying to sell him an Audi telling him the VW the guy praised and praised is now just junk and not a fitting car for such a 'professional'.

Å

 

[Ryan]

Also - don't but that car - I have 1998 200sx for sale!!! BUY FROM ME!!! Besides, mine has less HP, but you'll get better gas mileage

 

[mrbass]

that carfax works sometimes but not all times. Real life example. My friend got a used Range Rover for a steal of a deal a little over $30,000. He was so happy he did a carfax report and it came back 100% squeaky clean. Well a few months after he bought it the thing had so many problems it was a joke. He's 3 month warranty expired (can't remember maybe it was 6 months..anyway). Major major engine problems....he took it back and they want like $8,000 to fix and rebuild this and that. Anyway he said screw 'em and took it to another Ford dealership....they said you bought a stolen car that was recovered in Tijuana and had been stripped so it had the engine replaced. He was like wtf. They said only Ford dealers were privy to this private database. Long story short.....he got all his repairs for free like he should have.

 

[coolred]

rbloedow, I actually prefer the looks of the 98's but the 97's are nice too. Yeah I'm not sure what is better, gas mileage or fun factor. The wallet is saying gas mileage and the brain is saying funfactor. And for some messed up reason my brain has more control over me then my wallet. Is your base or SE?


I think I may give my bank a jingle tomorrow and see what they can do for me. It seems like most of the online loan dealers have a minimum of 7500.00 for a loan. I have found a coupel that will go to 5000.00 though.

 

[coolred]

Hmm fromt he looks of the pics it looks like the front and rear tires are differant. They appear to have differant shapped tread. Thats not a problem is it?

 

[Ryan]

Originally posted by: coolred
Hmm fromt he looks of the pics it looks like the front and rear tires are differant. They appear to have differant shapped tread. Thats not a problem is it?

YES - IT"S A HUGE PROBLEM!!! MINE'S GOT A SET OF 4 BRAND NEW FIRESTONE AFFINITY TIRES, so it's perfect

Mines an SE, but it's got SE-R Rims - nobody will know

BTW - is this you: http://www.nissanforums.com/showthread.php?t=45573 ?

 

[coolred]

Yeah i didn't think that was a problem, I just wanted to make sure it didn't say anything about the last owner, like he only did half as$ maintenance.

Your car is nice looking, I would consider it but I would much prefer a black one.

No that is not me on those other forums, what made you think that?

 

[coolred]

BTW does anybody know about what the insurance costs of these are? Consumer guide gives it a 1 for insurance which is a low rating, which i think means the insurance is high.