shopping for a new car.....dont know where to start/finance

[Semidevil]

so my car might be going to the crapper soon(see other thread), meaning time to buy a new car. I'm really worried about the financing part of it. where do I start? I"m trying to read online to get more information, and the options seems to be: financing with dealer, bank, tying to house etc etc.

any body have any suggestions on what the best way to save money is?

where do I start?

also, I dont even know if I can qualify for financing as right now, 1/3 of my paycheck is towards the house, and then there are credit cards pymnts......is there some kind of general formula as to see who can qualify for financing for a car?

 

[Otaking]

Are you trying to see how much you can qualify for or where to get some money?

 

[Reckoner]

I need more information OP.

What are you looking for in a car?
What's your budget?
What's your credit score?

 

[Semidevil]

Originally posted by: PaulNEPats
I need more information OP.

What are you looking for in a car?
What's your budget?
What's your credit score?

I dont have much preference, but just a 2 door small budget vehicle is fine.

I think 200 to 250 a month I can handle in payments.

as for my credit score, 8 months ago, when I financced for the house, they state my score from 3 sources is" 617, 670 and 710. not sure if that is good, but I have been keeping up with payments even though I used credit card to buy some more things. no late payments etc etc.

 

[IHateMyJob2004]

Originally posted by: PaulNEPats
I need more information OP.

What are you looking for in a car?
What's your budget?
What's your credit score?

New car?

used Car?


And dealerships do financing (most of them). Just make sure you get a rate you like and stick to your budget.

You arn't going to make money on this car. It's a pure cost. So figure out how much money you plan on burning, becuase you will never see it again.

It's almost best to say I you are willing to pay $XXX a month and go from there.

 

[IHateMyJob2004]

Wow, that's a wide range of credit scores. THe one in the 700s is good. Not sure whath te low 600s is though.

Brag: My wife an I both have credit scores in the hi 700s. Mine is 785 or so. I think my wifes is around there somewhere.

STICK TO THE LOW END OF YOUR BUDGET. $200/month.

A 5 year loan will be 60 payments. So, that means you can afford $12,000 or so.

I always buy new and would never buy used .... But this isn't me.

Maybe go used. Looking for something with maybe 30K miles on it and 2 years old might be worth while. You can save money, but your probably going to buy a headache.

 

[Mermaidman]

Originally posted by: Semidevil

Originally posted by: PaulNEPats
I need more information OP.

What are you looking for in a car?
What's your budget?
What's your credit score?

I dont have much preference, but just a 2 door small budget vehicle is fine.

I think 200 to 250 a month I can handle in payments.

as for my credit score, 8 months ago, when I financced for the house, they state my score from 3 sources is" 617, 670 and 710. not sure if that is good, but I have been keeping up with payments even though I used credit card to buy some more things. no late payments etc etc.

DON'T EVER START your car shopping by telling the salesman how much you can pay monthly. Car dealers have financing for most everyone--You just have to watch out for the terms. You can end up with a monthly payment of $200, but for 7 years!

Why don't you go to Capital One's website and see what kind of loan you can get? Capital One

Also study this site for car buying tips: Car Buying Tips

 

[Regs]

Originally posted by: Semidevil

Originally posted by: PaulNEPats
I need more information OP.

What are you looking for in a car?
What's your budget?
What's your credit score?

I dont have much preference, but just a 2 door small budget vehicle is fine.

I think 200 to 250 a month I can handle in payments.

as for my credit score, 8 months ago, when I financced for the house, they state my score from 3 sources is" 617, 670 and 710. not sure if that is good, but I have been keeping up with payments even though I used credit card to buy some more things. no late payments etc etc.

While many lenders will approve loan applications with this score, they may do so with somewhat higher rates or with more restrictive terms. Each creditor sets their own policies related to the rates and terms associated with a loan product.

So you either be paying a point more on interest or may just have to show proof of income. Worse comes to worse you can always fine someone willing to co-sign. I belong to the credit union at work so I get some le-way.

 

[PowerEngineer]

I'd suggest you consider cars that you can pay cash for. Taking out a loan for a car that depreciates pretty quickly and could get totaled tomorrow seems like a bad "investment".

Good luck!

 

[d3n]

Keep in mind that extended warranties are nice to have.

However, You do not have to buy it from the dealer that you buy the car from! shop around to different dealers after the fact. You have until the initial warranty runs out to get it. I still prefer manufactures warranties to other after market ones (all franchise dealers must honor a manufacturers warranty) There are just better ways to get it than from your salesman thats trying the hedge his commission.

In fact turn down every single extra and tack on they try to offer you, you don't need any of it.

 

[d3n]

As IHateMyJob2004 said, dealers do have financing. But be sure you have a pre-approvel letter or loan from someone before you walk into any dealership or you are at the dealers mercy for any interest rate they want to give you. I am partial to Chase loans for some reason.

Also, if its at all possible I would do the whole deal online with a local dealership and go pick up the car after its finalized. Sites like Carsdirect are awesome for finding exactly what you want and asking for a quote based on a fair target price.

I love websites like this. They are great because they give you the exact options pricing and the exact markup the dealers should be putting on the options packages. You know exactly how badly you are getting hosed. The sites are dead on accurate for options pricing so don't let the dealership lull you into thinking your getting a good deal. Go for the target price and stick too it. Especially around Christmas dealers are desperate to get rid of inventory so they don't have to pay inventory tax. They are also going for end of month, end of quarter and end of year numbers.

 

[DaWhim]

new car? maybe not...