Buying Options and Credit Issues
08-16-2002, 10:17 PM
#1
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Buying Options and Credit Issues
I know that we've gone over many scenarios regarding lending companies and leasing vs. buying, etc. Here's my issue, hope you guys can help:
I don't know much about how the process works. This will be my very first brand new car (I've only bought used with cash). I have to buy or lease this car and my credit is far from solid. So, I'm leaning toward buying and want to know how the hell I'm going to get this done with my credit problem.
I'll have about $6-7K to put down. I'm thinking the best way to go is with a co-signer, along with that nice downpayment, to keep the payments lower. I figure I would wait until the car gets here and head in with my co-signer to work out all the financial stuff at the dealer. No? Should I be looking at all the lending companies that have been mentioned and get on the ball? Can I do that with a co-signer now? Please help
I've GOT to have the Z and I'm interested in any way I can to make it happen smoothly... So, could you financial gurus give me a hand? Thanks in advance...
I don't know much about how the process works. This will be my very first brand new car (I've only bought used with cash). I have to buy or lease this car and my credit is far from solid. So, I'm leaning toward buying and want to know how the hell I'm going to get this done with my credit problem.
I'll have about $6-7K to put down. I'm thinking the best way to go is with a co-signer, along with that nice downpayment, to keep the payments lower. I figure I would wait until the car gets here and head in with my co-signer to work out all the financial stuff at the dealer. No? Should I be looking at all the lending companies that have been mentioned and get on the ball? Can I do that with a co-signer now? Please help
I've GOT to have the Z and I'm interested in any way I can to make it happen smoothly... So, could you financial gurus give me a hand? Thanks in advance...
08-16-2002, 11:07 PM
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I'm no expert, but with a co-signer, assuming their credit is solid, you should have no problem getting financing. You may have to pay a higher rate, but they may base the rate on the co-signers credit
You should take to your dealership right away. I know with my dealership, they wanted me to finance instead of paying cash. They said that because of my good credit, they could counter balance someone with not so good credit to the finance company. This could have been a total line of BS, but if true it might meant that you could get credit from a dealer eaiser than from a bank.
I would go to several places right away to see what they say. Your credit might not be so bad that you can't get financing, especially with such a big down. Don't go to too many places, multiple credit queries can impact you credit rating.
Good luck
You should take to your dealership right away. I know with my dealership, they wanted me to finance instead of paying cash. They said that because of my good credit, they could counter balance someone with not so good credit to the finance company. This could have been a total line of BS, but if true it might meant that you could get credit from a dealer eaiser than from a bank.
I would go to several places right away to see what they say. Your credit might not be so bad that you can't get financing, especially with such a big down. Don't go to too many places, multiple credit queries can impact you credit rating.
Good luck
08-16-2002, 11:23 PM
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Don't shop around too much
If there are too many credit inquiries in a recent time frame it looks like you are getting turned down alot and it counts against you on your beacon score. Experian.com equifax.com either of these sites can give you a good inclination of what hurts and helps, also it may be worth paying the 12 bucks to get your report from them along with your beacon score or fair Isaac's score, its all the same thing. But it will give you a score and let you know what to expect, don't go in there blind. Also there might be crap on there that isn't true. I had a landlord from college report me and when we cleared it up he never removed it. Nobody is looking out for you but you.
08-16-2002, 11:25 PM
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Thanks Alang... my co-signer has platinum credit. I think you're right, they use that as their rate basis. I probably could get financed, but at such a high rate. I'd rather use the co-sign to lower the rate and build credit of my own by making timely payments. Any other input/advice?
08-17-2002, 12:49 AM
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kraZy,
Work with the dealer first. Why? Car companies work with cars everyday (duh
). If you were to default on the loan, the dealership would take back the car and sell it fairly easily because that is what they do best.
Banks deal with money. If you default on the loan, they get a car, not money, and then have to sell it to get the money. Not what they do best.
Plus, car companies typically arrange for large amounts of dedicated financing funds (several millions of dollars) and can afford to be a little less strict with their acceptance criteria (for reasons mentioned above).
Good luck.
26 days and counting (Sept 12+/-)
Work with the dealer first. Why? Car companies work with cars everyday (duh
). If you were to default on the loan, the dealership would take back the car and sell it fairly easily because that is what they do best.Banks deal with money. If you default on the loan, they get a car, not money, and then have to sell it to get the money. Not what they do best.
Plus, car companies typically arrange for large amounts of dedicated financing funds (several millions of dollars) and can afford to be a little less strict with their acceptance criteria (for reasons mentioned above).
Good luck.
26 days and counting (Sept 12+/-)
08-17-2002, 12:55 AM
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Re: Don't shop around too much
Originally posted by Kyle
If there are too many credit inquiries in a recent time frame it looks like you are getting turned down alot and it counts against you on your beacon score.
If there are too many credit inquiries in a recent time frame it looks like you are getting turned down alot and it counts against you on your beacon score.
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