Financing Questions Please Read If you CAn help...

redline727

I have sold cars before and my old roommate is a Finance Manager so I have seen behind enemy lines so to speak. And Ill tell you right now if you find a car you like at the right dealership you can get approved with no credit at a decent rate especially with the amount of money you have down bc you are lowering your risk. Anytime you can put as close to 30% down as you can banks automatically feel safer buying your loan bc thats the general rule of thumb to have 0 or almost 0 negative equity. You may be a "ghost" as they say on paper but if you have solid work history and haven't moved around a lot, with your money down you are good. Especially if your finance manager is half way good at his job and has good contacts at the banks they deal with. Now for the matter of interest rates ask the dealership if they use a credit union and tell them thats what you want. Bc they cant get paid off of inflating your interest to make money. Other banks besides credit unions will buy the loan lets say for example 72 months at 4.9% interest 0, down(the bank gives multiple options to the dealer) well the dealer will tell you 6.9% and if you say great well the dealer and the F&I manager and the sales rep just made money off the bank for that extra 2% interest they got out of you. BUT they cant do that with a credit unions so you tend to get a better rate and without inflation from the dealer. I hope this helps. Worst case scenario if you get offered an interest rate your uncomfortable you can always walk away or if try a co-signer like others said. What I recommend is DONT tell them about the money down until after you get to test drive the car and your back sitting down looking at payment options. Let them run your credit with them thinking you have no cash just to see what their first pass at you is. And if your comfortable with this tell them you want to see 72 months with no money down. See what the interest they come back with, its prob not gonna be what you would want, thats ok. You will at least hear their speech on why you pulled the rate you did. Then use that against them bc they will say you working with 72 months 0 down blah blah. Be like ok is there a way to get better interest rates with a local credit union maybe at a shorter term??? At this point they will want to get that car sold just as much as you want to buy it. This is when things will start to open up. They will most likely come back with a better rate at 60 months with a credit union but the credit union will want money down. But thats ok bc you knew all along you really have it. Now you can feel safer knowing thats prob the best rate your gonna get with out a co-signer. And hey at the very least its a learning experience for you if you still dont like what the numbers are. But I say its worth the try. Hopefully you go to a pretty big dealer that deals with a lot of banks and has good banking connections. Thats the secret sauce. The better connections the finance manager has with the bank the better your chances will be. When I was not to much older then you my roommate got me financed on a 2008 STI the first year the hatch came out, I was working at Subaru at the time and just had to have one. I had 12k in negative equity from WRX bc of the negative equity I rolled in that. She got me financed for a 45k loan on a 36k car at 72 months with 5.9% interest with no money down! So believe me sh!t can get done at the right place! BTW that was the biggest mistake I ever made in my life hahaha dont eff with negative equity, always put money down or buy cash if you dont plan on keeping the car the full term of the loan.

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doink

Mike have some good pointers. Get a collateral short loan and pay it off in 6 months to show payment history while getting yourself a credit card too. I gave it 6 months because that what it takes for your credit score to recover from the hard inquires.

And as for the credit cards, the best rule of thumb is credit utilization. Never go above 20% of your maximum available credit. Above that number will affect your score negatively. 20% of 500 is 100 bucks so its not much. You can use credit cards to your advantage. Using credit cards and small loan will help boost credit score and help built credit history quick. I use 10%. Just charge little stuff every month to show you are using it, but pay it off every month to show consistant payment history and to avoid the high interest rates.

What is credit card utilization? | Credit Karma

I was in the same boat as you a year ago. I went the personal loan / credit card route before getting a car loan. Ended up with Altima though but will quickly pay it off next year. Ended up with 4.9 interest rate. I perfer to wait alittle longer to get build up more credit history to buy the z. i want a lower rate and dont feel comfortable with high monthly payments and throwing my money away to banks. So paying off a car loan in 1 yr on 4.9% is not too shabby.

I recommend signing up to these free sites.

Credit karma - good useful financial advice and pulls their score from transunion.
Credit sesame - pulls their score from equifax.

doink

And if you do go that route, give at least 6 months for your credit score to recover from the hard inquires you will take when the banks look at your credit history and score. After 7 months on my altima, my score already recovered and I'm already eyeing the 2013 Z's.

I work hard for my money, so do you. I decided back then to wait a year so my credit score will be higher and have a longer payment history. That will result in lower % rate when its time. Save a few thousand.

Minsu

hmm thank you i will take everyones advice into consideration.
if i post at the end of the month i got a new car.
FLAME SUIT ON!

Minsu

the more and more responses the more it get mind boggling. Lol Thanks so much guys
im gonna go the not make a retard move route and try my best
thanks!