car loan advice

[sfcgr4]

Im looking to buy a new car. Recently I applied for financing from Ford as was turned down. Why I do not know but wherever I go its either an insanely high apr or they just wont finance me.

About me,
first time buyer
college student,,20 yrs old
credit score between 718-740
been at my job for 16 months, had credit cards about that long
been at my residence now for 17 years, at my parents
no late payments or negatives on credit report
gross about 2600 per month
now im looking to put approximately 3k down on a car that costs 19k

any advice, i cant afford super high interests and would very much like a stand 6 or 7% loan. i dont have enough saved to put half down.
i do not have a cosigner
looking at a hyundai elantra, anyone know about their financing company?

thanks

['97ventureowner]

Are you a member of a credit union? That is a great place to check out for financing. You can apply, get pre-approved and avoid all the financial wrangling at the dealership. With the state of the economy and all the uncertainty in the car and banking industry, it is much harder for people, even those that in the past had no trouble getting financed, to get a loan. I've even noticed those dealers in my area that always advertised financing for those that were hard to finance are backing down from advertising that fact. It boils down to risk, and many financial institutions are not willing to take on any more risk and are tightening their stipulations for granting it. I'd try other means of financing like local banks or other lending institutions and see if any of them are willing to give you the financing you need. It may end up you might have to pay a higher APR, or come up with a higher down payment. Good luck.

[Autotropolis12]

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[olderthandirt]

Originally Posted by sfcgr4

Im looking to buy a new car. Recently I applied for financing from Ford as was turned down. Why I do not know but wherever I go its either an insanely high apr or they just wont finance me.

About me,
first time buyer
college student,,20 yrs old
credit score between 718-740
been at my job for 16 months, had credit cards about that long
been at my residence now for 17 years, at my parents
no late payments or negatives on credit report
gross about 2600 per month
now im looking to put approximately 3k down on a car that costs 19k

any advice, i cant afford super high interests and would very much like a stand 6 or 7% loan. i dont have enough saved to put half down.
i do not have a cosigner
looking at a hyundai elantra, anyone know about their financing company?

thanks

Take the amount of money you would put into a car payment each month and save it. Then pay cash for a good used car.

Cash is King, Life is great with no car payments or debt. Throw those credit cards away!

[Internist]

Can you get a auto loan if you have credit score of about 580 ?

['97ventureowner]

Originally Posted by Internist

Can you get a auto loan if you have credit score of about 580 ?

It's possible but the willing pool of candidates to give you the loan,(aka banks , credit unions, other finance companies) is a lot smaller than it was 6 months ago. Since the economy hit the skids and the credit crunch affecting various industries, more financiers have tightened their qualifications to obtain credit. You will probably end up paying a much higher interest rate, or need a co-signer, or both in order to obtain a loan for the car.

[olderthandirt]

Originally Posted by Internist

Can you get a auto loan if you have credit score of about 580 ?

It will definately be tougher with that score. Try saving up the payments and paying cash. You get more car with less hassle.

Or borrow the money from non-traditional sources (family). Just be SURE to pay back quickly or thanksgiving will never be the same again.

[Internist]

Originally Posted by olderthandirt

It will definately be tougher with that score. Try saving up the payments and paying cash. You get more car with less hassle.

Or borrow the money from non-traditional sources (family). Just be SURE to pay back quickly or thanksgiving will never be the same again.

I need about $23,500. and i only have about $3000 saved. even with my salary, it will take a while to get to $23,000. Also i have 1 repossession in my credit. it is a LONG story. i know you would be wondering why i let it get to that point with my salary. would the Repo hurt my chances of getting credit ?????

[olderthandirt]

Originally Posted by Internist

I need about $23,500. and i only have about $3000 saved. even with my salary, it will take a while to get to $23,000. Also i have 1 repossession in my credit. it is a LONG story. i know you would be wondering why i let it get to that point with my salary. would the Repo hurt my chances of getting credit ?????

Why not save up to 6 to 10K, buy a good used car, and while you are driving it, continue to save for the better car down the line. Your cash flow remains fluid, you're not "on the hook" if something comes up, and you don't take all that depreciation that new car buyers do as soon as they drive off the lot. You can get an awful lot of good car for less than 10K. Try looking on edmunds dot com or Kelly blue book.

As far as the credit history is concerned, nearly everyone has a ding or two on their history. A repo on your history is definately a big ding. Unless you like being taken advantage of by high interest rates (I call them loan sharks), I wouldn't try getting a loan right now. Build your credit slowly and reliably. Make payments ahead of time. I don't know your living arrangement, but on time rent helps your credit, paid off credit cards help your credit rating. Become anal about paying ahead of time and you'll see that rating come up steadily.

[Internist]

Originally Posted by olderthandirt

Why not save up to 6 to 10K, buy a good used car, and while you are driving it, continue to save for the better car down the line. Your cash flow remains fluid, you're not "on the hook" if something comes up, and you don't take all that depreciation that new car buyers do as soon as they drive off the lot. You can get an awful lot of good car for less than 10K. Try looking on edmunds dot com or Kelly blue book.

As far as the credit history is concerned, nearly everyone has a ding or two on their history. A repo on your history is definately a big ding. Unless you like being taken advantage of by high interest rates (I call them loan sharks), I wouldn't try getting a loan right now. Build your credit slowly and reliably. Make payments ahead of time. I don't know your living arrangement, but on time rent helps your credit, paid off credit cards help your credit rating. Become anal about paying ahead of time and you'll see that rating come up steadily.

Thank you for the GREAT advice. It is just that the 08 acura TL is on great deal right now. they have GREAT incentives that they may not have later and it will be sold out soon. and they will not have these great deals for 09. Also i still have several unpaid credit cards with huge balances and i am hoping these would fall off sson.

[CL8]

When I bought my Caravan, my folks took out the loan and I payed them back the loan, monthly, with no interest.

The dealership was disappointed I didn't take out a loan with them.

If I didn't do that, I would do what Olderthandirt said. save up the cash and get something cheaper.

A deal like that will come up again even if it goes away for a time.

Patience is what it takes to get what you want and have it last.

( you would hate to have 2 repos on your record)

[Internist]

Originally Posted by CL8

When I bought my Caravan, my folks took out the loan and I payed them back the loan, monthly, with no interest.

The dealership was disappointed I didn't take out a loan with them.

If I didn't do that, I would do what Olderthandirt said. save up the cash and get something cheaper.

A deal like that will come up again even if it goes away for a time.

Patience is what it takes to get what you want and have it last.

( you would hate to have 2 repos on your record)

I shouldn't have 2 repos, i make enough money and can afford the monthly payments. Problem with thses 08 TL acura is they are being phased out and that is why they are so much cheaper now. they sticker at $33,500 but now with incentives, they are selling it for $27000. Not sure if i can get that kind of discount again ??

[CL8]

Originally Posted by Internist

I shouldn't have 2 repos, i make enough money and can afford the monthly payments. Problem with thses 08 TL acura is they are being phased out and that is why they are so much cheaper now. they sticker at $33,500 but now with incentives, they are selling it for $27000. Not sure if i can get that kind of discount again ??

I would be careful of purchasing a car being phased out, the owner of a driving school I worked for bought a bunch of DAEWOO vehicles because they were being phased out. They were not very good vehicles to begin with, then when they did have problems they were hard to get fixed because they were not being manufactured anymore.( They wouldn't be phased out if they were great vehicles)

[Internist]

Originally Posted by CL8

I would be careful of purchasing a car being phased out, the owner of a driving school I worked for bought a bunch of DAEWOO vehicles because they were being phased out. They were not very good vehicles to begin with, then when they did have problems they were hard to get fixed because they were not being manufactured anymore.( They wouldn't be phased out if they great vehicles)

Acura TL 2008 had great reviews overall. i know my 2003 TL-S had alot of transmission problems and had to replace the entire trans, not once but 2 times thus far. but Acura tells me that this is not a problem with 2008 TL. anyway, Acura phases out their models every 4-5 years or so for a completely different looking body types. that is normal for them

[CL8]

Originally Posted by Internist

Acura TL 2008 had great reviews overall. i know my 2003 TL-S had alot of transmission problems and had to replace the entire trans, not once but 2 times thus far. but Acura tells me that this is not a problem with 2008 TL. anyway, Acura phases out their models every 4-5 years or so for a completely different looking body types. that is normal for them

At least that sounds promising. Any luck on getting the cash or a loan?