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| *Ostroff, Fair and Company>>>Credit |
What chance do I have for a new 07 Mustang with bad credit but good cosigner? |
I had some problems a few years ago and no job so my credit was really messed up and now I am making pretty good money so I want a new car. My fico score is 560 with about 4 collections from about 2 years ago but my dad has a 700 score and makes about 200k and agreed to cosign. I also have a 2003 Mustang that I only owe 3500 on and the dealership will probably give me 10500 for it The car I want is 30k sticker, Please, Help me out people what are my chances? Thanks Auto finance is what I do for a living and with what you describe, there should be no problem getting you and your Dad approved for the new Mustang. Auto loans are decided based on the following things; 1. LTV (loan to value). 2. Term of loan requested. 3. Age of vehicle. 4. Miles on vehicle. 5. Down payment amount. 6. Time on job. 7. Time at residence. 8. Monthly income before taxes. 9. Credit score/profile. You should be fine on 1 thru 5 and with your Dad's good score 6 thru 9 should not be a problem. Just remember that your Dad is doing you a huge favor so don't mess up because if you do it will effect his credit as well as yours. Source(s): Finance Manager for a car dealer for over 7-years. Since your father has agreed to co-sign, you probably will be able to get the loan, although it may be at a high rate. However, both you and he need to realize that he will be just as responsible for the payments as you are, and if you make any mistakes, they will go on his credit report, not just yours. You would be better off financially to keep your current car, get it paid off and drive it for a couple more years until you get your credit score up to a 700 on your own, save the current car payment that you are making, and either borrow a lot less for a 2009 Mustang, or pay cash. You'll still be able to get the car if your dad is a cosigner. I cosigned for my daughter when she got hers. I reminded my daughter constantly because I don't want her to ruin my credit. She was young and didn't establish enough credit to stand on her own. If you default the loan, the bank will go after him. You must make payment on time, otherwise, you'll ruin your dad's credit. It's not necessary that you'll get a high interest rate. My daughter didn't. She only paid 1.99% for 3 years but she put a large down payment . The lender didn't want her to put down too much because they know they wouldn't make lots of money if she put down too much. They refused to finance her if they only financed $5000 to get that rate. You don't need a new Mustang unless you can pay cash for it. It will end up being a curse. And you don't want to stick your dad with the bill if you can't pay for it. |
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