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| *Ostroff, Fair and Company>>>Personal Finance |
Will I get financing.........? |
I am looking to buy a 2007 Chevrolet Monte Carlo SS ($22,852.00). I have a couple questions... I pulled my credit and have positive accounts with over 1 yr 8 mnths of payment history all have been paid 100% on time except for 1 account which went 90 days late about 3-4 months ago. I have 3 that are in collections 1 will be off sometime this month, 1 in Sept. and the last in 2011 (which I'll be paying off) all of them are under $250.00 each. I also have 1 judgement which will be off my record in Sept. 07. I currently have 8 positives on my credit report, 4 are unfortunatly have high balances at the moment. I have FICO scores of: 573 Experian 546 Equifax 583 TranUnion 567-568 average I have been employeed at the same job for over 1 year 3 months and I am looking to trade my 1995 Lincoln Town Car that I have now. Don't have really any money saved for a cash down payment..... Will the trade in of the 1995 Lincoln be enough?? Good for you at working so hard to improve your credit. Unfortunately you still have a very low fico score at this time. This means that you will have to pay a higher rate than if you had a good fico. You should check at your bank and see what their rate is. You can then compare it with the rate you can get from the dealer. You really should consider waiting until you are in better shape financially. I know that everyone wants a nice car but you are still young and have plenty of time for that in the future. Now you need to do what is smart. Good luck on your journey to financial success. Im not in the car business, but from experience try and sell your car private if you can. Also you might want to try a credit union to get a better APR. Good luck http://www.fixthisloan.com Even with a very bad FICO score, the car dealership will probably be able to finance you. The problem is that your interest rate will be very high, probably above 12 percent. If you already have items in collection and a poor credit score, do you think that buying a new car for $22k is a good idea? You have no down payment and are trading in a 12 year old car. You are probably going to take a 7 year loan on the new car. As soon as you drive that car off the lot, it will be worth $15k and you will owe $24k (because of sales tax and license fees). You will be upside down in that loan for the next 7 years. That is bad news. You should buy a used car that you can pay cash for. You should only buy a new car if you have one million dollars in the bank. Cars depreciate way too fast to buy new. |
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