FINALLY!, Found my mustang....Need some financing tips.

[Jonnyslick]

So i finally came across a decent deal for a 2012 gt premium, brembos,tech package,cold package,6m . For about $36000

Thing is this will be the first time iam buying a car under my name, My previous cars have been on the old mans name but payed by me. Ive been busting my ass to get my credit score to 655 and now i want to get this stang on my name.

I have a %100 clean credit report but only have 1 year of history.

Iam planning on putting about $3k down, I dont want to invest to much money into the down payment. Maybe a bit more if needed.

and have been working with my dad for 5 years.


My income is around 90k per year before taxes. Just wanted to know if their are any finance managers or sales guys that search these forums that would know if i could get approved for something like this by myself with no cosigner.

Worst comes to worst grandma might give me a hand with cosigning.


Thanks for all help in advance.

 

[five.slow]

i would say to put down as much as possible b/c that will help get you a better deal on the financing.

 

[Torch10th]

At a 655, it's doable. More than likely you're going to end up financing through Ford Credit at that point. You'll likely need to prove your wages, so be prepared to supply pay stubs, or tax forms if you are self employed.

I can almost guarantee you the bank is going to ask for more money down as well. You're shy of 10% and at your credit rating the banks are typically going to want to see around 20% down.

It's going to put your interest rates a little higher since you're not in top tier, which for Ford is above 700. You might consider having your father co-sign for you to lower the rate. Realistically, you should have been on all those other loans. It was kind of an irresponsible thing to do from a credit standpoint.

Especially since no credit can hurt you more than poor credit, one of the top rules in the game is to never make payments for a loan your name isn't on. Meaning if you're paying for it, make sure you're getting at least partial credit for it.

My father co-signed a small loan for my Firebird with me back when I was in high school. By the time I was 19 and purchased my first car on my own accord, I had the credit score to get almost anything I wanted.

Once you get the financing locked down, make the payments on time and for as long as you can. Meaning, don't pay the note off within a year. Remember that the credit bureau's are run and administered by the major credit companies. They like to reward people that make them money. So hang on to the car for a bit before moving on to something else (if you're a person that does this that is).

 

[ON D BIT]

Financing is about debt to income. The 90k a year is good but what is your debt and living expenses like?

If you have been making 90k for a few years you should have some money saved. I would suggest putting as much down as possible(10k down would be great) and still having cash left for an emergency fund.

quotes 38k otd with 60 month 3% financing:
10k down ~ 503 a month, 2200 interest over the life of the loan
3k down ~ 629 a month, 2800 interest over the life of the loan

 

[Jonnyslick]

At a 655, it's doable. More than likely you're going to end up financing through Ford Credit at that point. You'll likely need to prove your wages, so be prepared to supply pay stubs, or tax forms if you are self employed.

I can almost guarantee you the bank is going to ask for more money down as well. You're shy of 10% and at your credit rating the banks are typically going to want to see around 20% down.

It's going to put your interest rates a little higher since you're not in top tier, which for Ford is above 700. You might consider having your father co-sign for you to lower the rate. Realistically, you should have been on all those other loans. It was kind of an irresponsible thing to do from a credit standpoint.

Especially since no credit can hurt you more than poor credit, one of the top rules in the game is to never make payments for a loan your name isn't on. Meaning if you're paying for it, make sure you're getting at least partial credit for it.

My father co-signed a small loan for my Firebird with me back when I was in high school. By the time I was 19 and purchased my first car on my own accord, I had the credit score to get almost anything I wanted.

Once you get the financing locked down, make the payments on time and for as long as you can. Meaning, don't pay the note off within a year. Remember that the credit bureau's are run and administered by the major credit companies. They like to reward people that make them money. So hang on to the car for a bit before moving on to something else (if you're a person that does this that is).

thanks for the advice, iam 20 now ive been working with my dad for five years. He is oldschool so when i wanted something he would make me bust my ass for it even though its not on my name . So if i want it, i pay for it.


I really dont care if the rate is high as long as its not crazy high like 14-20%

Reason why i dont want to put so much down is because i would have liked to keep the car for a max of 2 years and trade it in for a BMW or something along the lines of plush and power.

But taking your advice that would be a poor decision credit wise.



iam very anal when it comes to my credit ,I pay my credit cards 1 week in advance like clockwork so the payments will be on time every time.

 

[Jonnyslick]

Financing is about debt to income. The 90k a year is good but what is your debt and living expenses like?

If you have been making 90k for a few years you should have some money saved. I would suggest putting as much down as possible(10k down would be great) and still having cash left for an emergency fund.

quotes 38k otd with 60 month 3% financing:
10k down ~ 503 a month, 2200 interest over the life of the loan
3k down ~ 629 a month, 2800 interest over the life of the loan

I guess its just me but i cant see investing $10,000 into a down payment for a mustang. I was thinking $5-6k max.

 

[Red Turtle]

So i finally came across a decent deal for a 2012 gt premium, brembos,tech package,cold package,6m . For about $36000

Thing is this will be the first time iam buying a car under my name, My previous cars have been on the old mans name but payed by me. Ive been busting my ass to get my credit score to 655 and now i want to get this stang on my name.

I have a %100 clean credit report but only have 1 year of history.

Iam planning on putting about $3k down, I dont want to invest to much money into the down payment. Maybe a bit more if needed.

and have been working with my dad for 5 years.


My income is around 90k per year before taxes. Just wanted to know if their are any finance managers or sales guys that search these forums that would know if i could get approved for something like this by myself with no cosigner.

Worst comes to worst grandma might give me a hand with cosigning.


Thanks for all help in advance.

You are going to need a cosigner to buy a 36k car as your first Auto loan. Even with $10k down, you are still going o score a tier 4-5 in the Ford credit system. No magic there to override as they are buying the paper.

At least that is my opinon after being on the desk for 3+ years.

 

[Red Turtle]

Financing is about debt to income. The 90k a year is good but what is your debt and living expenses like?

If you have been making 90k for a few years you should have some money saved. I would suggest putting as much down as possible(10k down would be great) and still having cash left for an emergency fund.

quotes 38k otd with 60 month 3% financing:
10k down ~ 503 a month, 2200 interest over the life of the loan
3k down ~ 629 a month, 2800 interest over the life of the loan

3%....? C'mon man, he is 20, 1yr on the books, and a FTB. FMCC isn't going to give hime 3% unless that is the tier 4 subvented rate...?

 

[ON D BIT]

I guess its just me but i cant see investing $10,000 into a down payment for a mustang. I was thinking $5-6k max.

:lol:

You don know what depreciation is correct? + interest? + tax title and licences fees?

36k dollar mustang agree upon price. otd(out the door, or tax title and license and doc fees added on to the price of your mustang) price will be over $39k.
Trade in you 2 year old mustang(have you looked at 2 yr old mustang prices today) for if your lucky $26k. 39k - 26k ~ $13k loss in two years.
Bottom line, if you choose to purchase a new mustang you will lose $10k to $15k in less than 2 years regardless of down payment!

You might want to find something like this:
2000 BMW 540iS Sedan
pay 14k otd and sell it for 10k in 2 or 3 years. 4k loss instead of 14k!

 

[ON D BIT]

3%....? C'mon man, he is 20, 1yr on the books, and a FTB. FMCC isn't going to give hime 3% unless that is the tier 4 subvented rate...?

I did not know he was 20 at the time of my response, only that he only had one year of credit. Cosigner he can get 3% correct?

Regardless he does not want to lose money which he will if he buys a new mustang.

 

[Jonnyslick]

the depreciation really does not bother me i know it will depriciate no matter what, I just really like the new styling of the stang and of course the motor otherwise i wouldn't be getting a ford.

Most likely another BMW, Iam breaking out even in my 3 year lease of the BMW i have now and iam 14k over mileage.

 

[Red Turtle]

the depreciation really does not bother me i know it will depriciate no matter what, I just really like the new styling of the stang and of course the motor otherwise i wouldn't be getting a ford.

Most likely another BMW, Iam breaking out even in my 3 year lease of the BMW i have now and iam 14k over mileage.

If you are 14k miles over, you are not "breaking out even" You are going to owe $2800 at turn in plus any excessive wear charges.

If you change cars frequently, leasing is the way to go. They require minimal down, generally have a lower payment than the purchase payment of the same car, but you do have to watch the miles and mods. After 3yrs, turn it in and get another or go get something else.

 

[ON D BIT]

the depreciation really does not bother me i know it will depriciate no matter what, I just really like the new styling of the stang and of course the motor otherwise i wouldn't be getting a ford.

Most likely another BMW, Iam breaking out even in my 3 year lease of the BMW i have now and iam 14k over mileage.

My point is that regardless if you put 10k or 0 down you will still lose the same amount of money on the car you buy!

You acted as if you did not want to lose the possible 10k down payment. I was just making sure you knew that with a 10k down payment or 0 down payment you were still going lose the same 10-15k in 2 years.

My advice is get what you want now. If you want a luxury performance car in 2 years get it now! If you want a mustang in 2 years get it now! :beer:


Just out of curiosity how much did the bmw lease cost you? 3k down + 350x36 a month + 3k for overages ~ $18,600 gone! 6k a year to rent a car...sound financial decision.

 

[Jonnyslick]

My point is that regardless if you put 10k or 0 down you will still lose the same amount of money on the car you buy!

You acted as if you did not want to lose the possible 10k down payment. I was just making sure you knew that with a 10k down payment or 0 down payment you were still going lose the same 10-15k in 2 years.

My advice is get what you want now. If you want a luxury performance car in 2 years get it now! If you want a mustang in 2 years get it now! :beer:

No not at all i totally understand the situation. But hey its just a car and they come and go, Like you said no reason to settle for less when you can get better :beer:

If you are 14k miles over, you are not "breaking out even" You are going to owe $2800 at turn in plus any excessive wear charges.

If you change cars frequently, leasing is the way to go. They require minimal down, generally have a lower payment than the purchase payment of the same car, but you do have to watch the miles and mods. After 3yrs, turn it in and get another or go get something else.

r

ealisticlly i bought extra miles, Just trying to make a point that i know mustangs dont hold their value to well and i know that.

 

[five.slow]

3%....? C'mon man, he is 20, 1yr on the books, and a FTB. FMCC isn't going to give hime 3% unless that is the tier 4 subvented rate...?

i was 24 with only 1 previous loan for 1 other car that was cosigned. bought a fully loaded 09 GT 45th anny for 34k with out a cosigner and get 1.9% financing. so its possible. 680 credit score and only 2K down.

 

[ON D BIT]

realisticlly i bought extra miles, Just trying to make a point that i know mustangs dont hold their value to well and i know that.

Now I am confused. You purchased extra miles(when you signed the lease) and you are still 14k miles over?
Or you are 14k miles over and you will need to pay for the extra miles?
Or you purchased extra miles so that you would not be 14k miles over?:??:

 

[Jonnyslick]

Now I am confused. You purchased extra miles(when you signed the lease) and you are still 14k miles over?
Or you are 14k miles over and you will need to pay for the extra miles?
Or you purchased extra miles so that you would not be 14k miles over?:??:

Your allowed to purchase more miles mid-lease, I dont know if any other companies do it or if BMW just does it.

 

[ON D BIT]

Your allowed to purchase more miles mid-lease, I dont know if any other companies do it or if BMW just does it.

So you purchased more miles mid lease and you are still 14k miles over?

 

[Torch10th]

i was 24 with only 1 previous loan for 1 other car that was cosigned. bought a fully loaded 09 GT 45th anny for 34k with out a cosigner and get 1.9% financing. so its possible. 680 credit score and only 2K down.

You're situation is much different. You had at least some credit history verse no history. Your score was also close enough to "good" that Ford likely bought down the rate to make sure you purchased their car. This is pretty standard practice in high competition markets like automobiles. Heck that's one of the reasons GMAC floundered so badly. The bought down so many rates on people that probably shouldn't have qualified for it.

The problem for the OP in this situation is that he has a worse score, still borderline poor depending on the bank, his debt/income and whether his income stream can be proven. He's no were near the point where he can simply state what he makes and a bank will believe him.

I certainly understand the OP's father's concern about taking charge of what you want et al, but he did a large disservice to you by not at least placing your name second on those previous loans/leases. He was nice enough to put the car in his name for you, I'm wondering why you're couldn't have gone on there as well. You'd be in a greatly improved situation going in to this purchase.

Heck you'd probably be around a 720 FICO and you could walk in and have your car in an hour.

 

[Red Turtle]

i was 24 with only 1 previous loan for 1 other car that was cosigned. bought a fully loaded 09 GT 45th anny for 34k with out a cosigner and get 1.9% financing. so its possible. 680 credit score and only 2K down.

Your situation it not even comparible. You had another car note that established your perceived responsibility to pay an auto loan. You were not labeled a "First Time Buyer", so you were able to get the special rates advertised by FMCC when you bought the 09'.