1st time buyer

[l2frankie]

ill be ordering the base eco boost hopefully next week. my question is does being a 1st time buyer affect me even with a 730 credit score? im 22 years old have had credit since im 19

x plan price: 26,300
down payment: 6-7k
financing for 5-6 years

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[DeepImpactBlue2015EB]

when I was 18 I had a credit score of 740 but it didnt mean jack because I had hardly any history. The only thing you have going for you is that you're putting a pretty good down payment about 25% down which the banks like. You should get the car but just expect a higher interest rate.

 

[saesteve416]

Go to your bank and see what you can get approved by them with. I've found that my personal bank always gives me way better rates than the dealer finds for me. Then you can walk into the dealer already knowing what you can get approved for. You can hand them that sheet of paper and say I would like better than this or I'll finance it with my bank... That's what I plan to do next week when mine arrives.

 

[Juben]

Better yet, find a local credit union and see what they can do for you. CUs are non-profit, so you'll usually always get a much better rate. My local CU does interest rates of 1.23% interest on new cars with good credit. Local banks here can't touch that. I never let dealerships do my financing. Most dealerships, but not all, will pad the interest rate on the loan to snag them more cash on the car.

Having a 730 credit score should get you approved rather easily.

 

[thehunterooo]

Decent numbers, but yeah a credit union can be he best way to get a great rate. Even if you went to the dealer now you would be under 5-6%.

 

[H1 GT]

I've always used Pentagon Federal CU. I got myself a $26k, 15 year old Hummer with 70,000mi on it at an interest rate of ~1.99%, financed for 6 years, $10k down when I was 21 years old and had a similar credit score. Paid it off in 3 years and now I financed the car through them as well, almost they same details at 23 years old.

Once you hit over 5 years of credit history most things come easy, that may be your only issue. I agree with the others, talk to a credit union. It's even better if you get talking to a car enthusiast...

 

[01Moch1]

Go to your bank and see what you can get approved by them with. I've found that my personal bank always gives me way better rates than the dealer finds for me.

One thing to think about before doing this is that the pre-approvals, at least through my credit union, are only good for a certain time frame. After I apply for an auto loan, I have 45 days to find the car. If you do this before you order, you may have to apply for the loan again which could mean running your credit again as well. I've always been told that credit inquiries can negatively affect ones credit score.

 

[saesteve416]

One thing to think about before doing this is that the pre-approvals, at least through my credit union, are only good for a certain time frame. After I apply for an auto loan, I have 45 days to find the car. If you do this before you order, you may have to apply for the loan again which could mean running your credit again as well. I've always been told that credit inquiries can negatively affect ones credit score.

Correct. Mine had 30 days to use. Once my car showed intransit last week I went ahead and applied. With an EDD of 3/27 my 30 days aren't up till about 4/15 so it gives me time.

A dealer will run your credit at least 3 times usually. I don't find that running your credit affects my score much, but that could be because the size of my history and good payments. Maybe dips 10-15 points after buying a car, but that could be because I'm adding more loan value and payments. Typically I don't let me credit get run unless I already know I will be buying. :headbonk:

 

[l2frankie]

Good to know. My dealer has gone and told me I just need a $500 deposit to place an order. Next week I'll be a MCC member for 2 weeks. I should be able to order the car and be eligible for x plan price by the time the car gets to the dealer

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