Purchase Plan

[xlover]

If your score is 720.. That plus the 20% down should get you top tier apr or one below. I doubt you will have any issues financing it.

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[13GTCSMustang]

With a credit score of 720 (which is in the good range) and a decent down payment, you should get a pretty good rate. I would NOT finance with Ford credit, they try to screw people with thier rates. My credit score is 780 and when I financed my '13 GT/CS with 10k down, they offered 6.9% for 36 months. I got 1.99% with AllSouth credit union. Even the credit manager at the dealership didn't understand why Ford was so high. If you are not a member of a credit union, I suggest you sign up ASAP. You will usually get a better rate.

 

[mustang317]

With a credit score of 720 (which is in the good range) and a decent down payment, you should get a pretty good rate. I would NOT finance with Ford credit, they try to screw people with thier rates. My credit score is 780 and when I financed my '13 GT/CS with 10k down, they offered 6.9% for 36 months. I got 1.99% with AllSouth credit union. Even the credit manager at the dealership didn't understand why Ford was so high. If you are not a member of a credit union, I suggest you sign up ASAP. You will usually get a better rate.

I agree my local credit union offered me 30K loan with 2.5 interest rate

 

[chopsui]

Perfect person to respond to this thread, thanks. The credit score is 720 as stated above (not good, I know)...

What do you mean 720 is not good?

 

[Fox9350]

What do you mean 720 is not good?

I think there was some confusion, NVPony copied and pasted an entire post from the internet that used a different scenario and numbers than the OP to give an example of how a car loan works and what factors determine the rate and payments, etc.....the OP thought NVPony's example applied directly to him. The OP has a good income and good credit as others are stating (OP 700+ is good credit score), so if he really wants to drop 45k on a car with some down payment, he can probably make it work, even living in a super high cost area. (this includes putting away money in retirement right OP?? ) We all know the car dealer will make it work, whether its good for the OP or not.

To the OP, my only suggestion, as a fellow impulse buyer who has had buyers remorse in the past is think about it long and hard. If you still want the car after a lot of thinking it over (at least several weeks time), then do it, you only live once. Just remember 45k is a LOT of money for a car and it will be worth it to you alone. If you bail and sell or trade it in several years from now the car will not hold its value and you will take a loss...But I understand how others telling you to be patient and save is not what you want to hear. Just think it over carefully, if you still want it, do it.

One last caveat, since you are just starting out, if you have any thoughts of buying property in the next 5-7 years I'd hold off on the car. You will want to save all your money. But don't buy property just to buy either, a few years into my working career I bought a condo (2005 in height of market prices) because I thought it was the right thing to do, and I wound up getting engaged a few years later, selling the condo for a sizeable loss and buying a home. It turns out renting would have been better for me since I wasn't ready to settle yet. But life changes for all of us. You can't not live either. But if a house or property is in your future hold off on the car.

 

[Nate408]

With a credit score of 720 (which is in the good range) and a decent down payment, you should get a pretty good rate. I would NOT finance with Ford credit, they try to screw people with thier rates. My credit score is 780 and when I financed my '13 GT/CS with 10k down, they offered 6.9% for 36 months. I got 1.99% with AllSouth credit union. Even the credit manager at the dealership didn't understand why Ford was so high. If you are not a member of a credit union, I suggest you sign up ASAP. You will usually get a better rate.

Well I am worried because I have only 1 yr of credit history. Also, after doing more research, I think I misrepresented myself. Depending on what score you look at, I have a 664 TransUnion, and 719 Vantage (combined) score. I'm OK with an APR up to 10% since I am a first time buyer, provided I could refinance in a year or two. Ideally I could get something in the 5% range. Thanks for the info

 

[Nate408]

I think there was some confusion, NVPony copied and pasted an entire post from the internet that used a different scenario and numbers than the OP to give an example of how a car loan works and what factors determine the rate and payments, etc.....the OP thought NVPony's example applied directly to him. The OP has a good income and good credit as others are stating (OP 700+ is good credit score), so if he really wants to drop 45k on a car with some down payment, he can probably make it work, even living in a super high cost area. (this includes putting away money in retirement right OP?? ) We all know the car dealer will make it work, whether its good for the OP or not.

To the OP, my only suggestion, as a fellow impulse buyer who has had buyers remorse in the past is think about it long and hard. If you still want the car after a lot of thinking it over (at least several weeks time), then do it, you only live once. Just remember 45k is a LOT of money for a car and it will be worth it to you alone. If you bail and sell or trade it in several years from now the car will not hold its value and you will take a loss...But I understand how others telling you to be patient and save is not what you want to hear. Just think it over carefully, if you still want it, do it.

One last caveat, since you are just starting out, if you have any thoughts of buying property in the next 5-7 years I'd hold off on the car. You will want to save all your money. But don't buy property just to buy either, a few years into my working career I bought a condo (2005 in height of market prices) because I thought it was the right thing to do, and I wound up getting engaged a few years later, selling the condo for a sizeable loss and buying a home. It turns out renting would have been better for me since I wasn't ready to settle yet. But life changes for all of us. You can't not live either. But if a house or property is in your future hold off on the car.

Thanks for looking out for me! I most definitely have matching 401k maxed out, and have been thinking about the car for over a year. Probably not looking to buy a house for a while. It's not a question of whether I want it enough, it's if I can get a loan that is within budget (i.e. no 20% APR). I'll just have to wait and see. I spoke with the dealership and they gave me no useful advice regarding credit (I didn't want to do a hard pull) but said I could order the car with a $500 deposit, and when it arrives in Sept-Oct if finances didn't go through the $500 is refundable. I guess that's the game plan, hopefully it pans out!

 

[Fox9350]

I don't know for sure but just from my own experiences, I'd guess with your credit and monthly pre-tax income I think you'll get a reasonable rate. It is up to you to figure out if the very high monthly payments (because unless you put down a boatload of cash, the payments will be high) are going to fit within your monthly budget which should also include still saving something, and living (fun, going out to eat, etc). Don't forget to include the insurance cost, check with insurance company to see what the rate is for a 2014 GT and then expect it to be a little higher.

One other thing to be aware of, not sure of CA, but in MA you get killed on your following year's excise tax when you buy a new car. The way they calculate it you end up taking it on the chin for several years....Just keep that in mind too.

 

[Nate408]

Yea the insurance rate is going to be brutal. My coworker got an '03 terminator in a similar situation as mine when it came out, and he said to just look far and wide for a good rate as he was able to find one. Just for fun I contacted my current insurance, Farmers, and they quoted me at $440 a month for a 2014 GT. NUTS!!! However I am almost 25, and there is a big cutoff at that age AFAIK I will no longer be considered a "young male". Hopefully I can find better!

 

[Dosia]

Dude dump Farmers. Those clowns were charging me $800 a yr for my 98 accord with only liability. I called Geico and they now charge me $400. I too am not looking forward to registering or paying car insurance for a new GT.

 

[Shark77]

Thanks for looking out for me! I most definitely have matching 401k maxed out, and have been thinking about the car for over a year. Probably not looking to buy a house for a while. It's not a question of whether I want it enough, it's if I can get a loan that is within budget (i.e. no 20% APR). I'll just have to wait and see. I spoke with the dealership and they gave me no useful advice regarding credit (I didn't want to do a hard pull) but said I could order the car with a $500 deposit, and when it arrives in Sept-Oct if finances didn't go through the $500 is refundable. I guess that's the game plan, hopefully it pans out!

Go to your bank and see what a loan would look like on a similarly priced car you could buy today. Definitely shop around financing outside of your dealer before you buy.

 

[Nate408]

Go to your bank and see what a loan would look like on a similarly priced car you could buy today. Definitely shop around financing outside of your dealer before you buy.

How much of this can I do without making a bunch of hard-pulls to my acct. Since I just got my first credit card last year when I started my job, I have a weaker score (664 transunion, 719 vantage (combined)). Since I have low balances and have been paying on time, my score will likely be a bit higher in Sept / Oct when I would actually have to do the financing. Basically how much of this research can I do without actually applying for the loan and hurting my score :shrug:? My guess is not a whole lot unfortunately. If you know otherwise please let me know

 

[Nate408]

Dude dump Farmers. Those clowns were charging me $800 a yr for my 98 accord with only liability. I called Geico and they now charge me $400. I too am not looking forward to registering or paying car insurance for a new GT.

They will be first to go. I have only liability insurance on my 1988 BMW because there is no point in paying more for ~2500 blue book coverage. Right now I pay ~80/month for that. Can't be a good deal. I will try Progressive & Geico. My coworker got an '03 Cobra when it came out (he was my age at the time) and got a reasonable rate with Progressive. He said they must have been ignorant to what that car was / is about .

 

[Fox9350]

I would just pull up a car loan calculator and put in some scenarios with different interest rates. Have a best case, likely case, and worst case scenario based on the possible interest rates and what you'll put down and then that's your monthly payment. No need to get formal credit checks and go running around from dealer to dealer yet. Add in the quote for the 2014GT insurance rate and there is your expected montly nut. You'll know how realistic it is that you can buy one of these cars after doing that. I use these types of calculators all the time when considering loans for things.

 

[Nate408]

I would just pull up a car loan calculator and put in some scenarios with different interest rates. Have a best case, likely case, and worst case scenario based on the possible interest rates and what you'll put down and then that's your monthly payment. No need to get formal credit checks and go running around from dealer to dealer yet. Add in the quote for the 2014GT insurance rate and there is your expected montly nut. You'll know how realistic it is that you can buy one of these cars after doing that. I use these types of calculators all the time when considering loans for things.

Sound advice to be sure. This is what I have been doing. I am worried I won't be offered a loan. I could afford a pretty awful APR, but I would only do so knowing I would refinance in the near future. I just don't want to get all prepared and order the car only to have it arrive and not be able to get a loan.

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