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4/1/2020 6:58:51 AM
Posted: 5/11/2003 5:10:26 PM EDT
[Last Edit: 5/11/2003 5:12:10 PM EDT by Sumo2000]
I'm on the market for a car (probably a Wrangler) in the 10k-15k range. My credit isn't terrible, but its not that great either (I made some stupid choices in my younger years). My question is this: Have any of you guys been in a similar spot? How well do the dealerships work with you? What should I know before going in/what should I expect to pay in interest & down payment?

Edited to add, I'd like to keep my payments in the $200-250 range, which is like a 4 year loan.
Link Posted: 5/11/2003 5:13:53 PM EDT
I had no credit before getting my Impala had someone cosign at the bank.  Dealers would finance me but didnt want to work with price and wanted to rape me on interest.   SO I walk out.
Link Posted: 5/11/2003 5:32:25 PM EDT
Link Posted: 5/11/2003 5:35:51 PM EDT
Keep a stable employment history, that will help alot, I am talking about staying in one place for a while if you can, hard to do, but will help alot...

Also get as much cash together as you can, the more green you show them, the better you can negotiate a lower interest rate...

Do not have a lot of CC debt, that can hurt you...

I have finaced alot of vehicles, and this last time, I went in and paid cash, now that is a bargining tool, they dropped thousands off the price right away, and even more before we were done. If you can have finacing through a bank ahead of time, thats what I did.

Shop around, get dealerships fighting each other for your business, lots of fun doing that....

Link Posted: 5/11/2003 5:37:54 PM EDT
Link Posted: 5/11/2003 5:47:52 PM EDT
ok, looks like I need to stay around 10k, not 15k.

I don't have any Credit Cards (I hate the things) and planned on paying about $1-1.5k down.
Link Posted: 5/11/2003 5:49:54 PM EDT
Link Posted: 5/11/2003 5:50:44 PM EDT
Link Posted: 5/11/2003 5:54:34 PM EDT
hehe, I have no idea what my credit rating is. I am planning on buying used though, 10k should buy a 97-98 Wrangler in good shape (from the prices I've seen).
Link Posted: 5/11/2003 5:56:57 PM EDT
get your financing set up before you go to the dealer. i have used a credit union the past few cars. i think they are better than banks.

when you go to the dealer just neg the price of the vehicle. dont talk about monthly payments.
Link Posted: 5/11/2003 5:57:36 PM EDT
Link Posted: 5/11/2003 6:07:24 PM EDT
10k should buy a 97-98 Wrangler in good shape (from the prices I've seen).
View Quote

You need to include dealer prep charges, taxes, registration, and extended warranty (which they will push hard).  That could easily add $1,500 to the total price.  Most people, myself included, don't figure that in when shopping around and end up with a much higher payment than expected.
Link Posted: 5/11/2003 6:10:59 PM EDT
Originally Posted By walttx:
when you go to the dealer just neg the price of the vehicle. dont talk about monthly payments.
View Quote

You can negotiate the price and financing.  If you talk the dealer down in price they will try to charge you a higher interest rate to make up the difference.

I recommend going to autotrader.com and using their payment calculator.  You can enter the specifics on the price and interest rates and see what the payments come out too.  It will then produce a grid of prices, interest rates, and payments.  Print that out and take it to the dealer to reference.  That way you can compare your numbers to the dealers and will notice if they try to slip something extra in.
Link Posted: 5/11/2003 6:27:59 PM EDT
Explore all your options - sometimes you'll be surprised.  Chrysler finance just beat my credit union by half a point - and that was on non-incetive financing (already used the rebate incentive).  Really surprised me.

Good luck!
Link Posted: 5/11/2003 6:40:39 PM EDT
Cool, Good advice guys, thanks!
Link Posted: 5/11/2003 6:51:14 PM EDT
Sumo, arrange financing BEFORE you go to the dealer if it's a used car you're buying.  I prefer Credit Unions' basic philosophy, but a small bank might also be helpful.  As somebody else noted, the dealer can do just about anything to the price to accommodate the interest rate.  Best leverage you can get is committed financing up front.

Link Posted: 5/11/2003 6:56:25 PM EDT
I have worked in banking the last 7 years. If you own your own home, the best thing to do is get a line of credit. Our start at prime (4.25) Yes it is variable, but if you have had credit problems, your probable looking at a rate of 9-11%. Plus with the line you can write the intrest off on your taxes.
Link Posted: 5/11/2003 7:14:15 PM EDT
If money is tight make sure you check the cost of insuring your Wrangler.  They are awesome vehicles but usually carry a very high price for premiums.  In fact...I'm pretty sure they are in the top 10 of high insurance prices.

Link Posted: 5/11/2003 7:16:54 PM EDT
wow, I wasn't aware they had high insurance premiums. I'll check into that.
Link Posted: 5/11/2003 7:29:34 PM EDT
The interest rates that can be gotten on cars are amazingly low... I don't mean to pimp Honda's but Honda of America tells me they don't change the rate for credit rate on thier loans.. My credit isn't great but got the advertised 1.9%   Couldn't get the advertised rate from Ford, GM or Subaru since they tiered thier loan rates.

Link Posted: 5/11/2003 7:33:07 PM EDT
I sell cars for a living.  Answer these questions for me.

Do  you know what your Issac is?  If yes, what is it?

Are you currently deliquent on any accounts?

How much money do you have to put down?

How much money per month do you gross(before taxes)?

How long have you been on your job?

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