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question about financing.

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hanover
#1
I'm looking at trading in my 2013 Dodge Dart that I owe 12k on right for a 2015 base OW FiST for 18.9k OTD with my wife's college student incentive. my monthly payment for my Dart is $253 and I am going on 25 months with no missed payments. I'm 23 years old with limited credit but am a National Guard member and have a USAA account. I want to trade my car in for a FiST because I like the car and enjoy everything about it compared to my Dart and also because financially if I can get what I want out of my trade I can lower my monthly payment and also lower my monthly insurance.

knowing all this information I want to get a decent interest rate, somewhere around 3-6, but the problem is my score is only a 600. my wife has agreed to co sign with me so I can save the money and have a better chance at getting a better deal but her score is only a 600 as well. I've tried to get my mom to help me out and sign but she isn't warmed up to the idea. I'm just wondering what some of you that did finance a new FiST had for a credit score at the time of your purchase and if it even worth it to try without my mom's help or if I need to try and convince her more, and what I can do to try to get her on board.
I appreciate any help you can give me with this issue of mine. thanks.
 


FistSt215

Senior Member
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Philadelphia
#2
That's a great payment but I don't blame you on a better APR. how's your wife credit ? It all depends on the credit score for a low apr. I'm on the same boat . I had to get my wife to cosign with me due to better apr. my credit at the time was a 702. But I went with her because I traded in a gti which I was 6k upside down going into the fist . I know it blows lol . My payment is 450 plus but I have recaros :)
 


OP
H
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hanover
Thread Starter #3
my wife also has a 600 but I'm not sure if having a co signer helps with loans. I'm hoping to get 15k for my Dart considering its barely over 20k miles and a fully loaded limited.
 


FistSt215

Senior Member
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#4
That's a good sign if you get positive equatity in the trade in . Not sure how it would help with both scores being the same . What's the apr your getting for the 253 a month ?
 


FistSt215

Senior Member
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#6
How did you get a 2.99 for the dart ? Is it a lease ? That's a great apr . Did you get numbers work out yet for the fist and trade in?
 


OP
H
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Location
hanover
Thread Starter #7
no it's technically a 75 month finance. my mom helped me by co signing.
 


OP
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hanover
Thread Starter #8
they said OTD for 19.5 but I haven't told them about the college student incentive I'll qualify for.
I owe 12k on my trade but I think I can get to for it.
 


FistSt215

Senior Member
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Location
Philadelphia
#9
I would go back to dealer work everything out . Have the numbers broken down , see what you can get for the dart , and see what will be the monthly payments for the fist will be. That way you will know what kind of apr you will be working with . I'm assuming your moms credit was good ? 6 year loan usually will lower the payment but the sixth year will be the most interest you will be paying for the car . I myself have a 72 month loan on my fist .
 


Messages
316
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84
Location
AncaSTer, Ontario
#10
Did you try to run this thru Ford (may be your best bet) Hard to beat 0%!

This off the Ford website:


Estimate Your Payment
2015 Fiesta ST

Finance ($267/mo)
Lease

Adjust your financing options:
Estimated Selling Price $ 21,770
Down Payment $ 0% of selling price
Net Trade-In Value $ 5800 ($2800 for your discounted price and $3000 you stated as your net trade in value)
Term (In Months)

60

Annual Percentage Rate
Choose a special rate
Enter your own
0% APR for 60 Months

Rates are valid from 3/31/2015 to 7/5/2015
Your Configuration

2015 Ford Fiesta ST Hatchback, 1.6L GTDi Engine, 6-Speed Manual Transmission. Pricing shown for ZIP Code 02339 as of May 14, 2015.

Review your financing details:
Base MSRP S1 $20,945
Total of OptionsS4 0
Destination Charges $825
Estimated Selling PriceS14 $21,770

Net Price S5 $21,770
Down Payment
-
0
Net Trade-In Value
-
$5,800
Amount FinancedS15 $15,970
267 $ Monthly Payment

60 month term and 0% APR.
 


OP
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Location
hanover
Thread Starter #11
you need to be in tier 1 credit to get the 0% APR. I'm definitely not in tier one. also the dealership is 2 hours away from me so I can't just take a trip down their every other day.
 


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295
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42
Location
Charlotte
#12
you need to be in tier 1 credit to get the 0% APR. I'm definitely not in tier one. also the dealership is 2 hours away from me so I can't just take a trip down their every other day.
You can negotiate for 0%. When my roommate and I were dealing for his focus we did it. They said he didn't qualify as he didn't have enough credit history. Pushed for it and they gave him the 0%. Partly because the dealer reached their bottom line and we were at our top. Only way to meet was that 0%.
 


Sourskittle

4000 Post Club
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Location
Lakeland
#14
I think the big issues here is going to be the dart.... Its a dodge. I personally like dodge cars ( my screen name stems from a SRT4 neon I owned ), but.... Be prepared to fight with them about what they want to offer you on the dart. Dang sure to not revel what you owe on the dart. I think they are likely going to hit you super low on the trade-in value, which is really going to impact your getting 0% or not. Not a knock on the dart ( the shop that builds my upgraded fiesta ST turbo's also sells an upgraded 1.4L turbo for them and the fiat ), but other than the trucks, dodge's normally don't fair well on re-sale.

As for your original request.... I have no idea how bad my credit is/was. My income def helped I'm sure. I've paided off a ford motorcredit loan before in 4 years ( worst car I've ever owned 2001 focus ). But I also had a forecloser on my credit in 2010, and a divorse in 2012, along with some other bad spots on my credit. But... Here is where the 0% was prob sealed for me at least... I traded in a long paided off G35 6-speed coupe. They gave me $4700 for it knows they'd pull $6000 at auction or really get a huge profit if they sold it off the lot at $8500-$9,000.

Either way... For ford credit, I just put $4700 into the pot. If they repo it 30-days, they are still making money...

5-years 0% I pay $387 per month for an "every option you can get" Fist.

Point is... You can get 0% with sub-par credit. I just hope the dart doesn't hurt you too much.

I bought my srt4 for $18k with 4600 miles on it. 3 years later, I sold it for $12.5k. One year after that, they were going for $7,000. I luckly got out of me dodge before the bottom fell out. But honestly.... I miss my srt4 :(
 


fST

Member
Messages
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Location
Maryland
#15
I'm looking at trading in my 2013 Dodge Dart that I owe 12k on right for a 2015 base OW FiST for 18.9k OTD with my wife's college student incentive. my monthly payment for my Dart is $253 and I am going on 25 months with no missed payments. I'm 23 years old with limited credit but am a National Guard member and have a USAA account. I want to trade my car in for a FiST because I like the car and enjoy everything about it compared to my Dart and also because financially if I can get what I want out of my trade I can lower my monthly payment and also lower my monthly insurance.

knowing all this information I want to get a decent interest rate, somewhere around 3-6, but the problem is my score is only a 600. my wife has agreed to co sign with me so I can save the money and have a better chance at getting a better deal but her score is only a 600 as well. I've tried to get my mom to help me out and sign but she isn't warmed up to the idea. I'm just wondering what some of you that did finance a new FiST had for a credit score at the time of your purchase and if it even worth it to try without my mom's help or if I need to try and convince her more, and what I can do to try to get her on board.
I appreciate any help you can give me with this issue of mine. thanks.

I'm shopping for a FiST as well but when I do buy one, I have the cash to pay for it (no car payment for 9 years helps :) ). If I don't pay cash, I'll be using a 0% loan incentive from Ford, or get a 1.99% loan from my local Credit Union. $18.9k OTD is a pretty good price for a FiST, even if it is a base model. 600 credit scores aren't very good. If you want the lowest rate, I'd try to get your mom to cosign, as you mention, assuming her credit score is better. By my calculation, it could be a $2k difference in interest over the life of a 5 year loan (16k loan and 3% vs 7% interest rate).


My financially responsible-minded response:

Based on what you've said, if I was in your shoes, I probably wouldn't buy a new car, even if it is a less than $20k subcompact. It sort of sounds like things might be a little tight? Missing no payments should be the norm but you make it sound like it's an achievement that you haven't missed any in 25 months. [tongue]

You can also lower your monthly payment and insurance by getting an older car. I'm not saying a beat down POS but a used car, like a compact, that's a few years old and has some miles on it. I'd also try to keep a car as long as you can (10 years, if possible). That way you can save a few hundred dollars per month due to no payment, instead of trying to save a few dollars per month, with a different car loan. Buying brand new cars and trading them in a couple of years later costs you THOUSANDS of dollars. If you want to save money, there's your savings! :)

And honestly, if you can't get it on your own (with your wife jointly is fine), I wouldn't bother trying. I'm not surprised your mom isn't warmed up to the idea. You're a married 23 year old adult. Don't try to "convince her more" to cosign for you. It can cause issues (tension, resentment) if something happens to where you can't pay and your mom is forced to take it over. She might not be able to take over or help with payments and if she can't, it will ruin her credit too.

I made a financially bad decision when I was 18 buying a brand new 2004 SVT Focus for about $20k OTD making $10/hour. My dad did cosign. I also bought a sportbike shortly after and had a loan on that. [shameful] I did wake up a year or so later, sold the bike, paid off that loan, refinanced the car loan for better terms and to get my dad off the loan, and paid if off a year later (2 years from purchase). The even better decision (financially) was keeping that car. I still have it 11 years later as my only car. Obviously, I'm shopping for a FiST now, which is why I'm here.

Hope you don't get offended here. I'm just trying to help. I'll put my flame suit on just in case [tongue]
 


OP
H
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Location
hanover
Thread Starter #16
you mother how dare you judge my decision making

no but in all serious that is the exact thing I just went through. I simply stated that u have made payments for 25 months with no problems so that you knew I had no problem making my payment. I bought my car 2 years ago and have almost regretted it for a year now. I was thinking about trying to drop a SRT4 motor into my Dart but that couldn't happen. then in September I bought a 8k sportsbike by myself on a Yamaha Factory CC and made 2 payments and then missed 3 and now have sold it. the reason I want to get the FiST is because I can see myself having it for a long time. your reasoning is completely right though I do agree on that. money isn't tight now that I sold the bike but I'm just trying to trim some here and there and if I can get the car I like while doing it then why not try. now if the car was like a $38k STi I would never even think about doing it. just seeing the possibility of it might being able to work means that it could benefit me financially and personally because I love the car and I could save around $60 a month on a car payment and insurance. Idk I guess I'm just wanting too much when I do have a newer car. the reason my mom doesn't want to co sign is because she helped me get my Dart and my brother get his IS250 (yeah I know what a prick) and she said she would only help us each once with a car. I appreciate your input and it really helps to hear opinions from people who aren't biased.

I would probably go for the 1.9 for 72 months though. I calculated that if I could get the car for 18.9 OTD and get 15k for my car when I owe 12k, 15.9k loan with 3% APR would be around $240ish a month. so if I got the 1.9 for 72 my payment would be even lower. 60 months is too high of a payment considering its higher than my current car, even though it's 0% :(

also my mom definitely could take over payments if need be. she is looking into getting a new 2015 Camaro SS for her weekend car. the perks of being older.


EDIT: I have also heard a lot of issues with the Darts going through transmissions and other serious problems like they are candy. my Bluetooth and voice response went out about 6 months ago. even though it's under warranty I don't want it to be a consistent problem after the warranty is up.
 


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66
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Location
M
#17
Aiming for 15k on your trade is fine, but I would expect to be in the 13k range . Still ok since it'll get you out from under it.

Two 600 scores are going to do much to help you out. and getting 0% when your score is 700 is a lot different than trying to get it when you have 600.

Try a couple credit unions for financing too, don't rely solely on the dealership. Many times they will beat a dealer, especially with less than stellar credit.You may need to join and sign up for a couple things to get the best rate.

Still, your best bet is to hang on to the Dart. It's a good car, it just sounds like you saw something new and shiny and want that instead.

If you're going to jump cars every 2 years anyway, you might as well just lease the FiST. Your payment will be lower, you won't need a cosign, and you can always buy it out at the end if you still want it.
 


OP
H
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Location
hanover
Thread Starter #18
I might just lease it then. depends what the values are and what they will do for me. does your credit score determine how good of an interest rate you get on a lease or does it not have much effect on it. if I can trade my car in and lease the FiST I'm looking at for lower payments and then just buy it out in 3 years that would be great. I wouldn't lease to get a new car down the road but so that I can just finance and keep it.
 


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hilliard
#19
Even though I'm sure this will be ignored... I'd recommend to keep saving until you pay more of the Dart off or have a larger down payment or have better credit(preferably all 3). Probably not what you want to hear; but that's what I'd do. You are young, get out of debt as early as you can.
 


SFP

Member
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Location
Coolville
#20
I would recommend going thru Ford. I got 1.9% thru ford credit on my FiST with a trade in Malibu LTZ with around 180K on it. Owed $8000 on the Malibu and they paid it off. The car was very clean but had major issues! I have X-plan pricing thru my work and total tax and all on my car was around 22K with the negative equity carried over.

This was in September of 2014. In March of this year I went back and got another Fiesta Sedan loaded up for the GF its also thru Ford @ 1.9 on X Plan Pricing no trade my OTD price was $17400.

The kicker to all this is I have horrid credit because of my house burning and just not being able to correct things fast enough. The amount of revolving debt from all that and credit inquiry's to get stuff back while waiting for insurance dropped me to 570 at one point. I do make excellent pay at work but when you lose everything you own and have to fight with insurance for a year to get anything it starts to hurt.

Ford Credit loves young buyers!
 




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