Financing Car

Alethia · by **Alethia** » 09 Jun 2009, 12:36

Hi, someone told me that financing a car is not good for your credit history regardles if you pay it all on time or not. Is this true?
Thanks.

Emelda · by **Emelda** » 09 Jun 2009, 12:36

Give this site a shot...they usually point me in the right direction:
http://www.aidfinancial.net

Gisela · by **Gisela** » 09 Jun 2009, 12:36

What documents do you need to take to the bank when financing car payments?

Thank you!

Cleora · by **Cleora** » 09 Jun 2009, 12:36

Proof of income, bank statements, and remember your social security number. The bank will do the rest. In fact, ask them what docuemnts you should bring with you.

Jeannie · by **Jeannie** » 09 Jun 2009, 12:36

I am just trying to calculate how much it would cost me to finance a car. I have good, not excellent credit.
Down payment will be anywhere from 10% to 20% of the car price.

Hipolito · by **Hipolito** » 09 Jun 2009, 12:36

A lot will depend on the year of the car you are buying as well as it's retail loan value v/s purchase price. In addition, many Manufacturer Certified Pre-Owned vehicles typically have a lower rate, such a 3.9% on a Pontiac for 60 months. As long as you qualify, it wouldn't matter how much money you put down because it's a set rate.

The older the car, the higher the interest rate will be. If you buy a 2005-2006, you can probably get 6% - 7% or so through a credit union / bank. If you try to buy a 2001 model, the rate might be 11% and they will only let you finance the car for 48 months, rather than 60. This sometimes makes the payment on a more expensive newer car the same as one a couple years older. It will cost more, however if you can add 12 months to your term, it helps to lower your monthly payment. I hope this helps and you can email me if you have questions.

Chieko · by **Chieko** » 09 Jun 2009, 12:36

Example: $12,000 car financed at x% interest. Can you show me an actual calculation of how much the monthly payment will be and how many payments are to be made and what the interest is etc, etc?

Anita · by **Anita** » 09 Jun 2009, 12:36

Just google amortization. it is a fairly lengthy calculation on a scientific calculator (at least for me). the 1st site makes it easy. but I'm sure there are others that show you the exact steps by which the calculation is achieved.

Hana · by **Hana** » 09 Jun 2009, 12:36

If my parents cosign for car financing, does the interest rate reflect their credit only or a combination?

A combination of my credit score and theirs that is. I am 22 and buying my first car and I want the best rate so I think I'll get my parents to cosign but I'm not sure how it works.

Titus · by **Titus** » 09 Jun 2009, 12:36

Auto finance is what I do for a living and it depends on the lender.

Some credit unions and Chrysler base the rate on the best score, others will base it on the combination of the two.

Your best bet will be to go to your parents own bank or credit union.

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