Ford financing?...

[David in Sugar Land]

Hi all!

My wife is very interested in replacing her 93 BMW 525i wagon. It is at the point where I have to repair little things alot and it doesn't ride too good. We looked at current generation 5-series sedans, she drove a few and loved them, but with our son at the Univeristy of Texas's mercy (he will be a sophmore in the fall), we understandably have few resources ($$$) to spare. Credit scores are only fair.

Will continue to repair the wagon for now, but she made me promise that in a year or so we will be in line to purchase or lease a "good car".

I have been repairing our credit files/dealing with creditors and that is an eye-opening experience (one I will definitely advise our 18 yr old on how to get and maintain really good credit). Some persons have suggested Ford as having a forgiving criteria for auto loans (more likely to approve or NOT send you to "bad credit" 3rd party financers with high interest offers). Someone mentioned a $20k loan for a Toyota truck with 600ish FICO rating. But BarNone is a joke (in calling them, they could only name a single participating dealer in my area - Houston, TX)...

Anyone have suggestions or recent experiences, on getting approved, in a positive light they could pass along?

Thanks in advance.

-David

 

[rjundi]

With lessor credit I would recommend the smallest loan possible or hang onto your BMW until your finances clear up.

 

[GROUCHO MARX]

Hopefully, Ford will be desperate to get rid of cars when you are ready to go. That's probably the most determining factor in your case.

Yes, they are forgiving.

 

[JHZR2]

Likely any of the hurting domestic companies will be willing to trade less than stellar credit for a sale, especially if you can at least give a decent down payment.

Make it a priority to get your credit to 100% first.. You have an internet connection and obviously use forums, so perhaps get onto a BMW forum and learn a few tricks to the little problems... DIY isnt bad for most stuff (I have a 91 E30 that Ive had to fix little things in the past on).

Ill tell you one thing, you wont find a much better car than what youve got... seriously. So if its half decent, and doesnt have too many miles on it, dont throw away the option of sinking $2500 into it and having it be A-OK for another 50k+.

JMH

 

[NJC]

quote:

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Originally posted by David in Sugar Land:
My wife is very interested in replacing her 93 BMW 525i wagon. It is at the point where I have to repair little things alot and it doesn't ride too good.

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JMH has good advice. Drop into a BMW forum and see if you can't get help to fix a few things.

What is wrong with the handling?

The newest car I have is a 1989 Volvo 745 ... although I consider it to be still young with only 135K miles. So as a matter of comparison, a 1993 is a NEW car to me!

 

[PandaBear]

I hear you, women like new cars and once they start disliking what they drive it is hard to change their mind.

What I end up doing with my wife is swapping my beloved Integra for her beat up corolla. Spend quite a bit of effort to restore all the little problems (engine mounts, bad tires, struts, radio, worn carpet, ATF leaks, and countless others), it is finally decent enough that she doesn't mind us keeping it for a few more years.

Now my carpool buddy keep telling me to sell it to her and get my wife a nice car. I don't think so.

 

[thooks]

I guess suggesting to save up and pay cash for a 4-5 year old Honda Accord or Similar, forget FICO and other ridiculous methods of determining credit scores, would be out of the question?


Clear your credit up, pay off everything you owe and pay cash for your cars from now on.


Best advice I can give. And if you think leasing is a good idea, lemme sell ya some waterfront property in the Panhandle of TX.

 

[Schmoe]

Fords interest rating is directly related to your credit score. They have always been that way. They use the television low interest ads to get you in there. Once you are "hooked" on a vehicle, they spring the bad news on you. A FICO score of 600 is pretty good actually.

 

[JHZR2]

600=good????!!!??

I dont know about that.

You need over a 730 to be good.

I was a little over 750, and got the best rates for the mortgage on the home I just bought... any lower and they would have put me in the next tier.

Granted mortgages are different from cars, but I know for a fact that the Mazda dealer didnt want to give my fiancee the top rates at a 718 score...

So she still has her integra. She wanted more space, but its A-OK... dont need to fiddle with those stupid metrics...

Id suggest looking into credit unions for top notch rates with less FICO score issues.

JMH

 

[Schmoe]

I guess I stand corrected. I thought below 500 was bad.

 

[Matt_S]

I'd definitely advise you to shop around. There are all kinds of banks that offer auto loans. Try bankrate.com for starters. Also look to your local banks and credit unions. Be honest about your financial position and see what's available and what might be possible if you're able to improve your situation.

When I bought my current vehicle, I found the best rate through eloan.com. They basically broker loans for various banks. I wound up getting the loan from Bank of America. They had a better rate than GMAC did at the time. You don't need to go through the manufacturer's finance division.

 

[David in Sugar Land]

Thanks all, for the wise words and opinions. I will take the wagon in for the steering arm work on Friday. We can easily get another good couple years out of the ole girl "no, not you honey, the car..."

In the meantime... save $$$, work on credit issues, continue reading up on creditboards.com and such, and keep my rides (the '61 Falcon Ranchero and my '73 Norton Commando) well-tuned and exercised often.

Thanx again cats!