Angry emails? Geez. I'm glad you're helping folks out. It would suck to see a bunch of excited enthusiasts get fleeced at the dealership because they're taking any deal in order to drive off in their new bronco.
I opened a new credit card because I never had a credit card and having availability of multiple forms of credit loans results in a higher credit score. Immediate 20 point boost from 750 to 770. YMMV, a new credit card probably isn't a great move if you already have one. Also, I ordered it back in July so it wouldn't count as "recent" by the time I order my Bronco. There are exceptions... Probably not many people like me make it to 36 years old never having financed a car.
Thanks, I do know about DTI and LTV but I guess I never thought about LTV for buying a new car. But it does make sense, I refinanced my Challenger and put 3K down and they lowered the rate from 4.9 to 3.9.
if interest rate is low then it’s not that brutal. A 45k loan @ 3% over 72 months is only an extra $1200 or so in interest over the term vs. a 48 month loan. Make some extra payments here and there and that will be reduced. I’ve never done an 84 month loan.
Not sure if anyone has mentioned this yet, but the vehicle make and model may play a role in the financing rate. Other first-year vehicle models typically haven't been offered at the best rate or lease terms. If you think about it, Jeep, knowing its popularity, will offer 0% or great lease options, but rarely do they ever include the wrangler, or all wrangler trims, even with one of the best resale values in the industry. Maybe Ford will do something different, but with what could be considered an overwhelming response to the release of the Bronco, they may not find a need to offer Finance incentive through Ford financing and the traditional banks will not have enough info on the resale value to roll the dice on a smoking rate. All that said, would still agree that Credit Unions and sometimes your insurance company (like State Farm) offer the best rates and may be more flexible with credit. Thoughts?
I’m sure NayNay will chime in here but to kind of answer your question... Student loans are sometimes looked at in a different category than credit cards, auto loans, and Mortgages. They group student loans differently now when calculating DtI since most people now have huge student loans and it was something you took on to further your education and career. At least that’s how the CU I worked for did it, they placed it in a different category. But for the love if God please everyone look at your financial situations and see if you can actually afford this Bronco. It’s sad to see family and friends get stuff taken away from them since they lived above their means.(not saying you are one of those just saying it to everyone in general)
I want to sincerely thank you for your input here on B6G. It is good for a lot of people to understand financial terms and rates from your side of things since this is what you do every day. There are a lot of people on here that don’t know too much about Debt to Income, credit scores, and terms of the loan vs rebates and it helps to have you explain it so that everyone can know what to expect. Knowledge is power and like I said in my other posts every single one of us needs to become financially literate to build a strong foundation for our future and if that means waiting a year or two for the bronco because you currently have to much debt than so be it. Your future self will thank you for not taking on more than you can handle.
I can definitely afford it but being in the field I'm in starting out with stupid amounts of debt is the norm. Worst case I would wait until mid 2022 and just pay the whole thing in cash. I'm definitely making a conscious choice going slow on my student loans. I get quoted Dave Ramsey on a daily basis by my colleagues because of it, but the idea of retiring at 55 before you start to actually enjoy life doesn't work for me. I will definitely have to check out credit unions, I have never worked with them before but keep hearing great things.
Yea some local Credit Unions you don’t need to do anything special to join other than live in that state/county/city or whatever. Some you do need to be an employee of certain fields like locally we have a teachers credit union where only teachers and family can join. But now days a majority can be joined by anyone who lives in that community. They are Member ran so it usually translates to the members(customers) getting lower rates and not getting screwed over with terms since they don’t have investors to answer to. Credit Unions tend to care more about you as a person where banks just want your money.
