need a little auto loan advice

[derryck]

I don't know about other manufacturers, only Toyota. I only know this because we just bought a replacement Highlander for my wife after her two month old new highlander was totalled in a wreck. Toyota will give you the zero percent only on selected vehicles at selected times. Otherwise, it's all about your credit score and down payment. To max out, you need both to get the lowest rate from Toyota.

What I meant by my comment above on "not making much difference" if you have great or "greater" credit score is this: A few points one way or the other won't make a difference. Excellent credit is 750 or above. If you have 750, 760 is not going to get you a better rate.

Good credit is 700 to 749. If you have a score of 740 and you bump it up to 755, then you might gain a few tenths on your rate. But, it actually takes quite a bit to change your score substantially, and losing a few points by paying off a loan early is not going to change it substantially. That's what I meant.

Ford is not Toyota and like most of the 'Big 3' they offer rate incentives almost all of the time. Most car dealers consider you golden if you're over 720 and when I buy anything that doesn't offer 0%, I get pre-approved through my bank (USAA) even though I'm sometimes giving up .5 or so because I'll gladly pay that .5 to know I get someone that's based in the US and speaks English if I have a problem. I understand what you're saying but he's buying a Ford that isn't on the exclusion list so 0% shouldn't be that hard to come by or require money down.

 

[Muzzle of Bees]

What's the difference between 770 and 810? Nothing. There is no graduated system. You fall into one of four categories and that's it. Why? Because your credit rating is gonna change and they know that. Very seldom does it change significantly unless something significant happens. It's usually a few points +-. My original post said "Unless you are close to the line..." which means losing 40 points off of 800 means nothing, but losing 5 points off of 750 might cost you a tenth on the interest rate over five years. That's the key being in a solid position. 800 is a solid position. For all intents and purposes, 750 is a solid position as long as you keep it there or above.

And lastly, if you finance through a manufacturer, the DEALER has leeway on what interest rate you can get to a point. You could have a 720 score and get the same rate as a guy with 800 score if the dealer wants to give up a piece of the margin to make the deal, or if the 720 guy put down 25% and the 800 guy only put down 5%. My point is there are many ways to get screwed. There are also many ways to mitigate the damage. Having a high credit score, putting down 25% and using the interest rate as a bargaining chip are ways to keep more money in your pocket.
Good luck!

You are correct. I was just passing facts along about the scoring system and how it impacted me.
It is a system that makes no sense to anyone. The designers probably cant keep up.

 

[Overlanding99]

Always get to 51% equity in the financed item as fast as possible. And a couple tips, never do a down payment, you never want to lower how much you pay monthly, but instead the shorten the length of time you pay it over. When you want to apply a down payment, wait 45-60 days and then pay it to the finance company or bank to lower the total payoff, if you have a trade, sell it private party, and again add it to pay off the total loan amount. And never, ever take loans for longer than 48-60 months, thats more psychological, shows loan officers you don't trust yourself with a higher payment. Just my 2 centeruski's.

 

[Senorlechero]

lol, I'm still keeping my 4runner, I don't think I will ever sell that. But I need a truck to tow etc.

Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.

What's the difference between 770 and 810? Nothing. There is no graduated system. You fall into one of four categories and that's it. Why? Because your credit rating is gonna change and they know that. Very seldom does it change significantly unless something significant happens. It's usually a few points +-. My original post said "Unless you are close to the line..." which means losing 40 points off of 800 means nothing, but losing 5 points off of 750 might cost you a tenth on the interest rate over five years. That's the key being in a solid position. 800 is a solid position. For all intents and purposes, 750 is a solid position as long as you keep it there or above.

And lastly, if you finance through a manufacturer, the DEALER has leeway on what interest rate you can get to a point. You could have a 720 score and get the same rate as a guy with 800 score if the dealer wants to give up a piece of the margin to make the deal, or if the 720 guy put down 25% and the 800 guy only put down 5%. My point is there are many ways to get screwed. There are also many ways to mitigate the damage. Having a high credit score, putting down 25% and using the interest rate as a bargaining chip are ways to keep more money in your pocket.
Good luck!

TFS most certainly has a graduated system, the difference between a 689 and a 690 score is YUGE with TFS. Credit rating, you're 100% correct, but TFS has tiers of credit, and it is up to the bank(TFS) not the dealership what percentage you qualify for.

Always get to 51% equity in the financed item as fast as possible. And a couple tips, never do a down payment, you never want to lower how much you pay monthly, but instead the shorten the length of time you pay it over. When you want to apply a down payment, wait 45-60 days and then pay it to the finance company or bank to lower the total payoff, if you have a trade, sell it private party, and again add it to pay off the total loan amount. And never, ever take loans for longer than 48-60 months, thats more psychological, shows loan officers you don't trust yourself with a higher payment. Just my 2 centeruski's.

What you're describing is a down payment, just 45-60 days later, paying if up front lowers payments which makes shorter terms palatable. I don't understand why you wouldn't pay that chunk up front and lower the payments...

 

[ddnww]

Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.

The tundra does not have as strong of a resale value as the the Tacoma and 4runner do, it has way less tow capacity than the competitors. I have never agreed much with CR anyways.

 

[Senorlechero]

Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.

The tundra does not have as strong of a resale value as the the Tacoma and 4runner do, it has way less tow capacity than the competitors. I have never agreed much with CR anyways.

You're correct, that's because the Tacoma and 4runner are #1 & 2 in resale value, the Tundra is strong though, at least in socal.

The Tundras Tow capacity maxes at 10,200 lbs, from what Google says the F-150 maxes at 10,500 Ram 1500 at 10,700 and the Silverado 1500 at 9,400 so you are correct, I wouldn't call 500lbs way less.

I don't care if it's something else about the trucks, but the current F-150 are absolutely plagued with engine and trans issues.

 

[JohnWilson]

Have you considered leasing a vehicle. That could be a better option for you instead of financing. It's also a form of financing, but different from a loan.

 

[ddnww]

Have you looked at the Tundra? The Tundra has some of the strongest resale value in the market. Consumer reports won't recommend the F-150 anymore...

To answer your original question, if the auto is your only piece of credit, secure the new loan before the old is paid off.





You're correct, that's because the Tacoma and 4runner are #1 & 2 in resale value, the Tundra is strong though, at least in socal.

The Tundras Tow capacity maxes at 10,200 lbs, from what Google says the F-150 maxes at 10,500 Ram 1500 at 10,700 and the Silverado 1500 at 9,400 so you are correct, I wouldn't call 500lbs way less.

I don't care if it's something else about the trucks, but the current F-150 are absolutely plagued with engine and trans issues.

The tundra's max capacity tows 10,200 and the f150 tows 13,200. 3,000lbs is a pretty big difference. I wouldn't ever own a dodge product, and am not a fan of newer GM trucks, I have many die hard chevy fan friends who's transmissions have failed them with less than 50k. One of them twice, he sold it before the warranty ended.

I don't know where you are getting your info, but the f150 is definitely not plagued with problems. The early '11 and 12' ecoboost had some bugs they had to work out, but they were very few and far between. The thread really isn't about what truck I am getting, but I can assure you I am confident in my choice. Which is why dodge and chevy are not on the list.

Have you considered leasing a vehicle. That could be a better option for you instead of financing. It's also a form of financing, but different from a loan.

I gave it some consideration, but I don't think its the right fit for me.

 

[Senorlechero]

The tundra's max capacity tows 10,200 and the f150 tows 13,200. 3,000lbs is a pretty big difference.

I have many die hard chevy fan friends who's transmissions have failed them with less than 50k. One of them twice, he sold it before the warranty ended.

OK so I dug deeper that google searching 2017 F-150 Tow capacity https://www.google.com/search?q=2017+f-150+tow+capacity&oq=2017+f-150+&aqs=chrome.3.69i59l2j69i60j69i59j69i60l2.5319j0j4&sourceid=chrome&ie=UTF-8

and went to Fords webpage where they list 12,200 lbs as the max tow capacity of ANY F-150 and that is only on one configuration. But at this point it doesn't matter and you are correct that Ford lists a higher towing capacity than the Tundra

And I'm getting my info on Fords from the same source you're getting yours on GM, and people throughout the auto industry

 

[ddnww]

OK so I dug deeper that google searching 2017 F-150 Tow capacity https://www.google.com/search?q=2017+f-150+tow+capacity&oq=2017+f-150+&aqs=chrome.3.69i59l2j69i60j69i59j69i60l2.5319j0j4&sourceid=chrome&ie=UTF-8

and went to Fords webpage where they list 12,200 lbs as the max tow capacity of ANY F-150 and that is only on one configuration. But at this point it doesn't matter and you are correct that Ford lists a higher towing capacity than the Tundra

And I'm getting my info on Fords from the same source you're getting yours on GM, and people throughout the auto industry

I am basing my decision off the fact that Ford is the chosen work truck on most major work site, farm, ranch, the fact that the company I work for has a fleet of over 40
f150's ecoboost and 5.0 v8 that have done very well in the last 4 years as opposed to all the other brands we went through, my own personal experience, and my best friends recommendation. He owns a performance shop, has been building cars and engines for the past 30 years, is not biased, is also the chief engineer for the electric company in the the largest suburban city in the US, overseeing their entire truck fleet of who knows how many trucks. I asked him what truck he thinks is the most dependable truck. He said if you are buying a truck, I will do everything in my power to talk you into buying a Ford. I trust his word and expertise.

We all have our brand of choice, I happen to be one of the few people who aren't really loyal. I love ford trucks and muscle cars, Toyota tacomas and 4runners, and chevy classics.

 

[Senorlechero]

I am basing my decision off the fact that Ford is the chosen work truck on most major work site, farm, ranch, the fact that the company I work for has a fleet of over 40
f150's ecoboost and 5.0 v8 that have done very well in the last 4 years as opposed to all the other brands we went through, my own personal experience, and my best friends recommendation. He owns a performance shop, has been building cars and engines for the past 30 years, is not biased, is also the chief engineer for the electric company in the the largest suburban city in the US, overseeing their entire truck fleet of who knows how many trucks. I asked him what truck he thinks is the most dependable truck. He said if you are buying a truck, I will do everything in my power to talk you into buying a Ford. I trust his word and expertise.

We all have our brand of choice, I happen to be one of the few people who aren't really loyal. I love ford trucks and muscle cars, Toyota tacomas and 4runners, and chevy classics.

ok. eace:

 

[ddnww]

ok. eace:

I was expecting more out of you lol

I Forgot to mention my father who is a chevy guy, whom has worked for the past 40 years in the largest copper mine in the world here in AZ. He also states the Fords are the only truck that can take the 24 hour a day abuse through the rough trails and mountains. The chevy's literally fall apart before 50k.

:kiss:

 

[jrbpit]

I really like the new F-150's and I'm a Silverado guy. I have a 2004 Silverado, had since it was brand new and now has 170,000 miles on it. I'd drive it across the country tomorrow. Not a fan of looks of the Tundra. Looks too bloated.

The only thing that scares me about the F-150 is the Ecoboost. I'm not a fan of Turbo's. My very humble opinion, they are just too hard things. I really like the 5.0 V8. The aluminum body intrigues me. I think Ford is way ahead on that. But, I'm a huge, huge fan of the GM LS design. The 5.3, 6.0, and 6.2 pushrod motors make crazy good power smoothly, reliably, and cheap. Sometimes one cam is better than four....

Would love to buy a GT350 with the 5.2 Flat Plane Crank. Someday....

Back to turbo's... I had a Chevy Cruze 2.0 turbo diesel. Nice little car, needed something bigger, but did not want a four cylinder or a four with a turbo. Ended up getting an awesome deal on a naturally aspirated 2018 Avalon with the 3.5 V6.

Back to financing... If your credit score is 700 or above you are going to get good rates. Once you crack 740 you qualify for the best rates. When I bought my Avalon last month, I was pre-approved from Navy Federal Credit Union. I picked up the draft from the local branch and was ready to go. Informed the dealer of this, sales manager talked me into letting the dealer run my credit to see if they could do better. Dealer asked what my NFCU rate was, would not disclose it to them, just told them to try and beat it. TFS beat it by 4 tenths of a percent, which I thought was pretty darn good. Ended up going with TFS. My advice is establish a relationship with a Credit Union if it all possible. Much better service and rates, usually than the banks.

You will also get very good rates on cars the manufacturers are trying to move. I got a really good rate on the Avalon + $2,000 rebate, which Toyota has just kicked up to $2,500.00. Like other's have said, also try and shorten the term as much as possible that will help reduce the overall interest rate. I went 60 months on my Avalon, but will have it paid off in 46. I pay my car note every two weeks (every pay day), that is one extra full payment per year. Also buy paying every two weeks, it cuts the amount of accrued interest so more of the payment will be applied to the principal.

When I bought my Silverado, I looked at the F150's at that time it was a new body style for the F150 and they were selling pretty well. The Ford dealers were not really dealing. Chevy on the other hand gave me a great deal.

 

[ddnww]

I really like the new F-150's and I'm a Silverado guy. I have a 2004 Silverado, had since it was brand new and now has 170,000 miles on it. I'd drive it across the country tomorrow. Not a fan of looks of the Tundra. Looks too bloated.

The only thing that scares me about the F-150 is the Ecoboost. I'm not a fan of Turbo's. My very humble opinion, they are just too hard things. I really like the 5.0 V8. The aluminum body intrigues me. I think Ford is way ahead on that. But, I'm a huge, huge fan of the GM LS design. The 5.3, 6.0, and 6.2 pushrod motors make crazy good power smoothly, reliably, and cheap. Sometimes one cam is better than four....

Would love to buy a GT350 with the 5.2 Flat Plane Crank. Someday....

Back to turbo's... I had a Chevy Cruze 2.0 turbo diesel. Nice little car, needed something bigger, but did not want a four cylinder or a four with a turbo. Ended up getting an awesome deal on a naturally aspirated 2018 Avalon with the 3.5 V6.

Back to financing... If your credit score is 700 or above you are going to get good rates. Once you crack 740 you qualify for the best rates. When I bought my Avalon last month, I was pre-approved from Navy Federal Credit Union. I picked up the draft from the local branch and was ready to go. Informed the dealer of this, sales manager talked me into letting the dealer run my credit to see if they could do better. Dealer asked what my NFCU rate was, would not disclose it to them, just told them to try and beat it. TFS beat it by 4 tenths of a percent, which I thought was pretty darn good. Ended up going with TFS. My advice is establish a relationship with a Credit Union if it all possible. Much better service and rates, usually than the banks.

You will also get very good rates on cars the manufacturers are trying to move. I got a really good rate on the Avalon + $2,000 rebate, which Toyota has just kicked up to $2,500.00. Like other's have said, also try and shorten the term as much as possible that will help reduce the overall interest rate. I went 60 months on my Avalon, but will have it paid off in 46. I pay my car note every two weeks (every pay day), that is one extra full payment per year. Also buy paying every two weeks, it cuts the amount of accrued interest so more of the payment will be applied to the principal.

When I bought my Silverado, I looked at the F150's at that time it was a new body style for the F150 and they were selling pretty well. The Ford dealers were not really dealing. Chevy on the other hand gave me a great deal.

good info, thank you. I also drool over the gt350r. Finally seen one on the road recently, WOW!!!