Prospective 2014 Explorer Purchase & Financing

[Sadiespapa]

Hi all,

I've been lurching on the forum for a while as I've been mulling the purchase of a new explorer. Last week I came across a 2014 Base 4x4 w/sync & Sirius for $27475, which I believe to be a good price (unless you guys tell me otherwise.) what I am going to have trouble with is the financing. My Equifax credit score is 635 (my others are 651 & 671.) The only way I will feel good about this deal is if I am able to get the 72 months @ 1.9% through Ford Credit.

Does anybody have knowledge or experience of getting promo rates with credit scores in the low 600s?

Thanks so much for your feedback. I'm really hoping to have this new SUV available for the summer.

 

[AZmom]

I believe the benchmark from Ford is closer to 700. However other lenders can offer interest rates matching that of Ford.

When I purchased my Explorer I believe the finance gentleman said it was 700. However that was January. So this 30-something is having a senior moment right now.

 

[soulpatch]

6 years to pay it off??? You will be upside down for pretty much the life of the loan. not smart IMHO.

 

[Dr Plastic]

Try Ally bank they financed me and I was worse off than you!

 

[HughCares]

I don't understand why people with low/poor credit scores are putting themselves even further at risk by buying a new vehicle versus one that they can afford. They need to ask themselves how/why they got there in the first place. Buy what you can afford/need...not what you want.....And seven years to pay for it???? OUCH!!!

 

[soulpatch]

I don't understand why people with low/poor credit scores are putting themselves even further at risk by buying a new vehicle versus one that they can afford. They need to ask themselves how/why they got there in the first place. Buy what you can afford/need...not what you want.....And seven years to pay for it???? OUCH!!!

Seriously it is ****ty decisions like these that lead to the lower credit scores.

If it takes you 7 years to pay off the vehicle then you are looking in the wrong price range or need to delay purchase until you can save up a deposit to lower your monthly liabilities.

 

[Sadiespapa]

Just because I have a low credit score, does not mean I do not have the income to support the monthly payment on this vehicle. When I add up my monthly payment obligations, and the prospective explorer payment, and divide by my monthly income, I get a Debt-to-Income ratio of less than 35%.

Somebody that makes 20k a year can have a 750 credit score, and somebody that makes 100k a year can have a 600 credit score.

My loan for my Five Hundred was for 60 months, but I paid it off in 48. It's nice to have the lower minimum payment in the event there is a month I don't want to make an additional principle payment. I understand the risk of being upside down, which is why I'm making a such a big deal about the promo financing.

I don't have anything against used, but I cant seem to find any!

DrPlastic, Thanks. I wont have any problem getting financing, its just a matter of the rate.

I just thought by me posting, somebody that was once in a similar situation might say "oh, yeah I was in a similar boat, but I brought $5k to the table and Ford Credit was able to offer 0% for 60 months" or something to that effect.

I guess I was wrong.

 

[HughCares]

Just because I have a low credit score, does not mean I do not have the income to support the monthly payment on this vehicle. When I add up my monthly payment obligations, and the prospective explorer payment, and divide by my monthly income, I get a Debt-to-Income ratio of less than 35%.

Somebody that makes 20k a year can have a 750 credit score, and somebody that makes 100k a year can have a 600 credit score.

Sorry, but you ended up with a lower credit score for a reason.

You are correct, it doesn't matter what the amount of your income is...it's how wisely you manage your finances and pay off the debt you acquire in a timely manner and on time. Just because you may make a lot of money doesn't mean that you can afford it. Being responsible for the debts you do incur is the key to ensuring a terrific credit rating....The more debt you have (in dollars and the number of credit cards, loans etc) will also negatively affect your credit score, even if you always do make the minimum payments on all of them every month (and on time).

People need to stop believing that it is okay to always be in perpetual debt, just because they think they can afford to make the monthly payments.

Good luck in your search for your loan...spend wisely my friend.

 

[soulpatch]

sorry, but you ended up with a lower credit score for a reason.

You are correct, it doesn't matter what the amount of your income is...it's how wisely you manage your finances and pay off the debt you acquire in a timely manner and on time. Just because you may make a lot of money doesn't mean that you can afford it. Being responsible for the debts you do incur is the key to ensuring a terrific credit rating....the more debt you have (in dollars and the number of credit cards, loans etc) will also negatively affect your credit score, even if you always do make the minimum payments on all of them every month (and on time).

People need to stop believing that it is okay to always be in perpetual debt, just because they think they can afford to make the monthly payments.

Good luck in your search for your loan...spend wisely my friend.

+1

 

[AZmom]

I empathize with you, however Ford doens't work that way. You have to have the score first and fore-most. The additional cash doesn't matter. Ford reviews the history. As I had wanted to put 18K down with my trade, that I asked if it mattered. The finance director said not at all - the decision was based off my credit score- so all pre-determined before any trade/money was a factor.

Then there was the speech of having soo much equity in the vehicle- BLAH BLAH

 

[Lewisra]

Seriously it is ****ty decisions like these that lead to the lower credit scores.

If it takes you 7 years to pay off the vehicle then you are looking in the wrong price range or need to delay purchase until you can save up a deposit to lower your monthly liabilities.

72 months is actually only 6 years. If you plan on keeping it for 6 years, what's the big deal if you finance it for that long at a very low rate. I've done this a few times. It allows you to get a Nicer vehicle. Oh and my credit score is in the mid 800's.

 

[soulpatch]

72 months is actually only 6 years. If you plan on keeping it for 6 years, what's the big deal if you finance it for that long at a very low rate. I've done this a few times. It allows you to get a Nicer vehicle. Oh and my credit score is in the mid 800's.

finger flub on a Monday morning.

That said there is a large difference in using someone else money or going to a long period because you have to as it was presented in this thread.

IE I use my Home Depot card constantly for the interest free financing. It is free money and allows my money to sit in the bank collecting interest and making me money. It could be paid off immediately though if needed.

The bad instance is when you stretch payments over a long period of time to be able to afford it. You open up your liabilities and those fixed payment schedules impact credit.

I have a very high credit score as well but you have to play the system. Time and place for things. A negative asset financed over a long period of time where it pretty much always has negative value compared to the loan is nota smart money move. (I will admit cars are never a smart money move, but you can mitigate those impacts)