Any tips on financing or getting an auto loan for a new vehicle? Im a first time buyer looking to get 45k at most. If not I can work with 35k or 30k. Ive got 21k I can put down, make about 1300 a week, and have a good credit score (734). I dont have 1 year of my full income for tax returns since I'm new to working but I do have pay stubs
First, what is the specific model you need for work ?
Financing: Look everywhere. Credit unions generally have slightly better rates than banks, never go with dealer financing because dealers get kickbacks and you pay for it. Your credit numbers will be OK for purchase, but perhaps not at the best rates.
Get pre-approved for a purchase from the financial institution that gives the best overall deal. As a component of the pre-approval process, they will determine your monthly disposable income and determine the highest monthly payment you can economically afford.
The pre-approval will not be dealer-specific, and never tell any seller what you are approved for.
In addition, buyers in general are better-off economically if they purchased used, not new. Buying new, the vehicle value drops 16-24% or more the moment you take delivery.
@retoldpro I would buy used, but im going to use it for a self employed business/ personal use. I want a 2020 ford transit and it needs very specific specs that aren't arent offered on past year models. Im going to keep it for life or until its too beyond repair, no resell except for scrap What I could do instead is ask for a 25k loan, pay 20% down and pay the other 20k out of pocket. Ive been banking with a credit union since I was little so they have access to my primary account. They probably won't require proof of income.
I'm not sure of your age but I would definitely stick to used vehicles. As Scotty always says, the depreciation of a new vehicle makes it not worth even considering. More often than not you are upside down with it the second you sign the finance papers and leave the car lot.
If it were me I would forget financing all together and use the 21k (or less) to buy something you like that has a couple years under its belt with 85% of its life left.
@tthomas104
The problem is I'm going to use it for work, so I need a very specific model. And I've had basically no luck finding one with the correct specs.
The best and the cheapest way is buying with cash.
