I'm scared of MM.

[bunnymendelbaum]

So, we close in 18 days! EEk!

Two days after closing, we are driving north to visit our families. There is a car we are interested along the way. It is at a dealer. We'd like to trade my car in, pay half the rest and finance the other half. We are thinking about financing because my husband has weak credit. Not bad, he just does only has one credit card and not much credit history. ( I think his score is 675?)

How would we go about this? Do we need a certified check for the "cash" we want to pay? The dealer offers financing, but is that a bad idea?

We aren't dead set on this car, but I'd like to be prepared.

Updated: I called the bank & the dealer both and got a good idea how it would work. The dealer just lowered the price tho, so I bet they won't be there in 3 weeks when we are driving thru. Bummer.
I also now think we won't trade my car in, we will make much more selling it ourselves or honestly, DH sort of wants to keep it. The dealer and the bank both said that if we have all our ducks in a row, and aren't trading in, it could be a quick-ish transaction. Eitherway, we'd have my car if the other person wanted to go somewhere, keep driving or just could just pick it up on our way back through.

[tarheels]

For new cars, we've found dealer financing can't be beat. They're practically throwing away 1%, 2% interest for people with excellent credit (you didn't mention your score). We put down like $8k on DH's truck in February and they took a check - maybe they have a way to call and confirm with the bank that it's good? Can't remember.

You know buying a car is an all-day affair, even when you have your ducks in a row? I'm envisioning your kids strapped in the back and this doesn't turn out well in my mind. I'm always amazed how long it takes, even when you walk on the lot pre-approved and say "I'll take that one."

[sierramist03]

When we bought out truck we financed at our hometown bank because our credit isn't wonderful but we were still able to get 6% interest. We spoke with the dealership and they knew we were coming that Saturday to look at and most likely buy. So then we went to the bank after our pre approval meeting and filled out the paperwork and they gave us a cashiers check. At the dealership we still had some more paper to fill out with the title and stuff.
If you financing at the dealership I'd take along copies of paychecks,income,etc.

[sierramist03]

Also I agreed with Tar Heels. Even though we had everything in order and all the paperwork started we were still at the dealership for 4 hours and that was paying cash!

[emoflamingo]

Last time we bought a new car it took forever too. Our last loan for a car (not on the new one -- I financed the minimum to get some free swag and paid cash for the rest with a cashier's check from the bank) we did through our credit union because it was insanely low credit. Oh and a repo through them, so we had fewer choices.

[bunnymendelbaum]

Hmmm, maybe we can do some of this beforehand. I guess I'll call that dealer. I drove a friend to Atlanta to do this years ago and it didn't take that long.

We could use my better credit, but wouldn't financing part of a car be a great way for DH to build credit?

ETA: it's a used car that is sort of hard to find w low miles. That's why we will have to buy one most likely out of town anyway.

[emoflamingo]

I would think so. Doesn't credit improve based on the ratio of open credit lines to available balance? I don't really know, I'm pretty sure I got married so I a) never have to think about money things again (god I sound like a dumbass) and b) never have to think about electronics again (my H is a programmer so that is totally his bag).

(though, random tidbit, my H says I married him for his Mustang.)

[OG Jo]

I *think* you can co-sign the car for a better rate and it will still be reflected on his credit. We did this with my husband's truck but I haven't checked his credit report lately to see if it's actually improving his score.

[bunnymendelbaum]

emoflamingo - my husband married ME for my mustang! (I have a '67 my dad is currently restoring!)

Sadly, I take charge of my $ stuff in our family.

[munkii]

Normally, I would never suggest co-signing, but he's your husband...

So, like pp said, co-sign to get him a lower rate. OR do it in your name to get an even better rate and find another way to build his credit. MM is not scary; though, I've never posted a money question over there. You should just post and see what they suggest.

Also, are you going to OH only or will you be visiting Indy?

[tarheels]

Bunny, y'all should buy a copy of your husband's credit report from one of the companies that lets you play What If. It may be that a car loan isn't what would improve his score. Revolving credit balances and on-time payment I think are the biggest factors. If he was dumb when he was younger, only time (7 years before it drops off) will fix that.

[bunnymendelbaum]

tarheels - good idea. I use creditkarma, I think it lets you do that. I think his issue is actually all the GOOD stuff he did was over 7 years ago and not much since!

[downtoearth]

May 16, 2013 9:57:34 GMT -5 bunnymendelbaum said:

Hmmm, maybe we can do some of this beforehand. I guess I'll call that dealer. I drove a friend to Atlanta to do this years ago and it didn't take that long.

We could use my better credit, but wouldn't financing part of a car be a great way for DH to build credit?

ETA: it's a used car that is sort of hard to find w low miles. That's why we will have to buy one most likely out of town anyway.

We were able to close on a car after about 4 hours in December of last year.  I think you could test drive and then have them start credit stuff and then go have lunch/play at a park and come back and sign. 

That being said, we too did this to try and up my DH's credit score and I guess the dealer used me as a primary to get us a better rate.  So when the loan paperwork came, it' has me as the primary and DH as a secondary, which I'm not sure really does much to his credit unless I defaulted and then he would have to pay.  It's weird, but they don't really even consider him on that account, but maybe it's just that one account.  Either way, we too paid all but $6k in a check and then financed the last $6k. 

[emoflamingo]

Haha bunnymendelbaum! My husband has a 1994 convertible (that needs a little work) and I have loved them forever. My dream car is a 1965 Fastback. I come from a car family, my dad had a Mustang when he was in his late teens, but it was totaled. He has a 1969 Camaro SS (drag modified), a Corvette that he is wrapping up a full restoration on (though I forget what year) and a Cuda e-body that he's waiting to restore.

Oh wait, that wasn't what this thread was about??

[sailorgray]

May 16, 2013 9:57:34 GMT -5 bunnymendelbaum said:

Hmmm, maybe we can do some of this beforehand. I guess I'll call that dealer. I drove a friend to Atlanta to do this years ago and it didn't take that long.

We could use my better credit, but wouldn't financing part of a car be a great way for DH to build credit?

ETA: it's a used car that is sort of hard to find w low miles. That's why we will have to buy one most likely out of town anyway.

Financing a car really improved my credit. It seriously went from the lowest of the low to around 800. It took a few years and the apr was high, but it worked.

When we bought our car, we financed through my credit union. We applied online and told them our max. They sent a blank check. My h got a cashiers check from bank to cover the rest, but dealer would have taken personal one. Easy peasy. My credit union rate was better than the dealers.

[sailorgray]

May 16, 2013 10:18:24 GMT -5 bunnymendelbaum said:

tarheels - good idea. I use creditkarma, I think it lets you do that. I think his issue is actually all the GOOD stuff he did was over 7 years ago and not much since!

I messed my credit up bad in college. Then I didn't touch it for years bc I was scared. When I went to buy my car in 2006, my h cosiged. My apr was 9% (eeeek). I also got a chase freedom card. I read that thy are good for people building credit. Keep in mind this was 2006/2007. Paying off both bills monthly caused my credit to skyrocket. By 2008 my cred was n the 750s and now it's near 800.

[bunnymendelbaum]

Thanks ladies. Such good info!
I called the bank & the dealer both and got a good idea how it would work. The dealer just lowered the price tho, so I bet they won't be there in 3 weeks when we are driving thru. Still good to know!

[bunnymendelbaum]

munkii - we will be in Ohio & Detroit. My Indy sister is coming here next week AND meeting us in OH.

Did the Indy 1/2 marathon already happen? I'm getting a hankering to do it again.

[munkii]

Yes, it was the first weekend of the month.

[new2this2]

DH and I recently bought 2 cars. The first was brand new. We financed it. The dealer had the best rate (it was 1.3% on a diesel). My credit is like your H's. It isn't bad but it's mostly non-existent. DH and I are both on the financing together. It should help my credit and we got the great rate because of DHs credit. It's win-win. When we bought the car it took us about 3 hours at the dealer to do all the paperwork and financing. We paid a decent down payment on it and used a regular check.

When we bought the next car we didn't finance it at all. I cut a check for the entire balance of the car. It was a regular check. I was kind of surprised they let me do that (it was a $15,000 check). They didn't call my bank or anything. I was literally in and out of there in under 20 minutes. We signed the paperwork, I wrote my check, and I was done. I did it with my 3 year old in tow.

[pamela]

I would absolutely not use a car loan as a way to build his credit. Interest rates, especially on used cars can skyrocket fast. You'll be paying ridiculous amounts of interest over what you could have gotten with just your good credit. If you really want to build his credit, do it with a CC in his name only that you pay off every month.

As far as cashiers check, you can call the dealership and ask, but we've always used just a regular check. I'm pretty sure they call the bank or process it electronically or something.

new2this2, I'm quite impressed with that quick of a transaction.

I would not try to do this transaction in the middle of a road trip with kids. That just seems like a good way to make a decision that you might regret later just to get out of there faster.

[prazenjc]

May 16, 2013 21:29:05 GMT -5 new2this2 said:

DH and I recently bought 2 cars. The first was brand new. We financed it. The dealer had the best rate (it was 1.3% on a diesel). My credit is like your H's. It isn't bad but it's mostly non-existent. DH and I are both on the financing together. It should help my credit and we got the great rate because of DHs credit. It's win-win. When we bought the car it took us about 3 hours at the dealer to do all the paperwork and financing. We paid a decent down payment on it and used a regular check.

When we bought the next car we didn't finance it at all. I cut a check for the entire balance of the car. It was a regular check. I was kind of surprised they let me do that (it was a $15,000 check). They didn't call my bank or anything. I was literally in and out of there in under 20 minutes. We signed the paperwork, I wrote my check, and I was done. I did it with my 3 year old in tow.

we have decent credit, dh and i both have had our share of ups/downs in that area. dh had been shopping for a car for quite some time, had financing in place from our credit union when he went into a dealership on Thursday to see a car in person. he loved it and wanted it. i didn't get to go see it, but would hardly ever drive it anyway (i have driven them, though, as a rental car--travel a lot for work....or used to).

anyway, i am mostly writing to say that although it didn't just take 20 minute for us, it wouldn't have taken much longer if dh hadn't had financing in place and just stuck with it. it did however only take total of 1.5 hours and he decided to go with their financing, b/c it was better all around.