Comments on: Get Good Credit if You Want to Buy a Car http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Sun, 12 Feb 2012 05:07:51 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Eel2386 http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-43567 Eel2386 Mon, 28 Dec 2009 19:05:32 +0000 http://blog.mint.com/blog/?p=561#comment-43567 Andrew makes a good point -- if you have your money in a high-yield savings account/CD etc you might make more there than you would save by buying a car in full, however the likelihood that you will find a loan with a rate below the higher savings rates out there of about 1.75% is very unlikely. And you also need to be aware of the price of the vehicle - many dealers will offer 0% financing, but the cost of the car will be slightly higher, thus making up the difference they lose and ultimately not saving you a dime. Basically just be aware of the games and only spend within your means and you should be fine -- though I am a fan of the 50% down payment method myself. If you can manage to put down enough and only have to finance a max of 3 years at about $200-$300, you can both build your credit history with reasonable payments, and avoid spending too much more in financing. Plus, no dealer will turn down that much cash! :) Andrew makes a good point — if you have your money in a high-yield savings account/CD etc you might make more there than you would save by buying a car in full, however the likelihood that you will find a loan with a rate below the higher savings rates out there of about 1.75% is very unlikely. And you also need to be aware of the price of the vehicle – many dealers will offer 0% financing, but the cost of the car will be slightly higher, thus making up the difference they lose and ultimately not saving you a dime.

Basically just be aware of the games and only spend within your means and you should be fine — though I am a fan of the 50% down payment method myself. If you can manage to put down enough and only have to finance a max of 3 years at about $200-$300, you can both build your credit history with reasonable payments, and avoid spending too much more in financing. Plus, no dealer will turn down that much cash! :)

]]> By: Andrew http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-40232 Andrew Fri, 16 Oct 2009 23:51:33 +0000 http://blog.mint.com/blog/?p=561#comment-40232 nutella makes a valuable point. Yes, paying in cash saves you making payments or a decision you cannot actually afford but those of us with shorter credit histories need things to add to that history. Furthermore, if you do qualify for a low/0% rate on a car loan your money may be earning more interest than the loan is charging. Paying cash in that situation may cost you more because you aren't earning any interest with it at all. nutella makes a valuable point. Yes, paying in cash saves you making payments or a decision you cannot actually afford but those of us with shorter credit histories need things to add to that history.

Furthermore, if you do qualify for a low/0% rate on a car loan your money may be earning more interest than the loan is charging. Paying cash in that situation may cost you more because you aren’t earning any interest with it at all.

]]> By: John http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-40076 John Fri, 16 Oct 2009 00:24:34 +0000 http://blog.mint.com/blog/?p=561#comment-40076 Every four months get another credit report from a different one of the three reporting agencies at annualcreditreport.com Every four months get another credit report from a different one of the three reporting agencies at annualcreditreport.com ]]> By: nutella http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-38162 nutella Wed, 30 Sep 2009 04:11:19 +0000 http://blog.mint.com/blog/?p=561#comment-38162 what if I have the cash, but want to increase my credit score to get a mortgage in the future? my credit report said that getting different types of credit will help me. (like a car loan). I could try to get a car loan for 0% interest. what if I have the cash, but want to increase my credit score to get a mortgage in the future? my credit report said that getting different types of credit will help me. (like a car loan). I could try to get a car loan for 0% interest. ]]> By: Dug http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-30556 Dug Wed, 22 Apr 2009 23:14:12 +0000 http://blog.mint.com/blog/?p=561#comment-30556 I think the moral of the story here is just be informed. And know what options are best for you. I think the moral of the story here is just be informed. And know what options are best for you. ]]> By: JM http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-30480 JM Mon, 20 Apr 2009 21:21:44 +0000 http://blog.mint.com/blog/?p=561#comment-30480 Funny that the people saying 'just save up and pay cash' seem to miss the point that sometimes people need a car sooner rather than later. Thus the topic of this article. Funny that the people saying ‘just save up and pay cash’ seem to miss the point that sometimes people need a car sooner rather than later. Thus the topic of this article. ]]> By: Richard http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-28267 Richard Thu, 25 Dec 2008 12:21:09 +0000 http://blog.mint.com/blog/?p=561#comment-28267 Actually, the average american credit score right now is below 600. In fact, I think about 85% of credit scores are below 600. One thing with loans that many people realize is that if they creditor can, at any time, call the entire amount of the loan due for any reason. The best thing to do is to just pay for it in cash if at all possible. Actually, the average american credit score right now is below 600. In fact, I think about 85% of credit scores are below 600.

One thing with loans that many people realize is that if they creditor can, at any time, call the entire amount of the loan due for any reason. The best thing to do is to just pay for it in cash if at all possible.

]]> By: Kim http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-28260 Kim Thu, 25 Dec 2008 04:46:42 +0000 http://blog.mint.com/blog/?p=561#comment-28260 This article is BS, because It's easier than ever to get a car loan. They can't afford to have a surplus of cars sitting on their lot. Like the article said, the average American has a score of 3-700. What's going to happen if they only hand out the loans to the people with credit scores of 700 and above? It's not going make the economy better. This article is BS, because It’s easier than ever to get a car loan. They can’t afford to have a surplus of cars sitting on their lot. Like the article said, the average American has a score of 3-700. What’s going to happen if they only hand out the loans to the people with credit scores of 700 and above? It’s not going make the economy better. ]]> By: Buying Car Lease http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-27880 Buying Car Lease Tue, 02 Dec 2008 11:47:26 +0000 http://blog.mint.com/blog/?p=561#comment-27880 If buying a high-end car that plan on taking for leisurely Sunday drives, then save up enough money to cover the total cost - if the Cars are not a necessity, why bother with a loan? Regards, Rose. If buying a high-end car that plan on taking for leisurely Sunday drives, then save up enough money to cover the total cost – if the Cars are not a necessity, why bother with a loan?

Regards,

Rose.

]]> By: aaron http://www.mint.com/blog/how-to/get-good-credit-if-you-want-to-buy-a-car/comment-page-1/#comment-27405 aaron Wed, 05 Nov 2008 16:51:30 +0000 http://blog.mint.com/blog/?p=561#comment-27405 What Bryan said is a good point: AnnualCreditReport.com is the place you want to go for your legislatively-mandated annual free credit report.... and they'll let you check your FICO score for just a couple dollars. The other place? Not good. What Bryan said is a good point: AnnualCreditReport.com is the place you want to go for your legislatively-mandated annual free credit report…. and they’ll let you check your FICO score for just a couple dollars.

The other place? Not good.

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