Becks

Hey Guys,

I want to buy a new P5 and I want to get it financed from the dealer but I have a couple of questions and I was hoping someone might know the answers.

My credit rating isn't the best (not the worst either) so either the dealership will reject my application or will charge me a HUGE interest rate. If I were to get someone to co-sign (with a great rating) would that help me? or is it just based on my rating?


Thanks

mito7878

Get the co signer. Their rating is what will allow the bank to comfortably loan you the money. But if you do it on your own the best way to get financed is to put 15 - 20 % down. The banks love this and will more lickly over look your not so perfect rating.

4u2zoom

I got 7% for the first 5 years then 5% for the remaining 2.

Not that great.. but since I couldn't afford to pay in 48 months....

Becks

4U2Zoom,

How was your credit rating? I know 7% is high but I would be willing to pay that.

Which dealer did you buy from in Ottawa? Would you recommend them?

Pro_fan

You're on a 7 year loan????? Holy crap!!!!! IMHO, that doesn't sound very good at all! If you can afford it, great, but 7 years is a LONG time.

If you do that I'd be sure to get the extended warranty for the entire 7 years. This is just in my opinion, but the only reason I say this is what if your car breaks down in year 6? You are no longer covered under ANY part of the warranty and you would have to make car payments AND pay for the repair. That would bite hard!

David

The hell with if it breaks! what if you get hit and then have a car worth $5000 but you still owe $9000. don't think that your insurance company will be nice and just pay off the car loan. they wont! I see this every day, I just tell the people "well your upside down on your loan. I can't help you. please sign on the dotted line".

mito7878

Or if its the other persons fault their insurance company wont pay either...

nightowl

ya co-signers help alot...i got 5.9% financing for 5 years with a $3000 downpayment, and got my dad to co-sign it.........i even had the bank personaly phone me asking if i wanted a line of credit with them....i turned it down, too much temptation

macdaddyslomo

Ok,hope I can help you out here....I work for Ford Credit so I'm guessing I'm pretty qualified to answer your question.....First of all no such thing as a 7 year loan...longest any bank will go is 6 and thats a stretch...I think 4u2zoom means a five year loan at 7% first 3 and 5% remaining 2 which is awesome....7% is an ultra low rate,and the only way to get lower is on a special APR,only provided by the Manufacturers Bank on certain models....A cosigner will help out greatly as they have to qualify seperately,and if they have a better rating,basically what you are doing is "riding their coat tails"...be careful though...If you for any reason screw up they are just as responsible for the loan as you,and if you for some reason get repo'd,they get a repo on thier credit too..as far as insurance paying only part of the loan...get GAP insurance,its cheap and if the car gets totalled,you owe nothing!!!...any more questions???

islandpro

also check with your local bank. see if they can do any better. that way you just walk in the door with cash in hand. but yeah a co-signer will help.

nightowl

i think its alittle different here in Ottawa ontario canada...cause mazda doesn't have there own bank or credit union, in my case Bank Street mazda uses one of the local banks witch is Scotia Bank....they would probably give you a 7 year loan...and yes it was APR financing too

Pro_fan

When interest rates were ultra-low, I checked with my bank (BO Montreal) and the best they could do was 8%...nowhere near the 5.9%. BTW, my loan is also through Scotia Bank, but it's through a special arrangement with Mazda Canada.