I am trying to buy new 2018 X5 with no credit history. First time buying a car.
I don’t have bad or good credit but just 0 credit. Currently making $80k/yr.
Region: Oregon
They asked me to put down 50% down if i want to get approved.
Do i get low interest rate if i make more down payment?
What interest rate should i expect? with no credit history?
Have you spoken to your bank or credit union? They should be able to help as they have better knowledge of your situation and in most cases will offer a lower interest rate.
Or you could buy a $30k car for 22,500 down and a loan of 7,500. You’ll lower your total interest costs even if it isn’t the lowest rate. And build your credit too.
I take it you’re living with your parents. And if you go through with this, you will be for the next 5-6 years. Probably not the wisest decision, especially with a high interest rate that they’ll give you because the risk of no credit history.
what’s wrong with a kid driving a nice car
btw, i am 35.
i was just wondering how much they can rip me off cuz i have no credit history.
i was working oversea last 12 years…
A lot !
Why dont you lease a transferable cheap car like an Encore or something, make payments for 4 to 6 months and then lease the X5. Payments on the Encore are not gonna be killing u. You can get rid of it after 6 months.
If I was making $80k, and had $30k saved, I would rather invest in something that doesn’t madly depreciate after it steps foot off the dealer.
Hahaha, he can do what he wants, he just won’t be living here when he does what he wants
I’ve had quite a few ex-pat friends from work in similar situations. Most have been able to find credit unions that gave them good deals, so check all of the local CU’s. The major/national banks won’t give you a decent rate. So leasing is probably out of the question.
If you can’t get a good rate, I would do what the other person suggested and finance a portion of a less expensive vehicle (CPO X5 with warranty??) to build credit.
This is not a financial forum, but if you’ve got $30k on hand, don’t light it on fire with a brand new X5
thanks for your apply!
I saved up last 10 years so 30k doesn’t hurt me much.
the interest rate will be will high if i go with CU’s right?
I just wanted to get some numbers.
Your interest rate is going to be high no matter what. CU might be lower but still unattractive.
You could also post a question at r/askcarsales. They may have more experience with this issue and seem less concerned about people buying cars that a financial planner would tell you not to buy.
IMO, if you are dead set on the car, you should pay cash for the car (25% of your savings). If you just want any X5, better option would be to buy a CPO used X5 for 24 months, establish a credit history, and then you can lease an X5. It’s gonna be another month or two till the redisgned 2019 X5s are in stock so if you bought new now you are getting very end of current X5 model. Whereas you could probably pick up a CPO 2016 X5 for 35k-40k which is basically the same car as the 2018 X5. Then in two years sell it, lease a new X5 and still come out way ahead in 5 years when lease is up.
Why are you so obsessed with the rate? You can shop around for the best rate you can find. Whatever that rate is, your only way to lower your cost beyond that is to take the smallest loan.
