About Joe Montgomery Expertise I can answer most any question in this area, unless they are seeking legal advice.
Experience I have worked in the lending industry for over 15 years, and worked in consumer lending, (Personal loans, and small collateral loans) as well as mortgage lending during the first 6 years of my career
Publications Currently an all experts expert for mortgage loans.
Question Hey Joe. I have a few questions for you. Well first off i am 20 and i have a credit score of 740 (that was the score the last time i checked online) I am in need of a car pretty bad right now so i have been shopping around. I am looking for a used car in the 5000-6000 dollar range. I am willing to put 1500 as a down payment onto a car which would mean that i need to get a loan in the 3500-4500 dollar range. Should i try and take out a personal loan or an auto loan? Also should it be with my bank or a dealer? This information might help you with this question. I have only one credit card with a limit of 560. I just moved into a new apt 2 months ago. I have been at my current job for about 3 months and my previous jobs equal about 5 years of employment.
Answer Hello Brandon,
First off, I don't think a personal loan is a good option for several reasons, but mainly because the rate of interest on a personal loan is usually higher as there is no collateral. Second, either a dealer or the bank shouldn't make too much difference, however your personal bank "SHOULD" be able to offer you a better rate, but they might not be willing to lend as much as you need for the car you want, but with your down payment, that shouldn't be an issue. I recommend you find one or two cars that you are interested in, get the details and call your bank. The dealer is going to push you to let them try to qualify you as well, but I recommend you wait until you have checked with your bank as most auto dealers run your credit, and then, if they try several financing options, those lenders may run your credit as well, which can really drop your score.
Your job situation and recent apartment may be a small issue, but the down payment you have will really help things out as you are giving the lender a clear indication of the investment you are willing to make to purchase the car.
Good luck, and remember, the dealers are aggressive, which is why you can let them help if the bank is unable to qualify you.
