Thanks for putting up my question! You've definitely lent some insight into the car finance world for me. As of now, I'm strongly considering your suggestion to join a credit union, as there is a highly regarded one right in my building. I don't think it's limited to government employees, but it's sorta tied to government (Hanscom FCU, based out of Hanscom Air Force Base). The Treasury Dept FCU is for treasury employees only, but lack of convenience turns me off to them.
And yeah, my installment history isn't so vast, having only paid $400/month for about 8 months now. You mentioned that my major in school might have a bearing on my work history. I majored in Accounting. Will that make any difference?
Again, thanks for your input, and hopefully I'll be driving a new car soon enough!
Hey Will... by: Justin (Editor in Chief)
Just an FYI, if you were to join the Treasury FCU it does not necessarily mean that you need to do all your banking with them.
Most credit unions will typically just want you to put a minimal amount of money ($5-$60) in a savings account and keep that money in your account for the duration of your loan. So still check them out, because they may be able to do more than Hanscom FCU.
I'm interested in the $400 a month you are paying. Is that a car loan? If so, how much was the loan for?
I only ask, because at 12 payments on a car loan most lenders will not consider you a first time buyer.
On top of that, the more you borrowed on that loan the greater chance of getting the $20k you are looking for when you buy your new car.
It may be worth it to hold off until you hit that 12 month payment history, but be sure to check with the different credit unions as they may still count it.
Regarding your major in accounting, I would think that that would apply, because you are now working for the Treasury Dept.? I'm assuming that to some degree you are doing some form of accounting.
I don't know about Honda or Hyundai, but I do know that when I worked for VW they would give credit for this. I believe most will and have college grad programs.
I currently work for Chevy, but I haven't run into any recent college grads in my area (rural), but I belive they also have a program like this.
For the lenders that do offer this, they will basically take your 9-10 months on the job and add that to your 4 years (?) of schooling and show your current job time as 4 years 9 months. Very helpful!
Hope this helps and good luck buying your first new car...
Justin
Comment by: Will
The $400/month is from student loans. My current car I paid cash from an inheritance. I'm probably going to wait until November or so to purchase, after my raise, so I can nail down a solid down payment and have some more time for my FICO to heal, as well as get some more payment history on my student loans and get more job experience. Thanks for all of your help and hopefully in a few months' time I can get the deal I want.
Hey Will by: Justin (Editor in Chief)
If you can wait, then I think that would help, especially if you save up some additional down payment.
FYI - The student loans won't count for much if for anything at all. I'm not sure why lenders don't count them, but they usually don't.
The student loans will help your (or hurt if you don't pay) your score though, so that's a bonus.
I would think all in all that with the increase in pay, government job, solid down payment, DTI/PTI well inline and a boost to your credit score will all be positive factors for a lender.
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