Buying my new car soon need some advice?

Buying my new car soon need some advice?

ok here is the deal, im planning to buy my 2nd car soon in 2 weeks or so.. new bmw 328i 2011 msrp (41000$) im in Californiaand this following my current situation :1. have score from Experian : 698 , Transunion : 692 Equifax : 712 (last update August 27 2011 by BOA privacy assist services)2. have car loan : 7000$ left from 17500 total financed(honda civic 09) finance it since 01/01/2009 - now and never been late and will be "-pay off: next week in one shot. this my first car.3. have credit card debt : Amex Gold : (0$/limit unknown) Chase : (4800$/limit 5000) BofA (1340/limit 1400) Best buy : (0/limit 5000) Dell : (0/limit 9000)4. Income 2500 Net/month5. 23 years old today / single and attending college (freshmen)6. Housing provided by company so i dont have to pay for place i live7. Monthly payment detail : auto loan : 385$ cellphone : 79$ insurance : 110$ and i save all whatever left from my paycheck about 1200 somethings every month8. about 1 year and 7 month with current jobMy question/plan1. how big chance i will get approved for 41000$ loan probably from local credit union i heard from friend they have better rates for auto loan,true??(scenario A) with current situation 1-8 above? (scenario B) with condition car paid off, credit card (BofA paid off, chase paid off) total 0 debt?sorry little too long, and sorry for my crappy english... thanks for everyone who take times read this and answer this question for me, god bless you and this country cheers!!


Well the good news is you actually provided enough information for an answer. Most people don't.The bad news is that you are, financially, in no position to buy a $41K vehicle. You barely make that much in a whole year, before taxes.Plus, your debt/income ratio isn't great.You make $2500 a month and are maxed out on 2 credit cards totalling almost 3X what you make a month.You may get approved for a loan, but that doesn't mean this is a good financial decision.My guess is your payments will be in the $600-$700 a month range for 60-72 months with an interest rate around 6-10%.I would also expect your insurance to go up, significantly.My recommendation would be to set a goal to buy this vehicle at 25 and work toward that goal.A little higher credit score will lower your interest rate and increase your chances of being able to purchase the vehicle.Plus,at 25, your insurance will go down, dramatically, assuming you maintain a clean driving record.Plus, you could work on putting more of a down payment down and cleaning up that debt.That $1200 'savings' you have a month should be going toward your Chase and BOA cards...not a new BMW.



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