Modern Car Buying Advice with a Twist (recent unemployment)
May 14, 2018 1:33 PM Subscribe
I was recently laid off from work and my car of 20 years isn't really safe to drive. Will I be able to get a car loan if am unemployed?
I've been lucky that my previous job's generous work from home policies and public transit has allowed me to forgo car buying for as long as it did. I figure however that my next job may not be so accommodating so I probably should correct this issue.
As for my financial situation, my wife and I have good credit. She is employed as a parochial school teacher. We have cash reserves such that I could buy my desired car outright but with interest rates such as they are I imagine I'd be a fool not to finance. Would outside financing via my bank be any different?
As a side question, as a person that generally hate financial negotiations, has anyone used car buying services like Automatch or the like?
I've been lucky that my previous job's generous work from home policies and public transit has allowed me to forgo car buying for as long as it did. I figure however that my next job may not be so accommodating so I probably should correct this issue.
As for my financial situation, my wife and I have good credit. She is employed as a parochial school teacher. We have cash reserves such that I could buy my desired car outright but with interest rates such as they are I imagine I'd be a fool not to finance. Would outside financing via my bank be any different?
As a side question, as a person that generally hate financial negotiations, has anyone used car buying services like Automatch or the like?
You will often get a better price if you take the dealer financing. Nothing is stopping you from immediately paying off the balance.
I have used Costco's auto-buying service and liked it pretty well. You get a price that is within let's say 20% of the lowest price the dealer might sell your car for and no negotiation at all. I loved it.
posted by rachelpapers at 1:53 PM on May 14, 2018 [2 favorites]
I have used Costco's auto-buying service and liked it pretty well. You get a price that is within let's say 20% of the lowest price the dealer might sell your car for and no negotiation at all. I loved it.
posted by rachelpapers at 1:53 PM on May 14, 2018 [2 favorites]
You will often get a better price if you take the dealer financing
I have heard the best thing to do is to let them know you want financing (because that is where they make a lot of their money) and negotiate from there with a clear “total cost” - because they often focus on the low, low monthly payments to reel you in. Once the total cost is where you want, in writing, you can then say you’ll just pay that in cash.
posted by saucysault at 3:52 PM on May 14, 2018 [2 favorites]
I have heard the best thing to do is to let them know you want financing (because that is where they make a lot of their money) and negotiate from there with a clear “total cost” - because they often focus on the low, low monthly payments to reel you in. Once the total cost is where you want, in writing, you can then say you’ll just pay that in cash.
posted by saucysault at 3:52 PM on May 14, 2018 [2 favorites]
If your wife is employed and a loan won't kill your debt to income, you should have no problem getting a good one. The thing to watch out for is that a lot of them have (small) prepayment penalties, though it's often not explicitly referred to in that way.
Depending on what kind of car you're looking at, new may in fact be cheaper in the long run, especially if you're the sort who would otherwise buy a certified used car or buy a manufacturers' extended warranty.
posted by wierdo at 4:00 PM on May 14, 2018
Depending on what kind of car you're looking at, new may in fact be cheaper in the long run, especially if you're the sort who would otherwise buy a certified used car or buy a manufacturers' extended warranty.
posted by wierdo at 4:00 PM on May 14, 2018
You can't get a car loan on your own if you don't have verified income, but you could do a joint application with your wife, and as long as the debt-to-income ratio is OK, you should qualify that way.
posted by rabbitrabbit at 7:49 AM on May 15, 2018
posted by rabbitrabbit at 7:49 AM on May 15, 2018
This thread is closed to new comments.
Cars depreciate in value quite quickly, so it just does not make any sense at all to finance an automotive purchase.
posted by JamesBay at 1:47 PM on May 14, 2018 [2 favorites]