Online vs Dealership

[nickels22]

My Chapter 7 was discharged in March 2011. Thinking of buying a new car in the next couple of months. Is it better to apply online or should I wait until I get to the dealer? I really like the Ford Fusion. Should I apply online through Ford Motor Credit or would it be better to let the dealer run the application. Anyone have any insight?

[justbroke]

You should apply through at least several (3-4) banks/lenders as you can within a 2 week period. These automobile credit inquiries count as just one inquiry against your score (as the scoring models roll them up into one). This is known as rate shopping. Be aware that dealerships will often float your application to as many as 5-6 banks at once; they may all hit your credit report as well. But again, this will only hit your credit score as one inquiry.

The real key is to shop around. Are you really buying a "new" car or a "used" car?

[nickels22]

Thanks for the quick reply. The car is going to be new I believe. I know that the recommended thing to do would be to just buy a used car for 4-5k and save the money but I drive about 20,000 miles per year, 80 mile a day daily work commute, and I don't want to risk a older car breaking down on me on the highway. I am thinking about buying a 1-3 year old car but per my research so far, between the high used car prices and the deals and lower interest rates on new cars, the cost difference between new and slightly used may not be that much.

[justbroke]

I am very glad to read that you've done your research and have thought through the cost of purchasing a new car versus a late model used car. I applaud you since many do not do just that. A safe and reliable car is ALWAYS my top priority. I did just buy a used 2008 car (which was "officially" sold in 2009, so I still have the 5 year warranty through 2014). A warranty is also one of my top priorities for a dependable car.

Continue to do your homework and definitely rate shop for the best loan!