Financing Vehicles

[jesseweaver]

i've been thinking about getting a new car next summer and all my life i've been told how bad financing a vehicle is, but its so tempting. next summer i'll be 18, i have a good secure well paying job and could easy make the money for the payments. and it builds credit which will be nice when i'm looking at houses. it would be about a $20,000 car and i could put about 40% down. i realize how much extra i'd be paying on the car but i'd really like to have a nice car for a couple years, then sell it when i buy a house.


about how much total would i pay for a $20,000 car if i put about $10,000 down and my payments are say $500/month?


And it wouldn't be a brand new car i would buy either an 03 or an 04 :devil:


just thinking about it a littl now and trying to figure out if it would be worth it

[Pipeless416]

Originally posted by jesseweaver
And it wouldn't be a brand new car i would buy either an 03 or an 04 :devil:


something tells me you're looking for a cobra..:p

[Scro]

I've done it several times, but not for that amount of money. I think my first loan was $3500, and the others were around the $7000 range. They will build your credit, but your gonna be paying alot more in the end.

I don't think I will ever own a vehicle that cost that much. Not because I can't, but because I don't see the point in it. I paid $1000 for my truck, and I've been driving it 120 miles round trip to work for over 2 years. It's paid for, I wouldn't hesitate to drive it cross country, and it's still getting close to 18 MPG - I really couldn't ask for anything more.:p To each his own, though.

I guess I'm just the type that thinks about saving for the future, instead blowing money into a vehicle that's losing value daily.

[derekhonda]

The answer is there is not enough info. Need to know roughly what interest rate you would be looking at.

At 7%, a loan of 10 grand over 5 years, it is 198.00 a month. I bumped you up to paying 400 dollars and it shows you will have it paid off in 28 months and the $10,000 will end up costing you $10,840.

[derekhonda]

and at just 7% and 5 years, with no additional payments, you will pay 11,800 for your 10 grand.

[Scro]

Originally posted by derekhonda
The answer is there is not enough info. Need to know roughly what interest rate you would be looking at.

At 7%, a loan of 10 grand over 5 years, it is 198.00 a month. I bumped you up to paying 400 dollars and it shows you will have it paid off in 28 months and the $10,000 will end up costing you $10,840.

To get it paid off in 28 months you would have to pay closer to $400, wouldn't you? That calculation is showing that you will be paying more each month. 28x$198 = $5544.

Nevermind, I didn't read your second post.

[Scro]

What would the difference in interest be if you were to get a loan for 24 or 28 months (paid off in 28 months), and a 60 month loan and pay it off in 28 months? Would the interest still be the same?

[fastredrider44]

7% on a car loan would be pretty sweet. I have very good credit and my rate is usually around 12.5 on a truck.

[jesseweaver]

Originally posted by derekhonda
I bumped you up to paying 400 dollars and it shows you will have it paid off in 28 months and the $10,000 will end up costing you $10,840.

that doesn't seem that bad at all :ermm:

i could save up that money over 2 years and get a car or i could get the car now and pay an extra $840 to have it for the 2 years

[Sjorge450R]

Originally posted by fastredrider44
7% on a car loan would be pretty sweet. I have very good credit and my rate is usually around 12.5 on a truck.

yeah I have no idea where or who gave you a quote of 7% for a USED car. Thats really really low. Used cars are usually always over 10. New cars....now there is a reason why they tempt you with the 6.9% all the time.

[TM426]

Ask Dave Ramsey. Ha, I agree with him. Don't buy it unless you can pay cash (except mortgages on homes). Buy a vehicle you can pay cash for that's reliable. Save as you drive it then upgrade when you can pay to upgrade and sell the one you have. Yeah it sounds great to buy a car and finance it for 5 years for $800+. Once you are done paying for it 5 YEARS LATER ITS WORTH NOTHING! I would understand financing something that will hold value or APRICIATE. Homes bought 3 years ago are worth 30% less. I like fast or nice vehicles but, there's a time when the money for a vehicle will be a dent in your savings. When it dents your savings then by it.

[CDALEMX301]

HAH are you looking to buy a terminator??? 03 04 20k...That would be my guess...

I took out right around 20k on my car with a 6 yr loan...Usually anything over 3 has the same interest rate...So your minimum payment is less if you ever get caught in a bind but are able to pay as much as you want over that minimum each month...

[jesseweaver]

Originally posted by CDALEMX301
HAH are you looking to buy a terminator??? 03 04 20k...That would be my guess...

I took out right around 20k on my car with a 6 yr loan...Usually anything over 3 has the same interest rate...So your minimum payment is less if you ever get caught in a bind but are able to pay as much as you want over that minimum each month...

oh really? that'd be pretty nice i guess. and yea a terminator :D idk just something i've been thinking a lot about over the last few months

[derekhonda]

The 7%? I guessed. Never financed a car, knew they were a bit above home loans didn't realize they were usually double.

Here is 12% over 5 years, total costs you damn near 3500 in interest

[derekhonda]

12% and Additional payments.

[CNC_guy]

Originally posted by Sjorge300EX
yeah I have no idea where or who gave you a quote of 7% for a USED car. Thats really really low. Used cars are usually always over 10. New cars....now there is a reason why they tempt you with the 6.9% all the time.

I bought a used (20K miles) Altima a couple years ago and got 7%. I've never been in double digits in interest on an auto loan.

Originally posted by jesseweaver
oh really? that'd be pretty nice i guess. and yea a terminator :D idk just something i've been thinking a lot about over the last few months

That makes two of us. :o I'm just waiting for this damn supervisor position to open up... My grandma and I already filled out all the paperwork for a personal loan up to 22000... Already watched two great deals go by on a Terminator. One was Sonic Blue with 2.6KB, KB boost-a-pump, exhaust and tune for 16,500. Other was 10th ann. torch red for 17,000 bone stock.

Cobra's are cheap here compared to everywhere else.

[jesseweaver]

Originally posted by Nova
That makes two of us. :o I'm just waiting for this damn supervisor position to open up... My grandma and I already filled out all the paperwork for a personal loan up to 22000... Already watched two great deals go by on a Terminator. One was Sonic Blue with 2.6KB, KB boost-a-pump, exhaust and tune for 16,500. Other was 10th ann. torch red for 17,000 bone stock.

Cobra's are cheap here compared to everywhere else.

wow where do you live. i'd drive pretty dam far to get either of those cars. here they run 20-25 or so.

i would want to find one bone stock, maybe exhaust, no pulley of anything though. and one with under 25k on it. and around here, those run 22, 23 :( i'd love to get a dark shadow grey one (thats what color my mustang now is) they made 851 DSG coupes in 2003. sonic blue is real nice too and in 03 they made 302 mineral grey coupes, it'd be kinda cool to have a 1 out of 300 car... or an 03 10th anniversey, they only made 2,003 of them...

my dream cobra though (within reason) would be a 2004 competition orange coupe. bone stock, 20k miles, 6 spd, black interior :eek: lol i gotta stop dreaming

[Rootar]

i bought a 2 year old car with less than 20k miles, i borrowed 9g and put down 2g (car with tax title and all was about $10,900) and i got 6% interest. This could be because ive already owned 6 veichles before this one and payed them all off in the first 16 months.... its always better to get a longer term loan and pay it off asap (speaking of which i owe $2200 on my car but ive only made 13 payments so far....

before you buy a car definetly make sure its value isnt gonna fall off the charts in a year or less... basically make sure you can get most of your money back out of it when you wanna swap it later on down the road.

[feuerstack411]

As much as my parents don't want me to, I'm gonna have to take a loan out for a car too. I've had 3 different 100,000+miles cars and I can't deal with them anymore. More stuff on my bimmer broke last night, and I don't know how I'm supposed to get to class this next week now.
My plan is a 12,000-15,000 loan for reliable, yet fun car....s2000. If not I'll settle for a WRX or a 04-06 GTO

[Nac's22]

Originally posted by feuerstack411
As much as my parents don't want me to, I'm gonna have to take a loan out for a car too. I've had 3 different 100,000+miles cars and I can't deal with them anymore. More stuff on my bimmer broke last night, and I don't know how I'm supposed to get to class this next week now.
My plan is a 12,000-15,000 loan for reliable, yet fun car....s2000. If not I'll settle for a WRX or a 04-06 GTO

Well maybe you should not buy BMWs any more and stop driving like you live in jersey.... lmao:blah:

[feuerstack411]

Originally posted by TRR440EX
Well maybe you should not buy BMWs any more and stop driving like you live in jersey.... lmao:blah:

The chevy I owned before my bimmer was 100x worse. That thing broke down more then I ever drove it.

and NJ > NY :o
we got the shore....you got, well, trees

[feuerstack411]

Originally posted by Rootar


before you buy a car definetly make sure its value isnt gonna fall off the charts in a year or less... basically make sure you can get most of your money back out of it when you wanna swap it later on down the road.


Good thing the car I plan on buying can only go up in value over the years :D

[randyl@mschev.c]

Hey Jesse I've sold cars for about 15 yrs. or so and the best thing you can do if you are going to put that much money down is go as long as you can on your term because it's a simple loan and if your payment is $200.00 a month you can always pay more but you are only obligated to $200 and I would look @ my options on how much I put down because you might only want to put down half that and draw interest on the other....just my 2 cents

Originally posted by jesseweaver

my dream cobra though (within reason) would be a 2004 competition orange coupe. bone stock, 20k miles, 6 spd, black interior :eek: lol i gotta stop dreaming

haha, that's funny. That's my ideal dream cobra also... Except for the stock part. I would like to buy it stock but I want a KB 2.6 and some other misc. hardware. lol

[jesseweaver]

Originally posted by Nova
haha, that's funny. That's my ideal dream cobra also... Except for the stock part. I would like to buy it stock but I want a KB 2.6 and some other misc. hardware. lol

yea that'd be really nice except they cost idk how many thousand and they raise the value of the car very little, if at all. i'd definately at least wait till i have the car paid off to get a new supercharger

[Gray33]

have fun trying to finance a 03 and 06. I had alot of trouble trying to get a 3k loan for one. I paid 13k for mine and with tax mine cost 16k and i diddn't sell my old truck so i had to get a loan.

[jesseweaver]

Originally posted by Gray33
have fun trying to finance a 03 and 06. I had alot of trouble trying to get a 3k loan for one. I paid 13k for mine and with tax mine cost 16k and i diddn't sell my old truck so i had to get a loan.

are you talking about a cobra? they didn't make them in 06 and you got one for 13k :confused: did it have under 150,000 miles??

[Gray33]

[QUOTE]Originally posted by jesseweaver
are you talking about a cobra? they didn't make them in 06 and you got one for 13k :confused: did it have under 150,000 miles?? [/QUOTE

Dont know what your talking about. I bought a 2003 6.0 f350 lifted 6 inch with 35. See thread to see pics of it i think its called. "got new truck" or New truck.

[jesseweaver]

ok sorry we were talking about cobras i thought you meant you got one of them for 13k

[400exrider707]

My first vehicle I ever financed was $32,500 used. My interest started @ 8.9% with my dad cosigning. I later refinanced it through my credit union and got 5.25% on my own account without a cosigner.

[Mattman88]

Credit unions are the way to go. I didnt have any credit and I joined a credit union and got my dad to co sign a loan for me, and I got my interest rate at 5.5%. This was my first loan I had ever taken out and it was for 8.3k. Your best bet is to join a credit union if you are going to finance a vehicle.

[sunco]

Once you join the book of the month club.................. well it seems never ending. All sides of the coin here. I have always borrowed to get where I am today. But if you had 30K - you'd be better off investing in your job/schooling & driving something under 10K. auto's are a crappy investment. Good luck in which ever way you turn. Don't forget about the insurances cost. the list goes on.

BTW - the dude that offered his 2 cents is about all your get if you invest you money :D

[fastredrider44]

I too have financed vehicles all my life. In ten days, I will have my original loan paid off. The original loan bought me two trucks and two fourwheelers. It was origianlly a 3 year loan, and after adding 4000 to it 2 different times, it took me 3.5 years to pay it off. Originally it was 3 years, paid it down to 12 payments left, added 2 more years, then got it down to 12 payments left, added to more years, but I only have one payment left. I'm tired of payments. (I have another loan that has a fourwheeler and a truck on it). I'm going to stop borrowing money on fourwheelers though. I'm finally money ahead that I won't have to anymore.

My advice is to drive what you have til it is paid off and then save save save until you can put down half of whatever you are buying next. Payments suck.

[D Bergstrom]

In my 36 years of life, I have known no one, yes no one to pay cash for a vehicle. (Unless it was under 5k or so.) I myself bought a 1993 mustang back in 2000 for $7,000 and financed it. there is nothing wrong with financing your vehicle, as long as you use your head. make sure you can afford the payments, insurance, resigtration, etc. As everyone else has said go through a Credit Union if you can. They always seem to have the best rates. I got 6.9% through a Credit Union for my 93 mustang. The bank told me to go away, they would not even finance anything over 5 years old.


Originally posted by jesseweaver
wow where do you live. i'd drive pretty dam far to get either of those cars. here they run 20-25 or so.

i would want to find one bone stock, maybe exhaust, no pulley of anything though. and one with under 25k on it. and around here, those run 22, 23 :( i'd love to get a dark shadow grey one (thats what color my mustang now is) they made 851 DSG coupes in 2003. sonic blue is real nice too and in 03 they made 302 mineral grey coupes, it'd be kinda cool to have a 1 out of 300 car... or an 03 10th anniversey, they only made 2,003 of them...

my dream cobra though (within reason) would be a 2004 competition orange coupe. bone stock, 20k miles, 6 spd, black interior :eek: lol i gotta stop dreaming

I am trying to sell my 2003 Cobra now. have looked alot at what prices they are going for all over the country. Anything in the mileage range you are looking for is going to be in the 20 to 25k range. There was a guy a couple of months ago selling his 2004 bone stock Cobra with 4k miles on it for 38k! I would bet anything going in the teens highly modified is high mileage, the person needs to sell it quick, or something is wrong with it.

I am only asking 17k for mine (Pretty much stock, Blue Book is just over 17k.) I figured it would be a easy sale, since Cobra's are pretty rare. Nope, I have had it up for sale for 3 months. No one is buying anything in this economy. If you want a Cobra, be patient and look around for one, you will get a good deal on one. It is actually a good time to buy, just a bad time to sell.

Doug

[jesseweaver]

Originally posted by fastredrider44


My advice is to drive what you have til it is paid off and then save save save until you can put down half of whatever you are buying next. Payments suck.

my mustang now and both my dirtbikes are paid off and if i sell everything plus what i have saved i could easy put down half of a 25k car.

[jesseweaver]

Originally posted by D Bergstrom
In my 36 years of life, I have known no one, yes no one to pay cash for a vehicle. (Unless it was under 5k or so.)

at 16 i paid cash for my 03 stang (almost $7k) and a month later paid cash for my bike ($3k). note... I paid cash, parents didn't pay a dime lol


how exactly is it smarter to finance a vehicle if you have the cash for it? i know it builds credits, i don't see any other benefits though :confused:

[400exrider707]

Originally posted by jesseweaver
at 16 i paid cash for my 03 stang (almost $7k) and a month later paid cash for my bike ($3k). note... I paid cash, parents didn't pay a dime lol


how exactly is it smarter to finance a vehicle if you have the cash for it? i know it builds credits, i don't see any other benefits though :confused:

I have an uncle who paid cash for everything his entire life. He owes no one anything to this day. He went to buy a new tacoma this year, which would have been his first brand new vehicle ever. They told him to get lost because he had absolutely ZERO credit history. He's never even had a credit card. He can NOT buy a new vehicle.

[bansheeboy321]

What alot of people dont understand about credit is, it dont matter the dollar amount on whatever you are buying. I started building credit at 17. You can get a credit card with a 100 dollar limit and buy a dollar candy bar each month- pay early and your credit score will be excellent. Actually if anything the more expensive the car the more likely itll water down your credit since the creditability of a 16-18 year old makeing 300 dollar payments each month is lower then say 100 dollars a month.

I personally have always been against financing. I dont owe anything on anything i own (cars, house, medical, student loans, credit cards, etc...)

[fastredrider44]

Originally posted by jesseweaver
my mustang now and both my dirtbikes are paid off and if i sell everything plus what i have saved i could easy put down half of a 25k car.

But then you have one car, and no toys. I decided I would rather have a bunch of toys than to have one nice truck.

[jesseweaver]

Originally posted by fastredrider44
But then you have one car, and no toys. I decided I would rather have a bunch of toys than to have one nice truck.

i would still get a truck as a daily driver. maybe a v6 s10 for 3-4,000

but yea it would be hard having no dirtbike or quad :ermm:

[usp4u]

I dont know, I've never had an intrest rate above 6%. You guys talking about 10-12% intrest is crazy to me. No way I'd go in for that.
Also, when paying off early, check to make sure that there is no limitation on how long the loan must be active. When I was 15 I financed $2000 on a new RM125 as a way to build credit. It was a 3 yr. loan that I had to carry for 24 months before I got the credit for it.

[woodsracer144]

what kind of a rig do you want?! if its a 03 or 04 for 20K.... i would have to say your best bet is to find a nice car or truck that you can pay for right now and have it done with, for 10 grand you can get on hell of a nice of a rig... i will gladly let you give me 10 grand for a truck. another thing is the other expences like insurance, oi changes, fuel and tires and other odds and ends, i know its not something you plan on but my sister paid 7 grand for a kia spectra and she owned it for 2 weeks and the front end was junk, took it in the place she got it from took care of it for free, 2 weeks later the trans went out with 76 thou on it, took it back and the place was keeping the car... she has a ford focus now.

[jesseweaver]

yea insureance is gonna kill me. i won't be able to get insurance on it. i'm gonna have to put the title in one of my parents name and have them be the primary driver. i don't plan on paying a whole lot for gas and oil cause i don't plan on driving it a lot. i know gas will be more expensive for it though. and yea tires :ermm: haha no if i get a really nice car i think it'd be kinda hard for me to beat it.

[woodsracer144]

how about this... what kind of a rig were you thinking about getting?

we might be able to help you out...

im 18, and im driving a 93 ford ranger theres 176K on it the motors been re build, i'm replacing the tires on it shortly and im replacing the shackle's and all the mounting, bushings and hardware in the rear end.
so after all this i will have a grand total of a gand in to it, paid 600 for the truck, almost 400 on tires and about 90 for the shackles and all that...

its not that 97 ford powerstroke diesel crew cab long box with a lift and stacks that i would LOVE to have... but it hauls my wheeler and gets me to school on good days and ****ty winter days...