Loan Help?
10-19-2005, 07:56 PM
#11
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Join Date: Apr 2004
Location: Garland, TX
Posts: 224
I'm not broke, I just don't have thousands of dollars laying around. I have a small credit card ($300 limit) that I use for groceries or whatever. Yes, I live on my own... ish. I live in a house with roommates, however I don't think our paying rent is being put onto credit reports or else why would I keep being told that I have NO credit?
I was running loan calculators assuming a 9.6% interest rate, which was the max listed, to make sure that it fit into my budget. Basically, what I would do is pay off my credit card for the next month (I pay off the entire card every month) and use the credit card bill money for my car payment.
Banzai: I am a part of a credit union, as mentioned in my first post. They are my bank. Yes, I know not everything in life has to be fun, but I'm 21... I want to have a few fun cars before I have to settle down. I figured a loan on a cheaper car would allow me to both enjoy having a car that I cannot, at this moment at least, pay cash for, while at the same time helping build up some credit.
This isn't a "would you make payments on this car?" post, I don't mind having a car that is 11 years old obviously, or else I wouldn't be driving an FC. I'd make payments on a '74 beetle if I wanted one bad enough... point being that age of a car, to me, does not matter. I'm not after a warranty, and I'm not after that "new car smell". Call it ignorant all you want, but I've never seen the point in buying a new car when I can get the same enjoyment out of one that is older and less expensive.
Edit: Evidently you were replying at the same time I was, Banzai. This isn't about having the "mad tight DTM car, yo." I've always liked M3s, and I find the older ones to look better than the newer ones. The 89-91 E30 M3s are hands down one of my favorite looking cars. The 95 in question is appealing because it looks very well cared for, and an inline 6 is better than an inline 4 anyday. And **** spinnaz... BBS all the way.
Edit#2: Incase you can't tell, I'm not taking any of the comments in the thread personally... I just like to argue sometimes. This is still GenD, afterall.
I was running loan calculators assuming a 9.6% interest rate, which was the max listed, to make sure that it fit into my budget. Basically, what I would do is pay off my credit card for the next month (I pay off the entire card every month) and use the credit card bill money for my car payment.
Banzai: I am a part of a credit union, as mentioned in my first post. They are my bank. Yes, I know not everything in life has to be fun, but I'm 21... I want to have a few fun cars before I have to settle down. I figured a loan on a cheaper car would allow me to both enjoy having a car that I cannot, at this moment at least, pay cash for, while at the same time helping build up some credit.
This isn't a "would you make payments on this car?" post, I don't mind having a car that is 11 years old obviously, or else I wouldn't be driving an FC. I'd make payments on a '74 beetle if I wanted one bad enough... point being that age of a car, to me, does not matter. I'm not after a warranty, and I'm not after that "new car smell". Call it ignorant all you want, but I've never seen the point in buying a new car when I can get the same enjoyment out of one that is older and less expensive.
Edit: Evidently you were replying at the same time I was, Banzai. This isn't about having the "mad tight DTM car, yo." I've always liked M3s, and I find the older ones to look better than the newer ones. The 89-91 E30 M3s are hands down one of my favorite looking cars. The 95 in question is appealing because it looks very well cared for, and an inline 6 is better than an inline 4 anyday. And **** spinnaz... BBS all the way.
Edit#2: Incase you can't tell, I'm not taking any of the comments in the thread personally... I just like to argue sometimes. This is still GenD, afterall.
10-19-2005, 08:45 PM
#12
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Join Date: Feb 2002
Location: Amityville, New York
Posts: 12,288
Originally Posted by KoiHoshi' post='770806' date='Oct 19 2005, 08:41 PM
6 year loan on a 15k car with NO INTEREST is $208.33 a month (72 months) now if you're young (i know i am) and your credit is just starting out... i'm not sure if you still live with your parents or by yourself, if it's by yourself your credit is much better due to your rent going towards credit, if it's with your parents you may have no other choice than a higher interest rate unless you put some down on it. Probably 10-15%, in which case it may be 12% that means they make 1,800 off of you, your payments are actually going to 16800 not 15k, your monthly payments are around $233.33.... which doesn't seem like a big deal but with that extra $1800 it could be significantly less with the interest rates. My suggestion to you would be to save some money, put a down on it if you want a car that badly and look for more around 9 or 10%, my loan on my bike goes from 4.9% (and i'm 20) to 9% after 2 years, but that's because I've been under a financed loan since i was 18 starting out. Try not to get a credit card and finance a bunch of crap just to get credit, you may however, if you go grocery shopping get a credit card with like a limit of $500, use it for groceries and then pay it off IMMEDIATELY so they make NO itnerest off of you, you end up USING the same amount of money you were originally giong to use and your credit does get marked up a bit when you do that. Don't go for broke and spend money on it just for the hell of it but if it's something you are going to do, put it on the card, pay it off, credit goes up. Spending THOUSANDS in loans due to the interest rates is suicide in money that you could be SAVING, INVESTING and putting towards long term investment for something better, like stocks or in the bank to make interest for more money on your NEXT car.
Just my own $.02 and i've never been broke yet and never had a single late payment or bad interest rates.
your way off on those numbers, on a $15000 car at 12% for 72 months the montly payment is about $293, which means he ends up paying just over $21,000 for that car.
Same loan at 5 years is $333 a month for a total of just under $20000
I wish I could use your calculator for buying a house, lol
the bad thing about a loan on a 10 year old M5 is when the thing needs to be fixed, and trust me it will, your monthly payments are going to be childs play compared to what the repair bill will be.
If you can even find a bank to lend you money on a 10 year old car
10-19-2005, 08:54 PM
#14
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Join Date: Jul 2003
Posts: 1,850
Originally Posted by Rob x-7' post='770828' date='Oct 19 2005, 09:45 PM
the bad thing about a loan on a 10 year old M5 is when the thing needs to be fixed, and trust me it will, your monthly payments are going to be childs play compared to what the repair bill will be.
If you can even find a bank to lend you money on a 10 year old car
exactly what I said
10-19-2005, 10:30 PM
#15
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Thread Starter
Join Date: Apr 2004
Location: Garland, TX
Posts: 224
Good point... I'd forgotten how much BMW parts cost.
Think I'm just going to save up some cash and pick up a 92 or so miata. Miata.net forum FAQ has something about some '90 and early 91 miatas having crankshaft problems once the mileage starts getting up there.
Thanks for the help all.
Think I'm just going to save up some cash and pick up a 92 or so miata. Miata.net forum FAQ has something about some '90 and early 91 miatas having crankshaft problems once the mileage starts getting up there.
Thanks for the help all.
10-20-2005, 05:31 PM
#16
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Join Date: Dec 2002
Location: Wayne, NJ
Posts: 4,837
Originally Posted by Rob x-7' post='770828' date='Oct 19 2005, 09:45 PM
your way off on those numbers, on a $15000 car at 12% for 72 months the montly payment is about $293, which means he ends up paying just over $21,000 for that car.
Same loan at 5 years is $333 a month for a total of just under $20000
I wish I could use your calculator for buying a house, lol
the bad thing about a loan on a 10 year old M5 is when the thing needs to be fixed, and trust me it will, your monthly payments are going to be childs play compared to what the repair bill will be.
If you can even find a bank to lend you money on a 10 year old car
he was doing 10-15% on the lump sum, not on payments, a common mistake
kevin.
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