Financing an FD
12-21-07, 10:57 PM
#29
Terminal Project
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Umm... thanks?
I did it so I could build my credit (which is having an even better effect than I thought it would), and because it was the smartest decision for me to make as far as monthly payments. At 22, I have a credit score that is surprisingly higher than many other people that I know. So thanks for the
, but take into consideration that perhaps my situation *might* be different than yours.
I did it so I could build my credit (which is having an even better effect than I thought it would), and because it was the smartest decision for me to make as far as monthly payments. At 22, I have a credit score that is surprisingly higher than many other people that I know. So thanks for the
, but take into consideration that perhaps my situation *might* be different than yours.As for the car loan, there is no bank that will loan you 20gs for a Roller and parts, cause if you didn't pay on that loan, they would never get their money back, your collateral would be impossible to sell at retail.
It is hard to find a place that will give you a loan for a 15 yr old car. They exist, but are hard. You're better of with a personal loan, line of credit, or a home equity loan (tax deductible too!)
12-21-07, 11:14 PM
#30
This is what I'm looking for:
http://autotrader.autos.msn.com/fyc/...e=&cardist=344
So, for example, I would love to make a deal with this seller where I give him the Capital One bank check for $20K, and he gives me back $12K, assuming we settle on purchasing the car for $8K ... is this crazy? maybe I should be asking if this is legal?!
Sooooo, the extra $12K (which the seller graciously and honorably gives back to me, minus say $200 to make it worth your while) .. goes to rebuilding the engine and turbos and other goodies I want.
Do I sound desperate? I'm just trying to work a really good deal.
http://autotrader.autos.msn.com/fyc/...e=&cardist=344
So, for example, I would love to make a deal with this seller where I give him the Capital One bank check for $20K, and he gives me back $12K, assuming we settle on purchasing the car for $8K ... is this crazy? maybe I should be asking if this is legal?!
Sooooo, the extra $12K (which the seller graciously and honorably gives back to me, minus say $200 to make it worth your while) .. goes to rebuilding the engine and turbos and other goodies I want.
Do I sound desperate? I'm just trying to work a really good deal.
12-22-07, 12:11 AM
#31
It would only work if it's a credit line that you can use for whatever. Like a HELOC (Home Equity Line of Credit) where you could write checks for whatever you please. For an auto laon you would need to provide a bill of sale and possibly other documents cuz the bank holds title and a lien on the car until the balance is repaid. If you wanna do what you're trying to do, you're going to have to use a line of credit. In which case try your personal bank, first. Then look at others if you don't feel comfortable with what they offer you.
12-22-07, 12:20 AM
#32
putting it back together
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i financed mine for full price through a credit union (5,500) and later re-fied it for full value through usaa (11,500) to get most of the parts to put it back together. although if you're new to rotaries i don't suggest finding a "broken" car like i did.
12-22-07, 12:37 AM
#33
I financed my car through navy federal credit union. The car was 17k, but my bank wouldn't give me that. They said the car was old as ****, and they'll only give me 12,300. I took the loan and paid the rest in cash. My loan came out to be a 48 month loan at a interest rate of 5.9%. How much a financial institute does not exactly base the amount given to the customer by credit score. That is only a fraction of the decision to give you the loan. They really do base it on your debt to income ratio.
After my car is done and paid for (I'm still paying, and I owe about 6 g's left), I would have paid a total interest of $725.70. That means I have paid a total of $17,725.70 for my car to be financed. Not bad, but keep in mind, I paid $4,700 in cash, and financed the rest. Maybe that is the route you should take. Finance about 2/3 of the price of the car, and pay the rest in cash...Just my 2 cents.
-Jeff
After my car is done and paid for (I'm still paying, and I owe about 6 g's left), I would have paid a total interest of $725.70. That means I have paid a total of $17,725.70 for my car to be financed. Not bad, but keep in mind, I paid $4,700 in cash, and financed the rest. Maybe that is the route you should take. Finance about 2/3 of the price of the car, and pay the rest in cash...Just my 2 cents.
-Jeff
12-22-07, 10:02 AM
#36
The idea of having a loan based on your credit score is great for us. FD's just don't book for what they are often worth. I too was looking into Capitol One's financing. However, the lowest interest rate they offer for "Person to Person/ Used car" is 9.25%.
I would recommend getting a loan with your bank at a low interest rate and paying the difference with cash.
If you want to be really disciplined you could keep your $15k, and save for the cost of the car..........no monthly payment has a nice ring to it.
Good luck
I would recommend getting a loan with your bank at a low interest rate and paying the difference with cash.
If you want to be really disciplined you could keep your $15k, and save for the cost of the car..........no monthly payment has a nice ring to it.
Good luck
12-22-07, 11:31 AM
#37
Mr N, Ask your bank about an unsecured load (personal loan). With the info in your 1st post, I would think you should be able to qualify for one. The amount would be based on your income and you can spend it however you want and you won't have to ask the seller to do any funny business. From what I've seen, the rate is around a point or so higher than a car loan but far lower than that for an "older car" loan (over 10% at mine).
Like others have mentioned, look into a credit union. They almost always have better rates and are more "generous" to members with accounts, direct deposit, etc
Like others have mentioned, look into a credit union. They almost always have better rates and are more "generous" to members with accounts, direct deposit, etc
12-22-07, 05:00 PM
#40
If your financial institution has no penalty for early payoff, it's actually smarter to get a 60 month loan. That way your minimum payment it lower. You can always pay more, but the 60 month lower minimum is more of a cusion. Just incase all you have is enough to pa the minimum.
12-22-07, 06:43 PM
#41
Eats, Sleeps, Dreams Rotary
Nah you did the right thing.
Build credit, you had a low interest rate and at the same time your monthly payment is low.
That way, you can overlap your monthly by giving more a month, reducing timed payments in the process thus finalizing the loan term shorter than 60 months, almost beating the interest as a whole. Phew, you got that right?? lol
Either way, you did the right thing.
Build credit, you had a low interest rate and at the same time your monthly payment is low.
That way, you can overlap your monthly by giving more a month, reducing timed payments in the process thus finalizing the loan term shorter than 60 months, almost beating the interest as a whole. Phew, you got that right?? lol
Either way, you did the right thing.
let me guess...you are one of the guys who got one of those variable rate interest only mortgages that is ruining this country?
12-22-07, 06:47 PM
#42
Eats, Sleeps, Dreams Rotary
Actually a 60 month loan is a great idea if there are no prepayment penalties and you get around the same interest rate as lower. That way you can pay as if it is a 3 year loan, that way the minimum is lower, so if you have a great month, pay alot, if you have a bad month, pay the minimum, which is lower, since it's over 60 months. I recomend it to anyone.
As for the car loan, there is no bank that will loan you 20gs for a Roller and parts, cause if you didn't pay on that loan, they would never get their money back, your collateral would be impossible to sell at retail.
It is hard to find a place that will give you a loan for a 15 yr old car. They exist, but are hard. You're better of with a personal loan, line of credit, or a home equity loan (tax deductible too!)
As for the car loan, there is no bank that will loan you 20gs for a Roller and parts, cause if you didn't pay on that loan, they would never get their money back, your collateral would be impossible to sell at retail.
It is hard to find a place that will give you a loan for a 15 yr old car. They exist, but are hard. You're better of with a personal loan, line of credit, or a home equity loan (tax deductible too!)
12-22-07, 06:50 PM
#43
Eats, Sleeps, Dreams Rotary
12-22-07, 06:52 PM
#44
Eats, Sleeps, Dreams Rotary
If your financial institution has no penalty for early payoff, it's actually smarter to get a 60 month loan. That way your minimum payment it lower. You can always pay more, but the 60 month lower minimum is more of a cusion. Just incase all you have is enough to pa the minimum.
12-22-07, 06:57 PM
#45
Patience
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I would of put their asses on the street and made them rent apartments until they learned the proper way to buy a home.
12-22-07, 07:11 PM
#46
Eats, Sleeps, Dreams Rotary
On that note, isnt it bullshit the gov is stepping in to cover everyones dumbass that fell into that obvious financial trap. And here I was just waiting to pull the trigger on buying a home waiting for the market to be flooded with forclosures and get it for pennies on the dollar and they ******* save their asses. Pisses me off and makes me wonder why I even try to keep good credit and make smart financial decisions when all the people who cant handle their money keep getting bailed out.
I would of put their asses on the street and made them rent apartments until they learned the proper way to buy a home.
I would of put their asses on the street and made them rent apartments until they learned the proper way to buy a home.
the other reality is that if u are a first time home buyer you are still going to be able to purhase a home for dirt cheap. we havent seen the bottom of this housing correction. Just cause someone is offering a house at say 400k doesnt mean u cant bid them 325. Especially if the house is a new build. Home builders are really losing their shirts and cant afford to maintain the inventory that they have. You are in a great position if u ask me.
12-22-07, 07:11 PM
#47
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Matty, being a stock trader, I'm surprised you're not seeing this as a long-term investment. I might be paying a little now; but when I want to buy a house and my credit score is through the roof, I can save a lot of money because of a lower interest rate.
12-22-07, 07:18 PM
#48
Eats, Sleeps, Dreams Rotary
See post #13, I already explained my reason. I have a fixed rate at 5.45%, and should be able pay it off early. I might not, just so the longer term shows that I can consistently pay off a set amount over a given period of time. I really don't understand why you guys are making it sound like I made such a horrible decision, when it is benefiting me in so many ways in the end.
Matty, being a stock trader, I'm surprised you're not seeing this as a long-term investment. I might be paying a little now; but when I want to buy a house and my credit score is through the roof, I can save a lot of money because of a lower interest rate.
Matty, being a stock trader, I'm surprised you're not seeing this as a long-term investment. I might be paying a little now; but when I want to buy a house and my credit score is through the roof, I can save a lot of money because of a lower interest rate.
dude listen if the fd is your dream car and u couldnt afford the payments of a 3 yr term and u just had to have one and a 5 yr term was the only way so be it. i can appreciate that as well. it sounds like you have done some things that are pretty smart being that u have a good credit score. i wish you all the best. i am not flaming you.
what i also can appreciate is that u are buying your own car. i got my fd when i was around your age. hope she brings u many yrs of fun.
12-22-07, 07:20 PM
#49
On that note, isnt it bullshit the gov is stepping in to cover everyones dumbass that fell into that obvious financial trap. And here I was just waiting to pull the trigger on buying a home waiting for the market to be flooded with forclosures and get it for pennies on the dollar and they ******* save their asses. Pisses me off and makes me wonder why I even try to keep good credit and make smart financial decisions when all the people who cant handle their money keep getting bailed out.
I would of put their asses on the street and made them rent apartments until they learned the proper way to buy a home.
I would of put their asses on the street and made them rent apartments until they learned the proper way to buy a home.
LOL so so true.
12-22-07, 07:29 PM
#50
See post #13, I already explained my reason. I have a fixed rate at 5.45%, and should be able pay it off early. I might not, just so the longer term shows that I can consistently pay off a set amount over a given period of time. I really don't understand why you guys are making it sound like I made such a horrible decision, when it is benefiting me in so many ways in the end.
Matty, being a stock trader, I'm surprised you're not seeing this as a long-term investment. I might be paying a little now; but when I want to buy a house and my credit score is through the roof, I can save a lot of money because of a lower interest rate.
Matty, being a stock trader, I'm surprised you're not seeing this as a long-term investment. I might be paying a little now; but when I want to buy a house and my credit score is through the roof, I can save a lot of money because of a lower interest rate.
You think it's benefiting you. I fully understand the cushion aspect and you trying to establish a long term payment history. Just understand you only need 1-2 yrs payment history on that kind of balance for it to mean something credit wise. The interest is what your trying to avoid when paying out over that time period. That's the point your missing. Saying that you could pay if off early and actually doing it are too totaly different things. Think of all the interest you have paid in the early portion of the loan. Banks will always get their money 1st. Hell I financed my Fd at 6.9% back in 2003. I paid off my 3 1/2 loan early cause I hate paying interest.