MADDSLOW

iTrader: (11)

I could pay off this loan in 6 months if I wanted to. Again, it's not a matter of affording it or not; it's still all about improving the credit score. That's it.

And it has brought me a lot of fun, discovering a car that comes with an entire "community" of people willing to help you with every little problem. I haven't had to go to a mechanic for stupid **** in two years. I haven't seen you at any of the meets, either...

matty

i been to a few meets. i used to go alot. but having two kids really eats into your free time. i do go to etown a couple times a yr.

spandy

iTrader: (1)

Its just a matter of waiting them out long enough that they HAVE to sell. Right now, enough people are holding on by a thread (builders with large inventory) and eventually they will run out of money sitting on homes that no one is going to buy. So basically, the market is DEAD, no one is buying, and the sellers wont come down in price but a few grand.

Its only a matter of time. What makes me sick is 5 years ago I could of bought a brand new 3000sqft dream home for 300k with a couple acres if I was in the market for a home. Now that same house costs 700k

1QWIK7

iTrader: (33)

Its not a good choice??

Please explain why. LOL i would love to hear it.

He got a low interest rate, can pay it FASTER than 60 months due to a low monthly payment, and credit gets built.

Jeez, if thats wrong, i hate to see the way you manage YOUR fianances.

1QWIK7

iTrader: (33)

Dude, dont even bother.

You did the right thing, dont even doubt yourself.

dgeesaman

iTrader: (7)

Go to a credit union and get an unsecured line of credit. Aka personal loan. It's not an auto loan.

Your interest will be at / above 10%, but you'll be able to spend it on a car, car parts, etc. They just dump the cash into your bank account, and you get to hold the title, not the bank. If you're going to pay it off quickly, it's not crazy. But I still question why you would want to do that for any amount over the car itself.

Dave

dgeesaman

iTrader: (7)

I financed that amount on my car at 5%/5 years. I've got just a couple of payments left.

Of course, I only put 3-5k miles on it each year, so I could sell it for around 15k. It's not as useful as home equity, but it's real. If I were putting 'normal' mileage on it, I think that would be stupid since you'd be upside-down in the first year.

Dave

AdamBench

i bought mine at 18 and i ot 15k i think over four years at 6.6 i think. of course it broke and i wasnt old enough to have a job capable of letting me fix it right so i asked the bank about refinancing part of the value for a rebuild and they said on a car thta age the standard is is to only give ou 2 years now adays. well luckily i switched job got the extra cash and did it right with no debt. but the stupid thing was it was the same bank that gave me the four year loan the first time.........i guess rules changed.

supraturbo1987

iTrader: (4)

I was in the SAME situation. I had the money to pay cash, but I was earning more interest on it than I would be paying to just have a small loan. My wife's bank gave me a true auto loan for 48 mo (790 score) and I just put 1,500/mo on it and paid it off in about 6 months. That was the way to go. I ended up with 200 in finance charges...
Trev

MrNizzles

iTrader: (5)

I guess my only other alternative is to find an FD that is running good either through my local Rotary shop or on my own, which I think will be very hard. My time is limited and there is no way I'm going to pay 15K plus for an FD from some of these dealer (*cough* Sahara Auto Group in San Diego *cough*) that requires an engine rebuild. I had called these guys and they said that I have to come there and take each and every FD to a separate mechanic to get a simple compression test, they won't provide one .. so I know they got a scam going.

Thanks for all the advise, this has been a great thread so far, hope it helps others too that have money, working steady, but don't want to get raped buying an FD.

I guess when I see other $30K cars out there like 350Zs and G35s that I could "easily" get financed to buy, but I don't want those cars!!!

AdamBench

your bank account will never be the same again no matter how or which fd you buy... i think others would agree with that.

but driving one makes all those pains go away

Aeka GSR

iTrader: (4)

I got accepted real easily through eloan

MrNizzles

iTrader: (5)

Would they have given you more money than the purchase price (if you applied that way)?

Cgotto6

iTrader: (8)

Its all about having your parents give you a 0% apr loan for the fd. Makes life nice and easy.

1QWIK7

iTrader: (33)

Did you get another FD?

matty

credit gets built regardless of the term. so that point is meaningless.

but the answer is because he will be paying a ton of interest. the banks get their money first. Have u ever looked at how a loan amortizes? i can email you a loan schedule if u like. but you can start here as u need a little education on this subject.

http://en.wikipedia.org/wiki/Amortization_(business)

in a nut shell...he wont be paying down the principle as fast. His payments will be mostly comprised of interest. wether he pays off the loan early or it goes to full term it will still be more expensive. And thats assuming he can. PLEASE PAY ATTENTION TO THIS: In finance making assumptions is a bad thing to do. in any situation.

if the loan goes to full term he will be paying nearly double the interest by going from a 3yr to a 5yr term. the difference in a 3 yr vs a 5yr is near $2k. thats some good mod money. and thats with a good interest rate.

this is the third time you have called me out in regards to my financial status. as i have said in other threads to you my friend, mr know it all aka mr money bags, if you would like to know more about my finances i can share with you via pm. i dont want to embarass u here.

1QWIK7

iTrader: (33)

A ton of interest @ a LOCKED 5.5%?? LOL

Usually dealers finance alot higher. This was the only way he could have gotten the FD and it was a smart move. He didnt finance or borrow a ton of money @ 19% interest.

Obviously, when you borrow money, you have to pay it back, with interest. His route was a good way, a good move. I dont know why you say its not.

Jeez all you want is perfection huh?

And i didnt call you out on your fianances, im questioning it sarcastically by judging your post.

If you really feel the need to "show off", go ahead and PM your awesomeness to me.

matty

i listed my reasoning. no point in debating further. you think its smart and i dont..oh well.

t-von

iTrader: (8)

Dude your really proving to people who know that they are talking about that YOU are really cluless with the above comment. Your not comprehending at all to what Matty is telling you. The percentage itself isn't the most important issue here. It's how long your paying it. You could get a loan at 8% over 3 yrs and still pay less interest over the full term compared to 5% over 5yrs. You pay more interest up front end of story. The longer you stretch payments, the more interest you will pay period (even if it's lower). With the longer term loan it takes longer for the principle to start lowering so when you do go to pay it off...guess what you still owe more. Paying off an extended term loan early to save interest only works if you actually do it.


By the way, how many cars have you financed and paid in full?

MADDSLOW

iTrader: (11)

The interest over the full 5 years is a little over $2,300. I don't care. Let's stop arguing about the decision I made, because I really don't care to hear any more negative opinions on the route I took. I did what I felt (and still feel) was best decision for me. Thank you.

Mahjik

iTrader: (1)

Well, there looks like to be enough info for the OP to do what he needs.