Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
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As for college gradaute programs, is that not just for new car financing? I was thinking of a used ' 01 Honda Accord EX V6 which I test drove yesterday and has an asking price of 15,000 on it... Do the dealers extend the grad program for used cars too?
If everybody doesn't know, the draconian new bankruptcy law has gone into effect as of Sunday. New Jersey received 15,000 new bankruptcy filings over the weekend by desperate debtors trying to beat the deadline. Attorneys were expecting a record 5,000 new filings and were surprised to see 3 times that number.
What else would you call it .......................?
Terry.
http://www.bankrate.com/brm/ratewatch/wsjPrimeRate.asp
Top tier credit might get you as much as a point below this.... some credit unions even lower. With a score of 650, getting a top tier rate would be tough....
Why not start with something you can afford and finance on your own? Work your way up yourself or you will never build credit.
Have her pull her own credit -- you get one free credit report a year, per the US government's legislation, at www.annualcreditreport.com. She can certainly see for herself what her situation is. She could also try asking the dealer if she can take a peak at her credit report that they pulled....
Wait a munite the "myastery charge" was indeed a valid charge?????? You mentioned paying it, why would you pay something that was not valid ?!?!?!?
Your GF is 4 for 4 on not paying bills anywhere close to on time. Maybe I should introduce her to my nephew - whom my wife (V1.0 and I'll keep her thank you). has had to bail out several times this year.
I think he was smoking that egyptian bong that one of my friends brought back from egypt
Is it common ...? - no .. does it happen everyday - Yes ......
Her credit might have been in a married name .. she might also have zero credit ............
Like Bdr127 mentioned, have her get online with true credit.com or any of the 5 or 6 very good sites and have her run a copy for herself and study it .... she's had a bank account at the local lender for the last 7/8 years, right ...? .. have her go there and see what they will do for her .... she's lucky she's not lookin' for a house she might be paying 9%+ ........
Terry.
Terry.
Well, they expect people like you to buy a cheaper car than a 2005 Rav4.
When I was your age, we bought a new car (1600 cc engine, 4-sp manual, no AC, one-speaker radio, roll-up windows, vinyl seats) and we were thrilled. We drove it for 13 years.
We have always tried to avoid being heavily in debt.
> and had quoted that I was in the 13.5% bracket
> Calls me back two days later and tells me I need a co-signer. Is that even possible since the paperworks were already signed? And if so, I would be using my mother as my co-signer and would they be financing on her credit since her credit score is way better than mine and she would have a better interest rate?
As an example, financing $20,000 @ 13.5% for 48 months results in a payment of $542 (more with sales tax included). There are two ways to go here. Tell the dealer that you have no co-signer. It's their problem to get you financed. They really, really don't want the (now used) car back. This assumes you already have the car.
If you do use a co-signer, make very certain that your interest rate and payment go down to say 6% and $470 per month. That's a savings of $3456 to you over a 48-month term.
If you use a co-signer with good credit on your loan at 13.5%, the dealer will sell that note for an extra $3000 in profit. You don't need to make them that sort of present. Get a much lower rate and payment.
Ford Fool
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I've had my share of credit problems, but have worked very hard over the last 18 months to clear up as much as I can. I've managed to get my credit score from 522 in 6/04 to 604 as of yesterday. I was quoted 19% interest on a new Mazda3. The payment on that worked out to $431 for 72 months, with $1000 down. I told them I wouldn't be buying that vehicle at those payments.
I can afford payments around $400, but obviously I don't want to pay any more than I must. With a credit score of 604, three credit cards in good standing and I've had the same job for 2.5 years, is 19% the best I can expect?
If that is the best rate, I'm going to just bite the bullet and take it. Maybe in a year or so I could re-fi at a lower rate?
Any input will be appreciated.
i agree with your first reaction, paying that kind of money for an economy car is just insanity.
What is the price on this car? sounds like around $18k? I hope that's at least a 3S with auto or moonroof/cd package.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I have a Mazda 3 hatch and I love it. Really fun car. My mom purchased a 2002 Mazda Protege in June 04 for a lot less than my car cost new.
If you like the 3 because of the zoom-zoom, try a used Protege. It is the first car my mother has ever enjoyed driving. Not that there was much competition in the last 30 years - Toyota Previa, 1st gen Ford Taurus, Dodge Aries, Chrysler LeBaron.
Other options are as qbrozen suggested. Try getting a loan somewhere else. For example, by reducing the rate from 19% to 14% you can keep the same payments and reduce your loan by an entire year, saving you over $5k.
Or do both, buy a used car at a lower rate and save even more.
I was in a similar situation to you. I had defaulted on my student loan because I was broke. My credit was awful. Then I got a steady job and a wife. I piggybacked on my wife's credit and my credit is now close to 700. The real bonus, though, was using my credit union (Navy Federal). They limited what I could borrow to only 17.5k but I got a great 2.9% rate.
Many people here recommend getting a car loan for no more than 3 years. This means at $430/19%/3 years you are looking at 11.5k for a car. And you can get a decent car for that (like a used Protege) :P
Your total interest payments will be 70% lower than with the 6 year loan on a new car. :surprise: A savings of $9k just in interest. :surprise:
It's a Titanium Gray '06 Mazda3 Touring 5-door, 5-speed manual with 6CD/Moonroof. I'm very excited about it. It's the first new car I've bought since 1996. That was a '97 Accord EX that I couldn't afford on the $22k I was making at the time. It's also how I ruined my credit.
Sounds like the same Mazda3 I would get if I were to get one.
I'm not a big supporter of buying a car like this on a 6-year note, but as long as you are happy with it and plan to keep it all the way through the 6 years, then you'll be ok. Like you said, maybe in a couple of years you can refinance. At that time, I'd be looking to refi for 3 years so that you can cut your total payments down to 5 years.
good luck and enjoy.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
That Honda's barely broken in!
How much is the car worth? Maybe $3K at the most? I would not risk a $1500 repair on a car that is not worth too much. Once that money is spent, there is a good chance a lot of other repairs will soon be needed, and these days repairs are not cheap.
The dealer said the interest rate would be the same for 60 or 72 months, so I just decided to stick with 72. If I pay just another $37 per month on the principal, it'll be paid off in 60 months.
I will be looking at a re-fi as soon as possible, though. I keep a constant eye on my credit score, so I'll know when it's strong enough to try for a better rate.
Thanks again!
My suggestion is to go with the loan offer at 14%, assuming of course your budget can handle the payments. Your payments on a 60-month $20,000 loan at 14% will be about $465 per month. The rate is high, but not horrendously so. Also, with car loans, unlike mortgages, the rate doesn't make a huge difference; the payments on this loan would decrease by $10 per month for each percentage point reduction. And you can always refinance as your credit score improves, which it should if you've had no other negative credit items since your bankruptcy.
I'm driving a nearly 15 year old Chevy Lumina with close to 140k miles on it.
I firmly believe nearly any vehicle will run well and for a long time if properly kept up. I have read many tales of Hondas lasting over 200k miles, and the financially sound way out of a situation like this is not generally "see how much debt I can go into right now"
Another solution to this lady's trouble is try to find a less expensive vehicle. Don't just borrow as much as possible, borrow what you are sure you can pay off.
Just a thought. I'm only financing $15k on a Mazda3.
Good for you, mitzij. It is hard to know whether to fix an older car or not. In your case, it turned out that it was better to fix it.
Repairs are so expensive these days, aren't they?
The Scions are very good cars. They'll certainly be reliable. I'd also look at alternatives, too. Korean cars like Hyundai Elantra and Kia Spectra are great values and come with 10-year/100,000 mile powertrain warranties. Suzukis also have the same coverage.
Do yourself a favor and at least check out a few different cars in this price range. You may be surprised.
I love the fact that I hold the title to my car.
And if I get a new car what should I do about the old one sitting there not moving? The dealer will probably give me nothing? and if I sell it privately how much do I take for for needing a new torque converter in the transmission? when the car only cost about $3K selling....
As far as your old car, don't let the dealer have it. Your best bet by far is to list it for sale in a local newspaper or AutoTrader-type publication, including information about the mechanical problem(s). Also make sure to include all information about the things you HAVE had repaired/replaced lately. You will have to deduct roughly the price of the repair from the selling price, but it will be off your hands at least. And more than a dealer will give you for it!
Good luck!
Like many others seeking advice on this board, I have poor credit. Very poor credit. Includes a repossession (and just one month before the lease was over, darn it!) Part of the problem is that, when I tried to get a handle on it a couple of years ago, I just closed out all my credit lines. So, I haven't had an open line of credit since 2003. A mistake, I now know.
I just moved to a new city, for a new, well-paying job. My beater broke down on the way, and every time I pour money into it to get it working again, something else goes wrong. I think at this point it just wants to be put out of its misery, and I'm only too happy to oblige it.
So I need a new car to go with the new job and the new city. Due to my recent car woes, I want something new, reliable, and under warranty. The car model I have my eye on is relatively modest, below $18K including destination fee. With my new paycheck, I can easily muster a 33% down payment in just three months, and payments on the rest would be no problem (and never late).
However, here are where the questions come in:
1. It seems from previous stories that a sizable downpayment should help offset my crappy credit. Am I stupid to think any amount of down payment would offset a repo?
2. Will the fact that I've only been in my apartment and at my job a few months be a deal-breaker, no matter how much cake I put down?
3. Does anyone have any recommendations for reputable institutions that cater to subprime borrowers? (I've read the Edmunds article and know what to expect, but could use a pointer more specific than "your local bank or credit union.")
Those of you who like math will notice that if I can do a 33% down payment in three months, I can do a 100% down payment in 9 months. Which is my Plan B if I'm not able to secure any credit of any sort. But I would rather do some financing-- even at a sizable rate-- to help with the credit healing. Also, it would be good to have the car before the spring and the summer!
Thanks in advance, everyone!
The next best bet is to check out some dealers and see what they can offer. The downside to that, if you aren't buying in the next week or two, is that the inquiries they place on your credit file might hurt you in three months. But if you'd be willing to take it if they offer you something you can live with, go for it.