Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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This seems like a group very knowledgeable on the subject so I look forward to reading the responses to my question.
I have a 2003 subaru that I bought new and have owned for 9 mos. It has 12k miles on it and the buyout on my financing is about what it’s valued ( if you average out all the opinions on value).
I want a new subaru. Hahahaha.
I have a 7month old daughter and I want the safety features of the 2005 models. When we got the 2003 my wife was working a small job and we were able to put both of us on the financing. Her credit score at the time was better than mine so it I am under the impression that they some how finagled it with her credit score and my income. Now we both have credit scores in the mid to upper 600's. I have over paid by $51.00 ($449.00 payment rounded up tp $500) on every payment and have not been late or missed. My wife no longer works (full time mom) and we moved so time at current residence is only 4 months as opposed to the 1.5 years last time. I got 2.9% financing last time although I doubt I will get that again. I would be comfortable paying sticker for the car if the dealer will take my 2003 and no down payment. Is this at all possible? I financed through Subaru Motor Finance (chase automotive) originally if that helps.
I would pay up to $600 a month and still be ok.
Also I could have her put on the payroll at work to make it look like she has a part time job if that would help...although I would only do that if I really really needed to.
Thanks
-michael
Your credit isn't great, your finances sound to be okay but a little tight. Why would you do this to yourself?
Your car has depreciated a lot more than you think -- the new ones are being sold, at least around here, at dead flat invoice - rebate. And unless you have put a bunch of money down -- and it doesn't sound like you have -- you're upside down by quite a bit. Don't get me wrong, Subies hold their value pretty well, but not THAT well. Unless you live in a state that taxes the difference, the tax money is due again also, and that ain't chicken feed.
You know what, knock 2mph off your speed everywhere, and the safety is the same... the '04 Subies were plenty safe, and 90% of it is the driver anyway.
Good luck,
-Mathias
At this point I am not upside down...I seem to be about even.
I could slow down 2mph but that won't put side curtain airbags in the car.
I might put it off 2 months and sell the car. I will then put down 2k...this is what I was thinking while driving to work today.
thanks again.
anyone else have any insight?
-m
Then you'll know to within a few hundred bucks what your situation is, and you can go from there.
-Mathias
If you want to trade a car everytime a new safety feature is introduced you will be on an endless cycle.
Just my opinion...
In our community, we have had 2 infant/small child deaths due to the child being too close to the airbags when they went off, granted the children were were in the front passenger seat.
The new subaru has a sensor in the front seat that turns off the airbag if the person is under 75lbs. This is a common feature that should be standard I think. Many childern would have been saved from harm or death had this been standard years ago.
next, what kind of car do you have, how many miles, what payment do you have, and how much too high is it?
taking the car back is NOT an option. the dealer has no say in anything. if you call the bank to take it back, you will show a repossession on your credit, regardless of whether its voluntary or not. please do not do this.
third, your negative equity wont make a used car any better, money-wise. keep the car you have. getting rid of it will only screw up your credit. forget about buying a house, having an emergency credit card, or even getting a checking account. also, insurance companies raise rates based on bad credit, so that will offset any drop in your car payment.
what i would do is get a part-time job for just long enough to get over the hump. mcdonalds is the best option. i know it sounds funny, but thats the truth.
even 10-15 hours a week can pay your car payment...unless you have a hummer or something...lol.
take a step back and think logically. an extra 10-15 hours a week working can make the REST OF YOUR LIFE better. bite the bullet and take care of business, my friend. i just wish someone would have told me this 8 years ago...
second, if you bought a used car, you would have a higher interest rate, have to roll the negative equity into the used car, and will have to finance on a shorter term. all-in-all, you probably cant get a lower payment anyway...so you might as well keep the newer car that you know the history of.
Leo- He's right. Do what you can to keep up the payments on your car. It's not worth the damage to your credit to have it repo'd. Another thing to consider is perhaps contacting your lender and letting them know about the changes in your life. They MIGHT consider reworking(i.e. lengthing) the loan to get the payments lower. It's not a great solution but it's better then screwing up your credit.
Just my .02.
Duncan
Seriously, it's hard to read the way it is.
Secondly, I commend you for being realistic about the trade-in values of our cars. At least ball-park, the Blazer sounds right to me; the Mitsu seems low, but is probably true as well.
I got the part with not needing 2 car payments. Why do you need to buy a new minivan? Unless you can come up with $8k in cash -- and we wouldn't be having this conversation if you could -- your only rational way to downsize is to sell the Blazer and keep the Galant.
Sell the Blazer on the street, not to a dealer, and you'll have a little jingle left over.
If you MUST have a new minivan, at least get one that doesn't depreciate like a rock, and get one that is known to be reliable over the long haul. I.e. Odyssey or Sienna.
But not only is the $8k neg. equity not going away, you'll be out a ton of taxes and fees, and you'll be worse off.
Good luck,
-Mathias
Yup, those are low credit scores, and you'll either be paying double-digit interest with a high down payment, or you may need a co-signer to get your rate down. Having the lease will help your cause; it shows that you have had an automobile payment already and successfully completed it (although late payments will hurt you).
Most importantly, keep your expectations reasonable - just because you feel you can afford a more expensive car, do yourselves a big favor and keep your sights low - think about a late model used car over a new ride. You want payments that won't gurt you and will build that credit score, not one that fills out your budget.
kcram
Host
Smart Shopper and Wagons Message Boards
http://www.auto-loan-calculator.bz/auto-lease/auto-lease-calculat- - - ors/lease-vs-buy-calculator/
This calculator takes into account your investment return of down payments and rebates.
You'll have to play around with the down payment by adding rebates or changing the available interest rate. In other words just add the available rebate to the down payment. Or for the low rate option don't add the rebate to the down payment but adjust the loan rate to that offered by the manufacturer.
For after tax returns you'll need to adjust the investment interest rate to reflect your tax rate.
So if you can get a before tax return of 10 percent on your down payment and you are in a combined federal and state tax bracket of 33 percent. Then the net after tax investment return rate will be 10 *(1 -0.33) = 6.66 percent.
You might want to subtract off an inflation rate too, If you want to be strictly correct.
Auto pros...is this unusual?
Some companies will reach pretty deep when they have a lot of cars to get rid of. They will take much greater risks than usual.
I could be wrong but I think the S40's have not doen will for Volvo and they are pushing hard to move them.
It's a flat rate, a person is wither approved or they are not.
Believe me...those last three lease payments were paid by the buyer.
BUT...it sounds like they are happy and that's what matters!
"[...] 02 Chevy Blazer Ls I owe approx 18 on it and it has a trade value of 10,500."
I apologize. When I first read the above, I somehow got "owe $8k on a $10k vehicle".
My advice was completely wrong, and I need to work on my attention span.
No, your best bet is to keep what you've got, grit your teeth and pay it off. Being $16 in the hole is no fun, but if you can keep making the payments, it'll go away.
Good luck -Mathias
Terry.
The last editions had FAR less legroom than a Civic!
It seems like it'd be asuper car for singles, young couples, or families with kids who are big enough for forward-facing seats or boosters. I wouldn't put teenagers or adults back there for anything but short trips, though.
1. How is finance charges calculated? I got a really good deal on a new car, but the fiance charges are pretty high. Curious as to how they reached taht number.
2. Is there a penalty if I have a 60 month loan and I pay it off faster?
3. Also curious about how credit scores work if there is anyone familiar with it. Let's say someone has no credit and just recently starts making payments on time etc...What would their credit rating be under that circumstance? Does everyone start off with a perfect score and it lowers from that point or how is the initial score calculated?
Car_man
Host
Smart Shoppers Message Board
the "12%" they were quoted might be a 0.120 money factor.
"off the docks" is a lie...they will get it from another dealer. the ones at the dock are all specced out for a specific dealer already.
"$480/month inc tax over 5 years"
hmmm...lets do math here. 480x60=28800...BEFORE interest.
i would never recommend someone leasing for more then 3 years. if you can do a 3 year lease, then by all means, do it...but this smells of b.s. to me.
The payment is just under $480/month inc tax over 5 years, with 12% APR we were offered by roadloans the price would have been over $600/month.
If you assume 12% interest, $600 per month and 60 months the principal is just under $27000. Working backwards, with a monthly payment of $480 that would indicate an interest rate of 2.61%. $27000 including taxes looks to be enough to buy a 2004.5 V40 to me.
You said ...but this smells of b.s. to me.
I think an apology may be in order, but the poster should probably not hold his/her breath.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
you notice that all he told us about is the payment and not the "better" rate he got?
ive been doing this a long time, and i know a long-term lease deal when i see it.
no. call your leasing company, and they will tell you how much...chances are, it will be a bit less than that.
what i would do is park it for a year, buy a $1000 car, and drive it for the year. you will spend alot less this way.
next time, dont lease more than 3 years, and know your driving lifestyle before you do.
The finance manager at the dealership is aware of this and is working on the problem.
What would my options be? I already have the car and my first payment is in July. I dont want the car if it is at a higher percentage rate.
I could use all the advice I can get.
Thanks.
Could be a few late bills in the past, maybe your debt ratio is too high, could be not enough time on the job, maybe too much negative equity in the deal, I can't say without seeing the paperwork ....
But the question is: why wouldn't you still want the vehicle if the rate was fair in the market.? .. you *qualify* for what you qualify for, it's a credit thing, not a vehicle or a dealer thing .. perhaps your bank or credit union can help.
Terry.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Paying 3,000 in Interest is a lot different than paying 11,000
The last 3 payments on our current car were $2367. The total price for the Volvo, OTD was $27100 after the $1500 down. The Volvo itself was $26832.55 (sticker was $26300). I know we helped pay off our lease but the above deal was with a check for $2367 from the dealer too.
IT WAS NOT A LEASE.
$27100 over 60 months, 2.9% APR was $485.73 through Volvo financial. Terry, im happy to give you more info via email if you dont think its true. Roadloans offered 12.9% APR with a max loan of 35k on a new vehicle. The same car, assuming the same deal from Volvo would have been $615.32. Yes, we were amazed and very happy to get 2.9%.
Finally, the "at the docks" was a figure of speech. The sales manager said the car was new allocation to them but it was at the port where they arrive from Europe. The car arrived on a Transporter and had 7 miles on it when we collected it.
I've seen Ford buy people that ought to be in jail!
i have a 605 and was lucky to get 8.49 on a $13k focus...they are borrowing $30k.