Bad Credit/Good Income.... Need a Car

[Cooler]

If I can?t afford to buy to car in cash from the dealer I do not buy a new car. No Credit needed.

 

[NutBucket]

Originally posted by: Cooler
If I can?t afford to buy to car in cash from the dealer I do not buy a new car. No Credit needed.

And then you'll have none for that mortgage:roll:

 

[RossMAN]

It sounds like you've already made up your mind, why are you asking us?

Get the loan, make double or triple payments to save on the interest.

 

[dullard]

Originally posted by: NutBucket
And then you'll have none for that mortgage:roll:

No, the no car loan interest savings are enough for several extra mortgage payments - which means even more interest savings that are cumulative. Thus I can afford the next car in cash.

 

[lytalbayre]

Why not go to a dealership and see if they can give you a lower interest rate. How much are you going to put down??

Good luck man!!

 

[MikeMike]

Originally posted by: RossMAN
It sounds like you've already made up your mind, why are you asking us?

Get the loan, make double or triple payments to save on the interest.

he however, is going to have to be careful if he wants the loan payment to actually show up on his credit.

and im pretty sure he will.

IIRC i think you have to keep a loan for 1/2 of its term typically for it to show up on your credit.

 

[radioouman]

Save your cash and buy a car with cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[QED]

Originally posted by: MIKEMIKE

Originally posted by: RossMAN
It sounds like you've already made up your mind, why are you asking us?

Get the loan, make double or triple payments to save on the interest.

he however, is going to have to be careful if he wants the loan payment to actually show up on his credit.

and im pretty sure he will.

IIRC i think you have to keep a loan for 1/2 of its term typically for it to show up on your credit.

I'm not sure where you heard that but I don't believe that's true... if the auto lender is reporting to the bureaus, they are likely reporting it on a monthly basis. When the report, they have no idea whether he is going to pay his loan off in the next year, two years, or five years.

 

[dwcal]

Originally posted by: lytalbayre
Why not go to a dealership and see if they can give you a lower interest rate. How much are you going to put down??

Good luck man!!

True. When you're at the dealer, negotiate purchase price first. When it's time to talk financing, give them a chance to beat the 18% rate. Car loan rates are very negotiable. If the dealer's wholesale interest rate is any less than 18%, they work with you to match the other lender.

 

[laurenlex]

Since you drive a lot, and with the obsence interest rate, you will have ENORMOUS NEGATIVE EQUITY in the car in 2 years. You will have to pony up serious cash just to get out of the loan.

Find a clean $3000 car, short term loan, pay it off, rebuild your credit, and then get an ego car.

 

[NutBucket]

Originally posted by: dullard

Originally posted by: NutBucket
And then you'll have none for that mortgage:roll:

No, the no car loan interest savings are enough for several extra mortgage payments - which means even more interest savings that are cumulative. Thus I can afford the next car in cash.

No, I meant if the OP's credit is that bad then even though this high rate loan will be expensive it will help build his credit so he can get a decent mortgage at some point.

 

[altonb1]

Originally posted by: Injury

Originally posted by: RKS
save up and pay cash

His car is shot. He probably doesn't have that option.

This may be one case where getting a lease on a car at only a couple hundred a month could help...

give yourself a couple years to build credit and save the spare couple hundred a month that you coulc allow for a payment.

If credit is that bad, a lease is out.
Dude, I was there a few years ago. I was out of work for ~8 months after 9/11 and my credit went down the toilet. I put $2k down on a $5k car. I financed the other $3k for 2 years at an interest rate of 21.95%, I think. I hated it, but I had to have a vehicle and had little choice. I paid it off in 8-9 months. Remember: You can always get the car now and then try to refi through lending tree or something similar.

Good luck!

 

[ponyo]

Some people just need to learn the hard way.

 

[Rumpltzer]

Have you looked into what kind of an APR you could get on a NEW car? I mean, if you're thinking of putting $17K at 18% into a 2004 Civic EX with 30K on it, you might look into what a new one would cost and what type of a rate you might get with that.

In my experience, new car loans have a lower APR... but I've only looked assuming excellent credit.

Good luck!

 

[TechBoyJK]

Originally posted by: Rumpltzer
Have you looked into what kind of an APR you could get on a NEW car? I mean, if you're thinking of putting $17K at 18% into a 2004 Civic EX with 30K on it, you might look into what a new one would cost and what type of a rate you might get with that.

In my experience, new car loans have a lower APR... but I've only looked assuming excellent credit.

Good luck!

my step-dad said he is going to go with me to look at the cars I want. I am considering a brand new civic because of the fact that I will get a lower APR and if he co-signs, that should lower the amount as well.

 

[VirginiaDonkey]

TechBoy-
it's no big deal to go ahead and get either car you like even with the high interest rate. What you need to do while you are paying on it is to get copies of your credit reports and start cleaning them up. in about 6 months of working on cleaning upo your reports, you should be able to refinance the loan at a much better rate.

Just DO NOT be late on any of the car payments, as they will be key in increasing your score.

visit www.creditboards.com and start your work there, its a great site and will help you with your credit.

-Donkey out

 

[wasssup]

That RSX isn't a hot deal imho. When I was shopping around, I was getting quoted $20k for a *NEW* base RSX (actually $19k since I was looking for a 5-speed).

Same with the Civic. Honestly, at those prices, buy new. My suggestion would be to buy a beater for now, save up money till you can afford a new one, and then go about doing so. Yeah it'll be a while till you can afford it, but i'd personally rather wait than get ripped off.