help me get a newer car - questions about online credit unions

[Valhalla1]

I purchased my car about a year ago.

I currently owe about $2500 more than its worth.

I would like to sell it as soon as I can and purchase a newer car for about $18k.

I would like to put down roughly $5k and finance the rest.

I financed my current car by myself with no co-signers with a super high interest rate.

I want to know the best way to have the best chance at getting a sane interest rate on a new loan. I am not a member of a credit union, but I have heard thats the best way.. are there any good online credit unions which I can manage my account online and setup auto payments, etc. ? or do you have to be local to the credit union to join, unlike regular online checking?

 

[gygheyzeus]

A lot of the time, the car company you buy from can offer a great APR. I got a 2000 Civic SE 5 speed for $19,000 Canadian, 5.8% APR over 60 months. (my dad had to co-sign since I'm 17, 16 at the time I got it). (I pay for it, btw).

Let me know what type of vechicle you want (PM me), then i'll get back to you with some recommendations if you want.

 

[gygheyzeus]

Actually, you could also go to Edmunds.com. They have great pricing information available, on both new and used cars.

 

[RossMAN]

Nice sig, LOL.

Do you or any members of your family work for any sort of public agency, school, or anything like that? You can usually join a credit union through some sort of employment affiliation or you can get a friend to 'sponsor' you.

I hope your monthly debt on your credit report is low, you are making a lot of money (which you can verify with paystubs and/or tax returns) and have clean credit then you have a shot at getting approved.

 

[snakesnfrogs]

Texas Credit Unions----all credit unions as far as I know have membership requirements(you have to work for a certain company, live in a certain area, etc. or have a family member that does.) The link I posted has all the Texas CU's that offer online services, though.

 

[Valhalla1]

hrm.. I'll see if my employer has one set up.

if they do, they will pretty much have to accept me, right? or can they turn me away?

 

[kranky]

You'll be able to join the credit union, but you can't make them give you a loan!

Are you saying you want to buy a new car for 18K, add in the 2500 you are upside down on your current car (=total 20,500) and then put down 5K? That's not much of a down payment to be in a strong bargaining position. If your down payment was a few thou more you'd be in better shape to get a good rate.

 

[Rent]

I wish my credit union would give me a loan! Damn, I applied for a 13k Loan 3 months ago and they told me that I was financially overextended (strange since i've been saving some), but the main reason was that I had no credit.

So I'll be stuck driving a beater for I don't know how long. Maybe its time for a weekend job

 

[Valhalla1]

well I have been debating and I have decided instead of getting an 18k car, I want to get a 94 or 95 or so Trans Am LT1 for about $7k. and ditch my car which I am about $2200 upside down on.

wise move? get out now and stop throwing away money w/ my current car, and get something better for less money ?

or hold out and pay down on my car a few more months so I'm not upside down when I sell it?

 

[RossMAN]

If you can get a loan now then do it, otherwise wait a while longer. Definitely consider getting a co-signer.

 

[vi edit]

Val, gotta watch how much you are upside down. Many banks will only loan you 120% the value of the car. $2200 in the hole is too much negative equity for a bank to finance you.

Take that $5,000 you were going to do for a down payment, drop $2200 of it down on your loan so that you are even steven and then try to get approved.

Is this car at a dealership? Are you trying to trade off or personally sell your current car?

 

[Valhalla1]

I would vastly prefer to sell my car to an individual and buy my car from an individual and not a dealer.

 

[Viper GTS]

What happened to the 'Vette?



Viper GTS

 

[Valhalla1]

decided I'll wait until I'm older to get a vette, I want something fast cheap and easy to mod that I don't have to maintain for resale value

 

[Valhalla1]

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