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YACT: Car loans for used cars...

R

Red

Diamond Member
I am curious about the ability to get a car loan for a call that is older than a few years old. For example, one car I am considering is an 85 Celica GT-S (22RE engine -- most reliable engine ever, RWD, 5-speed, super comfortable seats, leather, power everything, including moonroof, independent rear suspension, 140lbs of tq @ 2800 RPM goodness).... guy wants $1600, has all service records. I am guessing I could get a cashiers check for $1600 from my credit card but that is 15% interest :/

If I don't get a car like this, I am considering 95ish Maximas for roughly $5000 ... what interest rate am I looking at here? I am 20 years old (will be 21 in 2 weeks) and have about 715ish FICO.
 
HIGH rates. (seriously, like 10% if it's an auto loan - most banks will not go much lower on old used cars).
 
Originally posted by: conjur
Talk to a loan officer at your bank. And, it also depends on how much money you put down.
Click to expand...

None... I didn't put any money down on my 2nd car, which was a 98 Saturn I bought in 2001, interest rate was 8% with no money down.

Does it really jump up the older the car gets?
 
Originally posted by: Redhotjrm
Originally posted by: conjur Talk to a loan officer at your bank. And, it also depends on how much money you put down.
Click to expand...
None... I didn't put any money down on my 2nd car, which was a 98 Saturn I bought in 2001, interest rate was 8% with no money down. Does it really jump up the older the car gets?
Click to expand...

Honestly, do you not have any money saved up? I wouldn't take out a loan for 1600 bucks - just save your money if you an't afford it.
 
Originally posted by: rbloedow
Originally posted by: Redhotjrm
Originally posted by: conjur Talk to a loan officer at your bank. And, it also depends on how much money you put down.
Click to expand...
None... I didn't put any money down on my 2nd car, which was a 98 Saturn I bought in 2001, interest rate was 8% with no money down. Does it really jump up the older the car gets?
Click to expand...

Honestly, do you not have any money saved up? I wouldn't take out a loan for 1600 bucks - just save your money if you an't afford it.
Click to expand...

Yeah, but this car is so rare and it's a car I really like, with NO RUST at all... it's also hard to find them with leather, moonroof, and power everything. It's just so tempting to pull out a loan from the credit card because I'm going to spend the money buying one of these in the next 6-12 months anyway.
 
You could do the credit card and just pay the thing off very quickly... rates on an 85, if you can get a loan for that old a car, are going to be pretty high anyway...
 
Originally posted by: Skoorb
You could do the credit card and just pay the thing off very quickly... rates on an 85, if you can get a loan for that old a car, are going to be pretty high anyway...
Click to expand...

That's true...pay that thing off in about 6-9 months. That will help boost your credit score a bit, too.
 
Well even if new, most banks aren't going to mess with a car loan that low. They may give you an unsecured loan, but still if you are needing to borrow 1600 you probably won't have the numbers they want to see....

CC will be your best best on this kind of purchase. If it's a really good deal I guess, otherwise save and buy.
 
Something that old they'd just call it unsecured and slap you with a 10% interest rate. Best bet would be to go to a credit union and see what they can set you up with.
 
Call your local bank and CU's, ask them what their used auto loan rates are.

Before taking your application they will need information on the collateral such as:
Year make model trim
miles
options
amount financed

After that, ask them what the interest rate for that car would be?
 
Originally posted by: Redhotjrm
Does it really jump up the older the car gets?
Click to expand...
Yes. Interest rates for cars more than 10 years old are generally 10% or more.

BUT, you're only borrowing $1,500 dollars. When oh when will people wake up and realize that financing is not all about interest rate!! For example, if you borrowed $1,500 bucks for 24 months at 10% on a fixed-term, fixed-interest auto loan, your montly payment would only be $69.22 and you'd only pay $161 in interest over the whole term. Peanuts. Either that or pay in cash.
 
Originally posted by: Vic
Originally posted by: Redhotjrm
Does it really jump up the older the car gets?
Click to expand...
Yes. Interest rates for cars more than 10 years old are generally 10% or more.

BUT, you're only borrowing $1,500 dollars. When oh when will people wake up and realize that financing is not all about interest rate!! For example, if you borrowed $1,500 bucks for 24 months at 10% on a fixed-term, fixed-interest auto loan, your montly payment would only be $69.22 and you'd only pay $161 in interest over the whole term. Peanuts. Either that or pay in cash.
Click to expand...

Vic, you ever heard of a bank giving a loan like that? That's be sweet to pay $70/month until I can sell this crappy Civic.
 
Sure, go apply at your local credit union. I'd avoid any major banks, they really don't care about deals like this, too small with too much risk. Most any strip-mall ripof... pardon me, finance company will do it as well but the rate might go to 20% (edit: I advise not going to those finance companies for reasons other than rate though -- they tend to run a bit fast and loose with both the law and ethics).
Only problem with doing it at a credit union is that the Celica books at about $1,400-$1,500 so they may want you to put $100 down or something like that.
 
That Celica can't be used as collateral, so you can't get a "car" loan on that one. You'll need an "unsecured" loan, which is what a credit card is.

Your credit's OK, so you can get a loan for that Maxima, but only for a pretty short term at a high-ish interest rate. You'll also need full coverage on the Max, and that's not cheap for a 20-21 year old, especially for a guy. (EDIT: Your expenditures for the Maxima won't be much less than for your Civic, and you will have repair bills on a 95 that you won't see for a long time in your 2002 Civic.)

I don't think it's worth it either way, but if you NEED a car and don't have money, I'd get the Celica if it's a good car, and make paying off the credit card the #1 priority before you spend money on anything else.

EDIT: Do you have the Civic sold yet? Is it even worth the loan balance right now (trade/private-party value)? If not, the only way out of your hole is to work harder (and start applying for better jobs) and pay down your Civic for awhile. Attempting to spend your way out of debt is a fool's game.
 
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