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Author Topic: Car loan advice  (Read 936 times)

Jocassee

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Car loan advice
« on: September 03, 2009, 09:07:24 AM »
Ladies and Gents of APS

Since my not-so-trusty 98 Ford Escort died at 189907 mi, after I put 5K on it in 3 months, and I do not have sufficient capital to buy a decent (non-clunker) replacement, I'm going to have to bite the bullet and get a loan. I've never been in debt in my life, except for two months when I ran out of cash in Uni.

Loan amount will probably be 4k. What else do I need to know?
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Hutch

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Re: Car loan advice
« Reply #1 on: September 03, 2009, 09:33:22 AM »
Debt is bad, so less debt is better.  Do you have real estate you can borrow against?  A revolving line of credit against your home would mean that the interest would be tax-deductible.  A straight sig loan or car loan does not provide that.  Pay it off ASAFP.
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Jocassee

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Re: Car loan advice
« Reply #2 on: September 03, 2009, 09:41:23 AM »
Quote from: Hutch on September 03, 2009, 09:33:22 AM
Debt is bad, so less debt is better.  Do you have real estate you can borrow against?  A revolving line of credit against your home would mean that the interest would be tax-deductible.  A straight sig loan or car loan does not provide that.  Pay it off ASAFP.

Nope, no property or assets. Hopefully I can have it paid off in 6 months.
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roo_ster

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Re: Car loan advice
« Reply #3 on: September 03, 2009, 10:01:25 AM »
Shop around for financing and get approved at a particular level before you start looking for a car.

That gives you leverage with the dealer, who can also finance.  Many times you can then get a better loan deal through the dealer when you wave the pre-approved loan rate in their ugly face.
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roo_ster

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norinco982lover

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Re: Car loan advice
« Reply #4 on: September 04, 2009, 02:24:25 PM »
I believe that there may be a credit penalty for paying off a car loan in less than 6 months or even a year. I would recommend researching that more before paying it off too fast.

Credit unions usually have better rates than banks. Shop around.

You might want to hold the loan for a year (at least) to make sure your credit will get bumped up. Don't miss payments just do a direct withdrawal.

I would recommend a used toyota, honda, or mazda for the price range you are looking for. CARS ONLY do not be deceived by trucks/suvs/vans. They just ain't worth it if you can live with a car.

Oh, and you could get a decent nissan in your price range as well.

~Norinco
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roo_ster

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Re: Car loan advice
« Reply #5 on: September 04, 2009, 02:55:33 PM »
Quote from: norinco982lover on September 04, 2009, 02:24:25 PM
Oh, and you could get a decent nissan in your price range as well.

~Norinco

He could get MY used Nissans, both of them, for that kinda cash.
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roo_ster

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Racehorse

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Re: Car loan advice
« Reply #6 on: September 04, 2009, 09:06:36 PM »
Quote from: norinco982lover on September 04, 2009, 02:24:25 PM

Oh, and you could get a decent nissan in your price range as well.

~Norinco

Fixed it for you.  =) I'm kind of bitter about nissans after the wife's sentra. I know some of them are good, but I'll never buy another one.
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