What would you do?

[ROB37LAW]

Approved through Cap One for the following:
2010 vehicle - 12.08% @ 72 months (up to 18K)
2009 vehicle - 15.20% @ 72 months (up to 18K)

OR

Local Recognized Credit Union for the following:

Any year - 16% @ 60 months (up to 15K)

Just two months post discharge. No down payment on either.

Would it be beneficial to go with the credit union and pay the higher payment?

[nc73]

Is there a down payment? If I had to choose I'd go with the credit union. Otherwise I'd just buy a used car under 2k and pay cash.

[ROB37LAW]

Is there a down payment? If I had to choose I'd go with the credit union. Otherwise I'd just buy a used car under 2k and pay cash.

Thanks, I forgot to add that there was no down payment on either loan.

[Meatstick]

Those terms are pretty good.

All I would add is if you could find a decent used vehicle and pay cash you would be much better off than jumpong back into debt so quickly.

[tdawg]

I'd second the used car idea. I've always bought cars with loans previously. I just bought a car from a county auto auction for less than $2,000. It has 105,000 miles on it, but it runs great, looks ok, and since it was owned by the government, at least I know it was serviced on time. Good luck with whatever you decide to do.

[ROB37LAW]

I'd second the used car idea. I've always bought cars with loans previously. I just bought a car from a county auto auction for less than $2,000. It has 105,000 miles on it, but it runs great, looks ok, and since it was owned by the government, at least I know it was serviced on time. Good luck with whatever you decide to do.

I do plan on putting down 2K even though it's not required. I plan on financing about 13K for a 2010 Pontiac G6 with 6K miles on it. Not bad for a practically brand new vehicle. I need reliable transportation for work.

[justbroke]

Why is this in two different threads, is what I wonder.

[ROB37LAW]

Why is this in two different threads, is what I wonder.

Maybe because not everyone reads all the threads that are available to them. More exposure elicits more responses.

[justbroke]

Maybe because not everyone reads all the threads that are available to them. More exposure elicits more responses.

It's not allowed per the Forum rules and it can take otherwise useful responses, and divides them between two threads.

As for the posting, I don't think any of those are particularly bad for someone coming out of Bankruptcy.

[StartingOver08]

IMO, I would first buy the cash vehicle like the previous posters.

Then, if you truly prefer to make monthly payments, purchase with the CU financing and not Cap 1. I would not buy a 2010 because of the loss of value the minute you drive off the lot. You can easily get a reliable vehicle that is one to three years old, or even older. To me, paying thousands extra for the current year is just not financially responsible. JMO.

BTW, paying on a car for 72 months is forever. The car is depreciating the entire time. Extending your term to make the payments affordable shows you are buying too much car. IF you decide to finance a vehicle at all, get on bankrate and compare the $$ amount of interest for 36, 48, and 60 mths. Total the interest payable for the entire term. You pay too much interest at any rate for a 72 mth payment. IMO anything over 36 mths is too much in interest.

[justbroke]

Good points StartingOver.

[ROB37LAW]

IMO, I would first buy the cash vehicle like the previous posters.

Then, if you truly prefer to make monthly payments, purchase with the CU financing and not Cap 1. I would not buy a 2010 because of the loss of value the minute you drive off the lot. You can easily get a reliable vehicle that is one to three years old, or even older. To me, paying thousands extra for the current year is just not financially responsible. JMO.

BTW, paying on a car for 72 months is forever. The car is depreciating the entire time. Extending your term to make the payments affordable shows you are buying too much car. IF you decide to finance a vehicle at all, get on bankrate and compare the $$ amount of interest for 36, 48, and 60 mths. Total the interest payable for the entire term. You pay too much interest at any rate for a 72 mth payment. IMO anything over 36 mths is too much in interest.

I do agree but even though it's a 2010, it's still a used vehicle. It has approx. 6k miles on it. Also, 2010 is the last year the vehicle is made. Pontiac is no longer. However, they take Chevy parts. Dealers are willing to bargain on these vehicles. I should be able to get it for about 14k or less. Thanks for all the replies. I really appreciate it.

[biotechsolution]

also remember cap one will only finance at car dealers and only franchised car dealers so the price will always be higher than a private owner.
plus they will only finance 110% of NADA 'trade in' price.

[tdawg]

I do agree but even though it's a 2010, it's still a used vehicle. It has approx. 6k miles on it. Also, 2010 is the last year the vehicle is made. Pontiac is no longer. However, they take Chevy parts. Dealers are willing to bargain on these vehicles. I should be able to get it for about 14k or less. Thanks for all the replies. I really appreciate it.

I'm sure you probably already know this, but one other thing to think about is that since Pontiac is no longer, the amount that you can resell it for will probably drop a lot quicker. I thought about buying an Oldsmobile 5 years ago or so (when they were closing their doors), but decided against it for mainly that reason. Good luck!

[HHM]

Closing this thread.

1. It has no purpose being in the Chapter 7 topic areas since it has nothing to do with BK
2. It is a duplicate thread, please do not place the same question in multiple topic arears.