Is it just to hard to go from a 08 car to a junker

[BkinTX]

Also Re: Logan

If you really want to finance something, there's always the option of making a large down payment so you're not financing SO MUCH.

If you are comfortable financing a 12k vehicle (with a bad interest rate and 2 year term, something like $600 a month), that's your business and there's nothing wrong with it.

But there are lots of options, including paying cash for something cheaper.

[debtmonster]

Put half on a vehicle (bought outright), and keep the other half in savings. You can go lower on the vehicle and keep more in savings, even.

I vote for this scenario! DO IT!

This option may or may not be the best option, but to me, it sounds like the smartest.

[debtmonster]

If you are comfortable financing a 12k vehicle (with a bad interest rate and 2 year term, something like $600 a month), that's your business and there's nothing wrong with it.

But there are lots of options, including paying cash for something cheaper.

Why do you have to pay $600/mo. for a 2 year term? Isn't there a way to get it down to $300/mo. for the same thing?

[bigtim6656]

[QUOTE=Keebler;306519]The problem is that the people who can't come up with $3,000 to $5,000 to buy a used car have absolutely NO business financing one because this proves they can't actually afford the payments either.


When i did my buy here pay here i paid every payment every insurance bill and every repair need. I had money left over. I agree buy here pay here is no good. But niether is a new car with 25% interest. Heck your pay more in interest then that car was msrp. I do not care if you got 50% off. Say you pay 25000 for that new car or suv. After dischagr you get 25% interest.
You finance every dime of it. your going to pay 39792 with interest. that your purchase price plus 14792 And you get a payment just over 800 a month for a four year loan.

[debtmonster]

[QUOTE=bigtim6656;306554]

The problem is that the people who can't come up with $3,000 to $5,000 to buy a used car have absolutely NO business financing one because this proves they can't actually afford the payments either.


When i did my buy here pay here i paid every payment every insurance bill and every repair need. I had money left over. I agree buy here pay here is no good. But niether is a new car with 25% interest. Heck your pay more in interest then that car was msrp. I do not care if you got 50% off. Say you pay 25000 for that new car or suv. After dischagr you get 25% interest.
You finance every dime of it. your going to pay 39792 with interest. that your purchase price plus 14792 And you get a payment just over 800 a month for a four year loan.

There is NO WAY you'll catch me financing $25,000 at 24.99% interest. NO WAY!

That's why I keep posting about my needs of coming up with $10,000 cash down on a $17,000 dollar car. I am trying not to finance more than $7,000. If I fianance a $20,000 dollar car, then some how I need to come up with $13,000 down. That's going to be tought in the time frame that I am trying to pull this off. If my lawyer can keep me in these cars without payments, I have no idea how long he'll be able to do it. If he can do it until at least January, that's great. But if I do the $25,000 dollar car thing, I will need to keep my cars much longer than January to save up $17,500 as a cash down. I know it seems crazy to do that... but like you said, 25% interest is crazy, too. If I want the $25,000 dollar car so bad, that's the sacrifice I will have to make.

And then if I do finance the $7,500 (because that's the minimum they will let me finance), then I will have to make sure there is no pre-payment penalty and I will try to pay them $1,000-1,500/mo. afterward if they burn me with 24.99%.

[BkinTX]

If you buy something that costs 12k and you get a double digit interest rate and you pay it off in 2 years, that's what the payments look like.

You can make it lower by stretching the payments out, but I don't think that's a good option.

This is based on the premise of purchasing a vehicle for 12k as Logan posted.

[debtmonster]

You can make it lower by stretching the payments out, but I don't think that's a good option.

According to:

http://www.driverslane.com/calculators/autoloan.php

Financing $7,500
Interest rate 24.99%
Sales tax 7%
24 months
Payment = $430.40

36 payments would come out to $320.62/mo.

Both options are steep. That looks almost like what I will be paying. This is a buzz kill... even with $10,000+ down! UGH!!!!

[BkinTX]

Sucks huh.

[bigtim6656]

Bingo we both have the same plan. I plan to do it alittle differnt finance a motorcycle properly all of it if i can get it by jan 1st as i will save a ton on buying a bike in the winter. Trick is i am going to florida jan 1st. For 6 months. I will also look for a no early payment penatey . When i get my student loan i will use half of it to pay on the bike. I will also pay 500 amonth on the loan. about 200 more then what i think the payment will be. When i get my fall loan i will use half off it for the bike. Then hopefully be paid off in a year. Then hopefully get a good credit card no fees lower interest. Use it for gas bills pay off every month. Then in another year get a loan to start build homes. Then get rich. When i get out of school. My plan is to start selling homes on contracts to the right people. And make my own high interest finance company for high income bad credit home buyers. Then retire at 40 to 50 [QUOTE=debtmonster;306558]

There is NO WAY you'll catch me financing $25,000 at 24.99% interest. NO WAY!

That's why I keep posting about my needs of coming up with $10,000 cash down on a $17,000 dollar car. I am trying not to finance more than $7,000. If I fianance a $20,000 dollar car, then some how I need to come up with $13,000 down. That's going to be tought in the time frame that I am trying to pull this off. If my lawyer can keep me in these cars without payments, I have no idea how long he'll be able to do it. If he can do it until at least January, that's great. But if I do the $25,000 dollar car thing, I will need to keep my cars much longer than January to save up $17,500 as a cash down. I know it seems crazy to do that... but like you said, 25% interest is crazy, too. If I want the $25,000 dollar car so bad, that's the sacrifice I will have to make.

And then if I do finance the $7,500 (because that's the minimum they will let me finance), then I will have to make sure there is no pre-payment penalty and I will try to pay them $1,000-1,500/mo. afterward if they burn me with 24.99%.

[bigtim6656]

Mine was 48 months i did it because your talking 25k at 24 months your talking a 1600 a month payment. Longest i would do would be 2 maybe 3 years

According to:

http://www.driverslane.com/calculators/autoloan.php

Financing $7,500
Interest rate 24.99%
Sales tax 7%
24 months
Payment = $430.40

36 payments would come out to $320.62/mo.

Both options are steep. That looks almost like what I will be paying. This is a buzz kill... even with $10,000+ down! UGH!!!!

[debtmonster]

Suze Orman says, "If you can't afford a car with at most 36 payments, then you can't afford the car."

I tend to agree with that. I've been doing the 60 and 72 month deals all my life and look what a wreck it has made of my life.

[Strapped4Csh]

We own 3 late model cars, '99 Kia Sportage, '95 Jeep Wrangler, '93 Chevy pickup, bought and paid for, high miles on 2, but we OWN our cars. All our exempt and we can keep them, we came in under the exemptions for Indiana. We do not intend to buy a car, we will drive these until the wheels fall off. We learned that living within our means, means newer cars aren't important. Driving a new car or newer car just doesn't fit us financially. I know a new car would be nice, don't get me wrong, but the payment that goes along with it, would make me sick each month.

Maybe someday, but since my dh has a good friend who's an awesome mechanic, we won't probably be changing cars for a very long time. And if we ever do, it won't be a new car, it will be a nice used cheap car.

Just curious - we're looking at older cars that we'll pay cash for. How would you rate the jeep and kia as far as cost to mainain? I've heard some not so good things about both, but there's a surplus of them out there cheap, so I'm tempted....

[debtmonster]

Just curious - we're looking at older cars that we'll pay cash for. How would you rate the jeep and kia as far as cost to mainain? I've heard some not so good things about both, but there's a surplus of them out there cheap, so I'm tempted....

The 6-cylinder Kia's are super expensive to maintain once they get miles on them. The dealer wants about $1000-1200 to change the timing belts on the dual over head cams for them.

I would always look under the hood and see how easy it is to get to the spark plugs and everything. I would try to avoid vehicles that have timing belts. When they break, it will leave you stranded. Some engines are interference engines so when the timing belt goes, it takes the valves with it.

Some Dodge vehicles may have a chain instead of a belt, such as many of the Dodge Carvans.

Something like a 2004 or new Kia 4-cylinder would be great, reliable transportation. Okay, not great... but reliable. My wife hates those cars.

But if you want a cash car to get around in, the Kia's should be a good option. Just stay away from the 6-cylinder Kia Sedona's and Kia Sorento's. They are nice vehicle but are very expensive when you hit high miles. The cost of maintaining them can actually cost as much as the vehicle is worth!

[Logan]

Also Re: Logan

If you really want to finance something, there's always the option of making a large down payment so you're not financing SO MUCH.

If you are comfortable financing a 12k vehicle (with a bad interest rate and 2 year term, something like $600 a month), that's your business and there's nothing wrong with it.

But there are lots of options, including paying cash for something cheaper.

The problem I have with this forum is I find alot of the advice to be one dimensional. It is the main reason I post here. It is easy to criticize someone for getting a car loan at 19.99% interest but until you know all the facts you really can't give sound advice.

For instance---my situation.

I have been unfortunate when it comes to employment and have lost my job 7 times over the last 18 years. I've also changed jobs for the better and have had 12 jobs in the same time period. When I make a decision to buy something I set a goal to how long I can afford to live if I lose my job today.

I can currently live about 12 months before I run out of savings if I lost my job today and that's where I want to keep my savings.

Next part of the equation---Why do I need a 12K to 14K vehicle.

Answer--I travel about 8 days a month and I need a vehicle for my pregnant girl friend in the winter time in the North East. It must be 4 wheel drive and it must be reliable so a 7K car is NOT an option.

What if I pay cash? That means I can now live about 8-9 months without dipping into savings and it will most likely take me a year to save the 12K I just spent since I have a baby on the way.

What if I finance? I keep the 12K, continue to save a smaller amount of money and I have the piece of mind that if I lose my job I can still go a year without dipping into savings. My car purchase won't be until Nov. so I will have more in savings to compensate for the increase in living expense due to the new vehicle.

Also, this vehicle will be used for work on a rental property I am about to purchase so there will be some tax benefit to offset the cost of the vehicle.

Is there a wright or wrong answer here? Of course it will save me money if I pay cash but it is a minor amount of money is the scheme of things and the safety of my GF and future child and the piece of mind that I can live a year without a job is certainly worth the extra money I pay in interest.

Also, I predict that I pay under 7% interest a 5 year term so the reality is it won't cost me much at all and I will pay it off quicker than 5 years.

Logan

[debtmonster]

It is easy to criticize someone for getting a car loan at 19.99% interest but until you know all the facts you really can't give sound advice.

Then people need to sit there and type more like the way you just did in the above post. Give all of the facts. You'd be surprised at the number of lurkers in the same position as you that will benefit from your questions and answers.

Now that you explained the situation, it makes more sense.

The facts I needed for the search:

-Truck
-AWD

Needed for: winter & hauling stuff for rental properties.

Everything makes perfect sense now that you laid out the facts.

Cheap trucks with AWD do exist without having 125,000 to 150,000 miles on them.

2005 Dodge RAM 1500 w/ 60k miles for $10k That truck looks tight!!

2002 Dodge for $6250

2002 F-150 for $4895

So you dont need to spend $12k-14k on a truck when nice trucks like these exist. You just have to look.

Stop spending a lot of money for stuff. USE AUTO TRADER! You will save THOUSANDS from using this invaluable resource.

It must be 4 wheel drive and it must be reliable so a 7K car is NOT an option.

I just proved that wrong with the above examples by showing that cheap 4WD's can be found if you'd only spend the time to look at not waste time driving around from Buy Here Pay Here lot to Buy Here Pay Here lots.