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

[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!!!!

[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%.

[BkinTX]

Sucks huh.

[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]

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]

[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%.

[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]

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?

[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.

[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.

[justplaintired]

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.

[BkinTX]

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.

[Logan]

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.




The problem with car payments is that they last 2, 3, 4, 5 years or more. When you say "When you have a good paying job, making car payments are not big deal." you better be sure it's true today and every day from now on. I'm not so willing to assume my crystal ball works that far in to the future.

A paid-for car meets both criteria because you can afford repairs when you have a job and the monthly payments are exactly $0.00 if you're unlucky enough to lose your job. In this regard, it offers perfect financial security.

Nobody likes car repairs but many people have an irrational fear of them. You'll waste hundreds on interest and think nothing of it but you'll die if you need to spend $200 or $300 on a car repair.

If you saved the money you were spending every month on you car payment, you'll be able to pay for the infrequent repairs most modern cars need and you'll still have money left over. Plus you're protected in the event that your best-laid plans turn sour because the monthly cost can actually go all the way to $0.00 if you park the car.

Since you guys have all the answers then advise me on what to do.

I will be buying a used vehicle in the 12K range.

I could pay cash or I could finance.

If I pay cash then I'm out 3-4 months living expenses if I was to lose my job.

If I finance I keep the 12K in savings and pay down a car loan while I continue to add to my savings for a rainy day.

What would you do?

Logan

[Keebler]

I do agree with you but the issue with what you have said is it is very hard if not impossiable for some to come up with 3000to5000 to buy a car.

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.

Not to have a pissing contest or anything, but I'd rather finance a reliable car than to own a car that needs constant repairs.

When you have a good paying job, making car payments are not big deal. When you have no job, then I guess it's more important to own an old car outright.

I suggest you buy a Haynes manual and have lots of tools. Been there, done that. Don't miss it. I'd rather have new, or almost new than a 10 year old junker.

The problem with car payments is that they last 2, 3, 4, 5 years or more. When you say "When you have a good paying job, making car payments are not big deal." you better be sure it's true today and every day from now on. I'm not so willing to assume my crystal ball works that far in to the future.

A paid-for car meets both criteria because you can afford repairs when you have a job and the monthly payments are exactly $0.00 if you're unlucky enough to lose your job. In this regard, it offers perfect financial security.

Nobody likes car repairs but many people have an irrational fear of them. You'll waste hundreds on interest and think nothing of it but you'll die if you need to spend $200 or $300 on a car repair.

If you saved the money you were spending every month on you car payment, you'll be able to pay for the infrequent repairs most modern cars need and you'll still have money left over. Plus you're protected in the event that your best-laid plans turn sour because the monthly cost can actually go all the way to $0.00 if you park the car.

[BkinTX]

I will be very happy for you.