We got new credit in a second!! Unsecured! Wow

[backtoschool]

B2S....I agree!! A rate of under 5% is excellent and if you are going to finance a car, that's the only way. I always financed new cars and got the 1.9% for 60 or many times the 0% for 60. Yes, it's sounds like a good deal. However, when the asset you are driving goes down 70% in the first 4 years, they would have to be paying you interest to make it worth your while. By paying 5% interest, it just goes down 75% in value instead. This is how people (like me) got to the point where I think I seriously was financing more negative equity at the end that I was actually on the car! If you pay it down hard and then keep it for a long time, I have no problem with that. (Of course, who cares what I think.) I will be doing it a different way but I worry that people are falling back into the same trap I did.

OMG you and I agreed on something on the credit repair thread LSU. Get me a paramedic, I can't take the shock!!!!

I always pay my cars in full, pay them off early, and keep them for a couple of years after I pay them off. I only traded in my Hyundai because it was a death trap in the Midwest winter. Usually I have had 0% interest deals too, (pre bk) but I have 4.42% on my Nissan Rogue that I just got, so that is good for this stage of my credit repair, considering I always pay cars off early.

I totally agree with you that rolling negative equity into new loans is a recipe for financial disaster down the road. I never roll in negative equity.

[ccsjoe]

B2S....I agree!! A rate of under 5% is excellent and if you are going to finance a car, that's the only way. I always financed new cars and got the 1.9% for 60 or many times the 0% for 60. Yes, it's sounds like a good deal. However, when the asset you are driving goes down 70% in the first 4 years, they would have to be paying you interest to make it worth your while. By paying 5% interest, it just goes down 75% in value instead. This is how people (like me) got to the point where I think I seriously was financing more negative equity at the end that I was actually on the car! If you pay it down hard and then keep it for a long time, I have no problem with that. I will be doing it a different way but I worry that people are falling back into the same trap I did.

I agree with both. Let me share some of my story. Let's do some math shall we. In 9 years I have financed 5 cars out of the lot, each replacing the other, and each with 60 month financing plans, so that they were upside down when I traded in....oh, and always $0 down. Big part of what got us in this mess. My personal lesson...stretch out our current car, keep it at least until end of term, best if longer, then use that plus some down to replace with either used or new-so long as financing on new is extremely attractive. No more 60 month ball and chains either. Do it in 36 or don't do it.

[LSUTiger32]

It wasn't meant to be kind, nor an attack. Do you go back and read before you post? I have only read a few of your posts, and it seams like you have to slip in some snide remark about someone applying for a credit card or financing a car. I'm going to go out on a limb here and assume you are very anti credit, is that correct? If that is the case, that is fine. If it works great for you, I totally support that. It just seams that you are throwing that in people's faces with out even considering that, hey, maybe they have no choice but to finance a car, or a house, or likes the benefits of a credit card.

Now, if I totally read a few of your previous posts wrong, I totally apologize, seriously. It is just that I get into reading these posts, and I know the excitement the OP feels when they got approved for a credit card. To them, it is probably not about the credit card, but about the small accomplishment made after going through the BK.

Yeah, for the most part people read it wrong. Without ruffling more feathers, I think people deep down inside are sick about going back to the same people that put them on this board. In return I think they take it out on me. Go back and read all my posts if you want to and you will find that I have told several people congrats on their card or whatever. I may say.....hey, I wouldn't have done it......but I am sorry that's just the truth. I am not going to change who I am.

[LSUTiger32]

If you can get a rate of 5% or under on a new car, there is not much downside to financing the car instead of saving up the money. You will have use of the car right away, and you are not overpaying on finance fees. It takes a long time to save up cash for a new car, and since a certain amount each month has to be put into savings to save up for that car, I do not see that as any better than taking a loan at a favorable rate. You will be repairing your credit in the process and the net expenditure each month is the same.

B2S....I agree!! A rate of under 5% is excellent and if you are going to finance a car, that's the only way. I always financed new cars and got the 1.9% for 60 or many times the 0% for 60. Yes, it's sounds like a good deal. However, when the asset you are driving goes down 70% in the first 4 years, they would have to be paying you interest to make it worth your while. By paying 5% interest, it just goes down 75% in value instead. This is how people (like me) got to the point where I think I seriously was financing more negative equity at the end that I was actually on the car! If you pay it down hard and then keep it for a long time, I have no problem with that. (Of course, who cares what I think.) I will be doing it a different way but I worry that people are falling back into the same trap I did.

[WhoDat]

Very kind words....thanks.

It wasn't meant to be kind, nor an attack. Do you go back and read before you post? I have only read a few of your posts, and it seams like you have to slip in some snide remark about someone applying for a credit card or financing a car. I'm going to go out on a limb here and assume you are very anti credit, is that correct? If that is the case, that is fine. If it works great for you, I totally support that. It just seams that you are throwing that in people's faces with out even considering that, hey, maybe they have no choice but to finance a car, or a house, or likes the benefits of a credit card.

Now, if I totally read a few of your previous posts wrong, I totally apologize, seriously. It is just that I get into reading these posts, and I know the excitement the OP feels when they got approved for a credit card. To them, it is probably not about the credit card, but about the small accomplishment made after going through the BK.

[LSUTiger32]

I can't believe I'm going to say this, but....LSU, you do have a point. And, although we differ on our credit views, your insights have helped others and do force people to look at things through a different lens.

Back to your point. The more I think about it, yes, the more I despise having a car payment and can conceivably see saving enough to buy a car cash up front. I believe the problem that keeps most of us (yes, myself included) is that we want the latest and greatest (and we can't afford that cash up front) and frankly, finance and auto companies, through marketing, make it rather easy.

Thanks man, I appreciate someone just reading what I say and not taking it personally. I agree on a home mortgage, but a car can be done. It's the in thing. I did it 10 times, believe me. There was not a new car that I didn't want and by god that I didn't get. That plan landed me on this board.....which is in a way is cool. Then again, I wish I would have never had to find this board. I NEVER and I mean NEVER had a car without a payment until two years ago. If you have never driven a car that you owned and not owed money on, it's a cool feeling. I get in that car everyday to go to work and it feels good to know that it is mine. I am sacrificing believe me. I don't want to drive a Ford Taurus.....I want my $40,000 Nissan Titan with the custom made grill and 24 inch rims back. That's not going to make me wealthy though and it's not going to allow me to leave my kids in a position where they never have to worry about money. Getting completely out of debt though and investing like crazy will change their lives and it will also guarantee that they don't have to support me when I am 60.

I am very passionate about this issue because of what I have been through and sometimes that I know that has come across wrong in the past. It wasn't my intention, again I am just offering an alternative.

[ccsjoe]

If you can get a rate of 5% or under on a new car, there is not much downside to financing the car instead of saving up the money. You will have use of the car right away, and you are not overpaying on finance fees. It takes a long time to save up cash for a new car, and since a certain amount each month has to be put into savings to save up for that car, I do not see that as any better than taking a loan at a favorable rate. You will be repairing your credit in the process and the net expenditure each month is the same.

I understand B2S, my point though is that 1. I would love to just own the car outright, and 2. Do I really think I'm going to keep the financed car for full term when so many latest and greatest are coming out. It's a mentality thing. That's where I agree with LSU's view.

Now don't get me wrong, I believe credit, if used properly, is a powerful tool. But there is a fine line in using the tool and becoming a tool of the tool itself.

[backtoschool]

I can't believe I'm going to say this, but....LSU, you do have a point. And, although we differ on our credit views, your insights have helped others and do force people to look at things through a different lens.

Back to your point. The more I think about it, yes, the more I despise having a car payment and can conceivably see saving enough to buy a car cash up front. I believe the problem that keeps most of us (yes, myself included) is that we want the latest and greatest (and we can't afford that cash up front) and frankly, finance and auto companies, through marketing, make it rather easy.

If you can get a rate of 5% or under on a new car, there is not much downside to financing the car instead of saving up the money. You will have use of the car right away, and you are not overpaying on finance fees. It takes a long time to save up cash for a new car, and since a certain amount each month has to be put into savings to save up for that car, I do not see that as any better than taking a loan at a favorable rate. You will be repairing your credit in the process and the net expenditure each month is the same.

[LSUTiger32]

OK..Imagine if financing was no longer available to finance the purchase of a new car.

Yeah, that would be horrible too. People would have to change their ways and learn how to pay for things. I know I learned the hard way. Even worse, people would have to sacrifice......oh, the horror! I think this is getting lost on people.....do whatever you want. If you want to finance yourself back into BK, I don't care one bit. Just offering an alternative to the advice that is passing around here which is that credit is the ONLY way.

[ccsjoe]

I can't believe I'm going to say this, but....LSU, you do have a point. And, although we differ on our credit views, your insights have helped others and do force people to look at things through a different lens.

Back to your point. The more I think about it, yes, the more I despise having a car payment and can conceivably see saving enough to buy a car cash up front. I believe the problem that keeps most of us (yes, myself included) is that we want the latest and greatest (and we can't afford that cash up front) and frankly, finance and auto companies, through marketing, make it rather easy.

[LSUTiger32]

That's what usually happens when you spew ill-conceived advice on how everyone else should manage their own personal finances. Have you ever stopped and considered that your situation is different from the next person? Probably not.

Very kind words....thanks.

[Logan]

Yeah, imagine all the money people would have. By the way, I never said no one should buy a new car. Believe it or not, you can buy a new car without financing it. Then again what is new.....words being put in my mouth and the usual crap. Too bad no one cares, unless of course I say the wrong thing.

OK..Imagine if financing was no longer available to finance the purchase of a new car.

[WhoDat]

Yeah, imagine all the money people would have. By the way, I never said no one should buy a new car. Believe it or not, you can buy a new car without financing it. Then again what is new.....words being put in my mouth and the usual crap. Too bad no one cares, unless of course I say the wrong thing.

That's what usually happens when you spew ill-conceived advice on how everyone else should manage their own personal finances. Have you ever stopped and considered that your situation is different from the next person? Probably not.

[LSUTiger32]

drew deserves an off day or two...once in a while...you are too mean...always liked drew..where ever he was.

hard to love a team with all the free agency stuff...now i seem to just follow the players and not the JERSEY's...although...on game day i where my jerry rice (still love him).......both san fran and oakland...i switch them every other week...LOL!! so I DO KNOW you'd be leaving me by the side of the road!

i hear they use actual airplane seats for the bentley's now...any truth to that rumor...LOL!!!! i'd fly high...

kidding aside..i could care less about my car as long as it gets ME to where i have to.

LOL! I was just messing. Drew Brees is my freaking hero. Obviously I agree with that last statement!

[LSUTiger32]

Imagine if everyone took LSU's advice and no-one bought a new car.......

Yeah, imagine all the money people would have. By the way, I never said no one should buy a new car. Believe it or not, you can buy a new car without financing it. Then again what is new.....words being put in my mouth and the usual crap. Too bad no one cares, unless of course I say the wrong thing.