Car Loan?

[Mitch41]

At 11 dollars an hour I'm not sure I could save a penny on top of gas and my cell phone... Lol

 

[omega260]

Im putting up my 95 tsi for sale. Brand new paint, tires, engine, everything in the suspension (shocks, springs every bushing and control arm), brakes...ect. $4500 in reciepts from the past year. I am the 3rd owner. The cars never been raced or abused and its adult owned (im 30, no hack job 17 year old mechanic work on it!). $4000 and its yours. No real issues at all. Drive it everyday. I dont really need to sell it, I just grew out of it. Figured maybe someone younger and more into these cars would appreciate it more.

PM me the mileage or post it on the classifieds.

 

[empie1]

Pm sent. I need to go thru my receipt folder so I can make a official classified.

 

[Spyder FX]

You should just take out a personal loan through your bank and pay the remainder in cash. Auto loans are a PITA to deal with, with all of those restrictions on them.

 

[omega260]

You should just take out a personal loan through your bank and pay the remainder in cash. Auto loans are a PITA to deal with, with all of those restrictions on them.

Never thought of it like this. Wouldnt they get pissed if they found out it was a car? Or would the interest rate be higher?

 

[H4G64T]

Personal loans are generally unsecured loans, versus a car loan where the car purchased is used as security. It just means the likelihood of getting the loan approved is less for someone newly employed and making your particular wage amount.

 

[jcart953]

Loans are for houses and brand new cars (also a waste in my opinion but some people feel they need new cars).

^^^Some of this..

However, buying a used car (especially something like a DSM), is just a BAD idea. because if it breaks, you still need to maintain full coverage, AND continue paying the car off, nevermind the interest, a 5k car, you will end up spending over $7k or more on it, and still owe a lot of money, even years from now, when it's only worth like 3k.

^^And this...



You really should just save up for the car and purchase it with cash, but it sounds like your just going to get a loan anyway so you'll learn.

 

[Spyder FX]

Never thought of it like this. Wouldnt they get pissed if they found out it was a car? Or would the interest rate be higher?

They don't care what you do with the money, as long as you pay them back.

 

[omega260]

They don't care what you do with the money, as long as you pay them back.

I just googled it and there is no way in hell I would be approved. Well Ill have to see what happens I suppose. Could keep the VW and get a shitty condition 1g for cheap. I like 1gs and theres always a couple for sale in my area.

 

[99RedGs]

I just googled it and there is no way in hell I would be approved. Well Ill have to see what happens I suppose. Could keep the VW and get a shitty condition 1g for cheap. I like 1gs and theres always a couple for sale in my area.

That doesn't make any sense... Just wait until you find the car you want instead of buying a shitty car youre not happy with and spending thousands turning into what you wanted in the first place. Trust me, as a person who has done it before... Bought an NT car not knowing much about dsm's and ended up spending thousands to build it up instead of just getting a turbo car in the first place.... There is no reason to ever take a loan out to buy a car that cheap.

 

[Dark_Horse]

because if it breaks, you still need to maintain full coverage

That's not true. If the car breaks and you still have a loan, you can change your insurance policy to just comprehensive coverage. You just have to call the company you've got a loan with and explain to them that the vehicle is undriveable. Then you can switch your policy and just maintain comprehensive coverage until it's driveable again.

I did it for years.

 

[kbiker76]

You will never get a true auto loan trust me been there done that. I know at my bank(us bank) you can only get a loan on a car with less than 100k miles and no older than 9 years old. You would have to get a line of credit style loan also known as a signature loan. Somewhat the same principals of a payday loan. Higher interest loan than a auto loan most are 9-13% interest and harder to get approved for.

You can easily save quite a bit of money if you choose since you still live at home, I make 12 and I still can save some money and I pay rent and live on my own and all that fun stuff that goes along with living by yourself.

Id just save some money up and buy the car outright getting a loan on a dsm is a bad Idea I did it on my first dsm and ended up paying for it in the end, sold the car after I blew the motor and lost interest/didnt have time to fix it and I was still paying it back for a few months after I sold the car... Thats the point where you start kicking yourself

 

[GirLyVR4]

That's not true. If the car breaks and you still have a loan, you can change your insurance policy to just comprehensive coverage. You just have to call the company you've got a loan with and explain to them that the vehicle is undriveable. Then you can switch your policy and just maintain comprehensive coverage until it's driveable again.

I did it for years.

Most insurance companies don't offer storage insurance. I have it on a few of my cars, but whether or.not the loan companyy finds that acceptable.or.not.is a different story.

 

[omega260]

That doesn't make any sense... Just wait until you find the car you want instead of buying a shitty car youre not happy with and spending thousands turning into what you wanted in the first place. Trust me, as a person who has done it before... Bought an NT car not knowing much about dsm's and ended up spending thousands to build it up instead of just getting a turbo car in the first place.... There is no reason to ever take a loan out to buy a car that cheap.

What if I want a beat up 1g

 

[phunny]

If you cant buy it cash, you cant afford it. Payments are for suckers and dreamers. Ahh, debt, the american dream.

Hence why you still drive a 91 . <--- I couldn't resist

Although I do agree what you are saying to a point, when people get loans and have absolutely no savings in case something happens it kills me. When people go bankrupt after being out of work for only 2 months I just don't understand it...

On the other side of the coin financing things are great, especially with all the 0% that can be had almost everywhere. Why would I spend my money when it can be earning me interest while I use someone else's? And cash flow is also something you want to look at. Would it be better to have 2k/month in loans and 30k in the bank and you lost your job or 300/month in loans and 0 in your account? A lot of times paying things off is not the best option.

 

[squid267]

Yeah the loan itself isn't going to be the issue. It's the insurance. If you were older maybe I would say to do it but full coverage for a 20 year old on a turbo sports car... that's going to be insane.

If you cant buy it cash, you cant afford it. Payments are for suckers and dreamers. Ahh, debt, the american dream.

You pay almost $300 a month for a car thats 17 years old and you think that was a good decision?

Its was $3750 for my GSX, probably a little after interest. (On track to paying it off by Oct) I'm sure they go for $5000+ Atleast thats what it said on KBB a month ago. I needed the car. Totaled my 06 Lancer and this was perfect for me. So yeah it was a good decision for me.

Edit: and a 2.99% interest. Credit Unions FTW

 

[AK Maniak]

Its was $3750 for my GSX, probably a little after interest. (On track to paying it off by Oct) I'm sure they go for $5000+ Atleast thats what it said on KBB a month ago. I needed the car. Totaled my 06 Lancer and this was perfect for me. So yeah it was a good decision for me.

Edit: and a 2.99% interest. Credit Unions FTW

Yes but he didn't wreck his car. He still has a car that works. It's just not smart to take out a car loan in his position when he can just save up for a bit and buy it in cash. What if he wrecks the car... Then he is out of a car and still has payments.

IMO you should always avoid loans or any kind of debts when possible. Hell, I saved my money for months and ate lots of top ramen just so I could buy a new car and not have any payments. It's pre ordered and scheduled to get here in late august and when it does I'll walk in there and slap cash on the table and be done with it. No payments to worry about is a beautiful thing.
I can't wait for my ST should be a fun car.

 

[omega260]

Yes but he didn't wreck his car. He still has a car that works. It's just not smart to take out a car loan in his position when he can just save up for a bit and buy it in cash. What if he wrecks the car... Then he is out of a car and still has payments.

IMO you should always avoid loans or any kind of debts when possible. Hell, I saved my money for months and ate lots of top ramen just so I could buy a new car and not have any payments. It's pre ordered and scheduled to get here in late august and when it does I'll walk in there and slap cash on the table and be done with it. No payments to worry about is a beautiful thing.
I can't wait for my ST should be a fun car.

Brb crashing my car.

Telephone poll?
Ditch?

I kid, but I have been hearing success and horror stories about this. Sounds like a coinflip IMHO.

 

[empie1]

All you guys bashing loans are out of your mind. I agree spending more than you can afford is dumb. But if anything, taking a small loan for 3-5000 is a great idea for someone in his spot. No bills and living at home equals easy to pay. In today's world you arnt shit without a good credit score. Build it as early as you can. And a fixed lower interest personal loan is a much smarter way to build credit than with a credit card. Paying cash Is most defInitly not the best route...unless you plan on driving dumpy cheap cars your whole life and never owning a home.

Oh and the guy bragging about paying cash needs to take some finance lessons. You do realize your literally throwing out money by paying cash for a brand new car right? The minute you drive off the lot, your out 5% or so of what you just paid. If anything, buy a year old model.

 

[91stocker]

Hence why you still drive a 91 . <--- I couldn't resist

Pretty much . I bought the car in my sig for $800. My dd i bought for $500 about 4 years ago . Paid cash for my wife's a4 too. Until me and my wife finish school thats how its going to stay too, no payments.

Although I do agree what you are saying to a point, when people get loans and have absolutely no savings in case something happens it kills me. When people go bankrupt after being out of work for only 2 months I just don't understand it...

Same here, i just cant possibly understand how someone could make such a poor decision.

On the other side of the coin financing things are great, especially with all the 0% that can be had almost everywhere. Why would I spend my money when it can be earning me interest while I use someone else's? And cash flow is also something you want to look at. Would it be better to have 2k/month in loans and 30k in the bank and you lost your job or 300/month in loans and 0 in your account? A lot of times paying things off is not the best option.

But...if you owned the car you wouldnt have to worry about losing the car after you lost your job. Also if you spent your entire savings on a car, i think that would count as a very poor decision .

Yes but he didn't wreck his car. He still has a car that works. It's just not smart to take out a car loan in his position when he can just save up for a bit and buy it in cash. What if he wrecks the car... Then he is out of a car and still has payments.

IMO you should always avoid loans or any kind of debts when possible. Hell, I saved my money for months and ate lots of top ramen just so I could buy a new car and not have any payments. It's pre ordered and scheduled to get here in late august and when it does I'll walk in there and slap cash on the table and be done with it. No payments to worry about is a beautiful thing.
I can't wait for my ST should be a fun car.

Smart man haha. No payments also helps keep the stress levels down . No worries.

All you guys bashing loans are out of your mind. I agree spending more than you can afford is dumb. But if anything, taking a small loan for 3-5000 is a great idea for someone in his spot. No bills and living at home equals easy to pay. In today's world you arnt shit without a good credit score. Build it as early as you can. And a fixed lower interest personal loan is a much smarter way to build credit than with a credit card.

Credit is a scam, its simply a way to legally discriminate the low income. Income is credit, its that simple. My mom has terrible credit, i mean awful. Shes always paid cash for everything. But can get approved for whatever she wants because she makes $30 an hour. Like her new malibu that she got like a month ago. Low payment, low interest, fully loaded. Credit doesnt mean shit when you have income.

Your seriously recommending a credit card to someone who still lives with their parents?

Paying cash Is most defInitly not the best route...unless you plan on driving dumpy cheap cars your whole life and never owning a home.

Or you could go to school and get a real job and make real money. The average american is just barely above the poverty level.

Oh and the guy bragging about paying cash needs to take some finance lessons. You do realize your literally throwing out money by paying cash for a brand new car right? The minute you drive off the lot, your out 5% or so of what you just paid. If anything, buy a year old model.

Buying a new car period is that way. Theres no way around the initial depreciation. And your not throwing money away in interest over five years? Whats the depreciation value over 5 years? Why spend thousands in interest to some crooked fat cat banker.

Personally when i go to get a new car i would just buy like you said a year older model or a slightly used one of the same year. 4k miles on an 12' and you'll probably spend 10k less then the guy rolling out of the lot with a "new" one.

 

[omega260]

Pretty much . I bought the car in my sig for $800. My dd i bought for $500 about 4 years ago . Paid cash for my wife's a4 too. Until me and my wife finish school thats how its going to stay too, no payments.



Same here, i just cant possibly understand how someone could make such a poor decision.



But...if you owned the car you wouldnt have to worry about losing the car after you lost your job. Also if you spent your entire savings on a car, i think that would count as a very poor decision .



Smart man haha. No payments also helps keep the stress levels down . No worries.



Credit is a scam, its simply a way to legally discriminate the low income. Income is credit, its that simple. My mom has terrible credit, i mean awful. Shes always paid cash for everything. But can get approved for whatever she wants because she makes $30 an hour. Like her new malibu that she got like a month ago. Low payment, low interest, fully loaded. Credit doesnt mean shit when you have income.

Your seriously recommending a credit card to someone who still lives with their parents?



Or you could go to school and get a real job and make real money. The average american is just barely above the poverty level.



Buying a new car period is that way. Theres no way around the initial depreciation. And your not throwing money away in interest over five years? Whats the depreciation value over 5 years? Why spend thousands in interest to some crooked fat cat banker.

Personally when i go to get a new car i would just buy like you said a year older model or a slightly used one of the same year. 4k miles on an 12' and you'll probably spend 10k less then the guy rolling out of the lot with a "new" one.

Alot of my friends have credit cards while in school, its a good way to build credit. Ill make sure when I go to finance a house to tell them that credit means shit

If anything credit is more important now then ever after the housing and economic crisis we had.

 

[91stocker]

Alot of my friends have credit cards while in school, its a good way to build credit. Ill make sure when I go to finance a house to tell them that credit means shit

If anything credit is more important now then ever after the housing and economic crisis we had.

Yep an 18 year old with a 3k credit limit sounds like a great idea. Lets pay interest on gas, beer kegs, and pizza ....

I had friends back then that had cards as well. Most racked up 3k in debt and couldnt pay it, now they owe a debt collector 6k+. One friend actually paid his but now hes up to 14k. With basically nothing to show for it, but 30 years of payments. Credit cards and house payments were the reason for the recession.

A 700+ credit score also isnt going to help you when you have car loans and credit card debt and only make 11 an hour. They're still going to tell you you cant afford it. Thats where you go back to the fact, income is credit.

Really, with the housing market the way it is, you can get into a decent house for 30k(depending on where you live ofcourse). There are 90 foreclosed homes in the just the small country county i live in. It wouldnt be that difficult to buy one cash or take whatever financing is available to you and pay it off in a couple years.

But everyone has stretch is as far as it can go. Take on some 300k+ house on their 40k a year income.

I get it now, credit is a way to live beyond your means. Makes so much sense now

 

[honda_burner]

You pay almost $300 a month for a car thats 17 years old and you think that was a good decision?

Im sure you spend close to that in mods and maintenance so calm down.

 

[91stocker]

Im sure you spend close to that in mods and maintenance so calm down.

Did this comment have a point? Think about it, that 300 a month is above and beyond any mods and maintenance so your post is irrelevant. And besides cash saved for mods on a car that you own is entirely different.

The op asked for opinions, you have to be able to take the heat when asking like that.

The op already has a dd and he is already paying payments on that. Taking an additional loan for a toy that you plan to mod is absolutely stupid. Theres no way to turn that around in to something good, its just a plain terrible idea.

 

[omega260]

Yep an 18 year old with a 3k credit limit sounds like a great idea. Lets pay interest on gas, beer kegs, and pizza ....

I had friends back then that had cards as well. Most racked up 3k in debt and couldnt pay it, now they owe a debt collector 6k+. One friend actually paid his but now hes up to 14k. With basically nothing to show for it, but 30 years of payments. Credit cards and house payments were the reason for the recession.

A 700+ credit score also isnt going to help you when you have car loans and credit card debt and only make 11 an hour. They're still going to tell you you cant afford it. Thats where you go back to the fact, income is credit.

Really, with the housing market the way it is, you can get into a decent house for 30k(depending on where you live ofcourse). There are 90 foreclosed homes in the just the small country county i live in. It wouldnt be that difficult to buy one cash or take whatever financing is available to you and pay it off in a couple years.

But everyone has stretch is as far as it can go. Take on some 300k+ house on their 40k a year income.

I get it now, credit is a way to live beyond your means. Makes so much sense now

Your starting to get too involved haha calm down nobody said anything about a 3k credit limit, and credit is indeed important its stupid to think otherwise. I understand your points, but your starting to get a little heated. Also I don't plan on making 11 an hour forever I have a year left till I get my bachelors and I'm only 20. I also understand that cars are a bad investment. also you can not get a cheap house in the richest county in the country

Also if I were to get a loan for a dsm itd be a DD and I'd sell the GTi. I understand how risky that is, but I'm willing to take the chance after thoroughly inspecting a car.

But I appreciate the opinions as I don't have my mind set on anything yet. Gotta take advantage of not having food and house payments.