Are Car Notes for Suckas? School me on financing a car please

[luckyluchiano]

Didnt feel like finding my last thread about cars.

In regards to buying a Car though, Of course paying in full is the best thing to do, but say I do need to finance a car, how do you dictate whats a good down payment? I really dont want a car note thats more then 150 bucks a month hell even 200 bucks, paying 3-400 a month for a car just sounds scary because there could be that one month you dont have the bread and that would be a lot of money to put together.

Also is it tough to get a bank to finance you? I have decent/good credit and a decent job, how exactly does that work?

 

[luckyluchiano]

Didnt feel like finding my last thread about cars.

In regards to buying a Car though, Of course paying in full is the best thing to do, but say I do need to finance a car, how do you dictate whats a good down payment? I really dont want a car note thats more then 150 bucks a month hell even 200 bucks, paying 3-400 a month for a car just sounds scary because there could be that one month you dont have the bread and that would be a lot of money to put together.

Also is it tough to get a bank to finance you? I have decent/good credit and a decent job, how exactly does that work?

 

[dcstylez]

DONT DO IT. DUMBEST THING EVER!

 

[dcstylez]

DONT DO IT. DUMBEST THING EVER!

 

[useref15]

Buying the car outright wasn't an option for me, so I had to finance. My Jeep was a bit over 17k and I put down 5k. I'm stuck with $271 monthly payments, with a 5 year loan. I hate paying it, but I really didn't have a choice. I was only 17 at the time so I didn't have enough money to pay it all.

If you can hold off and save more money to pay it in full....no doubt, do that. If you can't, then just finance it. Try and hassle with them to get the best APR possible.

 

[useref15]

Buying the car outright wasn't an option for me, so I had to finance. My Jeep was a bit over 17k and I put down 5k. I'm stuck with $271 monthly payments, with a 5 year loan. I hate paying it, but I really didn't have a choice. I was only 17 at the time so I didn't have enough money to pay it all.

If you can hold off and save more money to pay it in full....no doubt, do that. If you can't, then just finance it. Try and hassle with them to get the best APR possible.

 

[luckyluchiano]

Originally Posted by useref15

Buying the car outright wasn't an option for me, so I had to finance. My Jeep was a bit over 17k and I put down 5k. I'm stuck with $271 monthly payments, with a 5 year loan. I hate paying it, but I really didn't have a choice. I was only 17 at the time so I didn't have enough money to pay it all.

If you can hold off and save more money to pay it in full....no doubt, do that. If you can't, then just finance it. Try and hassle with them to get the best APR possible.

This is in regards to the dealer or bank?

I`m not really against a car note,, I just dont like the idea of paying like 300 bucks a month for a whip

 

[luckyluchiano]

Originally Posted by useref15

Buying the car outright wasn't an option for me, so I had to finance. My Jeep was a bit over 17k and I put down 5k. I'm stuck with $271 monthly payments, with a 5 year loan. I hate paying it, but I really didn't have a choice. I was only 17 at the time so I didn't have enough money to pay it all.

If you can hold off and save more money to pay it in full....no doubt, do that. If you can't, then just finance it. Try and hassle with them to get the best APR possible.

This is in regards to the dealer or bank?

I`m not really against a car note,, I just dont like the idea of paying like 300 bucks a month for a whip

 

[chueco dtb]

A car note is not bad if your trying to establish credit for yourself. But depending on your situation and how good your credit score is at the moment will depend if you can qualify for the loan to finance the car your looking to buy. If you can find someone who has good credit to co-sign your loan you will have a better chance of qualifying for your loan.

 

[chueco dtb]

A car note is not bad if your trying to establish credit for yourself. But depending on your situation and how good your credit score is at the moment will depend if you can qualify for the loan to finance the car your looking to buy. If you can find someone who has good credit to co-sign your loan you will have a better chance of qualifying for your loan.

 

[BANLEU]

Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

 

[BANLEU]

Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

 

[luckyluchiano]

Originally Posted by Mr Anleu


Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

So pretty much car loans are for brand new full price joints?  So if I have 10k to put down on a 14-16k car, Id pretty much only be able to finance directly through the dealer right? (dumb question I know) If I know I have could put 500-1k a month towards saving for a car, would it be smart to just put down lets say 2k as a down payment on a 16k car, and just put the money I would origanlly be saving per month (500-1k) towards paying the car note, if that makes sense?

 

[luckyluchiano]

Originally Posted by Mr Anleu


Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

So pretty much car loans are for brand new full price joints?  So if I have 10k to put down on a 14-16k car, Id pretty much only be able to finance directly through the dealer right? (dumb question I know) If I know I have could put 500-1k a month towards saving for a car, would it be smart to just put down lets say 2k as a down payment on a 16k car, and just put the money I would origanlly be saving per month (500-1k) towards paying the car note, if that makes sense?

 

[getthismoney]

Bad idea, save and get a used car cash. Btw those saying its great to build your credit, why the hell would he want to spend unnecessary extra money just to establish credit? This is how most of youngins justify buying things credit not knowing what they are talking about.

 

[getthismoney]

Bad idea, save and get a used car cash. Btw those saying its great to build your credit, why the hell would he want to spend unnecessary extra money just to establish credit? This is how most of youngins justify buying things credit not knowing what they are talking about.

 

[stateofsingularity]

HBS did a study in the late 70s / early 80s.

Turns out leasing an automobile is one of the worst "investments." Buying a brand new car is also pretty bad.

But buying a used car cash is one of the smarter moves.

 

[stateofsingularity]

HBS did a study in the late 70s / early 80s.

Turns out leasing an automobile is one of the worst "investments." Buying a brand new car is also pretty bad.

But buying a used car cash is one of the smarter moves.

 

[johngotty]

Y'all must be ballin' on another level because I've rarely met people who don't take on a car note when purchasing a new/recent model car.

Your interest rate is going to depend on your credit. But if you listen to these folks, you'll never build up any credit

. Sidebar - My mom worked in banking for over 20 yrs. A guy who graduated a few years before me had a healthy bank account, but always paid cash and never built up his credit. He had a hard time acquiring a loan.

Credit > oxygen

 

[johngotty]

Y'all must be ballin' on another level because I've rarely met people who don't take on a car note when purchasing a new/recent model car.

Your interest rate is going to depend on your credit. But if you listen to these folks, you'll never build up any credit

. Sidebar - My mom worked in banking for over 20 yrs. A guy who graduated a few years before me had a healthy bank account, but always paid cash and never built up his credit. He had a hard time acquiring a loan.

Credit > oxygen

 

[myjaysgetrocked]

I personally don't think so. I don't see any problems with it if you can make the monthly payments. My dad financed a couple cars, eventhough money is no problem.

 

[myjaysgetrocked]

I personally don't think so. I don't see any problems with it if you can make the monthly payments. My dad financed a couple cars, eventhough money is no problem.

 

[BANLEU]

Originally Posted by LuckyLuchiano

Originally Posted by Mr Anleu


Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

So pretty much car loans are for brand new full price joints?  So if I have 10k to put down on a 14-16k car, Id pretty much only be able to finance directly through the dealer right? (dumb question I know) If I know I have could put 500-1k a month towards saving for a car, would it be smart to just put down lets say 2k as a down payment on a 16k car, and just put the money I would origanlly be saving per month (500-1k) towards paying the car note, if that makes sense?

Actually no I mis-spoke, and didn't take into account the down payment. Generally they say you should put down a minimum of 20% when making a large purchase. When buying a house anything less than a 20% down payment will cost you to get mortgage insurance and will cost the interest rate to go up, so the monthly payment will be significantly higher. With a car loan it kind of works the same way because it will cause you to get a higher interest rate than you had gotten if you put down 20% or more.

With that said a car loan is not only for newer cars, but the reason I made my initial statement is because I figured you would not want to finance an older car for a long period of time. In other words, you can get a monthly car note in the price range you are looking for in an older car, BUT you will have to take out a loan for 3 years or more. Now keep in mind that with some cars taking out such a long term loan is not worth it, because the car can depreciate fast AND as long as you have a loan on the care you MUST have full coverage, which is another factor you should consider when making a car purchase. Let me know if I confused you at all, because I know it is kind of complicated and there are a lot of factors to consider. 
  

 

[BANLEU]

Originally Posted by LuckyLuchiano

Originally Posted by Mr Anleu


Like chueco said having a car loan isn't as bad as ppl make it seem, because the credit bureaus like to see a variety of types of credit on your report. credit that is tied to assests like car loans and mortgages are much better and have a stronger influence on your credit score, than credit that isn't tied to assets like student loans and credit cards, because companies can't exactly reposses your degree or credit card purchases.

Anyway unless you are looking to buy a cheap car, which I wouldn't advise you do, it will be really hard for you to get a loan that costs in the range your looking for. With that said you may want to look into leasing a car instead, because you can definitely get one in that price range, but it won't improve your credit as much.

So pretty much car loans are for brand new full price joints?  So if I have 10k to put down on a 14-16k car, Id pretty much only be able to finance directly through the dealer right? (dumb question I know) If I know I have could put 500-1k a month towards saving for a car, would it be smart to just put down lets say 2k as a down payment on a 16k car, and just put the money I would origanlly be saving per month (500-1k) towards paying the car note, if that makes sense?

Actually no I mis-spoke, and didn't take into account the down payment. Generally they say you should put down a minimum of 20% when making a large purchase. When buying a house anything less than a 20% down payment will cost you to get mortgage insurance and will cost the interest rate to go up, so the monthly payment will be significantly higher. With a car loan it kind of works the same way because it will cause you to get a higher interest rate than you had gotten if you put down 20% or more.

With that said a car loan is not only for newer cars, but the reason I made my initial statement is because I figured you would not want to finance an older car for a long period of time. In other words, you can get a monthly car note in the price range you are looking for in an older car, BUT you will have to take out a loan for 3 years or more. Now keep in mind that with some cars taking out such a long term loan is not worth it, because the car can depreciate fast AND as long as you have a loan on the care you MUST have full coverage, which is another factor you should consider when making a car purchase. Let me know if I confused you at all, because I know it is kind of complicated and there are a lot of factors to consider. 
  

 

[2lipslegit]

You can get lower rates by going through the bank than you can through the dealer. I would never get a car without payin it outright in cash though. If you dont have the guap, Id get a cheaper car. You can find NICE cars for 10k. Im coppin a car this summer and I been lookin at the Grand Marquis LS, you can get a 3 or 4 year old one with 40k miles for 8 stacks if you just look around a lil bit and MSRPs over 30. You probably want a beamer though, but my point stands. Get a used car and do your research, you'll be goodie and probably end up with a better car anyway.