Car Loan Question

[WORKEROUTER]

I'm a 21 yo guy looking to purchase his first car. I'm looking for something extremely modest, but reliable...an economy quality car. The reason I'm getting a car is because it would help me with other things in life, particularly towards employment and helping me leverage my time a little better. I feel it would be financially and personally beneficial.

The problem is I'm still a student and my credit is fair, not good, although I'm doing my best now to improve it.

I can personally afford around $300 a month for the car payments, and I'm sure that this is within my budgeting means.

Any tips on solidifying a deal on a reliable vehicle in terms of loans, etc? I had applied in the past for an auto loan from Capital One but was denied.

 

[MetalFortress]

I got a 2005 Saturn Ion for under 300 a month. Good reliable car, the package with all the goods, and some decent-looking rims give it wide tires for an aftermarket car. How much down can you afford? You'll need something down (more depending on the age of the car) but if you can do that you should be good to go on a loan.

 

[Wiesman44]

As long as you can show income, there's always a car dealership willing to give you a loan. There's some that specialize in bad credit if thats what u do indeed have. Your interest rate will be astronomical though. If you are being denied due to lack of income, your going to have a rough time.

 

[WORKEROUTER]

I got a 2005 Saturn Ion for under 300 a month. Good reliable car, the package with all the goods, and some decent-looking rims give it wide tires for an aftermarket car. How much down can you afford? You'll need something down (more depending on the age of the car) but if you can do that you should be good to go on a loan.

What was the sale price of the Saturn? What's your interest rate? How much did you put down?

 

[Prodigy746]

Whatever you do buy a car that has good MPG. I am 21 got my first car when i was 20 ....2002 honda accord coupe v6, i wanted more hp so went with v6. I kinda regret it now that i have to pay 56 dollars every time i fill up and i drive alot so i pay 56 every week pretty much. That is 200 dollars more a month so that means my payment is not 300 its actually 500 dollars.

Not that my car doesnt get good MPG but there is better out there. With the gas going up so much i would look at getting a hybrid or anything that gets 25 MPG

 

[WORKEROUTER]

Thanks for all the tips. I'm going to take my time, do research, and figure out the best way to get into a vehicle. Any other tips would be welcome.

What about unique car buying ideas, like taking over someone else's payments or doing one of those advertisement deals where you drive a car provided by a company that has advertisements on it?

 

[theunflushables]

Deffinetly stay away from the dealerships that specialize in bad credit, sub prime lenders too (Credit Acceptance, United Acceptance or anything with the name Acceptance comes to mind) you could be looking at interest rates of 25% or more, so 25% on an 18,000 dollar car (300/mo x 60month/5 year loan) you're looking at 4,500 dollars in intrest.

Join a credit union they may be able to give you a better deal on a loan then huge financial institutions (Chase, Bank of America, etc.)

Also don't fall for any deals where its something like 100/month for the first three months or something like that. They aren't cutting a deal they're just going to tack it on to your payments later.

And make sure if $300 is what you can afford thats its well below what you can afford. I don't know how many times I've had to send a repo man to someone's house because one thing out of the ordinary threw off their finances and they couldn't catch back up

As for unique ideas look for auto auctions open to the public. Also police impound and seizures if you don't mind driving something that smells like Crack.

 

[WORKEROUTER]

No, smell doesn't matter too much to me. I just want reliability and good gas mileage.

Can you tell me more about the police auctions?

 

[theunflushables]

All major cities have an impound yard for the city. This is where cars go from civil infractions like being illegaly parked to criminal charges like murder. After court and all that fun stuff, if the car is still there and not claimed, it may go to an auction depending on the precinct. Call your closest PD and ask for the Auto Desk or the Impounds Department. Ask them what happens to cars not claimed. If they go to auction see if its open to the public or if you have to be a car dealer. If its open for the public, show up and make your bid.

Another auction is for cars that have been repo'd. Check your yellowpages for local Auto Auctions. Adessa is nationwide, but I'm not sure if they're open to the public, but they may be able to direct you to one that is. Basically, at this point the bank is trying to make back whats left on the balance owed, what isnt made back is paid by the debtor. So try to stay as low as possible.

 

[WORKEROUTER]

All major cities have an impound yard for the city. This is where cars go from civil infractions like being illegaly parked to criminal charges like murder. After court and all that fun stuff, if the car is still there and not claimed, it may go to an auction depending on the precinct. Call your closest PD and ask for the Auto Desk or the Impounds Department. Ask them what happens to cars not claimed. If they go to auction see if its open to the public or if you have to be a car dealer. If its open for the public, show up and make your bid.

Another auction is for cars that have been repo'd. Check your yellowpages for local Auto Auctions. Adessa is nationwide, but I'm not sure if they're open to the public, but they may be able to direct you to one that is. Basically, at this point the bank is trying to make back whats left on the balance owed, what isnt made back is paid by the debtor. So try to stay as low as possible.

Any tips on getting the best price? And what about knowing that the car does not have mechanical problems?

Is immediate cash required?

 

[MetalFortress]

What was the sale price of the Saturn? What's your interest rate? How much did you put down?

12,000. I put down 500, plus a trade-in that they gave me 1600 for.

 

[theunflushables]

Any tips on getting the best price? And what about knowing that the car does not have mechanical problems?

Is immediate cash required?

That I'm not sure of. I don't run the auctions I just send repo men after cars. I'm sure the auctions themselves can tell you that info. As for mechanical problems I think they'd mention that. Also ask for a Condition Report these are filled out shortly after the car has been repossesed and it will tell you about the mechanical condition body condition miles on the vehicle etc.

 

[Monster]

That I'm not sure of. I don't run the auctions I just send repo men after cars. I'm sure the auctions themselves can tell you that info. As for mechanical problems I think they'd mention that. Also ask for a Condition Report these are filled out shortly after the car has been repossesed and it will tell you about the mechanical condition body condition miles on the vehicle etc.

One of my good friends got his car from an auction. I'm not sure about the details but he said he paid $2,000 for a KBB value $4,000 car. Yeah he had to pay cash right there.

I think you're better off buying a used car straight up instead of making $300 a month payments. With such low payments the most you could probably get is some $15,000 car and that's stretch and probably not something too cool.