How many have car loans?

[thomas91169]

I dunno, if I had to save to buy a new car now that I wanted (say a new '15 Stang for $30k), id probably save enough to afford one cash by the time they depreciate to $15k, and by that time Ill want newer $35k cars (going up with inflation/cost of vehicles), so unless I get $200k from a family members inheritance, win money, become the next Heisenberg, financing a car is just the way it will be unless I never want to drive anything new/nice.

I have a loan on the Cobra that basically qualifies as a mob loan. UNGODLY interest rate, very high payment.....I've actually flirted with trading out of it for something MUCH cheaper with a MUCH better interest rate. My credit isn't the problem, the age of the car was...and they went 72 months on it because it had NO miles. (16k when I bought it.)

Normally, I'm really good at car deals and NEVER get in over my head. This one, however, has eaten my lunch. So I'm stuck with either stick it out for a few more years, or suffer a serious downgrade. Even though it's probably a much wiser financial decision to get out of it, though I'd take a DROWNING to do so, I somehow can't get myself to let her go because I really do love my car.

Maybe after another year or so I can refinance for a better rate at a shorter term. Guess we'll see. But I don't ever see myself paying cash for a car.

Try to find a better lender.

Do you owe more than its worth? If not, sell it off, grab another car, and get out from under it.

I still cant believe people are trying to still get $20-25k for these cars when most institutions will not lend more than $15k at this point at a short term (36mo) due to production year.

 

[bigmoose]

The Cash vs Loan is always a debate. I just purchased and financed a 2004 Mystichrome. Ten year old car, i was able to finance 100%(22k) at 1.24% for 65 months. Over the full course of the loan i'll have paid less than $800 in interest. I was able to get such a great rate because i have good credit. I got good credit by using it and being responsible.

In my case I had the 22k cash i could have used to purchase the car. Instead I have that capital invested and since I've purchased the car i'm up over 10% on that 22k. So essentially i'm making money by taking out a loan and I'm driving the car today.

Of course this doesn't work for most people because they either don't have that capital or don't let their money work for them.

 

[Sick03Vert]

Why another year? Have you tried all the credit unions around? I used one from Dallas, and live hours away. I got 2.5% from qualtrust on my 04, I cant remember, but I think the max they would have loaned me for the cobra was 23k

And ^^ I have done the numbers on all the $ wasted on swapping vehicles, hell I kept a new truck for 2 weeks..ya it's not pretty, but it's my money and i'm weird about it.

Yeah...no banks want to lend more than around $21k for the car...which is considerably less than I owe. I could probably put enough money down to do it, but it would zap my savings....so having to wait.

I dunno, if I had to save to buy a new car now that I wanted (say a new '15 Stang for $30k), id probably save enough to afford one cash by the time they depreciate to $15k, and by that time Ill want newer $35k cars (going up with inflation/cost of vehicles), so unless I get $200k from a family members inheritance, win money, become the next Heisenberg, financing a car is just the way it will be unless I never want to drive anything new/nice.



Try to find a better lender.

Do you owe more than its worth? If not, sell it off, grab another car, and get out from under it.

Yup....but not by much really. If the thing was having issues, or wasn't so damn fun to drive, or if I didn't spend so much time just staring at it because it looks so badass, I'd have no problem letting it go. Unfortunately it was bought on emotions, and those same ones are keeping it around.

 

[Blackoyote]

My truck and motorcycle were paid for cash, but I've got two loans; one on the Mustang (put 30% down and got 2.5% over 6 years) and the other one on my soon to be wife's Camry. We put down a little over 30% on it as well and could have paid cash, but we got right at 2% financing...so we kept the money to use towards our house! If you can get really good rates, I think financing is the smart way to go.

 

[oldmodman]

I have always either put a new car on a credit card (for the points) and paid it off at the end of the month, or paid cash.

But I have never bought anything that expensive. No Lambos, Porsches, or anything cool from England.

 

[Woody6799]

I only owe on the cobra, and thats bc I have a 4 year rate a 3.5% and my investments are making more than that... investments start dropping and ill write a check tomorrow.

Both paid are my
03 Explorer
05 Grand Cherokee

 

[Kevins89notch]

I drive a 99 Civic, what do you think? LOL Then again, I could technically afford payments on a 14 GT500, but I like the whole debt free aspect. It frees up more money for fun, like the lengthy trip to Europe I'm taking later this year.

 

[2014GT]

I have a loan. Traded down into this from a new Silverado that I had. Cut about $200 a month off my payments and cheaper on gas. Seemed like the right move at the time. Tried selling it and pretty much nobody was interested or could afford it, but while I was building it everyone was constantly wanting it... a little aggravating. I was trying to just sell it and drive one of my other vehicles and not have a damn car payment. Even though I always seem to get a good deal on my purchase, I end up getting stuck with the vehicle and end up having to trade it in.

How are you people financing older cars? I couldn't find anyone willing to even consider financing anything older than 3-4 years.

 

[earico]

Half down in cash on our cars or bought outright. Went 3 years with no car payments before this. Now have 2 notes at 1.65%. Almost free money.

 

[Kevins89notch]

I have a loan. Traded down into this from a new Silverado that I had. Cut about $200 a month off my payments and cheaper on gas. Seemed like the right move at the time. Tried selling it and pretty much nobody was interested or could afford it, but while I was building it everyone was constantly wanting it... a little aggravating. I was trying to just sell it and drive one of my other vehicles and not have a damn car payment. Even though I always seem to get a good deal on my purchase, I end up getting stuck with the vehicle and end up having to trade it in.

How are you people financing older cars? I couldn't find anyone willing to even consider financing anything older than 3-4 years.

My credit union will finance up to 75% of a car's blue book value. I bought a 93 Cobra about 5 years ago. They said it was worth like 6,500(LOL) and financed me for 4K. That covered a 1/3rd of it. I had the funds, but some stocks had taken a hit and I didn't want to sell those just yet.

 

[Blown 89]

Had a loan on the 01 but paid it off early and am debt free now. I wasn't prepared to hit an elk and need another car so soon so I had to finance. I had the option of buying an 03 but passed on it because the price difference was far from worth it. If business were as good as it was last year I planned on paying cash for the new Mustang or picking up a used AMG. Things have been slow so I'll probably finance one and pay off early. I'm not a fan of debt, that includes car loans. Interest payments are wasted money IMO.

 

[AdamSVT]

Paid with cash...Still feels like I have a car payment with all the mods I buy LOL!

 

[2014GT]

My credit union will finance up to 75% of a car's blue book value. I bought a 93 Cobra about 5 years ago. They said it was worth like 6,500(LOL) and financed me for 4K. That covered a 1/3rd of it. I had the funds, but some stocks had taken a hit and I didn't want to sell those just yet.

I had found a 2010 and a 2011 GT500 I liked, couldn't get anyone to finance. I found one place to finance the 2011 but they kept trying to classify it as a regular GT and wouldn't finance near what I needed on it.

 

[BlueByYou2004]

I do car sales for a living so I get to see all kinds of stupidity on a daily basis. The situations people will put themselves in is scary in some cases. Even being in sales I do have a consience, so I try to limit some people from totally messing their lives up, but some people really insist. $10k-$20k flipped on a vehicle is not a wise financial choice.

I also put around 30% down on my vehicle before I purchased it. Even being a 2006, they still financed me at 3%.

 

[hey11101]

I dunno, if I had to save to buy a new car now that I wanted (say a new '15 Stang for $30k), id probably save enough to afford one cash by the time they depreciate to $15k, and by that time Ill want newer $35k cars (going up with inflation/cost of vehicles), so unless I get $200k from a family members inheritance, win money, become the next Heisenberg, financing a car is just the way it will be unless I never want to drive anything new/nice.



Try to find a better lender.

Do you owe more than its worth? If not, sell it off, grab another car, and get out from under it.

I still cant believe people are trying to still get $20-25k for these cars when most institutions will not lend more than $15k at this point at a short term (36mo) due to production year.

Don't pay too much attention to what the banks are giving money out for, they want you to get new gt make money off you for years on end and if you bounce on the loan I am sure it's in their favor also. They don't want you to get a loan on a car your going to pay off most likely and not losing your ass when selling it. By getting used cobra you lose couple of grand maybe but when you buy new gt the depreciation hits and end up with thousands of dollars lost in a couple of years while your still paying for a "new car" payment.

 

[thomas91169]

Don't pay too much attention to what the banks are giving money out for, they want you to get new gt make money off you for years on end and if you bounce on the loan I am sure it's in their favor also. They don't want you to get a loan on a car your going to pay off most likely and not losing your ass when selling it. By getting used cobra you lose couple of grand maybe but when you buy new gt the depreciation hits and end up with thousands of dollars lost in a couple of years while your still paying for a "new car" payment.

Sure, if you want to have someones used leftovers.

Theres just something awesome about knowing that you are the only person to wrench on it, youre the only person to drive it a certain way, etc.

And theres becoming more and more of a technology gap between even early 00's cars and now. A 03/04 Cobra would be great if with the 400hp you can get mid to high 20mpg, great comfort, no rattles, etc. I never understood this until I went from driving my 98 GST Spyder daily to my 2010 Fusion, even though my fusion is down 50hp easy, and looks like a 4dr land barge, it was quicker than my GST was to 100mph, and handled better because the technology used in 2010 is far greater than the tech they had in 95 when that car was engineered.

You can always put $5k down on a $30k new GT and that way you are always in front of private party resale/depreciation over a 7yr loan. Cars dont depreciate *that* bad.

 

[SoCaDan]

Paid cash for my Cobra. Took a loan out on my current daily driver. Why not when they offer you zero percent financing?

 

[Zemedici]

Loan on my last car (350z)

Had no cosigner and no established credit = 24.9% interest rate. Triple payments and a fat tax refund last year and I paid it off.

Cobra I got financed by myself for 48 months at 4.9%

That being said I'm getting tired of the car payments ha

 

[jbs$]

Debt is never your friend. Paid cash for all car purchases for a long time.

 

[RSbeast]

My first and only car loan was a $6k balance on my 06 GT.

I couldn't stand paying to park it for 5 mos out of the year. Flipped it and 3 cars later paid cash for my c5...which ended up being a lot for a c5; but damn it's hard to get a clean lower miles vette. $22k

My daily drivers I always pay cash on.

Looking back the vette is still an awful use of that money; but I do enjoy it. Should prolly just turn it loose and get another cheap Miata lol.