Car loans are the biggest mistake money pit you can get into .... Debt free is the best way even more at your age
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Car loans...
- Thread starter gh00747
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Alright, so lots of info from both sides of the fence. Reality is, I am a college student. Most people I know who have been grads for about a year now STILL are not getting employment opportunites (I mean real jobs, where their degree is actually needed). As I said, I have no credit (yet) and do not plan on having boatloads of cash to just pay off a house or anything else for that matter in the future. I have always been against credit cards to be completley honest. But, how do you even get your foot out the door without building credit? It's not like I can live with my parents until I'm 30 when I have finally saved up enough money to buy a home etc. This is why i want to start off with a small loan for a truck. By this I mean, 14k$ is my cap for this purchase. I plan to put about 10k down, and use the rest in a probably 24 month loan averaging whatever the best APR% rate I can get. Their is no way that I will be able to buy a home outright (as much as I wish I would have won the lottory the other night) So my personal opinion is credit is needed in life, at least for me
It sounds like you have a good plan. I would go ahead and do it as long as your sure you can make the payments. Good luck with school man I recently started college myself after being out of school since 99.
With you putting that much down on your truck, you shouldn't have an issue getting a loan. Who ever gives the loan will not have a lot of risk. and yes credit is needed in life, it's just how you obtain it. I know its weird for someone to say get a vehicle over a CC, but at least the bank dose not triple your APR along will late fees if you are late one month (life happens) like the CC companies do. The vehicle will serve a purpose and will have more priority of getting paid on time V/s financing dinners, tires and nights at the bar.
Indeed, I think it will be a solid start to a good financial foundation later on in my life. I have only overdrafted once on my debit card since I was 16, (it happened within the month I first got it, as you can imagine I was pretty pissed. Even at that age!) so I feel confident I can take care of payments. Just looking for a good reputable honest lender (if that even exists in the same sentence I have yet to know)
There's nothing wrong with borrowing money for anything that makes money, and a reliable car does that. Just don't overextend yourself. Nobody is a bigger advocate for the debt free life than someone that ****ed up then turned it around. I was in the exact boat as you years ago. I was 22, making 35k, and no one would loan me money to buy a 10k car. A credit union finally helped when I qualified to join, and allowed them to deduct a half payment every check. Unless you're rich, you're stuck having to use the system we have. Don't be stupid, except for cars, mortgage, try not to put anything on a CC you couldn't pay cash for. I don't owe anyone anything, except the mortgage. My credit score was in the low 800s when I refied into a lower rate, and with low rate I got I don't believe it's even covering inflation.
Take it from a car guy... Who shells out 1300 a month in car notes... Once the new wears off you have a used car with years to pay. That being said if you are wanting to just get into a new truck make sure you get the one you want. It's hard for me to pay my Altima payment because I don't even like the car. My truck is 150 more dollars and I don't mind at all because it is what I wanted and I'm happy to pay it. Buy a jeep wrangler while it's still cold for cheap. Sell it for double in the summer, use profits to do this again and again until u can pay cash. Unless you are a recent college grad it will be near impossible for you to get a loan with a normal interest rate. Creditors would rather loan money to someone who got out of bankruptcy this morning than to a young guy starting out. Your options are as follows:
1. College grad programs from major captive lenders ie ford finance, Gm finanace
2. Get a cosigner
3. Put a ton of money down and still pay crazy interest
4. Pay cash
Credit unions are nice once you have established credit. One reason credit unions have better rates is that they usually don't do risky loans. It is much harder to get your own loan than to get one from the dealer. Go to a big volume dealer, if they have the relationship with the banks they can basically ask for a favor and get the loan for you.
1. College grad programs from major captive lenders ie ford finance, Gm finanace
2. Get a cosigner
3. Put a ton of money down and still pay crazy interest
4. Pay cash
Credit unions are nice once you have established credit. One reason credit unions have better rates is that they usually don't do risky loans. It is much harder to get your own loan than to get one from the dealer. Go to a big volume dealer, if they have the relationship with the banks they can basically ask for a favor and get the loan for you.
It's actually easier to get a home with no credit than a car. When I was 23 I bought a HUD house with $100 down payment. It was close to Uwg and now I rent it out. As long as you have a steady job that you have been on for 2 years that pays enough you will get the loan. Don't buy a new truck unless you are positive that you will be able to make the payments without a problem. Trust me man, I know the " I'm grown, I work hard, I want a badass truck" feeling. If your current ride is inoperable fix it. I love my truck, I can afford it but I'm to the point now where I don't want to afford it. I'm sick of paying 1300$ a month to ride around in 2 new cars. What I have done is become a slave to my job because of decisions I made. I now require a high paying job. There is no option anymore. I can't just tell my boss to f himself because I have obligations. The house I bought when I was your age makes me about 450/mn after the mortgage is paid. The truck costs 560, and 85 to insure. That's after money down and a 2.75 rate. Which one do you think is the better investment? I didn't realize the freedom I gave up by buying cars on credit. I feel like I'm going to work, to be able to pay for the truck that I ride to work in.
If you are anything like me, you are probably thinking " I don't care, I'm still buying a truck"
Pick out a dream truck, post it on the wall so it's on your mind. Every chance you can find to make a buck do it.
Figure every 20000 you spend is roughly $400 a month is payments after interest and insurance etc
Pay yourself $500 into a separate account every month for a year. After you have done this you will used to living with the money out of your bank account and you have a pad set aside to make the payments.
Don't put any money down if you can get the loan without it. Keep your cash. I had douchebag banker talk me into putting down almost 20k down on my new house to get a better rate. I would have rather paid the higher rate and kept the cash.
The more money you put down lowers the risk to the bank. We pay interest to offset that risk. Not that I want to, but if something happened and I had to let my house get repo'd I'm out the money.
If you are anything like me, you are probably thinking " I don't care, I'm still buying a truck"
Pick out a dream truck, post it on the wall so it's on your mind. Every chance you can find to make a buck do it.
Figure every 20000 you spend is roughly $400 a month is payments after interest and insurance etc
Pay yourself $500 into a separate account every month for a year. After you have done this you will used to living with the money out of your bank account and you have a pad set aside to make the payments.
Don't put any money down if you can get the loan without it. Keep your cash. I had douchebag banker talk me into putting down almost 20k down on my new house to get a better rate. I would have rather paid the higher rate and kept the cash.
The more money you put down lowers the risk to the bank. We pay interest to offset that risk. Not that I want to, but if something happened and I had to let my house get repo'd I'm out the money.
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Oh believe me, the whole I'm grown, work hard I want a badass truck thing was over before the end of high school. I simply want a new "used" truck because the old bronco (95) is on its last leg as far as being driven every day. I just need to spend some money on something other than firearms, hence the newer vehicle. Thanks for everyones input, it has been a TON of help. My father said he will co-sign with me, I talked to him about it at dinner tonight. He said its my problem, but I plan on doing something that is affordable to me as far as interest rates etc. If anyone has a 2000-2006 F250 with a 7.3L diesel feel free to drop me a PM, that is my main focus on getting, but am open to a 12 valve cummins as well
