well, its finally happening...

[carbonBLUE]

Originally Posted by michaelahess

Very awesome story and very good job at saving! I bought my celi at 19 and could barely afford the payments. You are on a great path for the future!

Oh yeah, and at least pay off for 6 months (3 if you have any credit established), after that you won't get much credit benefit. Divide out your payments so you pay all but the 6 months, that way you don't pay more interest than you need to!

Funny thingis I bought my Celica at 19 aswell, bought a 2000 gts with 94k miles, manual witha brand new trd grey Japan clutch, trd exhaust, had a 2004 engine in it, also I had never driven manual before and learned in the parking lot at the dealership, bought the car to ready myself for the frs

My Celica was also bought in 99 during the first month of production shes old... Lol

[carbonBLUE]

Originally Posted by ruskymx

Don't pay it off too quickly because contrary to what most people think, it won't help that much. Now that doesn't mean that you can't make double, triple, or quadruple payments and make sure to tell the bank to apply extra payment to the principle. The last part is VERY important. If you just send extra money in and don't tell them what to do with it, the bank will apply it to your future payments so they can collect as much interest as possible.

I'd suggest keeping the loan for about a 12-18 months. I had a young customer about a year ago that was able to get a loan through his credit union for a inexpensive used car around $6-7k and he paid it off in 6 months. Well, when he decided at 9 months that he wanted something different, even his credit union wouldn't give him another loan because of not enough credit history and he didn't make enough payments on his last one. I know it doesn't make sense but that is how many banks think when evaluating a consumer in regards to granting them credit.

If you have the money to pay for it, put enough down so you finance $10,000. This way, the interest charges won't be a lot if you finance it over 3 years. A 3 year loan even at 5%, the payment is $299 and total interest charges are $789 over the entire 3 years. If you stretch it to 4 years, the payment goes down but the interest jumps $300. Be prepared though that you may not be able to get top tier rates because of being limited credit history, but with a huge down payment, you should get a fairly reasonable rate.

Check out dealer rates & credit unions. In your situation, from my experience, a credit union may be your better bet. My dealership can usually match or beat most rates from other lenders/credit unions, but not with your situation.

Congrats and enjoy! I wish I was as disciplined with money when I was younger as you were. I would be in a much better situation now if I was, but oh well. I chalked it up as a learning experience and a costly one at that.

Oh, and one more thing. When you are out celebrating your 21st, it would be a good idea to leave the FRS at home and have a DD lined up.



Ruskymx

Im actually going down the street to have that beer, just one maybe two and some pizza , it would be cool to maybe meet with other members from Dallas and have a slice, its 2 dollar drafts and some really good pizza

[thill]

Originally Posted by ruskymx

Don't pay it off too quickly because contrary to what most people think, it won't help that much. Now that doesn't mean that you can't make double, triple, or quadruple payments and make sure to tell the bank to apply extra payment to the principle. The last part is VERY important. If you just send extra money in and don't tell them what to do with it, the bank will apply it to your future payments so they can collect as much interest as possible.

I'd suggest keeping the loan for about a 12-18 months. I had a young customer about a year ago that was able to get a loan through his credit union for a inexpensive used car around $6-7k and he paid it off in 6 months. Well, when he decided at 9 months that he wanted something different, even his credit union wouldn't give him another loan because of not enough credit history and he didn't make enough payments on his last one. I know it doesn't make sense but that is how many banks think when evaluating a consumer in regards to granting them credit.

If you have the money to pay for it, put enough down so you finance $10,000. This way, the interest charges won't be a lot if you finance it over 3 years. A 3 year loan even at 5%, the payment is $299 and total interest charges are $789 over the entire 3 years. If you stretch it to 4 years, the payment goes down but the interest jumps $300. Be prepared though that you may not be able to get top tier rates because of being limited credit history, but with a huge down payment, you should get a fairly reasonable rate.

Check out dealer rates & credit unions. In your situation, from my experience, a credit union may be your better bet. My dealership can usually match or beat most rates from other lenders/credit unions, but not with your situation.

Congrats and enjoy! I wish I was as disciplined with money when I was younger as you were. I would be in a much better situation now if I was, but oh well. I chalked it up as a learning experience and a costly one at that.

Oh, and one more thing. When you are out celebrating your 21st, it would be a good idea to leave the FRS at home and have a DD lined up.



Ruskymx

What he said When I said pay the loan off fast, I did not mean in 1-3 months. Pay it off in 12-24 if you can.

My wife and I always pay our car loans off in 12-24 months and we have over 800 credit scores which really helps when borrowing money. And not paying all that interest. When you are ready to buy a house there is a huge difference in loan and interest payments between having a high (780+ range) and lower credit score.

[5hairpins]

I'd be happy to DD you for that B-Day. Let me know when and where.

As I am currently double your age I am not so sure you want an old man dragging you down.

[SkullWorks]

given your posts I would have never assumed you were so young,

Props to you for the planning and diligence, I would trade spots in line with you and wait another month for my car if such a thing would have gotten you your car on your B-day.

You sir have a bright future, this is apparent by your maturity and patience

[kensic]

Originally Posted by thill

That is smart. If you really want to build credit fast, pay off that loan as fast as you can It will also save you lots of money in interest payments. Also make sure you get an autoloan that has no pre-payment penalty. It is pretty rare to see them now, but they still exist (where you have to pay a penalty to pay your loan off early).

(correct me if i'm wrong) paying a loan off as fas as you can means you'll will have no more monthly payment after you're done (lets say in 24 months instead of 36months).

(correct me if im wrong here too) and building credits is paying what you owe EVERY MONTH ON TIME. so i would imagine, 36 on time payments is better then 24 on time payments.

so in general, people with good credits have a on running monthly payment (weather its car loan, house loan, credits, student loan)...once you have no more monthly payments, your credit score pretty much stands still, and your credit history is very short. a short credit history usually doesn't play in your favor.

feel free to correct me if i'm wrong. thats the simpliest way i can put it

[kensic]

hahaha lol after writing what i wrote... and re-reading the rest of the posts....other people have already explain it.

but yea....just keep a running montly payment of something. dont pay off anything too quickly and have no more monthly payments

[Exhaust]

Originally Posted by Guff

Exhaust and I are getting first dibs on rides!

Exhaust can sit in the backseat...

hahaha Is it because im the only one on the forums short enough to actually fit back there comfortably?

Originally Posted by KevinDuMa

Congrats man! I see you're from Dallas we should all have a meet when we get our cars

+1 i had posted about this in the regional forums.

Originally Posted by carbonBLUE

Im actually going down the street to have that beer, just one maybe two and some pizza , it would be cool to maybe meet with other members from Dallas and have a slice, its 2 dollar drafts and some really good pizza

Wouldnt mind meeting up im always down for the brown haha and congratulations! Your birthday is only a month before mine! I'll be 20 as well.

[Quentin]

Congrats on setting a goal and achieving it.

[bimmerboy]

Hard work pays off! Good Luck to you and your new toy!

[SUB-FT86]

Congrats Carbonblue!! I would've never guessed you were 20 yrs old.

[Guff]

Originally Posted by Exhaust

hahaha Is it because im the only one on the forums short enough to actually fit back there comfortably?

Wouldnt mind meeting up im always down for the brown haha and congratulations! Your birthday is only a month before mine! I'll be 20 as well.

Hahaha, yup!


And I'm so down for good pizza. I don't drink (I'm muslim), but GODDAMN I LOVE PIZZA.

Pizza Kids - We Like Pizza (Radio Version) - YouTube

[carbonBLUE]

Originally Posted by 5hairpins

I'd be happy to DD you for that B-Day. Let me know when and where.

As I am currently double your age I am not so sure you want an old man dragging you down.

thank you, i wont be drinking much maybe sat night after my birthday but my friends have the next 3 weekends planned out for me and i dont drink on weekdays because i wake up early to go to work, and im almost the last person in my group of friends to turn 21... lol

Originally Posted by Exhaust

hahaha Is it because im the only one on the forums short enough to actually fit back there comfortably?

you can probably fit behind my seat, i adjusted the seat to my driving position and i was able to sit behind me(so-to-say), it will all come together soon!

[naticedog04]

Congrats on ur savings, mentality, and patience, cause now u have the car u've been waiting for.

[SUB-FT86]

I have a strong savings mentality also and I started being that way at 17. Now almost 11 years later I'm still the same way so it's good to see other young Americans who don't waste their money on every bullshit that comes out and stay broke. Also I understand how you feel about this car vs a supercar. I feel the same on the subject. It feels like your buying a baby LFA where everything is scaled down a bit.

[carbonBLUE]

Originally Posted by naticedog04

Congrats on ur savings, mentality, and patience, cause now u have the car u've been waiting for.

yeah i know, im as excited as ever, been calling my stealership non stop for updates

[86auto]

Great post. You're exactly who they built the car for. But only 50 years? Gonna give up driving at 71 years young? Eat your broccoli and drive the car for 80 years.

[carbonBLUE]

Originally Posted by 86auto

Great post. You're exactly who they built the car for. But only 50 years? Gonna give up driving at 71 years young? Eat your broccoli and drive the car for 80 years.

saying about 50 years because we will eventually run our of oil... :/ sad day...

[carbonBLUE]

(well technically it wasnt today but ehh didnt get around to posting it till now!)
went and got my loan pre-approved today, 197 a month :P like a BAWS
my insurance is going to be 140 so 337 a month total for my car

[alluringreality]

Originally Posted by ruskymx

If you have the money to pay for it, put enough down so you finance $10,000. This way, the interest charges won't be a lot if you finance it over 3 years. A 3 year loan even at 5%, the payment is $299 and total interest charges are $789 over the entire 3 years. If you stretch it to 4 years, the payment goes down but the interest jumps $300. Be prepared though that you may not be able to get top tier rates because of being limited credit history, but with a huge down payment, you should get a fairly reasonable rate.

In this case another option is to put money in a Certificate of Deposit and borrow against the CD. I've seen borrowing rates of 2% locally at Capital Federal. The actual rate is a higher, due to what you could have earned by investing the money elsewhere, but you don't need a credit history to qualify for lending rates when borrowing against a CD. If you have little credit this may be the cheapest way to borrow, and typically it's reported to the credit bureaus like if you had a typical loan.

[CountChoculitis]

Originally Posted by thill

That is smart. If you really want to build credit fast, pay off that loan as fast as you can It will also save you lots of money in interest payments. Also make sure you get an autoloan that has no pre-payment penalty. It is pretty rare to see them now, but they still exist (where you have to pay a penalty to pay your loan off early).

WRONG.

Not trying to sound like an asshole. But, no.

I bought my tC brand new with no credit and $8,000 down, and paid the tC off in two years.

About a month or two after I paid it off, I tried to get a sport bike. I had almost an 800 credit score, and still couldn't get a loan. They said I paid it off TOO quickly, so I didn't build enough credit history.

I don't know anything about early payoff penalties. I sell Toyotas and Scions, and as far as I know all our loans are simple interest aka everything you pay per month over your minimum goes straight to principle - therefore shortening your loan.

Anyways! Learn from my mistakes, and enjoy your new car brother!

[CountChoculitis]

Originally Posted by carbonBLUE

(well technically it wasnt today but ehh didnt get around to posting it till now!)
went and got my loan pre-approved today, 197 a month :P like a BAWS
my insurance is going to be 140 so 337 a month total for my car

That is soooo legit.

I'll prolly being paying like 350 /mo just for the car payment, cause I got that bike I mentioned in my last post. And it fucked my credit up reallllll good.