So scion tried to screw me today (SoCal)

[mav1178]

Originally Posted by Carsten

I understand everyone argument about buying a cheaper used car. And I have been paying off a cheap used car for some time now but it still hasn't built any credit. And I have a very stable job and make close to around 60k a year at the moment(wedding photographer) So a 500 car payment is within reason for me. And I know with that kind of money I could just save and by the car in cash, but that would take a good year+ to save up for. Obviously if this loan doesn't work out than that will be the plan, but waiting a year plus to buy this car is a little long for me.


But I'm understanding the apr dilemma, I understand how interest works but when I've used the scion calculator at the same interested I just wayyyyy different numbers.

Edit: just realized how illiterate my iphone autocorrect makes me sound.

The same arguments apply:

- You have no idea how to build up credit even though you have more than enough income. Stop paying off car loans and start using short term unsecured credit (aka credit cards) to your advantage
- If you can't wait a year to save up to buy this car, you don't have your priorities straight and a high APR is your only "out".
- Paying off a cheap used car for "quite some time" when you're 19 doesn't mean jack squat. Try 5-7 years for you to have enough decent credit to buy a house, that's usually the credit history a lender looks at.

I understand you want the car badly. A lot of us do when we see something we like. But buying a car is the 2nd or 3rd biggest thing most of us will buy in life next to a house (and a post-graduate education). You should know what financing and credit scores actually do for you before you go in to talk numbers, and how you should manage your finances better.

Make money work for you, not the other way around.

-alex

[Carsten]

Originally Posted by mav1178

The same arguments apply:

- You have no idea how to build up credit even though you have more than enough income. Stop paying off car loans and start using short term unsecured credit (aka credit cards) to your advantage
- If you can't wait a year to save up to buy this car, you don't have your priorities straight and a high APR is your only "out".
- Paying off a cheap used car for "quite some time" when you're 19 doesn't mean jack squat. Try 5-7 years for you to have enough decent credit to buy a house, that's usually the credit history a lender looks at.

I understand you want the car badly. A lot of us do when we see something we like. But buying a car is the 2nd or 3rd biggest thing most of us will buy in life next to a house (and a post-graduate education). You should know what financing and credit scores actually do for you before you go in to talk numbers, and how you should manage your finances better.

Make money work for you, not the other way around.

-alex

I understand what you are saying but how are my "priorities not straight?" I have a job, my own business actually. I have a fiancé, I have an apartment, I pay all my bills on time every month. I make more than enough money to pay for the car. Id say financially I am in a better place to buy this car that most people who have bought the car.

And I completely understand about credit cards, I've applied for quite a few, I've even applied for secured credit cards... All applications rejected.

And I didn't say that me paying off my first car loan was a big deal or anything I am just responding to the people who are suggesting that, and letting them know that I have been paying off my first $16000 car for around a year now and it is almost paid off. Yet I still haven't build any credit from it so to the people who are telling me to do that, I have been.


Also I am perfectly able to put about 10k down on this car. So while I respect your opinion you seem to be a little biased about my situation. I get this all time, so I don't take it personally but it's because I'm 19 years old, no college education and I make more money than most starting salaries out of college.

Just because I am 19 doesn't mean I don't know about money, I know enough about money to pay my bills, to pay my taxes, to do my regular sales tax, llc tax, and make appropriate tax deductions for my business. And I knew enough to walk out from a bad deal even though I could have afforded it but I knew enough to not pay 45 thousand for a car that retails for under
30 thousand.

[alderaan34]

The big thing I get from your reply is you applying for multiple credit applications, those are considered hard hits against your credit. Also were you primary borrower on your loan or a cosigner?

Sent from my SGH-T889 using Tapatalk

[(fr-s)]

Good lord. 46k?? Go somewhere else and see what's up

BUT

Be realistic and get something you can afford with the credit you DO have. It's called living within your means... You'll be kicking yourself in the ass for spending 46k on a 25k car.

[mav1178]

Originally Posted by Carsten

I understand what you are saying but how are my "priorities not straight?" I have a job, my own business actually. I have a fiancé, I have an apartment, I pay all my bills on time every month. I make more than enough money to pay for the car. Id say financially I am in a better place to buy this car that most people who have bought the car.

And I completely understand about credit cards, I've applied for quite a few, I've even applied for secured credit cards... All applications rejected.

And I didn't say that me paying off my first car loan was a big deal or anything I am just responding to the people who are suggesting that, and letting them know that I have been paying off my first $16000 car for around a year now and it is almost paid off. Yet I still haven't build any credit from it so to the people who are telling me to do that, I have been.


Also I am perfectly able to put about 10k down on this car. So while I respect your opinion you seem to be a little biased about my situation. I get this all time, so I don't take it personally but it's because I'm 19 years old, no college education and I make more money than most starting salaries out of college.

Just because I am 19 doesn't mean I don't know about money, I know enough about money to pay my bills, to pay my taxes, to do my regular sales tax, llc tax, and make appropriate tax deductions for my business. And I knew enough to walk out from a bad deal even though I could have afforded it but I knew enough to not pay 45 thousand for a car that retails for under
30 thousand.

I can pick your argument apart easily (having a fiance and/or being married at age 19 is not a strong counterargument to financial stability, just an FYI), but the bottom line is this:

1) you are ruining your chances at good credit with what you're diong
2) you're not using money to your advantage (and yes, you can open credit cards with $500 limit with virtually zero score)... and your inability to open credit cards is representative of a bigger underlying issue with your credit report that you aren't addressing
3) your employment and credit history is high risk, no matter how good it looks to you
4) you keep looking at overall cost of the car over course of the loan... when was the last time anyone bought a house based on total payments over the life of the mortgage? a house is bought based on price and APR, and (to a lesser extent) monthly payments. I suggest you do the same on your car purchase and not look at overall payments.

Either way, my comments are still the same. Your priorities aren't straight and you're focused on secondary concerns with the purchase of this car (total price and APR) when you should be focused on the primary concerns (lack of credit and high risk, high income job). If I were you, I'd suck it up for 2 years and pay for a car outright with cash. And I'd take that money being saved and put it in a CD that can get you money back after 2 years. Or even short term bonds.

But hey, it's your money and credit, do with it as you please.

-alex

[Kwisak]

Originally Posted by Carsten

Well actually yesterday, anyway I went into Dch of scion in Oxnard California. I went in to buy an frs 10 series but I'm 19 years old and haven't yet established any credit so I had a consigner come in with me. My consigner has average credit, so after filling out all of the application info the salesman runs a credit check and comes back with an offer with these terms.


This offer is for a regular auto frs with trd exuast. They salesman told me that he wouldn't be able to get me into a 10 series because of the extra cost.(total crap!)

Anyway here is if offer for a 2013 a/t frs with trd exuast

Apr:14.99(crazy)
Down payment:10,000
Monthly payment of $560 a month
Term: 60 months
Total cost of car: $43,600

So I asked him what the price of the car was because those numbers didn't add up, and after a couple mins on his computer he said " I can't seem to find the price of the car" so what a load of crap from that guy.

Of course I said absolutely not.

So he hit be back with this offer for a completely stock a/t:

Apr: 13.99
Down payment: $3500
Monthly:$604
Term:72 months
Total cost: $46,988

After telling him those numbers were crazy and that I wanted to see where he is getting his(actually his manager) numbers from, and he just avoided the question and told me that I am lucky they were even talking to me about A loan.


Any thoughts on this? Any suggestions on what I should do?

Tell him to fuck off and go to another dealer, in cali there are a lot of options and that is fucking ridiculous. first off APR 14% no, just no. 2.9 maybe. Next total cost of the car 47K, not unless you are buying two of them, you should be getting below msrp for a 13. Leave and never go back, of course the monthly and term will change with diff APR and total cost but no, just no

[Braces]

Penfed.org probably has the best interest rates for new and used vehicles. I've used them many times. Carsten ... you may want to call them and see what they may be able to do for you. Tell them you are looking to put 10K down and finance the remaining. Be able to provide tax returns to verify your income. Have a personal financial form (assets and liabilities) available. Maybe Penfed.org has a credit card. Ask them if you get their credit card and show a good payment history on the card .... can you finance with them in 6 months. We've all been there. You don't want to be screwed with a obscenely high interest rate.

[thill]

OP, don't take this personal, but lenders have lifetime's worth of data available to them based on factors such as loan amount, age, occupation, etc. The reason your finding it hard to get a low interest rate loan is due to your age and occupation (self employed). $60K seems like a ton, but you are also in California which has high taxes, and a high cost of living. Being self employed and 19, you are high risk. You may not feel that way, but that is how the system works, and lenders have the data to back it up.

Simply put, paying 10-15% interest on a car that cost $30K or so is a horrible decision. I don't car how bad you want the car, cars are one of the worst investment out there and depreciate considerably the minute you drive off the lot. Compounding that with $10-15K in interest payments is just, well for lack of a better term, irresponsible.

If you are not able to secure a loan that has a 1-4% or lower interest rate, you are simply going to have to either save up more cash, or come up with another plan. Or pay the bank a ton of money in interest and hope nothing bad happens.

[thill]

Also, if your fiance is not self employed, you may be better off helping her build up her credit and then leveraging her credit rating/occupation once you get married.

I have excellent credit, but my wife is even better and we have taken advantage of that.

[Tman08]

Honestly, If he feels he wants or needs to get it, then just research the hell out of it first (financially).

What you need to realize is that you aren't locking in that high APR for life....there's something called RE-FINANCING at a later time. However each time your credit score is pulled for something, it depreciates. So that's why I suggest minimum 6 months.

I really wanted this car last year....but had to take a step back, build up more credit (and $) just to do it, in what I think was the "right way" for me personally.

Again....research

[Carsten]

Originally Posted by thill

OP, don't take this personal, but lenders have lifetime's worth of data available to them based on factors such as loan amount, age, occupation, etc. The reason your finding it hard to get a low interest rate loan is due to your age and occupation (self employed). $60K seems like a ton, but you are also in California which has high taxes, and a high cost of living. Being self employed and 19, you are high risk. You may not feel that way, but that is how the system works, and lenders have the date to back it up.

Simply put, paying 10-15% interest on a car that cost $30K or so is a horrible decision. I don't car how bad you want the car, cars are one of the worst investment out there and depreciate considerably the minute you drive off the lot. Compounding that with $10-15K in interest payments is just, well for lack of a better term, irresponsible.

If you are not able to secure a loan that has a 1-4% or lower interest rate, you are simply going to have to either save up more cash, or come up with another plan. Or pay the bank a ton of money in interest and hope nothing bad happens.

That's what I'm thinking, that's why I walked away from the deal. I know it was a terrible deal and that was the reason for this thread I'm the first place.

And I totally understand about the high risk profession as well, that is why I've been turned down for so many credit cards. It's always one of many reasons like "you haven't been working long enough, you don't have a stable income, we don't have a way prove you will make money consistly" and I know it's just the banks way of protecting itself and it makes sense.

I'm not buying this car with anything over a 4% and I never said that I would. I'm smart enough to know not to do that. It's just frustrating when you have the money but just no one willing to give you a break.

If the loan doesn't work out I will just save up and buy the car outright but even then I don't want to do that because I would like I build credit by financing the car.

I've read up a ton on building credit, everything from secured credit cards, to auto loans, to unsecured credit cards, even ridiculously sketchy In store credit cards. it's just that I am in a weird place that makes it incredibly hard to get a break.

[Carsten]

Originally Posted by Tman08

Honestly, If he feels he wants or needs to get it, then just research the hell out of it first (financially).

What you need to realize is that you aren't locking in that high APR for life....there's something called RE-FINANCING at a later time. However each time your credit score is pulled for something, it depreciates. So that's why I suggest minimum 6 months.

I really wanted this car last year....but had to take a step back, build up more credit (and $) just to do it, in what I think was the "right way" for me personally.

Again....research

Already way ahead of you, refinanced my first auto loan.

It's a weird assumption that everyone on here thinks I haven't done any research at all.

Is it because I am 19 and therefore stupid? Or what?

I mean I appciate the suggestions, but I have done a massive amount of research on this.

[Carsten]

Originally Posted by thill

Also, if your fiance is not self employed, you may be better off helping her build up her credit and then leveraging her credit rating/occupation once you get married.

I have excellent credit, but my wife is even better and we have taken advantage of that.

This is something I have considered, my fiancé actually owns a retail business that was handed down from her father. But unfournately she has ZERO credit as well so that Is a no go. Another unfortunate problem is that I am a foster child so I don't have parents to consign for my either. So consigner are in short and money in abundance(my fiancé also makes around 60k a year) but it's a bunch of buaracy crap. I'm gonna hit the local credit union and see what they can do for me. But chance are I will be outright refused because of my job.

[Ammonia]

Originally Posted by Carsten

Already way ahead of you, refinanced my first auto loan.

It's a weird assumption that everyone on here thinks I haven't done any research at all.

Is it because I am 19 and therefore stupid? Or what?

I mean I appcriate the suggestions, but I have done a massive amount of research on this.

You didn't know what total cost of financing is, and you're asking for financial advice from a forum. Be understanding if people don't assume you're a genius.




I work with financing at a dealership, and all I can say is, every bureau is different, every person is different, every situation is different. All this speculation is just that, speculation.