Quote:
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.
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I'm 22. I just graduated college. I went into the dealership with a great credit score (~720) and qualified for their lowest APR rate.
No questions asked, no cosigner. I put $1500 on the car (basically paid the taxes on it) and financed for 3.2%.
I pay $459 over 5 years. At 3.2% apr I pay a grand total of $28.5k for a $25k car.
Did they report your credit score to you? I think the 'stable job' thing may be holding you back as well. As a wedding photographer, it's not necessarily the same thing as working for a company and getting a monthly/bimonthly paycheck. That's what people want to look for. Not the idea that you could go without work for a few weeks, gaining no income. Steady income is key.
That being said, I would highly, highly recommend against buying a car for that price. If you're going to end up paying close to $50k for this car, you're throwing money in the garbage my friend. By the time this car is 5 years old, you've invested close to $50k in it, and it's going to be worth close to $15k
I suggest looking into building your credit (both short term and long term) before investing. Otherwise, get a cosigner like one of your folks that will guarantee you.
I can't say I'd recommend to anyone buying a NEW car for more than 5% APR