So scion tried to screw me today (SoCal)

[Tman08]

OP:

Odd dealer. I had 0 credit 2 years ago when I went to buy my first new car (as the last car I had co signed and every ounce of credit went to the co-signer and not me! despite me making all the payments).

Anyways, I had to do 17% for that car at the time to start out with, but was able to refinance after 6 months at.........0.95%!

Trick is with Equifax (which is the toughest to get up).

You might have to take a larger hit to establish the credit, but in 6 months or more, just refinance and it should be a much lower %

[thill]

Sorry, you need to build up credit before you buy a $25-30K+ car. As a 19 year old who has little to no credit, you can start by buying a used car and paying it off quickly. It also seems like you are asking a lot from a co-signer that you barely know. If you default on the loan it is not just your ass on the line, it is his as well.

My advice. Build up credit by buying a cheaper used car. Pay it off quickly and then you can have a credit history as well as more time to save up for a downpayment.

As a 19 year old, it is crazy to have $500-600 car payments along with what will most likely be high insurance. If you want something sporty, there are lots of used options out there.

Unless you have like $15K+ to put down, it sounds like you are really reaching for this car.

[bestwheelbase]

Originally Posted by Carsten

So I understand the apr but that doesn't explain the extra 10-15k

Perhaps they were showing you the "total cost" of seven years at high interest.

[suaveflooder]

Agree with what's been said. If you need a co-signer, it probably isn't the right time to buy a car. There are many ways to get your credit up and do it wisely so that you aren't feeding the bank system.

I personally started with a phone bill, then a small $500 credit card, then a car. My credit was good enough within 6 months of that little card being issued to get approved for a 4.5%, $50,000 car loan. 4.5% isn't good, but it's a hell of a lot better than 14.99. You can do all that in less than a year. You wait a couple years, you'll be in better shape. I just got an offer for $50,000 at 1.49%. Usually get something similar twice a year

[thill]

Originally Posted by bestwheelbase

Perhaps they were showing you the "total cost" of seven years at high interest.

That is exactly what it is. If the OP is rolling tax and dealer add-ons into the final price the interest alone at 14.9% on a $28-30K car is going to be like $14K....

[mav1178]

Originally Posted by Carsten

So I understand the apr but that doesn't explain the extra 10-15k

You have no understanding of how a loan works.

Go download a loan amortization table and figure it out yourself, because I figured it out for you:

$10k down payment
$23k financed
Total interest will be $9822.86
Total paid will be $42822.86 ($43k)
See attachment.

Edit: I did the numbers for the other scenario too. $29500 financed, $3500 down, monthly payments $607.71, total payments will be $47255.22.... it adds up.

-alex

[mush]

Originally Posted by thill

Sorry, you need to build up credit before you buy a $25-30K+ car. As a 19 year old who has little to no credit, you can start by buying a used car and paying it off quickly. It also seems like you are asking a lot from a co-signer that you barely know. If you default on the loan it is not just your ass on the line, it is his as well.

My advice. Build up credit by buying a cheaper used car. Pay it off quickly and then you can have a credit history as well as more time to save up for a downpayment.

As a 19 year old, it is crazy to have $500-600 car payments along with what will most likely be high insurance. If you want something sporty, there are lots of used options out there.

Unless you have like $15K+ to put down, it sounds like you are really reaching for this car.

^hes right, get a beater and drive it till u have money and have a good paying stable job
i didnt buy a nice car till 2 years after i finished school, i could of gotten it as soon as i landed a job, but i saved instead
its nice to not have to worry about payments

[frs10]

WOWOWOW holy jeez! at those terms i can get a m3

[Byebye]

Originally Posted by Carsten

Well the arp is more of less understandable, I had a ridiculously high apt on my first auto loan too.(i am currently paying off a car that will be handed over to to my fiance once I buy my new car)

So I understand the apr but that doesn't explain the extra 10-15k

It's the APR that's killing you.

Total cost is $43k when all is said and done

The car you want is stickered at ~$33k with tax(6%)
You put down $10k and you finance $23k at 14.99%
Your payment is $580
$580*60=$34,800 + your down is ~$44k

Financed $23k - total payments of $34k = -$11k <-this is your interest.

If you put no money down and finance $33k @ 14.99 will be around $800 a month which totals ~$49k after 60mos.
Financed $33k - total payments of $49k = -$16k <- again this is interest paid.

[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.

[Byebye]

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.

Just keep shopping around for loans. You have mKe good money and can make the payments. The dealer is going to sell you a car wether you use them or bring them a bank draft.

You're gonna have to find the best loan yourself. Keep searching, I know you'll find the right bank.

[thill]

What is your credit rating? You can pull this yourself. Also, were you ever late with payments? There are many reasons why the dealer may be coming back with a high APR, I know dealers get a bad reputation, and some do try to take advantage, but at the end of the day they don't want to lose your business either. So something seems off if you have already established credit with another car.

You need to know what your credit rating is (if you don't already) and know if there is something that is impacting your ability to get a loan. And as others have said, you should apply for a loan through Penfed, or a local credit union who may give you a better rate.

You should also plan on putting down a sizeable down payment. If you cannot put 10-20% down on this car right now, you need to save up.

Also, are you self employed as a photographer? That alone will impact your loan since you are only 19.

[Razz]

A wedding photographer is a high risk profession, just like a restaurant worker.

Until you can have several years of credit behind you... you will always pay a high rate of interest as you are self employed.

Even after 20 years, they consider a higher risk due to self employment.

[Vten]

If I were you, I'll get a beater car and start building your credit . In about 6 months to a year you will see a good significant scores, and by then maybe you can get a series 11

In the mean time save your hard earned money for something else and go out find some nice chicks rather than have a brand new car and have to fork out more than $600 a month with no $$ left in your pocket .

Just my .02 cents