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Community Lounge, Introductions and General Discussion Discussion, Car Loans for a first timer? in General Discussion; What's up guys, I could use some of your insight and personal exprience on car buying with a loan. This ...
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    Car Loans for a first timer?

    What's up guys, I could use some of your insight and personal exprience on car buying with a loan. This is the first time i'm even thinking of buying a car with a loan and wanted to know what i may be walking into. The car in mind is a 2003 Crown Vic P71 up in PA and i'm in NJ so its a hike. i work at a wholesale center making a alright amount. And i'm 21 with some credit since i'm still young. I was playing with the loan Estimator and its saying 12% does that sound right? Or what should i really be looking at? Also the payments would be around $80 a month could i double down on payments to make the car mine sooner? Would i even be able to get a loan? I'm going to be putting down a good chunk of change on the car so that helps in my favor i think. I should be getting a call tomorrow about the car so i can ask things. Making this as a Backup/DD Backup for my Mother and a DD for me. I hate hate taking the Seville to work worrying about dents and scratch's for careless people.


    Thanks a whole bunch
    -Wes

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    ben.gators is offline Cadillac Owners Connoisseur
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    Re: Car Loans for a first timer?

    Banks and credit unions usually don't fiance an 11 year old car. But dealers that sell old cars, might have some connections with some credit unions, or themselves might be able to finance the car. However, the interest rate won't be very low.

    How much are they asking for this 2003 Crown? I consider a 2003 Crown Victoria P71 a cheap cash car. The dealer might offer financing, but you might end up paying twice the real value of the car. I hate to say this, but if I were in your shoes, i would save my money, and then would buy a P71 in cash.

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    Re: Car Loans for a first timer?

    Quote Originally Posted by ben.gators View Post
    Banks and credit unions usually don't fiance an 11 year old car. But dealers that sell old cars, might have some connections with some credit unions, or themselves might be able to finance the car. However, the interest rate won't be very low.

    How much are they asking for this 2003 Crown? I consider a 2003 Crown Victoria P71 a cheap cash car. The dealer might offer financing, but you might end up paying twice the real value of the car. I hate to say this, but if I were in your shoes, i would save my money, and then would buy a P71 in cash.
    Its a dealer that sales ex police cars that's all they sell. They are asking $3000.00 for it but i'm going to try and bring it down. My Mother said the same thing about the interest rate i'm thinking it would be a good thing to get some more good credit under my belt.

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    Re: Car Loans for a first timer?

    I totally agree that having a small loan and paying it on-time is a very good method to create credit history. However, financing an 11 year old car with price tag of 3k is not a very good idea. The dealer might offer you some financing options, however, the interest rate will be high, different fees will be included, you will be forced to have comprehensive and collision insurance for this 11 year old car, or else you will be charged more, etc.

    There are other ways to build your credit history, e.g. a small personal loan.

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    Re: Car Loans for a first timer?

    Might be looking at a 2010 P71 or a 2009 Tahoe ex police car. Just remembered tax return season is here, so i could go for a nicer newer car.

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    Re: Car Loans for a first timer?

    Why don't you look at some former taxi cabs if you like Crown Vic's they'd probably be even cheaper!

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    Re: Car Loans for a first timer?

    Quote Originally Posted by orconn View Post
    Why don't you look at some former taxi cabs if you like Crown Vic's they'd probably be even cheaper!
    Nope not looking at millage higher then 115K on any vehicle. My friends father has some but they all are 150K or over.

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    Re: Car Loans for a first timer?

    You also have to consider the fact that any financing the dealer offers for an 11 year old car. Maybe done through the dealer, as in Buy Here, Pay Here, type of deal. And 99% of those are NOT reported to the credit burials. So, not matter the percentage rates, paying off the loan early and what not. It's not going to affect your credit in anyways.

    Building a credit is quite scary. I file for bankruptcy way back in 2001ish. From then until 2008ish, my credit was crap. Once I bought my CTS, sure I had an 10% interest on it, banks and what not started to see that I was making timely payments and such. My credit score started to go up, even with the bankruptcy on it. Then as soon as it was dropped, my score shot up.

    I also have a bunch of credit cards, some of them Visa, Master Cards, Discover (newly added), but I also have several store only cards. Home Depot, Lowes, Best Buy, Sears and BJ's wholesale (technically a Visa). I kept the balances low on most. I don't own a home, but I do keep on buying stuff from Lowes and Home Depot. It's small stuff that they are paid off on the bill when I receive it. But some times I pay the minimal payment, just so that I am charged interest for the next month then pay it off. I do that, because I heard from some where that bumps your score up some. Not sure if that's true or not. But nevertheless, the Home Depot and Lowes were less than $500 each for me. Less than two years later, after asking for an increase, they are over $5,000 each.

    So be smart about your credit. Use Creditkarma.com. If you get a Discover IT card, you'll get your score on your bill. I also pay my cell phone bill, cable internet, DishNetwork (TV) on these cards. Mostly because they are automatic payments and for the cards that I receive "points" on, such as the Best Buy, BJ's WholeSale and Discover IT. Therefore I bank those points and cash them in when I have something special that I want to buy. Like for instance I had enough points to buy my step son an iPod Touch 5th gen by using my points from Best Buy's credit card.

    I don't know if Discover IT is having the deal that I received just a couple months ago. But I have interest free for the next 12 months now, originally 14 but since 2 months has past...

    KOT

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    Re: Car Loans for a first timer?

    Quote Originally Posted by Kingoftypos View Post
    You also have to consider the fact that any financing the dealer offers for an 11 year old car. Maybe done through the dealer, as in Buy Here, Pay Here, type of deal. And 99% of those are NOT reported to the credit burials. So, not matter the percentage rates, paying off the loan early and what not. It's not going to affect your credit in anyways.

    Building a credit is quite scary. I file for bankruptcy way back in 2001ish. From then until 2008ish, my credit was crap. Once I bought my CTS, sure I had an 10% interest on it, banks and what not started to see that I was making timely payments and such. My credit score started to go up, even with the bankruptcy on it. Then as soon as it was dropped, my score shot up.

    I also have a bunch of credit cards, some of them Visa, Master Cards, Discover (newly added), but I also have several store only cards. Home Depot, Lowes, Best Buy, Sears and BJ's wholesale (technically a Visa). I kept the balances low on most. I don't own a home, but I do keep on buying stuff from Lowes and Home Depot. It's small stuff that they are paid off on the bill when I receive it. But some times I pay the minimal payment, just so that I am charged interest for the next month then pay it off. I do that, because I heard from some where that bumps your score up some. Not sure if that's true or not. But nevertheless, the Home Depot and Lowes were less than $500 each for me. Less than two years later, after asking for an increase, they are over $5,000 each.

    So be smart about your credit. Use Creditkarma.com. If you get a Discover IT card, you'll get your score on your bill. I also pay my cell phone bill, cable internet, DishNetwork (TV) on these cards. Mostly because they are automatic payments and for the cards that I receive "points" on, such as the Best Buy, BJ's WholeSale and Discover IT. Therefore I bank those points and cash them in when I have something special that I want to buy. Like for instance I had enough points to buy my step son an iPod Touch 5th gen by using my points from Best Buy's credit card.

    I don't know if Discover IT is having the deal that I received just a couple months ago. But I have interest free for the next 12 months now, originally 14 but since 2 months has past...

    KOT
    You bring up a good point about the buy here pay here deal. I'll find out tomorrow exactly how they do it and report back here with the info. I almost went up there a month ago to look at a Crown vic but decided to hold off.... Well that did not end so well... Since my Mothers Van is parked untill i can look at it and the Cadillac is sitting untill the salt goes away. Right now my Father is driving both of us to work with a truck getting 9MPG..... I'm not happy with that at all... I keep putting gas in the thing and it eats it as soon as its put in. I'v put $30 in so far in a weeks time and our work places are 4 miles from home and 4 miles from one another.... It is horrible the MPG that thing is getting wait i'v put $40 in so far and its almost empty.

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    ben.gators is offline Cadillac Owners Connoisseur
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    Re: Car Loans for a first timer?

    Quote Originally Posted by Kingoftypos View Post
    You also have to consider the fact that any financing the dealer offers for an 11 year old car. Maybe done through the dealer, as in Buy Here, Pay Here, type of deal. And 99% of those are NOT reported to the credit burials. So, not matter the percentage rates, paying off the loan early and what not. It's not going to affect your credit in anyways.

    Building a credit is quite scary. I file for bankruptcy way back in 2001ish. From then until 2008ish, my credit was crap. Once I bought my CTS, sure I had an 10% interest on it, banks and what not started to see that I was making timely payments and such. My credit score started to go up, even with the bankruptcy on it. Then as soon as it was dropped, my score shot up.

    I also have a bunch of credit cards, some of them Visa, Master Cards, Discover (newly added), but I also have several store only cards. Home Depot, Lowes, Best Buy, Sears and BJ's wholesale (technically a Visa). I kept the balances low on most. I don't own a home, but I do keep on buying stuff from Lowes and Home Depot. It's small stuff that they are paid off on the bill when I receive it. But some times I pay the minimal payment, just so that I am charged interest for the next month then pay it off. I do that, because I heard from some where that bumps your score up some. Not sure if that's true or not. But nevertheless, the Home Depot and Lowes were less than $500 each for me. Less than two years later, after asking for an increase, they are over $5,000 each.

    So be smart about your credit. Use Creditkarma.com. If you get a Discover IT card, you'll get your score on your bill. I also pay my cell phone bill, cable internet, DishNetwork (TV) on these cards. Mostly because they are automatic payments and for the cards that I receive "points" on, such as the Best Buy, BJ's WholeSale and Discover IT. Therefore I bank those points and cash them in when I have something special that I want to buy. Like for instance I had enough points to buy my step son an iPod Touch 5th gen by using my points from Best Buy's credit card.

    I don't know if Discover IT is having the deal that I received just a couple months ago. But I have interest free for the next 12 months now, originally 14 but since 2 months has past...

    KOT
    Very good points! I forgot that buy-here, pay-here dealers normally don't report the credit when you pay on-time. However, they are very good in reporting repossession if a customer fails to pay!

    As for the Discover card, I have a Discover cash-back bonus card, 0% interest rate for 15 months, with 1%, 2%, or 5% cash back based on what or from where I buy!

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    Re: Car Loans for a first timer?

    I offer a pretty generous lending program that qualifies damn near anyone on damn near any car. Problem is that interest and fees are high.

    You may be surprised by how flexible your local credit union is.

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    Re: Car Loans for a first timer?

    Quote Originally Posted by Jesda View Post
    I offer a pretty generous lending program that qualifies damn near anyone on damn near any car. Problem is that interest and fees are high.

    You may be surprised by how flexible your local credit union is.
    What plays part in the lending?

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    Re: Car Loans for a first timer?

    Quote Originally Posted by Cadillac Kid03 View Post
    What plays part in the lending?
    Depends on the lender.

    Non-traditional programs require a down payment and a job. They'll quote you an outrageous (25%+) rate in exchange for the risk. The idea is that if you -need- transportation, you take the offer and make your payments on time. Once your credit improves 8-12 months down the road, you refinance with someone else at a lower rate with a lower payment.

    Others care about your credit -- payment history, number of credit lines, absence of collections/repos/bankruptcies/judgements. Bankruptcies aren't necessarily a problem either.

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    Re: Car Loans for a first timer?

    I was lucky enough to have some very good advice when I was you age from the finance manager and one of the salesmen I worked with at a dealership.

    They advised that I get to know the/a loan officer at my local bank where I had my checking account. That relationship served me very well for the next 10 to 15 years of my life. I was looking to buy about what you are looking at now, I went in and asked to meet with him, and explained what I was looking at, and the amount I had down and he gave me an amount he would give me for it.

    I then went to look at the car knowing what I could spend and how much my payment would be. I paid it off quickly and the next time I wanted a car I had a "friend" at the bank to call! Over the next 2 to 3 years we actually did become friends and got to the point where he wouldn't hardly care what I was buying. I never had to wonder if I could get a loan for a particular car. By then I would call Jim with the amount and terms I wanted and he would write it up.

    When I decided I wanted to buy a duplex (At the urging of my two adviser!) Jim walked me up to the property loan officer and introduced me and told them to "Take good care of him, he's a good customer." I bought my duplex with only 10% down instead of the usual 20%. It made the difference of about 4 years, of owning instead of saving, for a home.

    With all of today's mega-banks it may be harder to do today, the personnel seems to change monthly at the branches, but if you find a smaller town bank or main location of a larger bank it could still be done.

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    Try using a credit union if you're a member. I did that with my CTS, which was my first car loan, and my interest rate was half of what dealers were offering.

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