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Tony

Sicc OG
#1
May 15, 2002
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#1
How do they work? I want to get a newer car like something in the late 90's to be exact. I pretty much just have an apartment and cell phone bill in my name or that I pay every month besides car insurance. Other than that I don't have any other kind of credit. I've been on my job for over 6 years and can pretty much afford a car payment. To anyone with any knowledge how do car loans work? What would be a good interest rate for a person that doesn't have any credit? Any other tips would be cool because I dont want to go to a dealer ship and then get ripped off.

thanks....
 
Dana Dane

Dana Dane

RIP Vallejo Kid
#2
May 3, 2002
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#2
If you go to a reputable dealer, you have a better chance of not getting hosed than you do at a corner "Used car Lot"...Not having any credit, expect to have a rate in the teens, but you can make good payments for 6 months to a year and refi for a lower rate. Most likely, they will require money down, and they are going to come at you with 33% down at first. That's always the high figure they try to make you believe you HAVE to pay in order to qualify, but its bullshit. You will most likely need to put $1000 to 1500 down, but the dealership can work with you on that, like give you 30 days to come up with it.

If you have access to opening an account with a credit union, you may want to do that, and try to get a loan through them. CU loans are usually the easiest to get, and have the best rates for people with shaky or limited credt.
 
MOREBASS

MOREBASS

Sicc OG
#3
Dec 9, 2005
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^ Good info...


I know people with little to no credit history get 25%...and some 15%...you would have had to have some sort of credit to get your apartment, so I'm guessing you have something there.

Unless you're getting a decent rate like 10% or something, I'd go with a Credit Union or even your bank first, at least try, otherwise you'll be getting raped. ( No Homo )
 
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SMOKE1230

Sicc OG
#4
Dec 12, 2006
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#4
pay cash for cars, fuck auto loans, fuck debt. Stay away from it, the average car payment in america is 375$, and the average car loan is 82 months, whats 375 times 82.......30,750, now imagine if you saved that $ instead of wasting it by paying interest on it. buy a 1200-1500$,bucket,w/ cash, save that payment each month and you'll be suprised how fast that cash stacks. Then you can pay cash for a nice car and not have no fucking payment weighing you down.....trust me......
 
Dana Dane

Dana Dane

RIP Vallejo Kid
#5
May 3, 2002
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#5
I got an 04 Malibu last week with $1500 down, a rate of 14.99%, a 5 year loan, a 36 month/30,000 mile extended warranty, and my payment is $285. a month....can't beat that. In 6 months to a year, i will refinance, get a rate in the 6's (hopefully), and that will take my payment down even more.
 
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SMOKE1230

Sicc OG
#6
Dec 12, 2006
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Dana Dane said:
I got an 04 Malibu last week with $1500 down, a rate of 14.99%, a 5 year loan, a 36 month/30,000 mile extended warranty, and my payment is $285. a month....can't beat that. In 6 months to a year, i will refinance, get a rate in the 6's (hopefully), and that will take my payment down even more.
Click to expand...
Are you serious? 14.99%, I'm sorry, now imagine if you would have bought a $1500 dollar car, cash, saved $285 a month for 1 year, thats $3420, then sold that $1500 dollar car for virtually what you paid for it cuz older cars usually stop going down in value, or say you even got $1000 for it, now you have $4420 for an even nicer car, and in another year thats another $3420, sell your other car for $3000, now you have $6420, see where this is going? Interest is a waste of money when you cash can go so much further in other places, but thats why america is in debt. Not trying to preach, just trying to give useful info.
 
GHP

GHP

Sicc OG
#7
Jul 21, 2002
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#7
Its probably best to do it through your bank, the dealerships are gonna try ot juice you. I had no credit first time buyer and I got a new car loan for 17 gs at a 5.5% APR back in 2003, Thanks to me paying that shit off early I'll probably be able to get a better one when i decide to get some new wheels. I have really good credit though
 
Dana Dane

Dana Dane

RIP Vallejo Kid
#8
May 3, 2002
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#8
I understand where you are coming from, but I know me, and if I tried to save any kind of money, I couldn't. i spend faster than I earn, and therefore would not be benifited. Also, it is my goal in life to own a home, and with no credit, you are fucked in that regard. Trust me, I have done mortgages for the last 12 years of my life, and know how to work credit.

Also, I could buy a $1500 bucket, but I am willing to pay the little extra to know that I have a car that will run for a decent amount of time, and a warranty to cover any major repairs.
 
GHP

GHP

Sicc OG
#11
Jul 21, 2002
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#11
shit sometimes you get lucky and will find a clean ass ride for 2gs, I saw a clean ass 85 caddy el dorado just the other day for 1200, if i had the cash i woulda jumped on that shit just to have a pimpin ass second car
 
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Tony

Sicc OG
#12
May 15, 2002
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#12
I already have a car but that muthafucka keeps breaking down on me. I need something a little more reliable.... Not too new though. Good lookin' out on the advice y'all.... So I should try my bank or a credit union first right? The dealership can get me financed but they're going to charge is what I am getting from the replies. Dana you got a pretty good deal on your car. Less than $300 a month for an 04 with a warranty?
 
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SMOKE1230

Sicc OG
#13
Dec 12, 2006
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#13
jayda650 said:
shit sometimes you get lucky and will find a clean ass ride for 2gs, I saw a clean ass 85 caddy el dorado just the other day for 1200, if i had the cash i woulda jumped on that shit just to have a pimpin ass second car
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thats what I'm sayin, thee's good cars for $1200-$2000, then you ain't throwin your $$$ away on interest. @ Dana, if you do mortgages than you should know that most 100% financing, "special loans", i.e. interest only, arms etc... end up in foreclosure, I own three houses and you be amazed the down payments you can come up w/ if you save and are a lil creative. $285/ month (your car payment) in a good growth stock mutual fund, for 36 mths. (the length of your loan), you'll have a nice down payment for your goal in no time. This is why the rich get richer and the broke stay broke, DEBT! A good book for you to check out would be, "rich dad, poor dad", you might learn somin......
 
Dana Dane

Dana Dane

RIP Vallejo Kid
#14
May 3, 2002
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#14
Not all first mortgages on 100% financing are ARMs, I/Os or Neg Ams. It just depends on what you are looking for.

I completely understand where you are coming from, and I would LOOOVE to be able to put even $100 a month in the bank, but its not in the cards for me right now.
 
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Tony

Sicc OG
#17
May 15, 2002
13,165
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#17
Yeah good shit Smoke1230. But I can't save if this muthafucka keeps breakin' down on me and shit....

I need a newer reliable car at an affordable price. Something in the late 90's would work. I gotta holla at the bank first to see what's up with them.
 
JLMACN

JLMACN

JLMACN
#18
Aug 26, 2002
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WWW.YABITCHDONEME.COM
#18
i bought a brand new car in 2001....at a interest rate of 6%...
on a 12,000 loan..

considering i was 20 years old..and the car was brand new...with 2 miles on it...it was a pretty good deal...

I WILL NEVER EVER EVER EVER EVER EVER do that shit again...
I paid it off...after refinancing it...
I got into a 6 year loan...which was the dumbest shit ever!!!!!!!
then refinanced it for a 5 year loan...(it helped)..

But after I paid it off...i save for a couple months...and copped me a $3500 ride..

fuck a car payment for real...I dont give a shit how nice your ride is..
NO CAR is worth a $350+/month...payment..

and I got some pimpass credit! I could realistically get any car i want...
anycar!

5000
 
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