can1 sum1 explain apr???

[TONY206]

ok, i turn 18 in a few months and im getting a car for sure because i get access to a bank account that has some money in it i got from a lawsuit when i was younger. dont worry, im saving over 50% of it for a down payment on a house later on in life. ive thought about this 4 awhile and i want a 94 - 95 impala in real top notch condition or i want 1 with a crappy engine cuzz i can get an LT1 engine put in and paid for for $1600.

so now down to the real ?. how does apr work and what kind of apr rate can i get at that age? i can pay for the car in full but im trying to save a large chunk 4 a down payment. it has an apr thing on ebay if i buy a car i can enter a down payment and apr rate and itll tell me what ill pay each month. im trying to put down like $5,000 - $7,000 but i might go up to $10,000.

 

[Reptile]

u could prolly get one for like 7,8 gz...if u look for a good deal or whatever


if i had hella bread in the bank id buy it out right an just pay insurance

 

[Humboldt High]

apr - annual percentage rate. or the intrest rate on a loan. this is bread and butter for companies that provide loans, car notes, and credit cards.
the more $ u put down the lower the apr should be. if u have the money to pay for the shitpay for it outright. instead of cutting a check to a lender that ends up paying off the intrest first, then starts paying off ur ride save ur doe and put it back into the saving account. In this instance u r ur own lender. if u can do it it is the smartest thing. the rich dont get rich by paying the nest man.

the difference in paying up front is u pay urself for the ride - collect intrest on urself. dont pay lenders intrest just cuz u r scared to put it all down on the ride. food for though.

 

[P-Nut]

^^^ cant put it no better than that.

 

[TONY206]

thx humboldt, i think im just gonna pay for it in whole, just ta let yall know i have $40,000 in the bank and i get $900 month that increases 3% each year til im 35. i dont get all this til im 18 in march, im almost there!!!!!!!!

 

[Dana Dane]

the more $ u put down the lower the apr should be.

This is not completely accurate. Your interest rate will have little to do with how much you put down, but more to do with your credit. If you don't have any credit, you will get a mid-range rate, like 11-14%, most likely. If you have bad credit, your rate will be as high 24.99%. 25% or above is against the law.
I have been in the mortgage business for 10 years, and let me tell you, good credit is a beautiful thing. The only way to buy a house is to have credit. You need at least 3 good tradelines in order to qualify, regardless of what you have in the bank as far as a down payment. Now a days, you can buy a house with no money down and finance 100% of the purchase price. The only way to get a good credit rating is to have loans and credit cards that you pay off in a timely manner. So my advice to you, when you turn 18, get a Mervyns card, a gas card and a visa. Charge a little bit each month, and pay them off. Also, I say finance your car, but always add a little bit more than what your payment is, with a note that the overage needs to be applied to the principal balance. That way , you save money on interest, and the account will show as paid as agreed before the loan was due.

 

[TONY206]

The only way to get a good credit rating is to have loans and credit cards that you pay off in a timely manner. So my advice to you, when you turn 18, get a Mervyns card, a gas card and a visa. Charge a little bit each month, and pay them off. Also, I say finance your car, but always add a little bit more than what your payment is, with a note that the overage needs to be applied to the principal balance. That way , you save money on interest, and the account will show as paid as agreed before the loan was due.

thanks 4 the helpful info! ill really take that into mind

can someone explain financing to me? lol

 

[mrskrilla]

This is not completely accurate. Your interest rate will have little to do with how much you put down, but more to do with your credit. If you don't have any credit, you will get a mid-range rate, like 11-14%, most likely. If you have bad credit, your rate will be as high 24.99%. 25% or above is against the law.
I have been in the mortgage business for 10 years, and let me tell you, good credit is a beautiful thing. The only way to buy a house is to have credit. You need at least 3 good tradelines in order to qualify, regardless of what you have in the bank as far as a down payment. Now a days, you can buy a house with no money down and finance 100% of the purchase price. The only way to get a good credit rating is to have loans and credit cards that you pay off in a timely manner. So my advice to you, when you turn 18, get a Mervyns card, a gas card and a visa. Charge a little bit each month, and pay them off. Also, I say finance your car, but always add a little bit more than what your payment is, with a note that the overage needs to be applied to the principal balance. That way , you save money on interest, and the account will show as paid as agreed before the loan was due.

Real talk.
You can buy a new car without a job if you have good enough credit.

 

[Humboldt High]

6foota - there is a direct correlation to the money u put down and the apr. after all the more u put down, the less u owe and therefore the less of a risk u r in the eyes of the lender. resulting in a lower apr. u know that being in the loan business and all.

credit does have alot to do with it, but he didnt allude to his credit situation so i left that out. plus he can afford it outright.

u r advising him to pay more money than he has to, in the form of intrest to the loaner. why bother if he has the cash?? then again if u r a loan agent u r not thinking in his best intrest, but in the intrest of the mortgage firm. suzie oreman would frown on that personal finance advice.

financing builds credit but costs u intrest. u can build credit without paying a cent of intrest.

if u wanna build credit get a card now and purchase and pay it off before intrest is accrued. that builds credit and does not force u to pay the next man. u got the cash - pay urself not the next.

 

[Humboldt High]

financing - some1 else gives u the finances to buy something. laymens terms - a loan.

 

[CcytzO Loc]

Humboldt spittin some real shit.....buy it outright and fucc interest.....

 

[TONY206]

whats better in a visa? a regular one? or one of those that take directly from your checking account? will i pay more interest on one than the other, or is it the same?

 

[m.w.merlino]

^^your first credit card shouldnt be hella good, just a 500$ limit and keep consistently payin it off until you can securely upgrade to 1000$-2000$ card limit, when you do that youll have a great credit history and when you go to buy a car with cash...youll have no problem gettin a low APR if you dont want to put it all in at once, however, since you get that monthly check you might as well just pay it all off right now and get a job

 

[TONY206]

EJs bro can hook it up with an engine hella cheap, u read the first part?

but yea on those visas that take from ur checking account you wouldnt have a limit, the only limit would be whatevers in ur account.

 

[TONY206]

btw you aint got aim where u at???

ill tell u my business plans that i have if u ever get on aim or prolly in a pm.

 

[Dana Dane]

Okay, if lenders came up with an interest rate based on how much the loan was for, they certainly wouldn't put lower interest rates on smaller sums if money. They would put higher interest rates on the smaller sums to make more money. And no, I am not giving him bad advice, or the advice a lender would give. I am giving him real chat that will help him out when he is ready to buy a house. I am pretty sure that spending an extra 500-1000 on a car is hell of worth it in the long run if it ensures him a decent credit rating.

A "visa check card" is technically not a credit card and will not show up on your credit. That's why I recommend getting a gas card and a Mervyns (Best Buy, Macys) card. These cards are the easiest to get and typically have mid-range interest rates. Humboldt is correct though, you can charge on a lot of credit cards and pay it off before interest accrues, but you have to know up-front what kind of card you have. Some start to accrue interest the minute you use them. Never ever ever get an Ameican Express card if you don' tplan on paying it off every month.

 

[TONY206]

Okay, if lenders came up with an interest rate based on how much the loan was for, they certainly wouldn't put lower interest rates on smaller sums if money. They would put higher interest rates on the smaller sums to make more money. And no, I am not giving him bad advice, or the advice a lender would give. I am giving him real chat that will help him out when he is ready to buy a house. I am pretty sure that spending an extra 500-1000 on a car is hell of worth it in the long run if it ensures him a decent credit rating.

A "visa check card" is technically not a credit card and will not show up on your credit. That's why I recommend getting a gas card and a Mervyns (Best Buy, Macys) card. These cards are the easiest to get and typically have mid-range interest rates. Humboldt is correct though, you can charge on a lot of credit cards and pay it off before interest accrues, but you have to know up-front what kind of card you have. Some start to accrue interest the minute you use them. Never ever ever get an Ameican Express card if you don' tplan on paying it off every month.

thanks once again for the knowledge, its really appreciated