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Old 01-16-2009, 10:35 AM
 
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I agree with 2blessed2stress, in about 2 1/2 years if you save about $400.00 a month you can pay cash and save that 16% percent interest, and that adds up fast.

Also shop around because there are used car dealers out there that sell only GOOD used cars.
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Old 01-16-2009, 10:43 AM
 
Location: Coachella Valley, California
15,237 posts, read 25,509,087 times
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I'd tell them where they could stuff their car. But seriously, just buy a cheaper car and pay cash. Assuming you are just buying something to get you from point A to point B. Now, if you're going for something flashy that you just can't live without, I guess you better shop around for a loan.
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Old 01-16-2009, 11:10 AM
 
Location: Derby, KS
3,832 posts, read 8,034,912 times
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Quote:
Originally Posted by chance2jump View Post
What I did have, which was crummy, has rolled off. It was from my young n dumb days...
Do you know for sure your former infractions are no longer viewable on credit reports? I've heard some things will stay on there for 10 years.

Quote:
Originally Posted by chance2jump View Post
...1 of the banks was willing to give the loan to my cosigner as long as I was not on the loan.
Your credit file must still have something in it that they could see.

When I was 18 years old (12 years ago) I had never had a single credit source. Without a cosigner or anything I went down to the bank and took out a $5000 loan to buy a jet ski (WAAA HOOOO!!!). And all I had was a part time, minimum wage, after school job that paid peanuts.

OK you are a grown adult with - I'm guessing - a good enough job to support the payment and you can't get a loan where I - a young and dumb kid - could get one for just a few thousand less than what you're trying to get....yeah....something is wrong there.
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Old 01-16-2009, 02:27 PM
 
1,557 posts, read 2,623,716 times
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There's nothing wrong with the picture. He's just the 18 kid you were 12 years ago but now the history he started at 18 has come to mature. The 18yo version of yourself with minimal employment will always be able to get more credit that the 30 yo version of said 18yo when the inability to re-pay has had time to mature in the credit history. It's not coincidence, it's the way the system is set up to work.

Just sack up and buy a used car for less, outright. There's no reason a "car these days" sans a Hyundai, couldn't last you more than a decade. I drive a 00 Jeep cherokee and that thing is running fine. Its dirty (I think it's been 2 years since I didn't wash it with the rain) and old, has dents here and there, and the interior shows the signs of somebody who gave up on detailing the thing years ago, but otherwise religiously takes me to-from work and when compared with someone with a car payment, higher excise taxes and insurance cost on a newer vehicle, is literally a STEAL to drive. My opportunity cost is that it's not a new car. Boo hoo, who cares (I don't), oh wait that's right, those who finance cars do care, which is why they finance the thing to begin with. Just save up and buy a car outright. If you need the car NOW, then finance the smallest amount you can on your own, otherwise take the bus, you're hosed, life isn't fair.

My fiance was in the same boat about 2 years ago. Financed (got grandpa to cosign) a car and 3 years into owning it had a repair bill (unusual mx problem granted, timing chain blew and bent all the cam valves) that was worth more than the balance of the account on the car. Sucky position to be in, if it were not by the first national bank of zero interest (me) she wouldn't have been able to afford the car and the repair. Lesson? Pay cash and drive till the wheels fall off.

It's a social catch-22 really. I have good credit. Why? Because I don't believe in credit and choose to lower my standard of living in lieu of financing, which is why I don't need credit in the first place (hence the catch). But that's not what drives America. If we all lived on 80% of what we made we'd live like monks (because we actually can't afford the lifestyle we presuppose to ourselves we are entitled to by our hard work and education) and financially free, but discontent because we don't have sh$t. Pick your poison.
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Old 01-18-2009, 02:23 AM
 
1,115 posts, read 2,053,881 times
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I have a good friend who is the General Manager at a Nissan dealership and he has been complaining about this ever since the bailout. He swears the banks are not using the money to free up funds for new loans- swears about it, literally!!! He says the used car sales are worse. Apparently the car companies are still loaning money since some of them make as much of the loans as the cars (mostly the US brands.)

I don't know if this would be successful but you might want to see if any of the banks/credit unions are now holding title to cars they would be willing to let you take over payments or finance just to get out of their hands?

Also check you credit to make sure its correct and nothing is on their beyond your knowledge. I discoverred an unpaid bill on mine that had been sent to the wrong address repeatedly and was enterred into collections- luckily I paid it off and the removed it but it would have been an issue had I not checked and gotten taken care off. The lenders are also going to be afraid of anyone with to many loans (even if they are in good standing) and of mortgages with too little equity- a double whammy since so many houses have lost value. It might not hurt ot go to your bank with your credit report and list of debts and asking them what the problem is. They may simply have to do the math by hand and check your accounts themselves instead of letting everything live and die by FICO.
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Old 01-20-2009, 11:15 AM
 
Location: Up in the air
19,126 posts, read 15,149,719 times
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Quote:
Originally Posted by mrpeatie View Post
I have a good friend who is the General Manager at a Nissan dealership and he has been complaining about this ever since the bailout. He swears the banks are not using the money to free up funds for new loans- swears about it, literally!!! He says the used car sales are worse. Apparently the car companies are still loaning money since some of them make as much of the loans as the cars (mostly the US brands.)

I don't know if this would be successful but you might want to see if any of the banks/credit unions are now holding title to cars they would be willing to let you take over payments or finance just to get out of their hands?

Also check you credit to make sure its correct and nothing is on their beyond your knowledge. I discoverred an unpaid bill on mine that had been sent to the wrong address repeatedly and was enterred into collections- luckily I paid it off and the removed it but it would have been an issue had I not checked and gotten taken care off. The lenders are also going to be afraid of anyone with to many loans (even if they are in good standing) and of mortgages with too little equity- a double whammy since so many houses have lost value. It might not hurt ot go to your bank with your credit report and list of debts and asking them what the problem is. They may simply have to do the math by hand and check your accounts themselves instead of letting everything live and die by FICO.
That kind of reminds me of my poor credit score... I have genetic disorder and my medication runs in the neighborhood of $60,000 a month, not including supplies. Luckily I have great insurance but every one in a while the company bills the insurance incorrectly (usually typing in a bad acct. #) and i gets billed directly to me. I did my 'free credit report check' 2 or so years ago and found a $130,000 delinquency on my report and freaked the hell out. It took them MONTHS to get it off my report. Now I have to pay every month to keep track of my credit report because this has happened 4 more times in the past 2 years.

I got an auto loan in Sept 08 and what I did is I had a co signer, did my $15,000 loan at 5% from a credit union. I had to take a 7 year loan to get this rate to keep my month payments down (as a precaution). My payments are around $250 a month but I pay around $800 or so to get the principle down. I only owe 10,000 on it and will hopefully have it paid down in less than 2 years.
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Old 01-20-2009, 02:01 PM
 
Location: Right where I want to be.
4,508 posts, read 5,467,175 times
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Why do you need credit to buy a car if you have $1000 cash and can get something for your car? How much can you get for what you are driving now? Take that money and your $1000 and buy a car you can really afford, or save up a few more months and get something a bit nicer.
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Old 01-20-2009, 04:57 PM
 
12,660 posts, read 8,429,349 times
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Quote:
Originally Posted by chance2jump View Post
I have absolutely no credit file. What I did have, which was crummy, has rolled off. It was from my young n dumb days. I knew this going into it, was fully prepared to get a cosigner. And I also know I'm a high interest rate borrower.

I have applied for financing for a used car loan. The car is only a 2005 and would meet any used car loan criteria. I am only looking at a $9500 purchase price, which my household income can more than support, I have $1000 for a down payment plus a trade in vehicle that is owned free and clear. I have established job history. I have a cosigner with outstanding credit, good debt to income ratio and a long credit history of perfect payments and tons of money in the bank.

Our application has been turned down by 4 different banks the dealership has submitted it to. 1 of the banks was willing to give the loan to my cosigner as long as I was not on the loan.

How the heck can someone establish credit if they can't get credit?

Why the heck did we bailout the banks just to have them turn down someone that is jumping thru hoops to borrow?

Sorry, venting.

Hi chance2jump


I sure would like to know how a depression has not all but been engineered if this is not an isolated case. Your loan would have circulated as another's grocery money and now its not.
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Old 01-23-2009, 04:06 PM
 
1,557 posts, read 2,623,716 times
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Quote:
Originally Posted by gwynedd1 View Post
Hi chance2jump


I sure would like to know how a depression has not all but been engineered if this is not an isolated case. Your loan would have circulated as another's grocery money and now its not.
His credit is shot worse than he lets on for this to be the case. My fiance's credit is shot, and she is able to meet her payment obligations on the car, but needed a cosigner to get the loan, which is around the the figure the OP speaks of. This was in 2004 so easily the difference is the knee jerk risk aversion of lending in this economic environment, where unemployment and overleveraging as a collective has reared its ugly head.

As to the grocery money jab, as much as I know where you're coming from, two wrongs ( [1]fractional reserve banking and [2] consumeristic tendencies that leave people financing a mere 9000 dollars) don't make a right. Change the former, don't bellyache and play devil's advocate by legitimizing the latter just because it's the current system.....
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Old 01-23-2009, 08:27 PM
 
12,660 posts, read 8,429,349 times
Reputation: 4743
Quote:
Originally Posted by hindsight2020 View Post
His credit is shot worse than he lets on for this to be the case. My fiance's credit is shot, and she is able to meet her payment obligations on the car, but needed a cosigner to get the loan, which is around the the figure the OP speaks of. This was in 2004 so easily the difference is the knee jerk risk aversion of lending in this economic environment, where unemployment and overleveraging as a collective has reared its ugly head.

As to the grocery money jab, as much as I know where you're coming from, two wrongs ( [1]fractional reserve banking and [2] consumeristic tendencies that leave people financing a mere 9000 dollars) don't make a right. Change the former, don't bellyache and play devil's advocate by legitimizing the latter just because it's the current system.....

Hi hindsight2020,

Where did I legitimize anything? I simply stated the facts. We were circulating low quality debt as money and now we are not. It is a contraction built into the system.
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