I need help buying a new car

[Mr. dB]

Are you paying cash or taking out a loan? Do you know the relative going interest rate range for car loans?

I probably need to get a new car in the near future... and although I abhor the idea of paying interest for something when I don't have to, if car loans are in the 3-4% range, it seems financially stupid to not take the loan and put the rest of the cash somewhere that yields more than 5%.

Then again, I'm only guessing that car loans have moved down along with tbills and mortgage rates, which may not be the case.

(I've obviously never had a car loan before, lol. I don't even know who issues them.)

If you get a car loan from the dealer, it'll be through the manufacturer's loan arm, they all have them. The interest rates can be insanely low. I'm paying 1.9% to VW Credit. Domestics sometimes make offers as low as 0.0%. Also look for other incentives on the mfg's web site.

 

[iggy]

Are you paying cash or taking out a loan? Do you know the relative going interest rate range for car loans?

I probably need to get a new car in the near future... and although I abhor the idea of paying interest for something when I don't have to, if car loans are in the 3-4% range, it seems financially stupid to not take the loan and put the rest of the cash somewhere that yields more than 5%.

Then again, I'm only guessing that car loans have moved down along with tbills and mortgage rates, which may not be the case.

(I've obviously never had a car loan before, lol. I don't even know who issues them.)

i'd never take out a loan. my last car was paid in full and totaled in mid december last month. the insurance company is giving me $5,800 for it.

the guy who is a very good friend of my dads is asking for $6,200 for his 02 ford focus which is in great shape and has 36,000 miles in it.

 

[miplank]

first off...

Don't use KBB to value a car. It's always an inflated figure. Use NADA for you valuations.

Secondly, I have no idea what your credit is like (probably shitty) but if it's halfway decent get an auto loan. The interest rates are so low now for prime buyers that you can do exactly what samoth said and invest your money and basically make more on your money elsewhere while building credit.

Interest rates depend on the year/term of the car but for prime buyers expect somewhere in the neighborhood of 3.5-4.5%.

$6,000 might not be a bad deal depending on the trim level and options it has as well as condition. You didn't give any of that so it's hard to tell if you're getting a fair deal or not.

 

[iggy]

first off...

Don't use KBB to value a car. It's always an inflated figure. Use NADA for you valuations.

Secondly, I have no idea what your credit is like (probably shitty) but if it's halfway decent get an auto loan. The interest rates are so low now for prime buyers that you can do exactly what samoth said and invest your money and basically make more on your money elsewhere while building credit.

Interest rates depend on the year/term of the car but for prime buyers expect somewhere in the neighborhood of 3.5-4.5%.

$6,000 might not be a bad deal depending on the trim level and options it has as well as condition. You didn't give any of that so it's hard to tell if you're getting a fair deal or not.

my credit isn't good since i basically didnt have any a year ago and just started building it using a credit card i pay for gas with every month.

 

[miplank]

well, you could always pay cash for the car and then take the title and do a secured loan to build your credit up.

 

[iggy]

well, you could always pay cash for the car and then take the title and do a secured loan to build your credit up.

is working extremely hard to build my credit really that important at 21 nowadays? or can it wait two years till i graduate?

 

[miplank]

is working extremely hard to build my credit really that important at 21 nowadays? or can it wait two years till i graduate?

how is that working hard?


Take your $6000 car, go to you bank and borrow say like $3000 against it. It'll give you some spare cash to go buy something (new camera, etc).

It'll generate you some installment credit, boost your score and get you started on the right path.

Do you have to do it right now? No, but it never hurts to start now.

 

[iggy]

how is that working hard?


Take your $6000 car, go to you bank and borrow say like $3000 against it. It'll give you some spare cash to go buy something (new camera, etc).

It'll generate you some installment credit, boost your score and get you started on the right path.

Do you have to do it right now? No, but it never hurts to start now.

yes, good point.
i'll consider it.

 

[PICK3]

first off...

Don't use KBB to value a car. It's always an inflated figure. Use NADA for you valuations.

Secondly, I have no idea what your credit is like (probably shitty) but if it's halfway decent get an auto loan. The interest rates are so low now for prime buyers that you can do exactly what samoth said and invest your money and basically make more on your money elsewhere while building credit.

Interest rates depend on the year/term of the car but for prime buyers expect somewhere in the neighborhood of 3.5-4.5%.

$6,000 might not be a bad deal depending on the trim level and options it has as well as condition. You didn't give any of that so it's hard to tell if you're getting a fair deal or not.

Why don't you hook a young bro up?

 

[miplank]

Why don't you hook a young bro up?

I tried the last time iggy was car shopping. His daddy wouldn't let him buy it.