Frustrating car loan issues

[liv2ski]

what is really comes down to, is yes, i could have the money to buy the car outright in about a month and a half, but the guy is selling it now, and someone else is going to buy it if I don't...

so all this weirdness about "have to have the loan amount backed up in cash" is weird, huh? and the fact they don't let my parents cosign? yeah i thought that was odd. I might as well try and stall the seller for a month instead of switch banks all for some dorky little loan. The irony of it all is i kind of wanted to do the loan to build more credit....ha....

i doubt current events really effect insignificant loans from a small CU chain....and I did have the same problem (just less credit history) a few months ago.

DDJ, another car will be for sale in 2 months, so don't sweat missing this one. When I was young, I had lots of credit, a home, etc and my credit union still said they wouldn't give me a car loan because they didn't want me to get over extended. I went to a bank, got the loan and closed the Cr Un accts
Trust us, the present lack of liquidity in the markets have all lending sources running scared, especially a small credit union. Go to Wells Fargo, Chase, B of A or Citi. They will be the big 4 once all this is over.

Also, I just read through the thread and noticed the loan size. That is a real problem. I think anything under $10k will be a tough loan to get for the reasons mention, likely an old POS that will end up costing you $2k a year to maintain. Save your jack for a nicer car in 6 months. Then you will have a longer credit history and will be buying a better car for the bank to secure a loan against. If the collateral sucks, they won't make you a loan.

[gh444]

3 year lease. Easy to qualify, low financing rates, easy to get out of if need be, no repair costs, newer vehicle. And it will help you build credit. As a young guy, having a relatively small fixed cost, a nice conservative clean car for taking clients/coworkers in, and the ability to build your credit in this environment is sensible. look at the vw, nissan and toyota offerings.

Don't do what I did at 25 which was buy a used german luxury vehicle. Its got the bling, but no gas mileage, huge repair costs and depreciation has been a killer.


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[Toadman]

Why buy on credit if you can pay cash? There should be a flood of great deals on vehicles coming right about now.

[Chainsaw_Willie]

Rare and hard to find, huh? Do tell. I'm a fan of old cars, own a couple myself. If it's not at least 30 years old, it aint worth it.

[focus]

Lots of good points already, especially from Tim.

Another note, though, is that for some (many?) small credit unions and banks it's more or less still business as usual. If you really are A paper and you're buying a vehicle that still has sufficient book value to cover the loan you shouldn't have a problem, try a different CU or bank. If either of these aren't absolutely true you may be SOL and have to wait until your credit score increases, look at a different vehicle that isn't "rare" or wait a couple months and pay cash.

[hutash]

If you really want a loan, go to a local bank with Mom or Dad to cosign. As posted you are better off saving and buying a different car later, but the plus side on a loan is it will give you a little credit history.

In this interesting times the old adage..."We will only loan you the money if you don't need it" is particularly true.

[uglymoney]

I made my wife do a refi on her car loan from our credit union. She is closing on it right now.

Try a different bank, credit union. Someone will give you a loan with a cosigner.

[present tense]

i'm just curious how much a 24 year old slacker is supposed to be making?

[schuss]

just get a 5k unsecured. I did that when I bought my moto-sickle, paid it off in like 6 months. Builds credit nicely too.

[khakis]

you don't have a credit card with $5000 available sending you "credit access checks" every other day? If it's that great of a deal do that. I bought a car that way several years ago as an "investment"...that component of my credit card debt might be paid back by now, probably not.

[Blatant]

never put money down

[teledave]

What's so special about this $5k car? Don't leave us hanging.

It has 10 lbs of weed in the tires that the present owner doesn't know about.

[4matic]

Car loans are at the heart of the credit crunch. Dealers are unable to access credit for their customers so they can't defer risk.

[Blatant]

never put money down

[yooper]

i have really shitty credit (395 fico) and just bought a brand new taco (4x4 xtracab TRD package w/ 7 inch liftkit & nice big mickey t mudders) 100% financing at 1% over 72 months with TFS.

you must really suck at life.

You have a 395 credit score and HE sucks at life!!???

[uglymoney]

The girl refi-ed her truck last night. Signed, sealed and delivered. 5.75% on an 03 and it wasn't a big loan at all. Seemed to me to be a good rate considering everything that is going on in the world.

Try another bank. I think there might be some regionalism going on here with banks. Banks around here are heavily regulated by the state and are very healthy. We will see how long that lasts.

[RShea]

Older used cars can be financed- there are "buy here, pay here" lots on every corner of major cities. It takes a job and some lube while you bend over to handle the usury interest rates they want to charge.

The fact that you have 6 months of credit history, the fact that legit establishments like banks and credit unions really only want to lend for new or late model used cars, and the fact that the credit crunch and economy is making the old school credit numbers go out the window during this period with lenders. You might as well go through a loan shark no matter how rare the car is, you can always find another one no matter how old and rare it usually is (unless it is something someone like Jay Leno has in his "rare" car collection....)
Private party deal does not help any either.

I'm NOT a car loan expert...

-But I'm quite certain car loan terms are, or at least were pre-credit crisis, based in the majority on the year of the vehicle. Once you get over a certain age, very difficult to get a loan... Don't recall if it is 6 years old or 8 years or so???

-Also, I think they expect a larger downpayment portion the older it is as well. What were you planning to put down as your portion?

-Don't think 6 months or less of credit history is going to help much during the period right before the Great Depression II, but again I don't know nothing much.

-Even if you CAN pay back the car loan in 2 months, you won't... no 24 year old slacker ever does. We all were 24 once, well... those now older than... pfff, you know.

-Don't take money from the GF, unless you want to end up trashing the relationship and wind up on Judge Judy.

-"Rare, hard to find car..." really means a pain in the ass to find parts, supplies and service for.

-"...for a really good price" really means something big is wrong and you don't have a f'n clue.

-A seller willing to "stall" for a few weeks means he has already found his sucker.

-I don't know shit... even if I did, who gives a rip what I think!

-Good luck!!!