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Message
re: Bad credit auto loan, big down payment
Posted on 2/26/14 at 9:51 am to ItNeverRains
Posted on 2/26/14 at 9:51 am to ItNeverRains
Very possible...APR could be around 8-10%.
0
Posted on 2/26/14 at 10:30 am to DanielTosh
quote:
this truck may be one but I know I will pay it off in less than 2 years.
You sound like the people who have 30 year mortgages. Most say they will pay extra towards principle to shorten the life of the loan, but never do.
Posted on 2/26/14 at 10:35 am to DanielTosh
quote:
Hypothetically
Nothing hypothetical about this scenario, right?
quote:
580-600 credit score, could they buy a brand new truck for $50k after TTL? $15k down payment so $35k would be financed. Yearly income +/- $150k a year.
I'm going to help you. Dave Ramsey:
quote:
“We buy things we don't need with money we don't have to impress people we don't like.”
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“If you will live like no one else, later you can live like no one else.”
quote:
“Act your wage.”
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“You must gain control over your money or the lack of it will forever control you.”
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“Stupid is not illegal.”
Go Read
Posted on 2/26/14 at 12:40 pm to DanielTosh
Yep, you are on the right track Op. I was in a similar situation a few years ago. Got a great deal on a 60k car, financed 25k at about 8%. Bought it at the height of the recession and it has held it's value great.
Credit union will do it at about 8%.
Credit union will do it at about 8%.
Posted on 2/26/14 at 8:58 pm to Tiger n Miami AU83
No one has directly asked this, so I will... why do you want to buy a 50K truck? Do you need it for work?
Your credit score won't stay that way forever provided you pay off debt and become and stay current on your debt. Do you still owe anything? Could you maybe buy a 10K used truck and pay 5K towards debt?
Your credit score won't stay that way forever provided you pay off debt and become and stay current on your debt. Do you still owe anything? Could you maybe buy a 10K used truck and pay 5K towards debt?
Posted on 2/26/14 at 9:04 pm to LSUFanHouston
Who the hell wants to drive around in a $10,000 truck? 
Posted on 2/26/14 at 10:08 pm to LSUFanHouston
quote:
No one has directly asked this, so I will... why do you want to buy a 50K truck? Do you need it for work?
Well I need a reliable truck because I could have to drive fairly long distances but I know I could get a used reliable one for cheaper. I literally have paid off every single debt. I ran my credit report and some things were on there that shouldn't have been. I called 2 places today and both agreed to send the bureaus a letter of deletion. This is a secure job and I will make at least $12,000 a month(not bragging that's part of the reason I am posting from an alter account). If I get the truck my monthly bills will be around $2,500 a month so I can easily afford it. I am trying to build credit and only have a $500 credit card that I keep a balance of ~$150. So financing $30-35k and will help build my credit a lot. Also I am a car/truck enthusiast so having a nice truck when I can easily afford it is what I would like to do.
Posted on 2/26/14 at 10:13 pm to DanielTosh
quote:
So financing $30-35k and will help build my credit a lot.
The amount you finance does not matter. A $12,000 loan paid on time every month will have the same impact on your credit score as having a $35K loan that is paid on time every month.
Just be truthful and say you want the $50K + vehicle. It's much easier that way.
Posted on 2/26/14 at 10:22 pm to Will Cover
quote:
Just be truthful and say you want the $50K + vehicle. It's much easier that way.
Will, this guy scares me.
I posted in his OT thread with much skepticism. I hope everything works out.
This post was edited on 2/26/14 at 10:23 pm
Posted on 2/26/14 at 10:22 pm to Will Cover
quote:
Just be truthful and say you want the $50K + vehicle. It's much easier that way.
I already said that. There are multiple reasons that I want it. I could see if I made half of what I'm making and owed money to everyone. I have paid everyone off and most of the negatives on my credit report will be off in about 2 weeks so that should help my score also. I called a finance company today and told my entire situation and not did she say I could get the loan but I could get a single digit interest rate. Y'all are judging me off of being a 20-22 year old kid who grew up poor and started making decent money and bought a lot of things and then got laid off. I couldn't find a job paying well enough to pay my bills back then and wrecked my credit. Now I have 7 years experience and a good name so a job won't be an issue anymore. I have been on time with everything the last 4+ years and make more than twice what I was making then.
Posted on 2/26/14 at 10:29 pm to DanielTosh
quote:
Y'all are judging me off of being a 20-22 year old kid
I was once your age and wished somebody would have given me the advice that I am trying to give to you.
Contrary to what I have posted and how you have interpreted it, I'm happy that you can "afford" this vehicle. But what happens, god forbid, if you suffer a life changing event that takes away your ability to earn an income? What happens if your company decides to close up shop one day, without you having a clue that this was about to happen?
Instead of financing a vehicle for $30 to $35K, why don't you take that money that you have to pay cash and buy a used 3 to 4 year old vehicle and start paying yourself back in the amount of $30 - $35K over next 60 months?
What would you rather? A truck that you'll want to get rid of in 5 years that will be worth less than 1/2 of what you paid for it, because you're 22 and your style and perhaps relationship (family - think house, life insurance, child's needs, etc.) situation will change or at a minimum $35K in investments that are working for you? What do you think will offer more security to your spouse? A 5 year old + truck or a fully funded emergency fund?
This post was edited on 2/26/14 at 10:34 pm
Posted on 2/26/14 at 10:37 pm to Will Cover
Tosh, you kept harping on the tax deduction for buying new on the OT, but did you ever consider the opportunity cost that will cover is describing above?
Posted on 2/26/14 at 10:43 pm to Will Cover
I'm not 22. I'm 27 and I know that's still young so I'm not trying to act like some old wise man.That is when I messed up my credit. I highly doubt the 2nd largest company in my field(multibillion dollar company) in the world is going to close shop. I have a 401k with close to 60k(I know it's not enough to last forever) in it plus my fiancé is an RN so in the rare event that something happens to me I can make it. I spend a lot of time in my truck so I want something nice. Plus you can write off more if you buy brand new. I've been disciplined enough to pay off all my debt and have worked my way up to a fairly high paying job and a nice truck is my reward. I have set up a savings account that 35% of my pay is direct deposited in so that's some of the money I will be saving. I plan on setting up auto bill pay for it and I will double up payments on it. I have learned a lot over the last few years and have gotten a lot better. I want a nice truck and that is the one place I plan on spending a little extra.
Posted on 2/26/14 at 10:45 pm to Will Cover
quote:
I was once your age and wished somebody would have given me the advice that I am trying to give to you.
Contrary to what I have posted and how you have interpreted it, I'm happy that you can "afford" this vehicle. But what happens, god forbid, if you suffer a life changing event that takes away your ability to earn an income? What happens if your company decides to close up shop one day, without you having a clue that this was about to happen?
Instead of financing a vehicle for $30 to $35K, why don't you take that money that you have to pay cash and buy a used 3 to 4 year old vehicle and start paying yourself back in the amount of $30 - $35K over next 60 months?
What would you rather? A truck that you'll want to get rid of in 5 years that will be worth less than 1/2 of what you paid for it, because you're 22 and your style and perhaps relationship (family - think house, life insurance, child's needs, etc.) situation will change or at a minimum $35K in investments that are working for you? What do you think will offer more security to your spouse? A 5 year old + truck or a fully funded emergency fund?
He's ~29, he wrecked his credit when he was 20-22.
Posted on 2/26/14 at 10:47 pm to Teddy Ruxpin
quote:
Tosh, you kept harping on the tax deduction for buying new on the OT, but did you ever consider the opportunity cost that will cover is describing above?
It doesn't matter. I want a nice truck and I was advised to buy a brand new one. I don't blow money anymore like I used to. As much as I work I want to spoil myself some and a nice truck is how I want to do it.
Posted on 2/26/14 at 10:48 pm to DanielTosh
I'm not going to tell a man he can't do something nice for himself, and a vehicle is certainly the "wrong" place to do it(but hey, you live once and I understand that), but what worries me is that on the OT, you showed a complete lack of patience to wait for your bankruptcy to fall off your credit report this summer.
I know you said you have no vehicle now, but not showing the "maturity" to buy used now and avoid this whole bad credit car buying hassle and get this nice truck a year(s) or so from now just rubs me the wrong way.
I just wouldn't want to deal with the hoops unless I had to wait 3 years on that bankruptcy or something analogous.
I know you said you have no vehicle now, but not showing the "maturity" to buy used now and avoid this whole bad credit car buying hassle and get this nice truck a year(s) or so from now just rubs me the wrong way.
I just wouldn't want to deal with the hoops unless I had to wait 3 years on that bankruptcy or something analogous.
This post was edited on 2/26/14 at 10:51 pm
Posted on 2/26/14 at 10:50 pm to Dead Mike
quote:
He's ~29, he wrecked his credit when he was 20-22.
Yes I'm almost 28. I really messed it up bad at 20. I started being smarter with my money and paying off debts at 23-24.
Posted on 2/26/14 at 10:52 pm to DanielTosh
quote:
I'm not 22. I'm 27 and I know that's still young so I'm not trying to act like some old wise man.That is when I messed up my credit. I highly doubt the 2nd largest company in my field(multibillion dollar company) in the world is going to close shop. I have a 401k with close to 60k(I know it's not enough to last forever) in it plus my fiancé is an RN so in the rare event that something happens to me I can make it. I spend a lot of time in my truck so I want something nice. Plus you can write off more if you buy brand new. I've been disciplined enough to pay off all my debt and have worked my way up to a fairly high paying job and a nice truck is my reward. I have set up a savings account that 35% of my pay is direct deposited in so that's some of the money I will be saving. I plan on setting up auto bill pay for it and I will double up payments on it. I have learned a lot over the last few years and have gotten a lot better. I want a nice truck and that is the one place I plan on spending a little extra.
Ok, then your nice truck is your reward. Trying to justify it as the wise financial decision that it's not (building credit, "writing off", etc.) is silly.
The world's second largest company in your field could decide to close up some portion of its operations, shite happens. 60k could be more than a solid emergency fund depending on your expenses per month, but not in a 401k.
Posted on 2/26/14 at 10:53 pm to DanielTosh
quote:
I highly doubt the 2nd largest company in my field(multibillion dollar company) in the world is going to close shop.
quote:
Blockbuster LLC, formerly Blockbuster Entertainment Inc.,[2] is an American-based provider of home movie and video game rental services, originally through video rental shops (both owned and franchised), later adding DVD-by-mail, streaming, video on demand and cinema theater.[4] At its peak in 2004, Blockbuster had up to 60,000 employees and more than 9,000 stores.[5][6]
Due to competition from companies such as Netflix and Redbox, Blockbuster lost significant revenue and filed for bankruptcy on September 23, 2010.[7] On April 6, 2011, the company and its remaining 1,700 stores were bought by satellite television provider Dish Network at auction for $233 million and the assumption of $87 million in liabilities and other obligations.[8] The acquisition was completed on April 26, 2011.[9] Dish closed 200 branches in July 2011,[10] 500 more in the first half of 2012[11] and another 300 in 2013.[12] In November 2013, it was announced that the remaining 300 company-owned stores would close (though 50 franchise-owned stores would continue to remain open). The company's DVD-by-mail rental service will cease operations as well.
quote:
Plus you can write off more if you buy brand new
Spend more so you can write off more. That's a novel concept.
quote:
my fiancé is an RN so in the rare event that something happens to me I can make it.
Fact, more than 1/2 of today's marriages don't last. While I don't wish for anyone to ever go through a divorce, until you are married ... until you share everything ... you better start planning for yourself until you are joined as one.
At the end of the day, it's your decision and you have to do what's best for you.
When I was your age, I pissed away $60K on a vehicle that I thought I had to have. I got it and 3 years later, I sold it, for a considerable loss. It was one of the worst financial decisions I have ever made in my life and I still kick myself over it. It was the equivalent of throwing out $200.00 out of the window every week for 3 years straight.
Posted on 2/26/14 at 10:53 pm to Teddy Ruxpin
I've done a lot of research on it lately and a fair amount of time when a BK falls off of your credit report it hurts your credit score. It could take a while to bring it up anyway. If I get an 8% loan and double up on the payments I wouldn't get hurt that bad. I know I can be disciplined enough to do it because I had a Harley with a cosigner that I bought at 22 when I was blowing money like crazy and I made myself pay it off 2 years early.
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