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Started By
Message
Bad credit auto loan, big down payment
Posted on 2/25/14 at 11:31 pm
Posted on 2/25/14 at 11:31 pm
Hypothetically, If someone had a 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. Any auto finance guys on here? Also about what would the interest rate be?
7
Posted on 2/25/14 at 11:46 pm to DanielTosh
Probably close to 7% APR
Posted on 2/25/14 at 11:49 pm to DanielTosh
God you are bad with money
Posted on 2/26/14 at 12:26 am to Mr.Perfect
quote:
God you are bad with money
I messed up bad when I was 20-22 years old and I'm still recovering from it. I have gotten a lot better since then. A lot of the money I made was paying off debts from years ago. I know I've made some dumb decisions and this truck may be one but I know I will pay it off in less than 2 years.
Posted on 2/26/14 at 7:37 am to DanielTosh
Buy a 15k truck, get your credit score in the high 700's, reward yourself then. Somebody spending 50k on a truck with a credit score in the 500's is not wise. Even if you do pay it off in two years and get 7% still paying 3k in interest
Posted on 2/26/14 at 7:46 am to ItNeverRains
quote:
Buy a 15k truck, get your credit score in the high 700's, reward yourself then. Somebody spending 50k on a truck with a credit score in the 500's is not wise. Even if you do pay it off in two years and get 7% still paying 3k in interest
So you want him to spend $15k on a truck that will depreciate while he builds his score up, and then buy a $50k with what will now be less than $15k down payment?
Even if he somehow got all his money back on the $15k truck, getting 2% apr and paying it off in 2 years will still cost $750 in interest. So he's looking at a max potential savings of $2250, and that's if he somehow gets what he paid for the old truck.
Posted on 2/26/14 at 8:03 am to LNCHBOX
quote:
So you want him to spend $15k on a truck that will depreciate while he builds his score up, and then buy a $50k with what will now be less than $15k down payment?
What will depreciate faster, 15k truck or 50k truck? In two years, a 15k truck will be worth 10, and 50k truck will be worth 35k. Coupled with the 3k he would save on 7% interest next two years! he'd be much wiser waiting two years building up credit score! holding out for 0.9 - 1.9% deal and saving over the long run, having more options than he does now.
Edit: Where did you get 2% apr? Who gives a guy in the 500's a 2% loan?
This post was edited on 2/26/14 at 8:06 am
Posted on 2/26/14 at 8:06 am to ItNeverRains
quote:
What will depreciate faster, 15k truck or 50k truck? In two years, a 15k truck will be worth 10, and 50k truck will be worth 35k.
That doesn't really matter if he's going to buy the $50k truck regardless.
quote:
Coupled with the 3k he would save on 7% interest next two years! he'd be much wiser waiting two years building up credit score! holding out for 0.9 - 1.9% deal and saving over the long run, having more options than he does now.
Math disagrees with you, but OK.
Posted on 2/26/14 at 8:07 am to LNCHBOX
quote:
, getting 2% apr
with a 580?
good luck
Posted on 2/26/14 at 8:08 am to yellowfin
quote:
with a 580?
good luck
haven't had your coffee yet? That was assuming he took the time to build his credit back up.
Posted on 2/26/14 at 8:10 am to LNCHBOX
quote:
haven't had your coffee yet? That was assuming he took the time to build his credit back up.
That doesn't really matter if he's going to buy the $50k truck regardless.
Posted on 2/26/14 at 8:12 am to LNCHBOX
if his credit is as bad as he says it's going to take a long time before he's going to get 2%
this guy is bad with money and from reading this same post on the ot he hasn't learned his lesson...some people just aren't money smart
this guy is bad with money and from reading this same post on the ot he hasn't learned his lesson...some people just aren't money smart
Posted on 2/26/14 at 8:14 am to yellowfin
quote:
if his credit is as bad as he says it's going to take a long time before he's going to get 2%
If you bother reading the thread, I'm not the one telling him to hold out for 1 or 2% APR.
I think it's pretty clear the OP is going to buy the expensive truck regardless, so my point is he will spend the least amount of money by just buying it now rather than buy a used truck while he works on his credit.
Posted on 2/26/14 at 8:15 am to yellowfin
quote:
if his credit is as bad as he says it's going to take a long time before he's going to get 2% this guy is bad with money and from reading this same post on the ot he hasn't learned his lesson...some people just aren't money smart
Yep. And he won't pay it off in 2 years, there will be some new toy in that time span, and he'll be broke making 6 figures.
Posted on 2/26/14 at 8:16 am to LNCHBOX
I really can't figure out what you are arguing from reading those posts honestly
Posted on 2/26/14 at 8:19 am to yellowfin
quote:
I really can't figure out what you are arguing from reading those posts honestly
I'm just as confused, maybe I need Kennah coffee
This post was edited on 2/26/14 at 8:19 am
Posted on 2/26/14 at 8:19 am to yellowfin
quote:
I really can't figure out what you are arguing from reading those posts honestly
ItNeverRains tells the guy to spend $15k on used truck, build his credit, then buy $50k truck.
I say that will end up costing OP more money, and I outlined why.
Posted on 2/26/14 at 8:24 am to DanielTosh
Bad credit and buying a 50k truck. Sigh.
Posted on 2/26/14 at 8:27 am to Camp Randall
quote:
Bad credit and buying a 50k truck. Sigh.
All while admitting you "used" to be bad with money. Yikes.
Posted on 2/26/14 at 8:38 am to Mr.Perfect
And coming up with a username.
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