Application for credit

[Mr Nice]

Originally Posted By: grampi
Originally Posted By: Mr Nice
Originally Posted By: Brybo86
Originally Posted By: SatinSilver

Borrowing against your retirement account is another option. Usually a short term 2-3 yr loan term. Interest is paid back to yourself.

I thought borrowing on retirement essentially took the borrow balance out of the market?
Which would negate the idea of leaving money in mutual funds to continue earning 15% etc


I agree will not touching retirement money to buy a car.


None of my retirement money will be going for any vehicles...


I know that, but some people (not you) will use retirement funds to buy that new camper, RV, Harley, SUV, fun car,..etc.. and realize they made a bad financial decision.

 

[Tdbo]

If you own a home, the best way to accomplish your objective is through a HELOC.
Interest is much lower than it would be on a car of that vintage (if you could even get anyone to write a loan on one.) It is also much easier to access the money when you find the car that you want.
IMO, second option would be a 0% CC and pay it off quickly.

 

[Nick1994]

Why not buy it now with 75% (or whatever it would be) financed and instead of putting money aside for it waiting, buy it now with a low interest rate loan?

 

[SatinSilver]

Originally Posted By: Nick1994
Why not buy it now with 75% (or whatever it would be) financed and instead of putting money aside for it waiting, buy it now with a low interest rate loan?


Prob wouldn't be low interest since the newest would be 13 years old. So probably looking at 9% on 16k or so. Not sure if he's saved anything up for it at this point.

 

[grampi]

Originally Posted By: Nick1994
Why not buy it now with 75% (or whatever it would be) financed and instead of putting money aside for it waiting, buy it now with a low interest rate loan?


Because I'd rather pay cash for as much of it as possible...

 

[Al]

Originally Posted By: grampi
Originally Posted By: Al
Originally Posted By: Panzerman
They will not even want a car that old so now you will be delving into the world of personal credit loans which are higher but if you are putting down 75% of the purchase price still couldn't be alot of money. Probably talking anywhere from 5.5% to 9.5% depending on your credit.
Not alot of money to be paying debt on though. I think you are really over thinking this.
Is a couple percent a deal breaker,if it is maybe you should look for a cheaper cash deal.

This and honestly at your age if you have to borrow for a 2000 Corvet you cant affford it.


This could be one of your dumbest posts...you do realize I'm not talking about borrowing money for a Cavalier, right? Corvettes are not cheap, even those that are 15-20 years old...


Thanks for making my point.= you can't afford it.

 

[CKN]

Originally Posted By: bubbatime
Originally Posted By: user52165
Hopefully not threadjacking, but..................

In my state, even if you pay cash (check) in full for new car - in my case $35K - you still have to complete a credit application.

Is this the norm elsewhere?


Thats not the norm anywhere. Someone was lying to you.

Them- "You have to fill out this credit application"
Me- "No, I'm buying cash."
Them- "No its required. You MUST fill out a credit application"
Me- "NO. I am NOT applying for credit. I am paying cash. You either accept my cash payment, or I find a dealer that will. Are we clear?"


If the CASH is in the form of a personal check-it's pretty standard.

 

[Andrew1972]

Bad plan borrowing for a 15-20 year old vehicle. How are you going to be able to pay not if but when it breaks down or is this to leave safety cushion. You basically are getting a personal loan, another mentioned loan is Heloc against house.

Banks can’t sell in case you default.

 

[Wolf359]

Originally Posted By: grampi
Originally Posted By: Al
Originally Posted By: Panzerman
They will not even want a car that old so now you will be delving into the world of personal credit loans which are higher but if you are putting down 75% of the purchase price still couldn't be alot of money. Probably talking anywhere from 5.5% to 9.5% depending on your credit.
Not alot of money to be paying debt on though. I think you are really over thinking this.
Is a couple percent a deal breaker,if it is maybe you should look for a cheaper cash deal.

This and honestly at your age if you have to borrow for a 2000 Corvet you cant affford it.


This could be one of your dumbest posts...you do realize I'm not talking about borrowing money for a Cavalier, right? Corvettes are not cheap, even those that are 15-20 years old...



The whole point of this thread is somewhat dubious. Most people who haven't been deadbeats have decent credit, probably at least in the 650-750 range. So as long as you don't have a history of being late with paying bills, your credit score is probably fine. If you apply for credit, it counts as a hard pull and will lower your credit score by between 3-5 points which probably won't make that much of a difference in your score and those hard pulls go off your report after 2 years so it becomes a moot point. So there's really no point applying now for credit you may need in 2 years, either you will qualify then or you won't. And as others said, there's a limit to how old a car a bank will finance, Penfed's limit is a 2013. If it's too old, you won't get a regular low interest auto loan on it. And if it's 20k and it's a toy, you should probably have the money to pay for it in cash. If you're not buying for 2 years, save an extra $200 a month and you should have the rest of the 25%.

 

[grampi]

Originally Posted By: Al
Originally Posted By: grampi
Originally Posted By: Al
Originally Posted By: Panzerman
They will not even want a car that old so now you will be delving into the world of personal credit loans which are higher but if you are putting down 75% of the purchase price still couldn't be alot of money. Probably talking anywhere from 5.5% to 9.5% depending on your credit.
Not alot of money to be paying debt on though. I think you are really over thinking this.
Is a couple percent a deal breaker,if it is maybe you should look for a cheaper cash deal.

This and honestly at your age if you have to borrow for a 2000 Corvet you cant affford it.


This could be one of your dumbest posts...you do realize I'm not talking about borrowing money for a Cavalier, right? Corvettes are not cheap, even those that are 15-20 years old...


Thanks for making my point.= you can't afford it.


Please stop making a fool of yourself. Do you own a home? If so, did you pay cash for it? If not, then you couldn't afford it. See how stupid you sound?

 

[grampi]

Originally Posted By: madRiver
Bad plan borrowing for a 15-20 year old vehicle. How are you going to be able to pay not if but when it breaks down or is this to leave safety cushion. You basically are getting a personal loan, another mentioned loan is Heloc against house.

Banks can’t sell in case you default.


Borrowing the entire amount for a 15-20 year old vehicle is not good, I agree, but that isn't what I'm doing. I will have cash for roughly 75% of the purchase, and only borrowing 25%. I don't see a problem with that...

 

[Delta]

There are banks that will loan on an almost 20 year old car, even with lower interest (5%, and that is IMO low for an old vehicle) if you have a good credit score. Credit unions will typically do a 36mo max loan on a vehicle like that...

 

[Nickdfresh]

Originally Posted By: grampi
Originally Posted By: Alfred_B
When you say "loan terms", what exactly do you want to know?


I plan on buying a '98-'04 Corvette. I need to know if 1) they will loan money on a car that old and


Probably not, but I can check for you...

Quote:
2) if so, what would be the interest rate,


Relatively high, regardless of credit score, if you can get one at all...

Quote:
...and 3) would it be approved. I'm not as concerned about #3 as that would be based more on my credit than any other factors, which is excellent, but numbers 1 and 2 concern me...


I'm sure your credit may be "excellent" but the score if not the only factor. Have you had auto loans in the past?

 

[Mr Nice]

Have thought about buying a C6 Corvette ?

 

[grampi]

Originally Posted By: Mr Nice
Have thought about buying a C6 Corvette ?


Thought about it? Not really, they are out of my price range, and besides, I like the looks of the C5 better anyway...

 

[OVERKILL]

Originally Posted By: Tdbo
If you own a home, the best way to accomplish your objective is through a HELOC.


This would seem like the obvious solution if the OP needs to borrow money to complete his purchase

 

[Wolf359]

Originally Posted By: grampi
Please stop making a fool of yourself. Do you own a home? If so, did you pay cash for it? If not, then you couldn't afford it. See how stupid you sound?


Have you heard of good debt and bad debt? Good debt is for things like homes or for a car where you need it to get to work. Bad debt would for toys or things that you shouldn't be financing like meals out. It's not a sound financial decision, but many people make unsound financial decisions all the time so that it becomes common place. Basically taking on debt that will yield dividends in the future like a house or college education or even a car to drive to work is sound financial debt.

 

[Al]

Originally Posted By: grampi

Please stop making a fool of yourself. Do you own a home? If so, did you pay cash for it? If not, then you couldn't afford it. See how stupid you sound?

I guess we are of a different generatioin. I won't borrow money for somelthing frivilous. I suppose I would borrow on a car only if I needed another car. But I have never borrowed for a car. I bought my first car (a 1969 Camaro) at the age of 23...cash..6 months after I started my first "real" job. To each his own.

 

[Mr Nice]

Only problem is that you can't enjoy your Covette during the cold winter months in Ohio with all the snow and ice.

I'm thinking about a low mileage C6 Grand Sport, they are difficult to find stock and not modified.

 

[grampi]

Originally Posted By: Wolf359
Originally Posted By: grampi
Please stop making a fool of yourself. Do you own a home? If so, did you pay cash for it? If not, then you couldn't afford it. See how stupid you sound?


Have you heard of good debt and bad debt? Good debt is for things like homes or for a car where you need it to get to work. Bad debt would for toys or things that you shouldn't be financing like meals out. It's not a sound financial decision, but many people make unsound financial decisions all the time so that it becomes common place. Basically taking on debt that will yield dividends in the future like a house or college education or even a car to drive to work is sound financial debt.


Again, I would agree if I were financing the entire purchase price, but financing $5K for a $20K vehicle isn't that big of a deal...I know people who finance a vehicle's entire purchase price AND go upside down on a trade-in...now that's ridiculous...