Application for credit

[grampi]

Originally Posted By: 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.



My Corvette will basically be a replacement toy for my motorcycle. I decided to quit riding motorcycles because there are too many unsafe, distracted drivers on the road these days, so I sold mine a couple months ago. The Vette will be garaged all winter just like the bike was...

 

[Wolf359]

Originally Posted By: 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...


If you can afford something, you just pay for it. If you can't afford it, you finance it. Houses and cars for work fall into a different category. It's not like you have an option to just live without a home. Purchasing a home makes long term financial sense as the real alternative is to keep renting. Same with financing a car and being upside down, at least that allows you to go to work and make money to pay it off. When you're just buying something as a toy, then it doesn't make sense to finance it. It means you can't afford the toy. You could still go ahead on the theory that because other people do it, it must be ok. But it's not sound financial advice that anyone would give you.

 

[RooflessVW]

Or maybe you can afford it, but you would rather leave your cash where it's at.

Banks are basically giving away free money to vehicle buyers with good credit.

 

[Mr Nice]

Originally Posted By: rooflessVW
Or maybe you can afford it, but you would rather leave your cash where it's at.

Banks are basically giving away free money to vehicle buyers with good credit.


SP500 investment at over 15% YTD.... used car loan at 7%

Ultimately its his money to spend and enjoy. He'll enjoy that Vette rather that driving a Civic econobox.

 

[grampi]

Originally Posted By: Wolf359
Originally Posted By: 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...


If you can afford something, you just pay for it. If you can't afford it, you finance it. Houses and cars for work fall into a different category. It's not like you have an option to just live without a home. Purchasing a home makes long term financial sense as the real alternative is to keep renting. Same with financing a car and being upside down, at least that allows you to go to work and make money to pay it off. When you're just buying something as a toy, then it doesn't make sense to finance it. It means you can't afford the toy. You could still go ahead on the theory that because other people do it, it must be ok. But it's not sound financial advice that anyone would give you.


To say someone can or can't afford something, you'd have to know every aspect of their financial situation. You can't say they can't afford something just because they're borrowing money to make a purchase. Believe me, I CAN afford a $20K Corvette...

 

[grampi]

Originally Posted By: Mr Nice
Originally Posted By: rooflessVW
Or maybe you can afford it, but you would rather leave your cash where it's at.

Banks are basically giving away free money to vehicle buyers with good credit.


SP500 investment at over 15% YTD.... used car loan at 7%

Ultimately its his money to spend and enjoy. He'll enjoy that Vette rather that driving a Civic econobox.



The Vette will be my retirement gift to myself...and I might end up with a Civic as my daily driver once my Corolla wears out...

 

[yeti]

grampi -- you (and 3 or 4 others) often resort to making comments, such as, "see how stupid you sound",and "stop making a fool of yourself", when a comment is not what you want to hear.that's cool, as these posts are funny.

re: your financing -- as stated, a heloc would be ideal. if not do-able, find the cheapest financing available.since the amount of money is small, interest rate should not be a deal killer. as long as it won't squeeze you financially, and it won't, go and buy your toy.life's too short.enjoy your vette, man.

 

[Silverado12]

FWIW I recently took out a personal loan for a car project for $3,000 and the rate was 8%. It sounds high, but I paid it off in less than 6 months so the interest wasn't really a concern. I just didn't want to borrow from my credit card for God knows what rate.

 

[Mr Nice]

Originally Posted By: Silverado12
FWIW I recently took out a personal loan for a car project for $3,000 and the rate was 8%. It sounds high, but I paid it off in less than 6 months so the interest wasn't really a concern. I just didn't want to borrow from my credit card for God knows what rate.


What about the money in your savings or checking account ?

 

[RooflessVW]

Originally Posted By: Mr Nice
Originally Posted By: Silverado12
FWIW I recently took out a personal loan for a car project for $3,000 and the rate was 8%. It sounds high, but I paid it off in less than 6 months so the interest wasn't really a concern. I just didn't want to borrow from my credit card for God knows what rate.

What about the money in your savings or checking account ?

And why don't you know your credit card's rate?

 

[Wolf359]

Originally Posted By: rooflessVW
Originally Posted By: Mr Nice
Originally Posted By: Silverado12
FWIW I recently took out a personal loan for a car project for $3,000 and the rate was 8%. It sounds high, but I paid it off in less than 6 months so the interest wasn't really a concern. I just didn't want to borrow from my credit card for God knows what rate.

What about the money in your savings or checking account ?

And why don't you know your credit card's rate?


Well not knowing isn't a big deal. I have no idea what mine are. I never carry a balance so it doesn't matter. For 3k, I always get those balance transfer checks in the mail and usually it's like 2-3% for 18 months at 0% interest which translates to just 1.3-2% interest over the life of the loan. That's probably better than trying to get a loan for 3-5k. If you still need the money after 18 months, you just roll it over into another one.