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Handsome Rob

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Looking at the possibility of trying to chase something like this. Of course, spring/summer, perhaps even fall after trying to clean up for a bit.

 

2010 Hyundai Elantra Touring

Purchase price after all applicable fees and taxes: $21,530,53

Down-payment: $2000 (Possibly more)

Term: 60 Months

Their quote is based on 'nominal interest rate': 3.45%

 

Monthly payment: $262.04

 

That is a quasi-lease titled, 'future value financing.'

 

Balance remaining at end of term: $6,068.54

 

That value to be paid, refinanced or used as trade-in for new vehicle purchases.

 

Bending a few of the preferred rules on something like that:

 

-60 months as opposed to 48.

-$262 is a little higher, still well within the scope of affordability. Curious to see what the rate I get quoted if approved, does to that figure.

-Trying to figure out if this 'Future value financing' is a very bad decision, any hidden nasties.

-Not certain what this type of financing would do to chances of approval.

 

Straight financing puts the monthly quote at $350.07, combined with whatever rate I end up getting down the road is starting to get rather high.

 

Anybody have any thoughts?

 

Figuring to take Credit hard copies in to talk to Scotia. Have to wait and see how disputes with TU go first though.

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LOL I'll have to actually read this, but I got choked at Elantra. lol I used to work as a nanny for a family who owned a Hyundai dealership. After dropping the transmission out of 2 automatic Elantras and having half a dozen others crap out of me (keep in mind they were all demos under 3 months old!) I just can't stomach an Elantra. LOL If you're looking for a car in this price range might I point you toward a Kia? :lol: The rest of the Hyundai's are decent driving cars, but Elantras make me twitch and have nightmares. LOL I'll read the rest of your post more seriously later and respond. lol

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Fair enough Quasei. Looking at the bottom end of new auto's obviously. Shying away from Kia's because the value just plummets. Resale value on the Hyundai's doesn't appear to be moving much.

 

Things like the accent, a little bit too small and plastic for me. I want a long term auto to take camping and put a kayak on top eventually.

 

Dunno, just feeling my way. Haven't seen really any of these for sale used, resale stays high. From what I was reading, with a poorer credit score, a new car appears to be far more likely to net approval/realistic rate than a used correct?

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Quasei, if you read this first, disregard it.

 

Un-realistic, and not the right decision for me by a longshot. Thinking out loud on a forum, I do that too much.

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Looking at the possibility of trying to chase something like this. Of course, spring/summer, perhaps even fall after trying to clean up for a bit.

 

2010 Hyundai Elantra Touring

Purchase price after all applicable fees and taxes: $21,530,53

Down-payment: $2000 (Possibly more)

Term: 60 Months

Their quote is based on 'nominal interest rate': 3.45%

 

Monthly payment: $262.04

 

That is a quasi-lease titled, 'future value financing.'

 

Balance remaining at end of term: $6,068.54

 

That value to be paid, refinanced or used as trade-in for new vehicle purchases.

 

Bending a few of the preferred rules on something like that:

 

-60 months as opposed to 48.

-$262 is a little higher, still well within the scope of affordability. Curious to see what the rate I get quoted if approved, does to that figure.

-Trying to figure out if this 'Future value financing' is a very bad decision, any hidden nasties.

-Not certain what this type of financing would do to chances of approval.

 

Straight financing puts the monthly quote at $350.07, combined with whatever rate I end up getting down the road is starting to get rather high.

 

Anybody have any thoughts?

 

Figuring to take Credit hard copies in to talk to Scotia. Have to wait and see how disputes with TU go first though.

 

 

Sounds like to me, your describing what we in the States would call a balloon contract. If that's what it is, then I would only recommend a max term of 36 months.

 

As an opinion.

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Rob,

 

You know that I'm a supporter of you getting a newer vehicle for a variety of reasons which mostly involve money - lower insurance costs for the most part, lower maintenance costs, better gas mileage, etc.

 

I'm a tad leary of the whole this is your interest rate now and it'll raise later thing. Personally I'd be more comfortable with a loan that I knew was either going to stay a constant payment or decrease over time. You have no idea what your future situation will be so I'd really hesitate to cheer on a plan to have higher payments later especially if you're concerned that the pmts (speaking about the $350ish) right now might be tight.

 

Definitely continue to think out loud while you sort through this though! IMHO $21K is far too much to spend on an Elantra anyway. lol Have you considered something like maybe a Cobalt or a Mazda5? Just like buying a house I suggest you go test drive a bundle of them - make sure you know exactly which options you want and find a car that allows you to pick and choose without being forced into paying for a ton of options you don't want or are just plain meh about having. Visit some dealers. Bring home the brochures. Sit on it for a couple months while waiting for the spring sales, and then go back to it.

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LOL.....now it's my turn to choke. The Cobalt is a replacement for the Cavalier, which I've had never ending bad experiences with. I've actually spent a lot of time fixing them myself.

 

I'm leaning in the direction of something like a 2009 Volkswagen Golf. If I get lucky, might get something that was never sold. Otherwise, it's still very low KM's, already had the major depreciation. I absolutely adore VW's, had many of them in my teen years, never seen a more durable car.

 

In my experiences, it's everything that Honda trys to be. Even new, it's an $18,000 price tag, which on a rate ballparked at around 10% is still affordable. I don't think I would consider financing unless I could get a rate in that neighborhood.

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Haha! I haven't driven a Cobalt myself, but I've been a passenger in them. Have a few friends with them and they've not had troubles. Everyone has their horror stories for every car though, right? Cavaliers I cannot stomach. I do like the seats in the Cobalt though. If I were to walk onto a lot and buy a car today it would probably be a Malibu or a Jetta. I'm so in love with Jettas it's a tad disgusting, but I far prefer the seats and road-hugging of the Malibu. I tend to be a speed demon and love driving back twisty roads. lol I like me a sensible car. :huh:

 

The Golf is a really nice little car. Definitely handles well. I approve. LOL Definitely look for a holdover that wasn't sold. That was a really great idea you had there. Great deals on those especially getting closer to when the 2011's come out. Basically the unmovable car so they'll sell them rock bottom just to get the lot space back. And I so love that VW's are the cars that just keep on ticking. That's what I like about Jettas - they take one heck of a beating and just keep on going. lol It's like they want to be Land Rovers when they grow up! haha!

 

Have you considered checking out the Police auctions? On occasion you'll get cars that have never been driven, but were unlucky victims in some bizarre crime. It's also where a lot of used lots get their cars so might as well get them without the mark-up right? Most of the cars haven't been trashed - if they've been involved i something like a swimming incident or hanging out at the bottom of the lake they'll let you know. Another place to start is if you contact the insurance company you plan to use you might find a sweet deal. Plenty of cars are listed as "written off", but aren't written off and it's cheaper for the insurance company to replace than repair even though it's something entirely cosmetic that caused the write off. Also, sometimes the adjusters will look for a buyer and sell the car to recoup the costs of replacing the car for the customer. It doesn't hurt to at least check into those too - you'll find a lot of these cars at Police auctions as well. As well, since they wrote the car off they also know the specifics of the damage so there's no trouble for insuring it. Seriously great cars at those auctions though. Wouldn't hurt to check out one or two in your local area.

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