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Buying a Car With No Money Down


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From what i'm guessing.... (and just assuming here) the loan works like this...

 

 

Let's say you buy a $30,000 Car. With the interest "front loaded" they'd calculate the cost of interest (let's say 5.8% over 72 months) over the length of the loan, and add it onto the purchase price, so... the loan would effectively be for $35,594.

 

That's your total payoff amount. Although.. I don't understand why anyone would want a loan like that.

 

Ummmmm just in case you don't know All auto loans with captives, major banks and credit unions are simple interest loans. The interest is all front loaded on all of them.

Marv, please dumb that down for me. I don't understand.

 

What's the difference between interest on a simple interest loan and, say, a personal loan from NFCU?

 

Be gentle.

 

 

^It's a little surprising to me too, if I understand that right. I'd never would want a loan like that, and I don't understand why anyone else would either. What's the point of sending extra money every month for principal, if you don't save any money on Interest?

 

It's just like how.. you get a 30-Year Mortgage instead of a 15-Year, so.. you have the options of making smaller payments.. but when your doing well, you send more in every month. I certainly don't want a Auto Loan if they don't work like that.

RIP - Pay Option ARM's :(

 

 

^It's a little surprising to me too, if I understand that right. I'd never would want a loan like that, and I don't understand why anyone else would either. What's the point of sending extra money every month for principal, if you don't save any money on Interest?

 

That's how auto loans work.

 

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I'm more into the leasing thing. Get a brand new vehicle every 2 years or so when you get bored of it.

It's generally a terrible idea financially to get a new car because you are "bored of" your current one.

Besides the boring factor... Let's look at these numbers...

 

New car lease. MSRP $32,000. Monthly payments for 24 months $320.(all included in lease with no money down) 8.3 years lease compared to owning. Using this example with an Avalon. KBB estimates around 8K value after 8 years. $1000 more a year to have a new car and security that your vehicle is covered plus the excitement of a new vehicle works for me. $2.73 more a day.

 

I'll skip Starbucks

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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

 

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

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Try calculating the actual dollar amounts. See if you come up with the same numbers. You have my curiosity going..

 

What do you mean?

I calculated how much I've paid so far, and then there's a line item that says "interest paid to date".

I just divided to get that percentage.

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Try calculating the actual dollar amounts. See if you come up with the same numbers. You have my curiosity going..

What do you mean?

I calculated how much I've paid so far, and then there's a line item that says "interest paid to date".

I just divided to get that percentage.

Are you saying you've paid $31.50 per every $100.00 of the payments that you've made to date? At %1.99?

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Try calculating the actual dollar amounts. See if you come up with the same numbers. You have my curiosity going..

What do you mean?

I calculated how much I've paid so far, and then there's a line item that says "interest paid to date".

I just divided to get that percentage.

Are you saying you've paid $31.50 per every $100.00 of the payments that you've made to date? At %1.99?

 

 

Yes to the first, no to the second. It's 2.99%

 

EDIT: I now recognize the confusion. I'll be back in 5 min with more info.

Edited by CreditNewb15
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I'm an salamander. I was getting total payments from one source and interest paid ytd from another.

Plus, ytd is year to date, not total like I was thinking. Duh.

 

Interest rate: 2.99%

principal ytd: $1315

interest ytd: $236

 

$236/$1551

Edited by CreditNewb15
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I'm an salamander. I was getting total payments from one source and interest paid ytd from another.

Plus, ytd is year to date, not total like I was thinking. Duh.

 

Interest rate: 2.99%

principal ytd: $1315

interest ytd: $236

 

$236/$1551

 

Out of curiousity I crunched the numbers on my loan.

 

Used auto loan from DCU.

Rate 2.24%

Principal: $1812.45

Interest: $217.15

 

Of course the length of the loan and principle balance will affect the interest. In a 65 month loan I've already paid $217 out of the total $970 in interest in only 8 payments.

Edited by EricDET
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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

 

 

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

How many cars have you personally purchased in your lifetime?

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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

How many cars have you personally purchased in your lifetime?

 

 

Quite frankly, I don't understand the relevance. All I said, was other dealerships have similar offers in my original post, and then posted a response about checking out other dealers in my 2nd. You know.. no one should go into a dealership with a Car in mind, they should look around, and weigh their options. Especially, with so many cars priced around the same point.

 

Beyond that... I don't think anything I've done, is really any of your business.

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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

How many cars have you personally purchased in your lifetime?

Quite frankly, I don't understand the relevance. All I said, was other dealerships have similar offers in my original post, and then posted a response about checking out other dealers in my 2nd. You know.. no one should go into a dealership with a Car in mind, they should look around, and weigh their options. Especially, with so many cars priced around the same point.

 

Beyond that... I don't think anything I've done, is really any of your business.

So the answer is 0. I figured your parents bought you a car and you had no first hand experience.

 

Your lack of experience is relevant because your advice is off base.

 

There is nothing wrong with going into a dealership knowing what car you want.

 

Price is not the only factor when buying a car, and don't confuse price with value.

 

Allowing multiple dealers to run your credit could result in 30-40 inquiries. While FICO will merge them for scoring purposes if they are coded correctly, upon manual review they still show up as individual inquiries. It also gets you an auto denial with card issuers like Citi.

Edited by mendelssohn
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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

How many cars have you personally purchased in your lifetime?

Quite frankly, I don't understand the relevance. All I said, was other dealerships have similar offers in my original post, and then posted a response about checking out other dealers in my 2nd. You know.. no one should go into a dealership with a Car in mind, they should look around, and weigh their options. Especially, with so many cars priced around the same point.

 

Beyond that... I don't think anything I've done, is really any of your business.

So the answer is 0. I figured your parents bought you a car and you had no first hand experience.

 

Actually, I purchased my own car, thank you very much. And I've never had a single Auto Loan either.

 

I actually obtained not one, but NINE different quotes from dealerships for the exact same car. And I had the lowest offer matched... I think I might know a thing or two.

 

And this is not even counting the fact, that I have tagged along with many friends, and sometimes family while they have purchased a car. I've actually been to (3) Dealerships, within the last six months with people.

Allowing multiple dealers to run your credit could result in 30-40 inquiries. While FICO will merge them for scoring purposes if they are coded correctly, upon manual review they still show up as individual inquiries. It also gets you an auto denial with card issuers like Citi.

 

I actually just assumed it was common sense around here, to not allow a Dealership to run your credit until your actually serious. And even then, it's better to go pre-approved with a bank, and check out their (the dealership) website beforehand.. to see if there is a "better offer". If so, you'd allow them to apply for Credit through that specific bank. If not.. you simply go with your pre-approved offer.

 

Beyond all of that, instead of trying to criticize others.. Perhaps you should take responsibility for your own actions. You know.. I'm a honest person, and I can actually say I did not fleece some bank. I didn't steal money and not pay it back. You can't exactly say the same, can you?

Edited by Mitch19
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Truthfully it was the roominess of the vehicle. I am 6'4" and 250 pounds. Not many small cars have enough room for me in the front and adults behind me. And the stick shift is a bonus!

Sent from my VS985 4G using Tapatalk

Color me intrigued: I'm in the market for a replacement vehicle and a small stick that can fit a big guy such as my husband on occasion is the holy grail in my book. Care to share your score information that got you the 0% rate? I'm on mobile and can't see siggys if they're there.

Call enough General Motors Government Motors Dealerships, and you'll hear the offer eventually. Someone I know purchased a new Silverado (2008) and Suburban (2007) with the offer, and it was true 0%. I know they still offer it, you just have to wait for the promotion or call enough dealerships. Also - I know Dodge & Chrysler was offering something similar, recently. Go to enough dealership websites (in a large metro area) and your bound to find something.

Except they are talking about a Kia, which is not a GM

That could be true.. but, in the long run... I think, providing information about other dealerships may help them out. You've got to remember, there is apparently quite a few KIA Models that don't even come with Air Conditioning standard, it's a addon. At similar price points, I think some people can do a little better. It pays to shop around.

How many cars have you personally purchased in your lifetime?

Quite frankly, I don't understand the relevance. All I said, was other dealerships have similar offers in my original post, and then posted a response about checking out other dealers in my 2nd. You know.. no one should go into a dealership with a Car in mind, they should look around, and weigh their options. Especially, with so many cars priced around the same point.

 

Beyond that... I don't think anything I've done, is really any of your business.

So the answer is 0. I figured your parents bought you a car and you had no first hand experience.

 

Actually, I purchased my own car, thank you very much. And I've never had a single Auto Loan either.

 

I actually obtained not one, but NINE different quotes from dealerships for the exact same car. And I had the lowest offer matched... I think I might know a thing or two.

 

 

Allowing multiple dealers to run your credit could result in 30-40 inquiries. While FICO will merge them for scoring purposes if they are coded correctly, upon manual review they still show up as individual inquiries. It also gets you an auto denial with card issuers like Citi.

 

I actually just assumed it was common sense around here, to not allow a Dealership to run your credit until your actually serious. And even then, it's better to go pre-approved with a bank, and check out their website beforehand.. to see if their is a "better offer". If so, you'd allow them to apply for Credit through that specific bank. If not.. you simply go with your pre-approved offer.

 

 

 

Beyond all of that, instead of trying to criticize others.. Perhaps you should take responsibility for your own actions. You know.. I'm a honest person, and I can actually say I did not fleece some bank. I didn't steal money from a and not pay it back. You can't exactly say the same, can you?

 

So you have 0 auto loan experience.

 

I did not fleece some bank either. Get over yourself, kid.

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Do you even realize where all that money lent comes from? The money lent doesn't appear out of thin air. In the majority of cases it is Securitized into Bonds, or Asset Backed Securities. Mortgages, Auto Loans, and Credit Cards, you name it... all converted into Bonds.

 

And ratings agencies give these securities, such excellent ratings (comparable to US Treasury Bond) that they typically end up in ordinary people's retirement accounts. So... the people who actually work for a living, and actually act responsibly with money, end up being the ones you screwed over when people default.

 

Those are the victims who lose. Not the Banks. And it's truly sad to see the irresponsibility of others, affect the honest people.

 

 

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How do you get scores in the low 400s? Defaulted student loans from 3 universities, student loan collections, charged off credit cards, collection accounts for credit cards, collections for utilities, collections for bounced checks, collections for payday loans and late payments on everything.

 

Once again.. instead of criticizing others, perhaps.. you should take some responsibility. I'm sure Citi among other institutions would feel quite differently about you.

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How do you get scores in the low 400s? Defaulted student loans from 3 universities, student loan collections, charged off credit cards, collection accounts for credit cards, collections for utilities, collections for bounced checks, collections for payday loans and late payments on everything.

Once again.. instead of criticizing others, perhaps.. you should take some responsibility. I'm sure Citi among other institutions would feel quite differently about you.

Mitch, just stop now. No point of escalating the matter

 

Won't get you guys anywhere

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I will be the FIRST to say whenever I have purchased an automobile, I buy what I WANT not what may be "a Consumer Reports Best Buy" per se. It's MY money and I spend it - in some instances - how I want. I don't want to live with a car or truck I don't want. Same with a woman, I sure as hell wouldn't get with one for any reason but it's what I want.

 

Buying a car can be like a love affair, thinking with the heart as opposed to the brain. Then those such as me just know cars, trucks, 18 wheelers; anything that rolls. Now when it comes to financing one.... I learned the hard way. First car note with whatever CAC was in like 1996. High rate, I was a teen, no credit.

 

Then I met a credit union and began a love affair. I think within that first year I traded in and bought another car with the CU. I know I have financed many, many cars/trucks/motorcycle/commercial trucks to be educated at the process (which I now dislike the seemingly endless haggling you do sometimes).

 

What my point is if you just KNOW how to buy - and either good financing with bad credit or good credit (naturally good financing) - buy what you feel you want to pay for. Or lease for a short love affair I suppose. The worst thing to do is roll neg equity again & again.

 

HL

Edited by Herloss
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I'm more into the leasing thing. Get a brand new vehicle every 2 years or so when you get bored of it.

This is also great for people who are rebuilding a friend of mine has large disposable income no credit from divorce. She started out with a Nissan Versa and graduates every 2 years. It's not for everyone but if it works for you so be it. I for one hate monthly payments. Hell, my weekly tool payments are 25/week yet I'm dumping money at them like a psycho cause it drives me insane

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