Hey all,
Long time lurker, first time poster.
Thought I’d give back to the community and provide some knowledge about car loans, interest rates, defaults, credit files etc to people who may have limited knowledge or about to go for a car loan. Or even people who want to refinance.
Obviously cannot provide any financial advice.
Yeah I guess this is an informal AMA!
Don't get a loan to buy a depreciating asset. That's all the knowledge you need about car loans.
Because everyone can afford to buy cars outright…
I've had a couple of good cars for $3k. Maybe not everyone has a few thousand lying around to purchase a necessity, but I feel like most people who think they need a loan to afford a car are buying much more expensive models, not scrounging for the cheapest thing they can get their hands on until their finances improve.
No, buy within your budget. There are used cars within 5k. If you can't save up 5k, you shouldn't be buying a car. At all.
Though the "don't get a loan to buy a depreciating asset" is general advice with exceptions. Such as - it's ok in circumstances where it's a depreciating but income generating asset. Rare for it being a car, but if say, you need to commute and there's no public transport? Could be valid.
I know people who follow this advice to the point of increasing the loan on the appreciating asset and using the extra capital to buy the car with cash.
Really no difference if your debt is attached to the house or car or anything, just make sure you get the best interest rate you can is my advice.
So you joined 30 minutes ago out of the goodness of your heart?
instead of a car loan you should just get a cheaper car
anything over $5k is a luxury
I suppose so but can you really get anything good for $5k these days?
Sure, 15 year old Japanese cars.
Whats the highest intetest rate you have personally seen on a loan?
The highest has been 29.99% and then they charge on massive fees (risk and establishment)
How much of a deposit do you need for a 100k car?
None, if you have a property in your name. If no property, then at least 20% and proof of genuine savings. But, there’s lots of variables to take in.
Long time lurker but only just joined the site?
Cars are just financial trap
Automakers know this very well
Especially now days they bring new car or update every 2.5 years or so
just don't do it.
I have a car that is currently being leased and I have a payout figure of $40k.
Who is the best lender to take on the secured loan?
So where is the info or is this an AMA?