Jake Leshwa

I've been trying to get a loan for a car and its like pulling teeth at these appointments with trying to gain info it may be the fact that the employee helping me never did an auto loan before.. I want a vehicle that is 2010 or newer (mustang) I have saved 5000 and I want to put that down on the loan I'm thinking ill need 25,000 for the car. I want to pay this loan off as soon as possible! My only bills that I get for the month is 300$ and I am getting 560 a week take home and I am wiling to pay 1000 or possibly more a month towards this car to pay it off fast! The employee old me that there variable rate has been the same for 2 years and that is can get 4% interest or 7.25 fixed! And she said I can switch it to fixed if variable gets high but will that be a penalty? She didn't tell me if I would get penalties for anything also paying more to.. She said I can get a secured loan with a higher interest rate or a unsecured loan with a less interest rate or vise versa and she said that for lower interest my car would be the lien? So they can take it? But then she also got me to pay for insurance in case I couldn't make payments that they would, but she didn't go into detail about anything.. So can someone clarify and help me out on what I should do to best help me out. Also should I try and get a personal loan or line of credit instead of the auto loan?

rriddle3

Jake, you're still trying to get a Mustang like you talked about in your original thread, right? You really need to get the advice from somebody you trust up there in Canada who has financed a vehicle before. I have no idea who you were trying to get this loan from, but the information you have presented doesn't sound like anything I have ever heard from a lending institution down here.

houtex

Do you have *nobody* in your circle of people you can ask? I ask, because of this thread:
https://themustangsource.com/f649/pl...523585/index2/

Jake... honestly... you need to seriously *seriously* think about things and not go off the deep end because of car lust. You are going to jack yourself up by doing it wrong and overthinking.

Here is what you do, however, if you're going to buy the car (and I hope none of that 'other party' stuff is involved.)

Get. It. Financed.

It does not matter where. It doesn't matter even how long... heck, get an 8 year loan for all it matters. All that matters is the interest rate being low, AND make sure there are no early pay off penalties, and that the minimum above all else is reasonable for your situation... and life makes changes. Ask how many people were guaranteed their pay for the duration of a loan... doesn't always happen.

Once you have those four things established (rate, no penalties, how long, where, how much per month) THEN you can do The Plan:

Pay more than the minimum. *ALWAYS* pay the minimum, of course. But if you can pay more, then pay it. Whatever it is. I paid off a 3 year loan in 1.5 years because I said "screw it" and sent in more money.

They won't like you as much, but oh well... you'll have the car paid off, and do it quickly.

---

THAT being said... You are overthinking things in general, and seem to be trying to get away with something. Auto dealerships have been around a LONG time, you won't be gettin' over on 'em any time soon.

And if you're having problems with this one person.. THERE ARE OTHER PEOPLE. Go to them.

Be like a doctor saying "you have cancer, you got a month." and just accepting this without going somewhere else and making sure. Don't do that.

Good luck.

Jake Leshwa

Thank you houtex you are one of the few that have gotten through to making sense in to what I am probably doing ahah.. See the thing is I have the money and I would be also able to pay on 1.5 years or less to but there is that what if I have to think about like what happens if I lost my job then I would want to be able to pay the original amount without a penalty. This lady that helped me seemed no older then 20 and she said she's never given an auto loan before and considering this being my first car and her not knowing what would probably be best in helping me out I think I may just set in appointment with a different td and maybe there will be someone that knows what I am looking for and has more experience in shouldn't rush into something that could possibly ruin my life (debt) I can just keep on saving and asking around and when that time comes I should have more to put down and ill get what I want! But yes financing is what I want and I want to possibly have my payments at 500 but have no fees when paying double that and I want to own the car as fast as possible.. So I don't know what loan I need where I should get it from how the interest is like and how I should go about it.. Put my car as the lien so it's cheaper interest and get a variable or fixed rate and so on.. Basically the lady helping me was telling me what I wanted to hear.. And she made me sign a few things.. She said variable would be best I can switch it whenever I want and that the insurance I'd be purchasing would help so if something happened they could take my payments and stuff but yeah she even had to call and ask td helpline a couple times for help...
But after rambling I am going to look around thanks

rriddle3

Wait...what? Do you even know what you signed? Jeez, this is getting sadder and sadder.

That's probably because most readers cannot make sense of what you type. Please try to use correct punctuation - it makes understanding soooo much easier.

Jake Leshwa

I signed something for privacy so my info is shared with the bank and signed a page for disability insurance or something like that.. So I should be fine and sorry I don't know how to use correct punctuation.. I might go with a credit union instead possibly wfcu..

Plim

I've also read the other thread you started about the car you want and the financial decisions you need to take.....


The only advise I can give you at this point in time is:
Please buy a much, much cheaper, used car. A car that you can afford; something in the range of $5000. The amount of money you have. Or save until you have the amount needed for the purchase.
Work on understanding how credit scores work. Make sure your credit score is much higher than you have now. Get the phone in your own name. That will help improve your credit score (if you pay your bills in time). Only having a credit card for 6 months, will not have gotten you a decent credit score yet.
Understand that insurance for an 18 year old is going to be very expensive. Especially for a brand new car, that is financed! The finance company is going to demand full coverage for the entire time they loan you the money. A used car is going to be much, much less expensive to insure.

You say you make 560 a week, and have $300 fixed cost, and you are wanting to pay $1000 a month on the loan.
Assuming you get insurance at the rate that I have (perfect driving record for 25 years) approx. 100$ per month full coverage (multi car, and other package discounts).
You may want to buy gas each month ($100??).
Leaves you approx 700 to spend.
I'm pretty sure insurance will cost you more. And I'm also fairly sure a lot of other expenses have been left out.Think about license fees (or road tax). Maintenance, repairs, clothing, occasional dinner with girlfriend. Maybe you want to buy her an engagement ring sometime.... Etc. etc. the optimistic 700 will not go far every month.

My 2cts.

roadrunner

Here's a question:

Why are you against waiting to get the mustang when your a little older? Why MUST you have the mustang now?


I'm honestly be interested in your answers. Stop for a moment and think about it.. seriously..

Jake Leshwa

I feel if I can not get the car now I never can considering when I'm on my own I will have obscured bills and stuff so yeah I feel it's either now or never to be honest. I've saved 5000 so I figured if I get the car ill owe roughy 20000 and if I pay 5000 towards the ill have 15 left to pay so if something happened and unemployement came around that would even be enough to cover the car being paid off... If I don't get that it'll probably be the focus I get..

jerseygirl

Been reading and all I can say is I have been waiting for a Mustang since 2009, do I want one? Yes! Am I financially stable? No!

Think about it kid, just save you're money and wait till it's truly the right moment to buy one aand not dig yourself into a financial disaster hole!

roadrunner

Well I can't tell you the future, but I can tell you you seem to be doing a lot of things at once, quickly, rushed. Usually when things are done that way, everything goes wrong.

But don't be pessimistic about you not getting it ever if you don't get it now. Not sure why you feel that way, but it could be just cause your young. Young minds tend to make up seemingly legit excuses, that sometimes aren't even real, to rationalize a very stupid decision. It's like trying to rationalize insanity lol.

Look, I just got my car, and I'm 22. Even for me it was a long shot cause of my age, but it was definitely a whole lot more plausible than when I was 18. Honestly with all the madness that's happened in the past 4 yrs, I'm glad I didn't have the mustang yet. I bought and sold motorcycles, almost died twice, ended up breaking up with my girlfriend, moved twice, and other things I don't even remember, or want to remember for that matter lol. Just warning you, lots of things can change over time, and really quickly. And debt will only make things worse. few stable things in my life were my job, and I was able to keep my debt really low. but had that not been the case, who knows where i'd be. and im only 22! these other guys posting and warning you are way older than I am, and they're telling you to wait also..

I've seen your earlier you posts, you mentioned you have a girlfriend, so I guess one way you'd end up tight on money is if you got her pregnant. But in that case even if you got the mustang now, you'd end up having to sell it to buy all the stuff for the baby. I've seen others warn you about the girl leaving you.. but there's also the side where she stays and you become a father. Here's another thing, lets say that does happen and you can keep the stang but because of your age and impulsiveness/lack of impatience, you drive the car like a completely fool, and get yourself killed, you'll end up leaving that kid and mom with no dad. and if you're not paying your own rent yet, you gotta think of that too.. if you marry the girl, it'd be pretty weird still living with parents.

So I don't know specifics about your case, but dude seriously you should think and literately make a list of the pro's and con's of getting the mustang NOW, or getting it later. and just remember later doesn't mean a billion years from now... maybe like 5? 3? even 2. You also mentioned you just got your job. So give yourself some time man. You have little to no experience in some of the things your doing and these aren't small choices, if you screw up now by going all crazy just to get a car you like, then you might never get that car, or get it and end up returning it or losing it somehow.

I can assure you if you buy now, with all the stuff that seems to be simultaneously going on in your life, your not even going to enjoy that car. and probably not even have money for modding it, which you'll likely want to do. once your situation is stable, then get the car. The amount of time you wait will depend entirely on you maturing and controlling yourself.

Takes a real man to be patient, any fool can just go out there and ruin his life. Don't be a fool.

Jake Leshwa

I read everything thanks I guess I should save some more or something.. Maybe ill make my decision when he 2015 comes out.. Hopefully ill get my bonus that'll be a couple thousand and would help.. I'm just gonna keep saving I guess.. Maybe till I save 10,000 or something

houtex

Jake, I'm sorry, but I have to ask... where are you from? And why do you not know how to use punctuation?

Even basic punctuation, and a line between thoughts, as you see here, is much easier to read and understand.

I know it's a sidetrack, but I'm really concerned. You want to get a loan, and you can't write correctly? That's... interesting.

I mean no insult. Just... not understanding what's going on over there now.

---

Comparison, for kicks. I'm goin' to heck in a handbasket for this, I know...

Jake im sorry but I have to ask where are you from and why do you not know how to use punctuation. Even basic punctuation and a line between thoughts as you see here is much easier to read and understand... I know its a sidetrack but Im really concerned you want to get a loan and you can't write correctly.. that's interesting. I mean no insult just not understanding whats going on over there now.

And I still mean no disrespect, but it I am trying to make the point that you need to make the effort. It will help you in so many ways in life, sir.

Good luck with all that, Jake.

roadrunner

Dude if you do it that way, your monthly payment will be super low andyoull have a few extra bucks to spend on mods! Now your thinking! Glad you decided to wait a little more, smart move

In the mean time another thing you can do to somewhat "satisfy" your cravings for stangs is stick around in the forums and just learn about the mustang. Ive learned so much here, went from being a complete noob to only a regular noob lol. But i learned!

And later down the road when you do get your stang, make sure to post somes pics

Glenn

Jake Leshwa

Ontario Canada

iiaces

Well you see I was once in a similar situation to this. I wanted a beautiful new mustang. Too bad I did not have the money for it. So what did I do? I bought a 1999 35th anniversary mustang for 2500. I did a full out tune up on the car, rebuilt the tranny, new ebrake cable, got most of my interior painted via hydrographics, shampooed the carpet, and just cleaned the thing up. All I have left is some touching up on the paint and she will look brand new. A lot of work but hell I haven't even had the car for that long. It's fully paid off and I'm a 19 year old who pays 112 a month for insurance. Not bad eh?

Jake Leshwa

How so cheap insurance ;0

Glenn

http://www.capitalone.com/auto-financing/

Plim

For starters, it's not for a new car. And probably also not for full coverage...