66.5% APR on an auto loan?? Is this even POSSIBLE??

[Anonymous]

Just joined this site and some of the advice I read is laughable at best.  No one should ever purchase a vehicle at a 20% interest rate. 

Go to a credit union and see if you can get better terms. 

[MarineVietVet]

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@Anonymous wrote:

Just joined this site and some of the advice I read is laughable at best.  No one should ever purchase a vehicle at a 20% interest rate. 

Go to a credit union and see if you can get better terms. 

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Welcome to the forums.

Hopefully you'll be able to enlighten the uninformed. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Go to a credit union and see if you can get better terms. 

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I have belonged to a credit union for 5 years and they were my first choice.  They turned me down immediately.

It's quite pathetic, my only choice is 20% APR.  I used to have great credit, purchasing a vehicle new back in 2003, with 1.9% financing. Those days are gone now, but I plan to get my scores high again one day!

[Varakai]

If you have trouble meeting your current obligations now and are forced to choose between keeping the lights on or paying a Target bill, why in the world would you get a van @ 20.9% APR and an approx.  $419+ monthly payment? What has changed now as compared to last month? I may be missing something from your previous posts...

If I were in your situation, I wouldn't do it!!! Especially since it sounds like your mom will only be using the van with you 2 to 3 times per month at the most. While your current car may not be ideal, you've made it work thus far and could keep on making it work until you are in a financially better place. 

If I were you,  I would save up my money and establish a 6 month cash emergency fund that is to be used for real emergencies only. And I would start paying off my outstanding and current monetary obligations first.

You come on this forum asking for advice and you have been given excellent advice. No one on this forum is getting anything out of the advice they're giving you. They're just trying you from preventing to dig the hole deeper than it already is. You are free to do what you want to do.

[Anonymous]

What about keeping your current car and just renting a van when needed?  For a one day rental, a mini van would rent for $50-$75.  Even if you needed the van three times in a month you would be looking at $225 on the high side per month, would be less then the initial interest portion of the payment if you bought a van.

Just an out of the box idea.

[marty56]

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@Anonymous wrote:

No one should ever purchase a vehicle at a 20% interest rate.  

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Unless that was your only option.

[ForceMd]

Hello,

 To the OP, I hope that you make the right decision, walk away from this deal and put purchasing a van off for a bit while you gain financial ground. As someone already said, a lot of good advice has been given on this (and other) threads. Just in case you still aren’t quite convinced, here is another statistic for you to ponder.

At $17,637.06, you are paying $9137.06 more than the car is worth using the $8500 asking price (in reality it could be worth even less). With that price difference you could rent a decent van 4 times a month for 38 months (over 3 years!). Here is how I came up with that statistic. Note that my figures are highly conservative leaning on expensive car rentals at 4 times a month (more than you said you needed).

   -$9137.06/$60 (assuming a one day van rental is $60) = 152 rentals

   -152/4 (assuming you rent the vehicle 4 times a month) = 38 months (+three years) of rentals. Just think, this is just on the difference from the actual price of the car and the fees/finance charges you will have to pay!! Just imagine how many rentals that the total $17,637 will get you.

Hopefully this makes you think just a tad more about your decision.

[Anonymous]

ValGal123,

It is obvious that you're not going to take the advice that is given to you. With that said, I am going to be a fool and give you my advice anyway.

First and foremost, I understand your situation. I, too, need to purchase a new vehicle and have been turned down by everyone. I had a rough patch two years ago and lost both of my vehicles because of it. I am working hard now to recover so that we can buy a house and a new car.

With that said, 20.99% interest on a vehicle is ridiculous. Even if I was desperate, I wouldn't do it. It looks like you have a $1500 down payment. You're honestly better off buying a $1500 car and dealing with that. Let's be honest, you're openly admitting that you're not paying on anything and you're seeing the repercussions of it. Why would you want to risk putting yourself in an even worse position by defaulted on another vehicle loan with a 20.99% APR?

Usually when your credit is nasty (defaults but not backruptcies) you can quickly and painlessly get it repaired. Send offers to settle, goodwill letters and PFDs to your card companies and work with them. With a little work and a years wait, you might be able to get something a lot nicer for a lost less.

I guess I am saying, there is probably a reason why these people are the only people willing to give you a loan. I doubt they have you in their best interests and I would avoid it like the plague.

Also, the post about that year of vehicle having issues is correct. We bought a 1999 Odyssey and it has the same issues. I wish we would've kept our money and waited but like you are now, we were impatient.

[bcdudley]

I would encourage you to get this car. I enjoy watching Operation Repo and look forward to seeing you on there in the near future.

Sorry, couldn't help it.

Honestly, you have been given some good advice and you are just not listening. It is nobodys fault but your own that you only make $12-$14 per hour. This may because of the profession you have chosen, but more likely from your lack of experience. There are plenty of other ways to transport a disabled person besides spending a large amount of money that you don't have. I think renting a vehicle as others have suggested is going to be a much better option.

Have you also thought about what it will cost to insure this vehicle. With your credit score as bad as you say it is, you will most likely be paying another $250 to $400 per month in insurance. If you are financing a car, you will be required to keep full coverage. The $39 per month specials will not be an option. Failure to maintain full coverage will be all the reason needed for the repo men to come and pick it up after a few months and then you will be out  whatever, if any money you have paid in a down payment and monthly payments.

Good luck to you.

Edit:

wow, I just went back and read some of your previous post out of curiosity. From what I can gather, your income is around $2300 per month including your job and child support you receive. You spend $800 per month on child care, $525 on your mortgage and another $500-$600 on utilities. That means that you have a little less than $400 left over to live on for food, gas and other stuff.

With that $400, you want to spend $415 on a car payment and another $300 or so on insurance.

Then, you actually want to drive the van. You said your mother lives 4.5 hours away. That would mean she is roughly (4.5x60=270) 270 miles from you. You want to drive both ways 4 times a month (270x8=2160) for 2160 miles. I would guestimate the van may get 10 miles per gallon (2160/10=216) so you will need 216 gallons of gas for this. With gas approachign $4.00 per gallon depending on where you are located (216x4=864), you want to spend another $864.

So with an income of $2300 per month, you are planning to spend $3500 per month. You really need to think this out better. Maybe I missed something in one of your posts where you stated some additional income, if so, I appologize, but it would have to be a significant amount more.

Sit down and do your homework on this. Think it out and don't be so impulsive. The numbers just do not add up. I am sure the dealer is seeing this and that is why they do not want to give you the loan. anything they charge you is just what they are going to have to pay the repo company to come pick it up in a few months.

[Anonymous]

I appreciate all the advice given to me.

I've never had a car repossessed and I have purchased 3 brand new cars in my lifetime and successfully paid them all off.

As far as your numbers, that 800 cost of childcare was in the past, I was trying to explain how I got myself in this poor credit situation.  The 800/ month childcare was when my son was an infant. He is now in first grade. 

I bring home roughly 2300 a month and my expenses right now (with the car payment--yes, I got the van) are running around 1,900 a month. 

I have been disputing incorrect information on my reports and working on settlements to get things in order.

I have been renting vehicles for YEARS and the cost of a minivan just for a few days is about 250.00.  The cost was too great, I'd rather have my own vehicle where I can come and go and transport my mother whenever I want.

They got my APR down to 17.99% and my note is for 3 years.  I am planning to pay 50.00 a month each month only to principal, to try to knock down some of that interest rate. 

So far the van has been great--it's been almost 2 weeks.  I pray that it will continue to serve me well.  I kept my old car and use it for work. Both vehicles are costing me 89.00 a month for insurance at this time.

I hope I made the right decision. Only time will tell.  I do appreciate all your advice.