Auto Loans

[dodgeball]

^^^^^^^^^ Ughhh, you just got caught in the BMW overpayment trap. 30 plus K loan for a car that is 3 years old and with very high mileage plus on top of that its a BMW so you should be paying out the nose for repairs in about a year. Dude Ive been there, not a place I want to go back too, my previous two BMWs where golden the first three years than cost about 5k a year in repairs after that.

[talentedmrhenry]

It's not very high mileage for a 3 year old car. 41894 divided by 3 comes out to about 13,964 miles per year, which is below the average 15K but above 12K. That's right in the middle.  I might be paying a lot for repairs but I got it CPO and the warranty lasts me till 2015 so that may soften the blow a little. I'm estatic about the car.  My first BMW and the way it has been driving in just the first day it won't be my last.

[dodgeball]

Enjoy your BMW !

[Lilybuggy]

APPROVING BANK:  PenFed

BUREAU PULLED:  Not sure which PenFed used but the dealership used TU

CREDIT SCORE:  757

CUSTOMER STATE OF RESIDENCE: Florida

NEW/USED:  NEW

YEAR OF VEHICLE: 2012

MAKE: Buick

MODEL:  Enclave

MILEAGE:  12

RETAIL/LEASE: Retail

AMOUNT OF LOAN:  $33,000

TERM CONTRACTED: 60 months

APR/LEASE RATE: 1.99%

MONTHLY PAYMENT: $572

ANNUAL INCOME: $200,000

MISCELLANEOUS COMMENTARY: Dealer also offered 0% for 60 months, but then we would lose a $1,500.00 rebate on the car so car would have been more money.  We did some calculations and loss of $1,500 did not make sense given the 1.99 rate.

[GrowingCredit]

---

Lilybuggy wrote:

APPROVING BANK:  PenFed

BUREAU PULLED:  Not sure which PenFed used but the dealership used TU

CREDIT SCORE:  757

CUSTOMER STATE OF RESIDENCE: Florida

NEW/USED:  NEW

YEAR OF VEHICLE: 2012

MAKE: Buick

MODEL:  Enclave

MILEAGE:  12

RETAIL/LEASE: Retail

AMOUNT OF LOAN:  $33,000

TERM CONTRACTED: 60 months

APR/LEASE RATE: 1.99%

MONTHLY PAYMENT: $572

ANNUAL INCOME: $200,000

MISCELLANEOUS COMMENTARY: Dealer also offered 0% for 60 months, but then we would lose a $1,500.00 rebate on the car so car would have been more money.  We did some calculations and loss of $1,500 did not make sense given the 1.99 rate.

---

but with 1.99% interest you would pay close to $1700 in interest. I would have taken 0%.

[Lilybuggy]

Yea well, I think it would have $3 more a month on the 0%.  We sort of had to do on the spot numbers, so the end, we didn't feel like it would be a big difference either way.  only that if you do 0% it sort makes you want to put as little down as possible to really make use of the savings and I didn't want a $640 car payment monthly.  PenFed was such a low rate that it was a wash.

[pizzadude]

---

Lilybuggy wrote:

Yea well, I think it would have $3 more a month on the 0%.  We sort of had to do on the spot numbers, so the end, we didn't feel like it would be a big difference either way.  only that if you do 0% it sort makes you want to put as little down as possible to really make use of the savings and I didn't want a $640 car payment monthly.  PenFed was such a low rate that it was a wash.

---

I think you made the right call.   Based on the approximate numbers below you would only pay ~$1500 interest assuming that you keep this loan intact for ~48 months.   Many people refinance or sell the car, or it gets totaled, etc....before the end of the loan.

Year 1 interest $599, Year 2 interest $472, Year 3 interest $342, Year 4 interest $209 Year 5 interest $74

[Lilybuggy]

Thanks...I was starting to second-guess myself.  My hubs and I are pretty smart and I was wondering how we could have gotten the numbers the wrong, but I also recall that using the dealer finance, they would hit us some required document and miscellaneous fees that came to $300-ish.

I sure hope our car doesn't get totaled and I can't imagine refinancing for anything lower than 1.99%, but at least  it creates a bit of an incentive to pay it off earlier (although not much because our mortgage and student loans are at higher rates).

[elevation24]

Joined this forum just so I could reply to this (beaming with pride, obviously).

APPROVING BANK: Safe Credit Union
BUREAU PULLED: Transunion
CREDIT SCORE: 712
CUSTOMER STATE OF RESIDENCE: California
NEW/USED: Used
YEAR OF VEHICLE: 2007

MAKE: Ford

MODEL: Escape
MILEAGE: 60k
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 15k
TERM CONTRACTED: 60 months
APR/LEASE RATE: 3%
MONTHLY PAYMENT: $300~

ANNUAL INCOME: 36k
MISCELLANEOUS COMMENTARY: It may not seem like much from the above numbers... but this is a refinance.  My credit score was 463 when I first bought the car just over 2 years ago.  I bought it with my (now) ex-boyfriend, who also had bad credit at the time, but we needed another car.  We ended up stuck in a horrible loan with the worst loan company ever, and a payment of $515/month.  But, we needed the car.  I really had little choice.  Just over 2 years later, I have been extremely careful with my credit.  My score has jumped ~250 points, between my original loan and a couple of credit cards coupled with some very close credit monitoring.  I joined this new Credit Union, and while joining, they asked me if I would be interested in re-financing.  I had planned on waiting until my credit got even better, but at 3% APR (down from ~20% APR) and over $200 less per month, how could I refuse?  I am on cloud 9.  I am upside down on my loan, car is worth less than I owe by a few thousand, but at least I am not paying half of my monthly payment to interest anymore.

[jrands]

---

elevation24 wrote:

Joined this forum just so I could reply to this (beaming with pride, obviously).

APPROVING BANK: Safe Credit Union
BUREAU PULLED: Transunion
CREDIT SCORE: 712
CUSTOMER STATE OF RESIDENCE: California
NEW/USED: Used
YEAR OF VEHICLE: 2007

MAKE: Ford

MODEL: Escape
MILEAGE: 60k
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 15k
TERM CONTRACTED: 60 months
APR/LEASE RATE: 3%
MONTHLY PAYMENT: $300~

ANNUAL INCOME: 36k
MISCELLANEOUS COMMENTARY: It may not seem like much from the above numbers... but this is a refinance.  My credit score was 463 when I first bought the car just over 2 years ago.  I bought it with my (now) ex-boyfriend, who also had bad credit at the time, but we needed another car.  We ended up stuck in a horrible loan with the worst loan company ever, and a payment of $515/month.  But, we needed the car.  I really had little choice.  Just over 2 years later, I have been extremely careful with my credit.  My score has jumped ~250 points, between my original loan and a couple of credit cards coupled with some very close credit monitoring.  I joined this new Credit Union, and while joining, they asked me if I would be interested in re-financing.  I had planned on waiting until my credit got even better, but at 3% APR (down from ~20% APR) and over $200 less per month, how could I refuse?  I am on cloud 9.  I am upside down on my loan, car is worth less than I owe by a few thousand, but at least I am not paying half of my monthly payment to interest anymore.

---

Nice!