Please help me troubleshoot my paying for a new vehicle

[Anonymous]

I want to purchase a 37K vehicle.  DCU gave me a 27K loan at 2.24%.  I do not have 10K cash.  While I am sure there are several creative ways to solve this, I was wondering if I could spread the 10K across my zero APR cards (introductory), then refinance the auto loan since the paymnt ($441) is a tad high for me.  I REALLY need a car.  I know you will start by telling me to look at a less expensive vehicle and 1) am researching now, and 2) the vehicle I want fits all of my transportation, children and weather needs.  So considering the scenario I posted above, I was wondering if any of you could advise me.  Of course, gracious thanx in advance.   (Also, I do not know as of yet if the dealership would take 2.5K from four different cards).

[flan]

If you can't afford the payments of a 27K loan, you expect to be able to afford a 37K loan?  Get a cheaper car. 

[lg8302ch]

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@flan wrote:

If you can't afford the payments of a 27K loan, you expect to be able to afford a 37K loan?  Get a cheaper car. 

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This is the only option that makes sense for me !  Get a cheaper car and start saving for your dream vehicle and down the road this will be an option but not with loan and down payment on a CC. Don't forget interest rates on CCs

[Anonymous]

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@Anonymous wrote:

I want to purchase a 37K vehicle.  DCU gave me a 27K loan at 2.24%.  I do not have 10K cash.  While I am sure there are several creative ways to solve this, I was wondering if I could spread the 10K across my zero APR cards (introductory), then refinance the auto loan since the paymnt ($441) is a tad high for me.  I REALLY need a car.  I know you will start by telling me to look at a less expensive vehicle and 1) am researching now, and 2) the vehicle I want fits all of my transportation, children and weather needs.  So considering the scenario I posted above, I was wondering if any of you could advise me.  Of course, gracious thanx in advance.   (Also, I do not know as of yet if the dealership would take 2.5K from four different cards).

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You'd be digging yourself into a massive debt hole from the get go.  Isn't there a cheaper version?  Also, is it a brand new vehicle or used?  Keep in mind with new, it loses value the moment you drive off the lot.  So before signing any paperwork, explore all other alternatives.

The current method isn't good even with 0% offers with the credit cards..

[StartingOver10]

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@Anonymous wrote:

I want to purchase a 37K vehicle.  DCU gave me a 27K loan at 2.24%.  I do not have 10K cash.  While I am sure there are several creative ways to solve this, I was wondering if I could spread the 10K across my zero APR cards (introductory), then refinance the auto loan since the paymnt ($441) is a tad high for me.  I REALLY need a car.  I know you will start by telling me to look at a less expensive vehicle and 1) am researching now, and 2) the vehicle I want fits all of my transportation, children and weather needs.  So considering the scenario I posted above, I was wondering if any of you could advise me.  Of course, gracious thanx in advance.   (Also, I do not know as of yet if the dealership would take 2.5K from four different cards).

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Agree 100% with the posters above.

You are confusing "wants" with "needs". 

When you get approved for a lower amount it is almost always a DTI issue (debt to income).  If you are looking to solve that issue there are limited ways to do so: 

1. Increase income
2. Decrease debt
3. Bring cash to the table
4. Adjust purchase price/vehicle selection
5. Adjust interest rate - but this one will only work for slight differences unless you were approved for a sub-prime type rate

You don't say what your gross income is now or your debt so it is impossible to say what would work for you. You also don't tell us any of the actual terms for which you wre approved, only that it was an approval for less than you want to purchase.  Your solution is reckless unless you have the cash sitting in the bank and you already said you don't have the cash. Rethink your actual needs and I bet you come up with a better vehicle for less money

[Kenny]

It's just not smart at all to do this. You could be headed down repo lane or worse.

[SamsungHDTV]

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@Anonymous wrote:

I want to purchase a 37K vehicle.  DCU gave me a 27K loan at 2.24%.  I do not have 10K cash.  While I am sure there are several creative ways to solve this, I was wondering if I could spread the 10K across my zero APR cards (introductory), then refinance the auto loan since the paymnt ($441) is a tad high for me.  I REALLY need a car.  I know you will start by telling me to look at a less expensive vehicle and 1) am researching now, and 2) the vehicle I want fits all of my transportation, children and weather needs.  So considering the scenario I posted above, I was wondering if any of you could advise me.  Of course, gracious thanx in advance.   (Also, I do not know as of yet if the dealership would take 2.5K from four different cards).

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You knew this community's response would be to look cheaper, I'm glad they have already advised it anyway. Keep in mind if you can barely afford $441, then refinancing doesn't get much lower than 2.24%. A lesser rate wouldn't bring down the payment very much.

To answer your question, yes its possible the dealership would take 2.5K from four different cards, but that would add to your minimum payment. It would be $441 plus the minimum payments on four cards which is at least $25 per card. That would bring you to $541/monthly.

I'm basically giving you the same advise as the same posters, but explaining into detail. You're digging yourself a hole, don't do it.

[Anonymous]

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@Anonymous wrote:

I want to purchase a 37K vehicle.  DCU gave me a 27K loan at 2.24%.  I do not have 10K cash.  While I am sure there are several creative ways to solve this, I was wondering if I could spread the 10K across my zero APR cards (introductory), then refinance the auto loan since the paymnt ($441) is a tad high for me.  I REALLY need a car.  I know you will start by telling me to look at a less expensive vehicle and 1) am researching now, and 2) the vehicle I want fits all of my transportation, children and weather needs.  So considering the scenario I posted above, I was wondering if any of you could advise me.  Of course, gracious thanx in advance.   (Also, I do not know as of yet if the dealership would take 2.5K from four different cards).

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I agree with the other posters - you simply can't afford the car. Find something that you CAN afford. Look for the same model car but a few years older.

[ezdriver]

May I ask what type of vehicle you want at $37K?

There are more practical price points at which one can buy really nice cars. My own decisions were:

A 2007 Mercedes certified preowned at $24k ... bought in 2012

A 2002 Mercedes E430 - bought in 2010 for $7K

Now looking for a Porsche 911S [2007 or 2008] ... but will not spend more than $50k for one with around 10k miles.

For $24K, one can buy a lot of very nice vehicles!

[Anonymous]

OK, all good advice.  I have another post which will be close geographically to this explaining that I leased a Nissan Maxima (3K down (which I had)) and mo payments of 365/mo.  I have no worries about making the pymnts (I will not even need to make Ramen every night for dinner!!!).  I didn't reallly explore leasing at first until I found a dealership that went through every option w/me and was offering 6-8K rebates on 2014 (there were no 2015's made so that is there newest model) and a full warranty for the entire time of the lease which is a godsend since I don't want to be stuck with either an extended warranty or lots of car repair bills if needed.  But HUGE thanks to everyone who chipped in their advice which I considered very carefully.