Student auto loan with deferred payments? Please help!

[Anonymous]

There are a lot of such hoaxes out there and I am glad that you were able to step away from the deal even if it were not a hoax - as everyone said the car was becoming expensive and you would need to pay insurance and stuff etc etc. I think if you fix up ur car, it will leave you with enough $$ to pocket and save for the rainy day and trust me, anyone will tell you that savings is sooo important!!!

Anyway, a couple years ago, I had opportunity of getting my dream car of that time (a car guy here too) - It was an 05 EVO but I passed on it because even though I could afford the payment, I could not afford the car! I work in NYC and dont need a car so I would rather save my money. Ever since I was 11, my fav car has been Toyota Supra and those cars are EXPENSIVE because they are so rare and they only made those from 93-98 and so I would only be able to get a car, pay lots of money and it would be without warranty and millage would be high etc. Anyway, fast forward to today and I feel like I make enough to get by and can afford a Supra now but the need for saving is more for me incase things happen - I was at a dealership this Weekend and saw a PRISTINE supra with a twin turbo and a 2JZGTE motor with less than 10k miles - it looked NEW - but again I cant afford it even though I can afford it.... trust me dude you will look back and be glad you passed on getting a fancy ride just because you WANT IT..

[Anonymous]

I've decided a few years ago, way before purchases greater than $400(xbox) were any major concern of mine, that I would never use credit for anything.  My personal belief is to go with debit because it's your own money that you're spending, and you can never spend more than you can pay.  I pay all at once, in cash.  No monthly payment crap for me.  It's tough being a car guy when something like that comes up, but thankfully it was a scam.

Still can't help but wonder why people would use credit cards, if not as something to improve your credit score, but even then you're just paying the credit companies(interest on the small card purchases) to boost your numbers.

[Anonymous]

I can understand why you would think that, and you don't want to get in over your head, which is easy when you're young and have no income.  That said, do yourself a favor--get a credit card if you are able.  One with a low limit so you won't blow it up.  Use it wisely, roll it a few months, pay it on time and  and pay it off.  A major factor in whether you will get future credit (particularly for auto loans), is your length of credit history, and how you use it. 

If banks see you rolling balances but paying them off and paying them on time, you will be a good risk, even if you never really borrow that much money.  Then you WILL get that car loan you want at a decent rate. 

I have a friend in his 40's who was recently denied a car loan merely because he had no credit history.  He paid cash for everything, including his cars.   His wife, on the other hand, had lots of credit cards, was bad at paying them on time, had a number of defaults, but had used credit for years.  In the end my buddy paid off her cards and other debts, but wasn't on the accounts.

Guess who they wanted to give the loan to?  

[Anonymous]

Sounds like you have something you can add to your wish list.  Try the Dave Ramsey web site. He shows you how you can own a car without a payment and never have a payment again.  Keep in mind the "other" costs like insurance, registration, gas mileage, repair costs (aka the costs of ownership). 

To keep your Buick "alive" consider visiting the junk yard and buying your parts from them.  Also, consider contacting a local high school shop class to fix your car up for less money.  The students need the experience.  The work is supervised by an expert.  It can be a good deal.

Buying something with nothing is what got the economy as deep down as it got.  No matter how emotional you get about any purchase, calm down and think and always pay cash.  The only time credit should really be used is when you can pay it back.  Unless it's a mortgage and Dave Ramsey has some "rules" on that too.

So, work hard and save your cash while you are studying.  It will be well worth it.

[Anonymous]

You are so right with your advice about the Dave Ramsey Financial Peace Seminar.  Thanks for bringing it up. 

I own two vehicles, both paid for.  As you know, it is a great stress reliever knowing that my current car payments (yes - I still make them) go to me for my next vehicle, in which I will pay cash for that one too.

It just takes a little time and some planning and is available for everyone.

[Anonymous]

Hello- I just decided to join to forum once I saw your post. I decided to return to school full time about three years back. I paid off a car loan in January of last year. It was a lemon and was costing me nearly $900 every two months in repairs. I was saving money to purchase a vehicle without a loan this time but I decided the car repairs where too much. I received a $3,700 stipend from my student loans which I believed to be a 6.8% fixed rate off of my Unsubsidized Stafford Loan. This meant that interest would accrue until 6 months after I graduate at which my payments would start (e.g. my payments are deferred while in school). I used my car trade-in, money in my money market and the stipend to pay for a 2006 Dodge Stratus that cost $8,600. I would have preferred a nicer car but I needed something within my budget. Since then I have noticed that many cars that seem to have dropped in price about the time of the cash-for-clunkers program. I choose the stipend to help with a car purchase because I currently do not have the extra cash for a car loan and I do not want to have my credit pulled which would lower FICO score. I think you should first research consumer reports and then find a dependable vehicle that costs less since all you have is the $5,000 stipend. I also believe that a Mustang has very high car insurance. Also be sure to get a quote from your car insurance company. Good luck.

[Anonymous]

The follies of youth? Gosh, I wish I knew then what I know now! And in saying that I agree with many of the members. A car is a thing, don't have

an emotional attachment to these things, it will cost you much more than a broken heart in the long wrong. Your young this is your time to sacrifice, get that that degree, good career and great credit score; In time, you will have all the BELLS AND WHISTLES.

Keep working hard and many blessings
Michael

[Anonymous]

Anyway, if you're looking for a loan, Discover Student Loans is a good company, rates are somewhat high, but they do NOT charge a fee if you have no credit, they only mess with your APR.

Don't get sucked into a loan through SalliMae, they charge you a fee, even if you have some credit.

[Anonymous]

I think your Rivvy looks pretty sharp. I would have loved to have something like that when I was a college freshman. Heck, I'd drive it now. Glad you avoided a headache down the road.