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I am looking to get a new car but i have no prior experience as i have never financed or leased a car.
Basically what i am looking at is a Hyundai Elantra Coupe which are valued at around 18K brand new.
I am leaning towards leasing because the monthly payments are a lot lower and i like the idea of having a new car every 2 years, However i have also heard that it is a lot harder to lease then to finance.
If i decide to buy should i seek the auto loan myself directly from a bank (like Capital One) or should i just go straight to the dealer and have them find a bank for me instead? The less down i have to give the better but if i need to i can give up to 8K down which would only bring the loan to 10K.
My credit score right now is around 650-660 and i have an income of around $2200 a month, It is worth noting that i am 23 and live in Miami so insurance is likely to be very high.
Any answers are appreciated, I am looking to get this done by the end of the month.
Hyndai financing is actually one of the better financing programs from what I've heard. They also have promotions going on such as $159/month for 24 months with $1999 due at signing.
They also have the college grad program:
If you’re graduating in the next six months, or you graduated within the past two years, you can buy any new Hyundai with:
• No down payment required
• An additional $400 on top of current Hyundai rebates*
• Ninety days until the first payment (note: not available in the states of CT and PA)
Valued Owner Coupon
If you are currently a registered owner of a vehicle distributed by Hyundai Motor America, you can receive an additional $750 off a new 2013 Hyundai Elantra Coupe. Offer cannot be combined with Competitive Owner Coupon.
Competitive Coupon
If you are currently a registered owner of a qualifying competitive vehicle, you can receive an additional $750 off a new 2013 Hyundai Elantra Coupe. See your local dealer for program details and list of qualifying competitive vehicles. Offer cannot be combined with Valued Owner Coupon
When it comes to the choice between buying vs. leasing... I tend towards buying because I drive a lot of miles, and I prefer to keep my vehicles longer...
not everyone is the same in this regard.
Got approved for 18.7K through Capital One @ 8% rate!
What do you guys think? Is that a fair deal considering my score and the fact that i don't have any history with car loans?
In your case, you may get a better deal through Hyndai Finance... but its great that you have a loan pre-approval to walk in the door with.
let the dealer pull your credit and see if he can do you a better finance deal. Otherwise, 8% seems like a fair, but not exceptional deal.
Honestly I think that is a pretty good number, especially considering you are a first time buyer. If you expect to refi any time soon make sure you make a decent down payment and pay extra each month!
I've been browsing the forums for a while, and I have seen a disturbing-yet-common trend: people seem to be buying way too much car than they can comfortably afford. Why on earth would one want to put themselves $19K in debt for a new car if they make $2200 a month? A car payment on that would be $600 a month or so at 8%, no? I realize that most people need a car, but why try to max out your outlay every month?
I would hope you have, at the minimum, $5k for emergencies saved (cash), and you are putting 15% towards some sort of retirement fund. Please take my advice that a new car is not worth sacrificing your financial stability. I see so many of my friends doing the same thing, and it's a 50/50 crapshoot as to when they will miss a payment due to the inevitable "life happening" occurrence.
That being said, I also believe new cars are a huge waste of money, and have never purchased one in my 24 years of owning cars.
Am I crazy?
@Flying_Spaghetti_Monster wrote:I've been browsing the forums for a while, and I have seen a disturbing-yet-common trend: people seem to be buying way too much car than they can comfortably afford. Why on earth would one want to put themselves $19K in debt for a new car if they make $2200 a month? A car payment on that would be $600 a month or so at 8%, no? I realize that most people need a car, but why try to max out your outlay every month?
I would hope you have, at the minimum, $5k for emergencies saved (cash), and you are putting 15% towards some sort of retirement fund. Please take my advice that a new car is not worth sacrificing your financial stability. I see so many of my friends doing the same thing, and it's a 50/50 crapshoot as to when they will miss a payment due to the inevitable "life happening" occurrence.
That being said, I also believe new cars are a huge waste of money, and have never purchased one in my 24 years of owning cars.
Am I crazy?
You're not crazy, its because people live beyond their means, and cars are a status symbol you see it on this forum everyday. Members who have terrible credit who brag about leasing a BMW or more recently Acuras, who by there own income and credit admissions should be riding a bicycle or taking mass transit.
@Flying_Spaghetti_Monster wrote:I've been browsing the forums for a while, and I have seen a disturbing-yet-common trend: people seem to be buying way too much car than they can comfortably afford. Why on earth would one want to put themselves $19K in debt for a new car if they make $2200 a month? A car payment on that would be $600 a month or so at 8%, no? I realize that most people need a car, but why try to max out your outlay every month?
I would hope you have, at the minimum, $5k for emergencies saved (cash), and you are putting 15% towards some sort of retirement fund. Please take my advice that a new car is not worth sacrificing your financial stability. I see so many of my friends doing the same thing, and it's a 50/50 crapshoot as to when they will miss a payment due to the inevitable "life happening" occurrence.
That being said, I also believe new cars are a huge waste of money, and have never purchased one in my 24 years of owning cars.
Am I crazy?
It depends on what type of cars you are buying. If you are buying honda, hyundai, toyota, etc. then you should always buy used in my opinion. But performance cars are a different realm IMO. I know many people who buy cars RIDE them to hell and trade them in before they conk out. Used cars can be a bit of a gamble, but as long as you cover yourself with a warrenty I think they are well worth the money saved!