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Regular Contributor
Posts: 226
Registered: ‎03-25-2007
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Re: Refinance car loan

According to the myfico website, you'd get...
14.3% at current score
10.9% at 620
 
I posted elsewhere an encounter with an owner of a used car lot while being a lookiloo at an very expensive model home here in Huntsville on Saturday.  He was bragging about selling a few hundred cars per month.  He said, "Anyone can have a car on the lot at 28% interest".  Be careful out there!
Established Member
Posts: 51
Registered: ‎06-25-2007
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Re: Refinance car loan

Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000?  Keep it six months and without a car payment, you can probably save the $400 a month you would  have spent on payments.  Then take that $2400 and trade in your $2000 car for a $4400 car.  A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for. 
 
A FICO score is nothing more than an "I love debt score"  Pay cash and you win in the long term.
 
Any one want to challenge my thought process on this. 
 
 
Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
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Re: Refinance car loan



bobkelly wrote:
Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000?  Keep it six months and without a car payment, you can probably save the $400 a month you would  have spent on payments.  Then take that $2400 and trade in your $2000 car for a $4400 car.  A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for. 
 
A FICO score is nothing more than an "I love debt score"  Pay cash and you win in the long term.
 
Any one want to challenge my thought process on this. 
 
 



Heh bob,
 
How much is your book and tape series? The Gold Line Series? Not the Silver. I want the Fully Monty for my money.
 
However, I won't be able to wire you the money before the 15th. Everything is currently tied up assisting the Minister of Treasury for the Liberia. Long story short, his brother-in-law, the King, was deposed, in total violation of the IRS code and the Emancipation Proclamation, and he just needs the money short term, in U-Bills. You've heard of T-Bills, well these are the next generation. Get in while you can, man.
 
Frequent Contributor
Posts: 313
Registered: ‎04-01-2007
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Re: Refinance car loan



bobkelly wrote:
Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000?  Keep it six months and without a car payment, you can probably save the $400 a month you would  have spent on payments.  Then take that $2400 and trade in your $2000 car for a $4400 car.  A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for. 
 
A FICO score is nothing more than an "I love debt score"  Pay cash and you win in the long term.
 
Any one want to challenge my thought process on this. 
 
 


This is really getting old. Smiley Sad
Established Contributor
Posts: 678
Registered: ‎05-29-2007
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Re: Refinance car loan

bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?
I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.
Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...
" I like to live as a poor man, with a lot of money." - Pablo Picasso (who was a jerk.)
New Member
Posts: 4
Registered: ‎03-31-2007
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Re: Refinance car loan

It seems that Bob has forgotten also that used cars broke down more often than newer cars. A $2k car has a high probability of breaking down in 6 months than a newly refinanced used car. The newly refinanced used car is likely to include extended warrantee required by the finance company to ensure the car will last thru the contract term. That's not the case with cash-n-carry kind of purchase. In the end, you end up spending more for repair than the car is worth; and the projected $2400 will be gone and you are left with a car that has zero trade-in value and  less than $500.00 in local market value.  The problem with Bob's kind of wisdom is that it rarely takes into consideration the unknowns. And it is the unknowns that's often the death knell of many a good intentioned money saving "wisdom".  Just my 2 cents.
Senior Contributor
Posts: 4,834
Registered: ‎04-20-2007
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Re: Refinance car loan



TexMontana wrote:
bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?
I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.
Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...



Semi rare car? You must have a Ford that still runs. LOL.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
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Re: Refinance car loan



smallfry wrote:


TexMontana wrote:
bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?
I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.
Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...



Semi rare car? You must have a Ford that still runs. LOL.

HAHAHAHHAHAHAHAHA!!!!!
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Established Member
Posts: 51
Registered: ‎06-25-2007
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Re: Refinance car loan

[ Edited ]
Use some logic people.  Of course a 27 year old junker is not dropping in value anymore, it's only worth about $500 anyway.  However, it goes without saying that a new car will go down in value faster than a 10 year old car will. 
 
Ever known somebody who's been "upside down" in a new car loan?  Probably.  But, it's impossible to be "upside down" on a car you paid cash for.
 
Sure, my argument is simplified for discussions sake.  No one's suggesting you should spend $5000 to rebuild a blown motor in an old Pinto, but maybe spending $100 on a broken raditor hose might be worth it. That's the point I was tryin' to make.
 
Perhaps I should have said you can save up for a purchase and live within your means without borrowing a ton of $$$.  It just takes a little patience my friend, patience.


Message Edited by bobkelly on 07-05-2007 10:56 PM

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