People with low scores and/or past BK's post up about financing expensive luxury auto's? Most of the time for ridiculous terms!
No BK but my vehicle is 8 years old and paid for. I keep the DW in new vehicles, but my 2005 Cadillac still purs like she was new.
Cars are a very emotional purchase, for some.
I believe there are times we try buying back a piece of our identity following a setback instead of really dealing with the grieving process. Houses, cars, relationships, shopping, etc... can be a part of it.
I don't know if there's any BK correlation but people with a significant negative item are going to get higher interest rates.
I've noticed the same thing you have, OP. I have to bite my tongue sometimes to avoid saying, OMG, you're going to end up right back in the soup again!
what do you consider luxury? alot of people tel me my car is luxury.
the worst part is financing a large amount on little down payment for an insane interest rate!
they got a feel for it and once they lose it they want it back and will sign their life away for it.
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definition of luxury vehicles can differ from one person to the next, but i'd say depending on the make and model a luxury vehicle is going to be relatively expensive compared to other makes and models, offer most all bell's and whistles, and be of a known expensive manufacturer. I see a lot of people having credit issues and the first they do is go out and finance a $50,000+ vehicle at 18% for 7yrs. To each their own, but come on they must've learned something from what they went through.
Ive not noticed any correlations but I see a lot of people on here that are trying to get approved for expensive vehicles are willing to pay. Now thats fine if you want to pay a huge amout of money to drive but it makes no sense to me. I did buy a new car, but I bought the cheapest model mazda offered besides the one without air conditioning.
No, because I was just discharged last week and financed a 2011 Dodge Caliber since the only other vehicle I have is 14 years old and has been sitting in the driveway since last May with a busted transmission. Yes, my interest rate is ridiculous, and I hope to refi with Navy towards the end of this year.
Hmmm, as another posted, I think the definition of luxury (in some respects) is subjective. There are some people who think anything over 25k is luxury (which I don't). Also, there are some luxury manufacturers who have some vehicles that are less expensive - example, for most people they would consider a Mercedes Benz a luxury vehicle; however, their C-class Benzes are in the mid to high 20's range,I don't consider that price range to be in the "luxury" price range. For me, there are certain brands that are luxury to me, even if they have some lower priced models in their inventory.
Needless to say, I filed BK in Oct 2010, and my car has been paid off since 2007 (I bought my car brand new, in late 2002), and I don't plan on getting a car anytime soon, and when I do a. it won't be brand new, and b. I will be paying at least 50% down. I've never purchased a car without putting at least 20-25% down.
What I don't understand is how some people are willing to pay a ridiculous interest rate on a used car like 18% because they had no down payment, but can somehow manage to come up with $2,000 to $5,000 in cash to upgrade the stereo and buy custom rims.
When I was younger and that movie "Fast & Furious" first came out, I knew several people who spent over $20,000+ on modifying and "upgrading" their vehicles, but owed a lot less on the remaining principal of their auto loan. They would have been better off just paying off their car's principal. To each their own.