Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
Re: Where to Apply?
I see what you are saying in terms of refinancing. When I had bad bad credit, it was due to a double BK on my CR. Both a 7 and 13 two years apart from each other. Now only the 7 is there and will fall off in August. So I knew refinancing in 6-12 months wasn't an option. Some baddies are so bad, they stay for a really long time. So for me, finding a subprime lender with a rate reduction program was what I needed. My recovery has been snails pace. So by the time I could refinance, it was 4 years later and the car kicked the bucket so I tried for my dream car (a 2012 Acura TL) and got tier 1 financing. Car payment is $536. I know it seems high to a lot of folks but it is a luxury sports sedan with many bells and whistles that I absolutely love! I make almost 6 figures so it is easily affordable and insurance is only $113 a month and that is $100,000/300,000 limits plus $500 for comp and coll. the max limits are required for a leased vehicle.

If someone makes 40K a year, do I recommend this? No, absolutely not. There are folks that make $200K a year with a $1000/mo car payment on a Porsche Cayenne (sp?) but it is easily affordable to them but not to me. The initial payment without the extras was $461/mo but I wanted the maintenance protect plan, tinted windows, the leather stain mastered, etc, etc. so typically luxury cars will come with payments above $500 per month.

I consider myself very established in my 12 year long career and they worked me tirelessly over the years and the Acura TL gives me a sense of accomplishment and reward. I'm in my 30's now, getting older and wanted something to show for my hard work. Paying $600 a mo for a $26K car is a rip off (been there done that). But it is a good price for a $37K car. All relative Smiley Happy Who knows? You might change your mind and get a luxury car in the future should your finances permit it.

I am more conservative when it comes to property though. I think the house will appraise for $181K. Built in 2000...3 bedrooms/3baths, just right for our family. Some folks will go big on a house, smaller on transportation. I guess I am opposite right now. While, a $300K house would be nice, my finances and family size doesn't justify it. Some by bigger houses to show accomplishment, others buy more luxurious cars. And many middle class Americans fall in the middle of it all. Smiley Happy All is okay as long as the finances remain stable
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014