Re: Roadloans = Confusion
01-27-2013 02:00 PM
I see, so this means that if i don't buy a car under 23k then im still paying for a car worth 23k PLUS interest. The interest is more than the car!!! I can't take that route.
Remember when you are buying a vehicle, buying anything that you have to finance really, it is really two transactions: 1) the actual cost of the purchase of the item (vehicle in this case) and 2) if you don't have cash, then you are "buying" money. Interest is the cost to purchase the money you don't have to purchase the item.
So, when you have two transactions together like financing the purchase of a vehicle, you will want to check mulitple sources for the cost of the money (interest rate and terms) and check mulitple sources for the vehicle.
You are wise to keep the initial purchase price low. Next, shop the financing. A good place to shop the financing is a CU. Another good place is where you bank. If roadloans is the only place that will finance you, then when you go to the dealership, see if they can beat the rate and terms. If not, don't do the deal. Getting stuck in a high interest long term installment loan is really rough. Now, if you have to have a car, it is better than walking, but then you do a two step process like Revelate suggests in his posts- refinancing out of it as soon as you qualify.
Is there any way you can bump up your score before you buy? Check the rebuilding forum to see if there are any tips there for you. Also, remember, the interest rate is negotiable.