topic Re: 2014 Corvette Stingray in Auto Loans

2014 Corvette Stingray

Anonymous — Thu, 11 Jun 2015 04:54:48 GMT

Hi, I was wondering if anybody with any experience in banking/auto-lending could help me out:

Close to eight months ago I was in the market for a used 2014 Corvette Stingray, but being new to the automotive financing world I was humbled to find out there was "no way" I'd get financed for a 60k car as a first time buyer. After learning that, I opted to building auto loan history with a starter car and financed a 2012 2SS Camaro for 27k with a 15% interest rate. Fast-forward 6-7 months and I've gotten the loan down to 24k which is around the bluebook value and was wondering if I could do a trade-in for Corvette now. Do I stand a shot at 6-7 months loan history to be financed for a 50-60k automobile?

1). 718 FICO
2). financed first vehicle 6-7 months ago
3). positive equity on current vehicle
4). 40-45k annually,
5). Texas resident

Re: 2014 Corvette Stingray

Anonymous — Thu, 11 Jun 2015 18:46:22 GMT

I doubt you would get financed for a vehicle that is 1.5X your income, though I could be wrong. But that is WAY to much car for your income in my opinion. If you stretch this for 6+ years, you are still looking at a 1k+ monthly payments. Have you looked into the insurance on that car? I assure you that you probably will regret this down the line, assuming you get it. I know you didnt come here to be lectured, but this seems incredibly unwise. I make more than that, and just the thought of doing this scares the crap out of me.

Re: 2014 Corvette Stingray

Legen_dary — Thu, 11 Jun 2015 20:46:53 GMT

I agree that it seems pretty risky if that's your only income. I'm not certain what lender would approve you..

Re: 2014 Corvette Stingray

Anonymous — Thu, 11 Jun 2015 21:10:54 GMT

I'm already paying $750.00 a month on a SS Camaro with a 15% interest rate at 72mnths

2-300.00 more for the Stingray won't hurt me, I have private investments on the side as well.

The only thing dealerships say would hault me is only having auto loan history of 6-7 months.

Re: 2014 Corvette Stingray

Anonymous — Thu, 11 Jun 2015 23:59:49 GMT

This -

1). 718 FICO
2). financed first vehicle 6-7 months ago
3). positive equity on current vehicle
4). 40-45k annually,
5). Texas resident

Please talk yourself out of it. With your income and another auto obligation not including your other expenses, it will a wild stretch to get financing for it. If you have private investment as well, that will still be a stretch.

Are the car payments going to be your only expenses?

Re: 2014 Corvette Stingray

tonyjones — Thu, 11 Jun 2015 23:57:18 GMT

@Anonymous wrote:
This -

1). 718 FICO
2). financed first vehicle 6-7 months ago
3). positive equity on current vehicle
4). 40-45k annually,
5). Texas resident

Please talk yourself out of it. With your income and another auto obligation not including your other expenses, it will a wild stretch to get financing for it.

x2 I agree with Yes-Its-Me. Unless you live at home with your parents and have $0 debt, I wouldn't recommend it.

Re: 2014 Corvette Stingray

Anonymous — Fri, 12 Jun 2015 00:23:28 GMT

Actually, I do live at home with my parents with close to zero debt at 25 years old. I work amongst a family owned business.

Finishing off a student loan of 3k but that's nothing. The private investments alone could pay the car note and insurance in two days, not touching salary.

Again, the payments aren't what I'm worried about; my auto loan installment history is.

Re: 2014 Corvette Stingray

Anonymous — Fri, 12 Jun 2015 00:31:39 GMT

@Anonymous wrote:
This -

1). 718 FICO
2). financed first vehicle 6-7 months ago
3). positive equity on current vehicle
4). 40-45k annually,
5). Texas resident

Please talk yourself out of it. With your income and another auto obligation not including your other expenses, it will a wild stretch to get financing for it. If you have private investment as well, that will still be a stretch.

It wouldn't be two car notes, I'd be trading in the one I drive now and using the equity as a down payment.

Re: 2014 Corvette Stingray

Anonymous — Fri, 12 Jun 2015 01:05:20 GMT

@Anonymous wrote:
Actually, I do live at home with my parents with close to zero debt at 25 years old. I work amongst a family owned business.

Finishing off a student loan of 3k but that's nothing. The private investments alone could pay the car note and insurance in two days, not touching salary.

Again, the payments aren't what I'm worried about; my auto loan installment history is.

Ok.. The MSRP for the car according to Edmunds is $70,610 http://www.edmunds.com/chevrolet/corvette-stingray/2014/.

Most CUs won't go that high for a car loan. How much will your trade in come up to? Just trying to do the math here..

Re: 2014 Corvette Stingray

tonyjones — Fri, 12 Jun 2015 03:14:37 GMT

@Anonymous wrote:
@Anonymous wrote:
Actually, I do live at home with my parents with close to zero debt at 25 years old. I work amongst a family owned business.

Finishing off a student loan of 3k but that's nothing. The private investments alone could pay the car note and insurance in two days, not touching salary.

Again, the payments aren't what I'm worried about; my auto loan installment history is.

Ok.. The MSRP for the car according to Edmunds is $70,610 http://www.edmunds.com/chevrolet/corvette-stingray/2014/.

Most CUs won't go that high for a car loan. How much will your trade in come up to? Just trying to do the math here..

I've heard of PenFed/DCU financing Tesla outright, depends on your CR and Income I think. Probably rare either way but I'm interested what they will say if you try to get a loan that high.

Please get back to us if you deicde to apply I'm curious now.

Re: 2014 Corvette Stingray

Anonymous — Sat, 13 Jun 2015 07:36:18 GMT

I think you should try to stick it out at least 12 months, then see what they think about it. If you can put the income on paper to support it and are able to put a decent down payment down I think you will probably be ok and for sure should be able to get a hell of a lot better interest rate. Give your preferred credit union a call and run it by a loan officer, they should at least have a general idea of if it can be made to work.

Re: 2014 Corvette Stingray

Anonymous — Sat, 13 Jun 2015 07:49:20 GMT

The income will make it a little tough. My guess is if you get qualified the APR will be high again and as you probably already know these high APR's really add to the payment. My suggestion would be to refinance your Camaro, I am sure you can get it down to 5% with a credit union, build a relationship with them over the next 6 months or so and save up as big of a down payment as you can over those months and then you will be in a decent position. I am 49 and have been waiting for many years to be in a position to buy a car like that but once you get married and have kids everyone else takes priority so now is perhaps going to the best time of your life to do this. Know that the insurance is going to be crazy on that car at your age and do all you can to make sure you don't end up in a negative equity situation because life can change quickly and having a car payment that high may not always be as easy as it is today for you. Best of luck.

Re: 2014 Corvette Stingray

Anonymous — Sat, 13 Jun 2015 09:16:32 GMT

How would he afford the payment & insurance? Hope things work out the way you want. Been there & know the feeling.

Re: 2014 Corvette Stingray

sports1965 — Sat, 13 Jun 2015 13:54:32 GMT

$60000 car on a $43000 salary = financial suicide + sleepless nights. no thanks

Re: 2014 Corvette Stingray

barbaralee — Sat, 13 Jun 2015 17:52:28 GMT

@sports1965 wrote:
$60000 car on a $43000 salary = financial suicide + sleepless nights. no thanks

Yes, but he is of the "I live at home with my parents, pay for nothing, my pay is my disposable income, and I have a little invested" ilk which you read about here every now and then. It is a very similar story to the suburbanite mom with 3 kids who drives a minivan but suddenly the vehicle does not "meet the needs" or is "unsafe", so she needs to upgrade to a SUV.

It's all the same, a lot of justification with little to no consideration of changes in the future.

Re: 2014 Corvette Stingray

ds3 — Sat, 13 Jun 2015 16:17:17 GMT

If I had a 25 year old kid living in my house for free making $40k a year and he/she went out and bought a $70k car, he/she would be living in it from that point forward. To the OP...grow up, move out, have a life of your own, then see if a silly car like that makes sense. 25 year old male...the insurance alone has got to be $4k a year or more.

Re: 2014 Corvette Stingray

Anonymous — Sat, 13 Jun 2015 19:49:26 GMT

@ds3 wrote:
If I had a 25 year old kid living in my house for free making $40k a year and he/she went out and bought a $70k car, he/she would be living in it from that point forward. To the OP...grow up, move out, have a life of your own, then see if a silly car like that makes sense. 25 year old male...the insurance alone has got to be $4k a year or more.

You all are pretty quick to judge the guy. I'm 25 and still live at home making 70K a year. Everyones situation is different and my grandmother doesn't want me to move out, so I stay for now. If he wants to enjoy something while he is young let him because when he does move out and start a family it will probably be 20 years before he gets a chance to do it again. You all should quit being so critical of the guy and just answer the questions asked instead of lecturing him about his spending habbits IMO.

Re: 2014 Corvette Stingray

ezdriver — Sun, 14 Jun 2015 15:04:41 GMT

@Anonymous wrote:
@ds3 wrote:
If I had a 25 year old kid living in my house for free making $40k a year and he/she went out and bought a $70k car, he/she would be living in it from that point forward. To the OP...grow up, move out, have a life of your own, then see if a silly car like that makes sense. 25 year old male...the insurance alone has got to be $4k a year or more.
You all are pretty quick to judge the guy. I'm 25 and still live at home making 70K a year. Everyones situation is different and my grandmother doesn't want me to move out, so I stay for now. If he wants to enjoy something while he is young let him because when he does move out and start a family it will probably be 20 years before he gets a chance to do it again. You all should quit being so critical of the guy and just answer the questions asked instead of lecturing him about his spending habbits IMO.

I totally agree.

Re: 2014 Corvette Stingray

ezdriver — Sun, 14 Jun 2015 15:13:31 GMT

To OP: Have you tried to trade in your car at a Chevy dealer? What did they tell you? I'd recommend that you try about three or four lenders in a short period of time [one being a dealer] and give up the quest for that new Corvette for the time being if they all deny your loan application. Next you should consider refinancing the Camaro for the time being and save the difference in payment so your downpayment can be increased.

When I was 25, I thought the same way you did ... except that I lived 3,000 miles away from any member of my family. I think that my life turned out ok ... but I sometimes think that I'm the only one with that opinion! There can be a lot worse things to be blowing your money on ... so live you life instead of just being alive!

Re: 2014 Corvette Stingray

Anonymous — Mon, 15 Jun 2015 07:08:40 GMT

Appreciate the replies guys, with so many questions it's going to be hard to answer them all in one reply but I'll shoot:

1). I live with my parents because I work amongst the family business (not counting my outside investments).

2). Living with parents allowed me to get ahold of any debts (i.e - student loans) and build insane credit history over the years, far beyond my peers.

3). The car has a MSRP of $55,000, not 70k. I believe Edmunds is location specific, in Texas they're going for $54k-$62k

4). My full coverage insurance is $140.00 a month on my current SS Camaro.

5). My private investments can (and often do,) yield $1000-$2000.00 a day. That covers the car note without even touching my take-home salary.

The car I have now was financed for 27k, but I've got it down to 23k which is about where the bluebook value is at. I don't think it's enough equity to actually "do anything" in regards to the Corvette but I'll see when the time comes. Most chevrolet dealers were willing to give me more than dealers that sold other makes/manufactures.