Sonata Limited with 83k miles...

[Carloscda40]

For $400 a month is that a good deal with no credit history?

[MrPickleton]

How long is the term for it?  What is the asking price?  Year? Condition?  Those help paint a better picture.

[Carloscda40]

Ok I have a buddy that was going to pick up an 2009 Sonata Limited v6 with 83k miles. The car is 15k fully loaded w/navi.

Because of his limited credit history his payments will be $400mo for 6yrs. I know crazy but that's where he's at right now. and needs a reliable car to get back & forth to work especially for the OT being offered.

I told him keep his nose clean and pay ontime for a yr then refi.

[pakman92]

I can only comment on the facts. if the principle amount is 15000 and the monthly payment is 400 for 72 months. That equates to interest rate of 24.56%. that is quite high.

[Carloscda40]

Exactly... Hes being hurt by the no previous credit history and only putting a grand down.

[Mike360]

Chances are your friend won't be able to re-finance after a year due to the fact his APR will be so high that he'll be up-side down in that car loan for most of the loan term. Most places won't re-finance for more than 100% of the car's value so most likely he'll have to pay down a good lump sum of that original car note in order to do it. 

[Dustink]

Sounds like a very bad move.

They would be much better taking that grand and buying a cheap car with it.

Then spend a couple years or so building their credit before even thinking about a car loan.

Plus a high mileage Hyundai is the last thing you want to buy.

[MovingForward_2012]

I wouldn't do it. The car has too many miles on it for $400 per month. Once that thing hits 100K miles, the repair bills will start rolling in.