by "TheHondaBro" (wwaveform)
Published 08/13/2017 at 23:32
by "TheHondaBro" (wwaveform)
Published 08/13/2017 at 23:32
Tags: I'M TRYING TO BE A RESPONSIBLE ADULT
STARS: 2
Being a new car buyer with no credit, the bank would probably want me to have 60-80% down then finance the rest. If a GS430 is worth $13,000 in good shape today, then I should have $7,500-10,000 saved up. That way I don’t finance too much and risk a catastrophic interest rate on a long-term loan.
I’m getting my $1,500 from the Accord when I hand it over tomorrow (Should have been today but the service dept. apparently closes every Sunday). Assuming they’ll have depreciated to $11,000 across the board by the time I’m ready to buy, I should have a good down payment, like $7,000, in five months. That’s basically January of next year (February if I travel for Christmas).
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"gmctavish needs more space" (gmctavish)
08/13/2017 at 23:37, STARS: 5
Yeah but think of the cool $1500 beater you could get
"TheHondaBro" (wwaveform)
08/13/2017 at 23:38, STARS: 1
I wish I had a cannon I could put you in for defying me.
"Nibby" (nibby68)
08/13/2017 at 23:40, STARS: 3
first gen SC, you know you want it
"gmctavish needs more space" (gmctavish)
08/13/2017 at 23:41, STARS: 5
You could get one of those stunt cannons but they’re probably more than $1500
"TheHondaBro" (wwaveform)
08/13/2017 at 23:44, STARS: 0
I want a newer car tho.
"Eric @ opposite-lock.com" (theyrerolling)
08/13/2017 at 23:46, STARS: 0
Screw responsible adulthood. Buy an awesome beater in SoCal and drive it up here (because WA has ridiculously-overpriced used cars).
It might be quicker to build up your credit by getting/using credit cards carefully...
"TheHondaBro" (wwaveform)
08/13/2017 at 23:47, STARS: 1
I respectfully decline, and by respectfully I mean I’m currently looking for a human stunt cannon to buy.
"Milky" (jordanmielke)
08/13/2017 at 23:48, STARS: 5
$1500 is literally what I paid for mine.
"Eric @ opposite-lock.com" (theyrerolling)
08/13/2017 at 23:54, STARS: 1
My edit didn’t make it, but you might actually do well by getting some CCs. You could build some credit pretty quick.
I bet they’d finance more than 40%.
"TheHondaBro" (wwaveform)
08/13/2017 at 23:54, STARS: 0
And yet it’s at a road closure. Checkmate, atheists.
"Rico" (ricorich)
08/13/2017 at 23:55, STARS: 7
Please work on building your credit during this time. It is one of the most important parts of adulthood and the earlier you get on track the better, your future self will thank you.
"TheHondaBro" (wwaveform)
08/13/2017 at 23:56, STARS: 1
I was thinking about getting a credit card for small things. Not sure how much it would help though with a $4,000 auto loan.
"TheHondaBro" (wwaveform)
08/13/2017 at 23:57, STARS: 2
I’ll think about it. It wouldn’t hurt to get approved for one and use it for small things that I can pay off instantly.
"themanwithsauce - has as many vehicles as job titles" (themanwithsauce)
08/14/2017 at 00:01, STARS: 2
I’ve never heard of a loan of any kind requiring more than 50% down, and those 50% down ones tend to be dumb. THough that being said, let’s say you paid 3,000 down now on a 10,000 dollar loan vs. 7000 down on a 5,000 dollar loan a year from now - your monthly payments on the same number of payments is literally half so I can see why you’d want to do it this way. 5,000 over 2 or 3 years is much less than 10k over the same period.
Honestly, I don’t think the banks would care too much about the % of the loan the downpayment is so long as its reasonable. But they would like to make sure you’r ebuying a reliable car and not spending 5000$ on a 1995 grand prix with 300k miles and a blown motor.
"2Fast2Furious: Rotary Powered" (2fast2furiousfc3s)
08/14/2017 at 00:02, STARS: 0
Thinking out loud I see
"TheHondaBro" (wwaveform)
08/14/2017 at 00:04, STARS: 0
Is my genius showing?
"Eric @ opposite-lock.com" (theyrerolling)
08/14/2017 at 00:09, STARS: 1
Having any credit will help. There are a lot of starter cards these days, too, so it’s nothing like it was 10-20 years ago when I was starting out. Once you establish, it helps considerably with getting more cards and getting loans... It’ll be incredibly hard to get any loan if you have no credit.
"themanwithsauce - has as many vehicles as job titles" (themanwithsauce)
08/14/2017 at 00:11, STARS: 1
And we all know how that one turned out ;)
I can see it now - the oppo name change in 3 months time “TheLexusBro - swears off RWD lexuses and curbs forevermore”
"Eric @ opposite-lock.com" (theyrerolling)
08/14/2017 at 00:19, STARS: 1
Never pay interest as it’s not necessary to build credit. Also use something like Credit Karma to find out when they report; pay down with some time to go before that date every month to keep your utilization as close to zero as possible. Low utilization helps your score. You can also use these sites to track up/down progress in your score (but they’re otherwise useless).
I could give you a lot of pointers. You can read about it all online, but don’t trust everyone because there is still a lot of magical thinking regarding it. My parents and in-laws all have crazy ideas about it that are flat wrong.
"Rico" (ricorich)
08/14/2017 at 00:21, STARS: 4
Without trying to be pushy I would strongly suggest you consider it. A colleague of mine just lost out on a housing opportunity because his credit score is below 750. He’s someone who paid cash and debit all his life and now is almost 30 with a subpar score and has learned the hard way.
Stories like this are a dime a dozen poor credit and no credit can consistently screw you on loans/mortgages. The system is rigged as you know but that doesn’t mean it’s feasible to ignore the system. Fears of credit cards are greatly exaggerated by those who lack self control.
I’ll be more than happy to recommend you cards and offer advice. I posted something similar on here to Save The Integras because he was interested in starting to build his credit.
It’s like getting a drivers license, the longer you wait the higher your insurance is likely to be. If you get your license at 18 years old your in much better shape than say someone who waited until they were 40.
"NojustNo" (front24200)
08/14/2017 at 00:21, STARS: 1
If you aren’t already with a Credit Union open a checking account with one. Becu or Alaska have good reps in this area. They have more reasonAble credit card options and may even have an auto loan rate that isn’t too close to the moon. Won’t hurt to run your credit and see what they offer.
"Chariotoflove" (chariotoflove)
08/14/2017 at 00:24, STARS: 2
This is what I did in college. They flooded my mailbox with solicitations to apply for a card probably hoping I would rack up debt on it. I promptly did the opposite and built up my credit. My starting limit was $500.
"Flynorcal: pilot, offshore sailor, car racer and panty thief" (flynorcal)
08/14/2017 at 00:36, STARS: 1
All of this and sign up for Credit Karma as well. It’s free (paid for by credit card offers they promote very transparently) and has excellent monitoring and suggestions. They also show card offers that aren’t promoted and I’ve got 3-4 cards through them to help both my score and to pay/reward them for a great service.
I’m addition to being able to buy whatever you want once you’ve got credit worth a shit, you’ll find you then want to attract people with similar credit scores or higher. There’s no romantic test available that tells you the person is responsible, trustworthy, loyal, and a person worthy of your time and trust like a solid credit score. She’ll find a way to check yours if she’s taking you seriously.
The car won’t get you laid like a good credit score will.
"sony1492" (sony1492)
08/14/2017 at 00:58, STARS: 1
Was for sale at $1400 when I traded for it, just sayin.....
"Spasoje" (Spasoje)
08/14/2017 at 01:15, STARS: 1
Lemme jump in here for a bit – a good strategy is to use a CC for all the purchases you already make (so, gas, groceries, all the everyday stuff), and then just transfer the money from your normal bank onto your credit card the same day or w/e (they usually have a grace period of like 2 weeks before they charge you interest). You can build your credit really well and really quickly that way, without paying a dime more than you were going to anyway!
"2Fast2Furious: Rotary Powered" (2fast2furiousfc3s)
08/14/2017 at 01:21, STARS: 0
Always ;)
"AM3R, lost another burner" (am3r17)
08/14/2017 at 02:00, STARS: 0
What kind of cards would you recommend to a college student? Could send this advice to my siblings.
"merged-5876237249235911857-hrw8uc" (merged-5876237249235911857-hrw8uc)
08/14/2017 at 05:56, STARS: 0
Yup, get a card and use it like you would a debit card and pay off every month. Win win.
"merged-5876237249235911857-hrw8uc" (merged-5876237249235911857-hrw8uc)
08/14/2017 at 06:02, STARS: 1
We do this now, but as long as we pay off when the statement is issued, prior to the due date, no interest is accumulated. And then we get the points for cash back as well. Also, CC are much safer to use for online purchases because if there is fraud, at most your on the hook for $50, but our cards have always wives this fee as well, and then it’s not linked to your bank account like a debit is. In those instances, a thief can clean out your account and you’re pretty hosed if its worse case. So yeah CC and use it like you would cash. Only spend what you can pay off.
"Arrivederci" (arrividerci)
08/14/2017 at 08:03, STARS: 0
My recommendation would be to go to whatever bank they have an account with and ask to apply for a credit card. They may have specific offers in place for college students, but make sure they only get one with a low limit ($500) so they don’t get into trouble.
Best way to build credit on a card like that is to make a decent sized purchase that doesn’t go over 50% utilization (ie - $200 purchase), then pay it down over the next three months. It’ll cost a little in interest, maybe $10-12, but if they establish a good payment history, that’ll shoot their score up over time. Once that purchase is paid for, do the same, then rinse and repeat.
"Nibby" (nibby68)
08/14/2017 at 08:16, STARS: 0
ok then buy a hyundai excel
"Aaron M - MasoFiST" (amarks563)
08/14/2017 at 08:56, STARS: 1
As a note, no one will finance you at 80% down. In essence, there’s a minimum principal most banks have, so if you both can’t cover the minimum *and* can’t give a high enough down payment they just won’t loan you the money. Banks will go down as low as 6k but most of them will penalize you for going lower than 8k. The reasoning of course is that people who try to get very small loans are more likely to default no matter how large the down payment is.
Source: had the down payment on my Honda Fit returned (literally returned) because my trade-in was too valuable and the loan was too small.
"Milky" (jordanmielke)
08/14/2017 at 09:21, STARS: 0
Hey man, I knew I was playing with fire. Its not like RWD means you’ll 100% pitch sideways and crash.
I’m assuming there are cops where he lives, makes it harder to drift everyday.
"Milky" (jordanmielke)
08/14/2017 at 09:24, STARS: 0
I thought the elusive $1500 Lexus SC was proof god existed?
"TheHondaBro" (wwaveform)
08/14/2017 at 09:27, STARS: 0
SCs around here are more expensive in worse condition. I’d rather save a little more and get a GS430.
"Vicente Esteve" (vicente-esteve)
08/14/2017 at 09:40, STARS: 1
Seems like a good plan. That is one of few Lexi I would want to own.
"TheTurbochargedSquirrel" (thatsquirrel)
08/14/2017 at 10:14, STARS: 0
The way I have been doing it is by buying things on my credit card and making sure I have it completely paid off before the end of the month.
"Milky" (jordanmielke)
08/14/2017 at 10:28, STARS: 0
I’d challenge “worse condition”. Mine had a rekt interior(torn seats, no radio/heater, door cards falling off), broken door handles (inside and out), a salvage title, 190000 miles(when I got it) and some other stuff I’m forgetting.
Yet is still was reliable, fun transportation for 2 years.
I added Porsche style door pull straps so I could get in/out, cut the exhaust and shoved a tablet in the dash stereo hole for music. Drove the piss out it. No regrets.
When theres a will, theres a way.
"Steve is equipped with Electronic Fool Injection" (itsalwayssteve)
08/15/2017 at 11:46, STARS: 0
My dad had already ruined my credit by the time I was 18. I had about 18k in charge-offs when I became a legal adult. We have the same name and he used my SSN for a bunch of credit cards, utility bills, and medical stuff. Some of that stuff still occasionally shows up. Zombie debt from 20+ years ago is no fun.
"Chariotoflove" (chariotoflove)
08/15/2017 at 12:00, STARS: 0
Oh no! My dad and I share a name, too, but my parents were great financial role models. So is my wife, but when we went to refinance our mortgage, they thought she was some scofflaw in Michigan with a similar name being pursued by collections agents. We had to prove that she was not that person. Big PITA.
"Steve is equipped with Electronic Fool Injection" (itsalwayssteve)
08/15/2017 at 12:19, STARS: 1
I never had great fiscal role models - living from paycheck to paycheck and scrambling to make ends meet as a child tends to leave people with hard lessons about money as an adult. As such, I’m in my late 30s with a credit score hovering around 650, a mountain of debt that my wife and I can only hope to start chopping down once we both graduate and start actual careers.
I also have a great disdain for people who “rich-splain,” financial decisions when they haven’t had to spend every payday making decisions as to who is getting paid so that the lights and phone stay on and the car stays insured so I didn’t get another expired tag/ no insurance ticket.
At the same time, we’ve managed to do pretty well with a household income that firmly places us below the middle class. Also, we drive a new car because it’s easier to budget the car payment each month instead of the possibility of a major repair. In a way, it’s insurance.
"Chariotoflove" (chariotoflove)
08/15/2017 at 14:36, STARS: 0
My wife had to live the paycheck to paycheck thing as a teen when her dad died and left her mom with 4 kids, a mortgage, and a low paying office job. My family was very well off. Kind of weird that I was naturally so miserly as a kid.