auto loans

"OPPOsaurus WRX" (opposaurus)
10/27/2015 at 13:04 • Filed to: None

i wanted to know the best way to attack all this. I have some CC debt and I’m looking to buy that FJ. I have money sitting in the back right now from selling the WRX. My question is would i be better off paying off the CC and getting an auto loan or just paying for the car in cash.

For your time and help, a car for people who dont have to worry about this stuff

DISCUSSION (22)

GTI Sprinks > OPPOsaurus WRX
10/27/2015 at 13:08

Split the difference? Pay off some of the CC debt (obviously depends on how much you have, get your usage ratio into something like 30-40% of your total credit limit) and put the rest towards downpayment/financing.

BeaterGT > OPPOsaurus WRX
10/27/2015 at 13:12

I don’t think you’ll be able to get an auto loan for something that old. Personally, I’d pay for it in cash. You should still pay off your CC debt though (not really sure how that is related)

Supreme Chancellor and Glorious Leader SaveTheIntegras > OPPOsaurus WRX
10/27/2015 at 13:12

I second trying to split the difference....

Ryan A. > OPPOsaurus WRX
10/27/2015 at 13:13

You need to consider the cost of the debt. Credit card debt is often much more expensive than a secured auto loan.

GeorgeyBoy > OPPOsaurus WRX
10/27/2015 at 13:13

I’d pay off the credit debt first assuming it’s a higher rate than an auto loan.

spanfucker retire bitch > OPPOsaurus WRX
10/27/2015 at 13:13

I’d pay off all the credit card first. It usually carries a much higher interest rate of 15% or even higher than that for some cards.

Always pay off outstanding debt first, and in this case, since your auto loan debt will more than likely (unless you have a credit score of like 200, in which case, I don’t think you’re getting a loan) have a significantly lower interest rate, I’d get the car loan and pay off your CC debt.

ciscokidinsf > OPPOsaurus WRX
10/27/2015 at 13:14

Look at the interest rates of both loans- Car you can probably get 1%-6% interest rate with semi-decent credit, your CC I bet is 9% or even more. Pay the CC first, finance the car. You will pay less in interest. Pro Tip: Pay the CC BEFORE you apply to buy the car (1-2 weeks?),So your credit will look a little bit better and you can get a better loan rate.

Short-throw Granny Shifter is 2 #blessed 2b stressed > OPPOsaurus WRX
10/27/2015 at 13:14

Payoff whichever one has the higher interest rate.

If its the CC, put down the minimum down payment on the car and pay as much as you are willing toward the CC debt. If its the car, do the reverse.

Retain enough cash so that you have an amount of liquid funds to cover any unexpected costs. Don’t spend all your money.

HammerheadFistpunch > OPPOsaurus WRX
10/27/2015 at 13:14

cards are brutal with interest rates. Kill that mofo off.

Nicole > OPPOsaurus WRX
10/27/2015 at 13:16

The credit card almost certainly has a higher interest rate than a car loans would be. I'd pay off the CC.

OPPOsaurus WRX > BeaterGT
10/27/2015 at 13:21

well the money from my wrx would either buy the car of pay off the CC which would require an auto loan

OPPOsaurus WRX > spanfucker retire bitch
10/27/2015 at 13:23

i have a pretty good score. now that i’m looking onto an autoloan i dont know where to go cuz the main banks only give loans to 2005+

iSureWilll > OPPOsaurus WRX
10/27/2015 at 13:38

If you have good credit, can’t you get an unsecured loan? Probably slightly higher interest rate, and shorter term but they can’t take the FJ!

iSureWilll > OPPOsaurus WRX
10/27/2015 at 13:40

I would pay off the credit card debt first as they usually have astronomical interest rates and should raise your current score by just a little bit. If you keep the FJ long enough, it may even appreciate enough to cover the interest on the loan you get to purchase it.

BeaterGT > OPPOsaurus WRX
10/27/2015 at 13:44

Pay off the CC and see what you have left to work with. You won’t be able to get an auto loan due to age of vehicle but if your credit is good, a personal loan through a credit union should have similar terms. I had to do this exact approach when buying my Subaru.

OPPOsaurus WRX > iSureWilll
10/27/2015 at 14:09

i never really thought of that. i just thought since its a car it would be a car loan. The people at the bank never even mentioned a regular loan

OPPOsaurus WRX > BeaterGT
10/27/2015 at 14:09

yea i think thats how its going to go.

iSureWilll > OPPOsaurus WRX
10/27/2015 at 14:40

You should be able to apply for an unsecured loan and if you have good credit, you should get a decent interest rate albeit a slightly higher rate than a secured loan. Should still be WAY less than CC interest rate.

Sam > OPPOsaurus WRX
10/27/2015 at 14:44

I would never take out a loan on a used car that old. Imagine if you bought it and it broke down immediately after purchase. Then you’re paying monthly for something that is sitting around being worked on.

shop-teacher > OPPOsaurus WRX
10/27/2015 at 16:22

Go with whatever the lower interest rate is. Your CC is likely at a much higher interest rate than an auto loan would be ... if you can get the auto loan (find that our first).

DrScientist > OPPOsaurus WRX
10/27/2015 at 23:30

auto loan through a credit union. did you graduate from a college? most universities have credit unions that would be happy to give you a loan for a 10+ year old car. youd just have to set up an account with the c.u. which are usually free.

Tom > OPPOsaurus WRX
10/28/2015 at 10:52

Apply for auto loan. If that rate is lower than cc, pay off cc.