[QUOTE=Bosda Di’Chi of Tricor]
I want to thank you all for your advice. 
I’ll give it a try.
[/QUOTE]
Take a deep breath, and just do it. Best of luck Bosda.
[QUOTE=Drum God]
I thought about how I would explain it to someone who has never done it.
[/QUOTE]
Just adding to the kudos and hosannas. Your post has justified my $14.95 many times over.
(Well, if I were actually paying $14.95, instead of the half-price Charter Members rate. Who sez I don’t know nuthin’ 'bout money.)
[QUOTE=WoodenTaco]
You know, I just graduated high school, and I think we really need a class devoted to this sort of thing. The curriculum would just be important things to run a business and get by financially in life. Things like:
- How to do your taxes.
- How to get a loan.
- How to get insurance.
- How to invest money safely and well.
That would be some education that would get people out of poverty much more quickly than learning European history would. That’s not to say that I think history is worthless, of course. It’s just not too relevant to one’s success in life, and lots of people like to say that education is all you need to get out of poverty, which may be true but it depends on what type of education.
Ok. Back to your regularly scheduled topic.
[/QUOTE]
At our school, students are required to take economics during their senior year. I believe that things like taxes, banking, insurance, are addressed. The counselor described it to me as a “How to be a grownup” class.
When I was in college, my parents made me handle my own financial transactions. When I rented my first apartment, bu dad went with me, but I handled the arrangements. He acted as an adviser. It was the same when I bought my first car (to replace the hand-me-down they gave me in high school.) He set me up with the insurance company I still work with today. I am fortunate that my parents taught me to handle finances by example. It’s a shame that not everyone is able to do that.
Thanks for the appreciative comments.
Bosda, please be sure to come back and let us know how it goes. What kind of new ride are you getting?
That was a great post, Drum God.
Good luck, Bosda.
[QUOTE=Bosda Di’Chi of Tricor]
I want to thank you all for your advice.
I’ll give it a try.
[/QUOTE]
Well???
How did it go?
I’m hoping all went well. If it didn’t, let us know and we’ll have another go at it.
We’re all pulling for you…
I’m wondering as well about how the purchase of the automobile went. Did you get a decent price? Did you get suckered into purchasing unnecessary add-ons?
WHOA!
I ain’t buyin’ anything, until I get a loan lined up!
[QUOTE=Bosda Di’Chi of Tricor]
WHOA!
I ain’t buyin’ anything, until I get a loan lined up!
[/QUOTE]
He was under the assumption that maybe you had gone and tried again. They want you to keep them updated. So… did you go to the bank yet and try again? When are you going to go? Be sure to let the people here know how things went. They’re all strangely curious. Me? I would say I’m morbidly curious…
May be a catch-22 there.
Some banks want you to give a car, a price and a mileage number before they grant you an approval.
I think most will do a “pre-approval” application though.
On Saturday AM.
And, if I can’t get one through my bank this time, I just got a letter from State Farm–my insurance company is making car loans!
[QUOTE=Bosda Di’Chi of Tricor]
On Saturday AM.
And, if I can’t get one through my bank this time, I just got a letter from State Farm–my insurance company is making car loans!
[/QUOTE]
Awesome. You might get a good rate there. And, you’ll be dealing with your insurance agent – someone you already know and have worked with. I also have State Farm, but I have never financed through them. Let us know how it goes.
Well…?
Well.
I can get such a loan, but I can get a better rate from a dealer, or so the bank says.
Probably true.
[QUOTE=Bosda Di’Chi of Tricor]
Well.
I can get such a loan, but I can get a better rate from a dealer, or so the bank says.
Probably true.
[/QUOTE]
That seems off. Dealers are not known for good rates. You might try your State Farm guy first.
What rate did the bank quote you, if you don’t me asking?
One problem with financing the auto through the dealer is that they can obscure the true cost of the car if you’re both purchasing the car and financing it through them. It can be even worse if you trade in another car. For that reason, I think you should keep in mind whatever interest rate the bank is offering and compare it to the dealer’s rate, and then only discuss the financing with the dealer after having negotiated the purchase price.
[QUOTE=Bosda Di’Chi of Tricor]
Well.
I can get such a loan, but I can get a better rate from a dealer, or so the bank says.
Probably true.
[/QUOTE]
Probably not. The usual smokescreen that car dealers will use is to give you a lower monthly payment. They don’t tell you that they’ve added a year to the term of the loan and jacked up the interest. Do not fall for this.
The only thing you should be comparing are the term (length) of the loan and the interest rate.
For example, a four year $10,000 loan at 5% will run you $230 a month. You’ll end up paying $12,094 over the life of the loan.
A five year $10,000 loan at 6% will be “only” $193 a month, but you’ll pay it for a year longer and it’ll end up costing you $13,180.
All the dealer will be telling you is how he can “save” you $37 a month.
Oh, and those numbers aren’t realistic. Expect rates on a used car to be closer to 7-9%.
[QUOTE=Lamar Mundane]
Oh, and those numbers aren’t realistic. Expect rates on a used car to be closer to 7-9%.
[/QUOTE]
That’s more or less what I was offered at the banks.
Gotta check State Farm.
I have to respectfully disagree with the posters that suggest a dealer is a bad way to go. It is nice to have one-stop shopping. As mentioned, keep an eye on the interest rate and the term. Negotiate the purchase of the car first, then talk about the financing. I have had deals that were bad at the dealer and I’ve gotten good financing at the dealer. Having said that, I have only dealt with name-brand dealers, not “WE’VE GOT CARS! NO MONEY DOWN!” sorts of dealers.
Remember also that there is nothing that can’t be fixed later. If you’re in a spot where you’ve just got to get the car, go get one. You can refinance it later. I’ve had good experiences with online lenders who really do work hard for your business. Just watch out for the length of the loan and make sure that you don’t lose time.
I’m curious how State Farm will work out. I know they do car loans, but I’ve never tried to get one through them.
[QUOTE=Drum God]
I have to respectfully disagree with the posters that suggest a dealer is a bad way to go. .
[/QUOTE]
Like I said, my Bank said the same thing (“You can probably get a lower rate at the dealer”) and I was getting the Employee loan rate.
If you buy at a repatable new car dealer and you have good credit, the rate there will likely be lower.
Be concerned about three things: trade in, net price of car, and interest rate. Don’t let them confuse you with “low monthly payments”.
So, didja get the car???