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  #1  
Old 12-21-2004, 12:30 PM
Hatterasguy's Avatar
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Where can I learn about car loans?

Maybe in the open forum?

Anyway I am thinking about getting a newer car next year, and I prefer it to be a MB. A W210 actually with a sweet German V8. So since their are a lot of very nice looking E420/430's on the market in the $14k-$16k range I am tempted as can be. But I will probably need to take out a small loan. I can probably put almost half down cash up front but would need to finance between $7k-$10k. I am thinking something like a $16k W210 I put $6k +/-down and finance the rest.

Now first I know car loans are a bad idea, if they prove to be too bad of an idea I can always plunk cash down on a nice Camry and say heck with MB for now.

But I really want a W210 so I am going to try to do this, now what interest rates do you usually get?

I am 19 and have no credit as far as I know, I have had a Visa since September and have used it well. I pay my balance every month, but this month I am going to leave a balance because I was told the they like that once in awhile. My parents have excellent credit and I would have to get them to co sign I guess. (no simple task)

Again I know car loans are a bad idea but I am thinking about this for two reasons:

1.I can build up credit so I can buy a house or condo when I get out of school.

2.A payment would be cheaper than fixing my current car every month and I would have something newer that has value if it gets whacked. Having $15k into a W126 with a book value below $5k is a bad idea.

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  #2  
Old 12-21-2004, 12:38 PM
Hatterasguy's Avatar
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A W210 doesn't worry me I will figure it out and fix it myself. My freinds E300D has been very good so far with only a few minor issues.

Heck I'm spending $500 give or take a month on the SDL. I spent $1,500 over two weeks last may on the thing! I can't and don't want to afford it anymore, I do pretty good for myself but not that good.

$200 a month on a 48 month loan isn't to bad. I could probably pay it off faster than 48 month.
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  #3  
Old 12-21-2004, 12:40 PM
webwench
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At this stage in your life, I'd recommend staying away from revolving credit (credit cards) and car loans.

It sounds like you have enough cash in hand to get a good used car, and enough sense to maintain it well. Do that, and put a couple of hundred dollars a month into a savings account instead. What you're doing is saving what you would have been paying in car payments. By the time your 'good used car' runs out of useful life, you should have enough in the bank to pay cash for a good used MB and skip the car payment.

I've never found sitting on a credit card balance to help your credit score. I've always paid off my cards every month (and I've never had more than two at a time), and have a very high credit score.
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  #4  
Old 12-21-2004, 01:28 PM
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If you can't afford it, don't buy it. If you must have it, save your money until you can afford it.
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  #5  
Old 12-21-2004, 01:33 PM
MedMech
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Finance the thing drive what you want, just make sure you can make the payments. Based on the fact that you've saved a substantial amount of money for a person your age a person can guess that you know what your getting into.


You could die tomorrow so live today.
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  #6  
Old 12-21-2004, 01:47 PM
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I am going to agree with MedMech - sounds like you got your act together - get what you want.

Back to your question to learn about Tricks, Tips, and Scams on car loans visit this link CLICK
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Last edited by TX76513; 12-21-2004 at 04:49 PM.
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  #7  
Old 12-21-2004, 02:10 PM
MedMech
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Quote:
Originally Posted by narwhal
well hell, i agree with med too, but i was coming from the "do as I say, not as I do" angle.
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  #8  
Old 12-21-2004, 02:14 PM
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#1 NEVER leave a balance on your credit card if you can.
If money is an issue a used MB with high maintenance as adverse to a new Camry is a no brainer.
Go with the Camry.
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  #9  
Old 12-21-2004, 02:38 PM
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If you can afford it buying a car on credit is not a bad idea at your age. You're right, it will establish credit and in addition to paying the bills credit providers look at "high credit" and like a car loan as opposed to a 1500 credit card that you can pay 50 bucks a month on.

Mercedes are actually pretty good for establishing credit because they typically have a high book value to their actual sales price.
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  #10  
Old 12-21-2004, 03:07 PM
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Borrowing money is just like killing -- the more you do it the easier it gets. I know people my age who don't have squat, and the reason they don't have squat is that they've borrowed money their whole lives. OK -- I also know people how are living pretty high on the hog who've borrowed their whole lives. Wanna pay $500K for a $250K house? Take out a mortgage. At least you won't completely lose you a$$ like you will on a car.
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  #11  
Old 12-21-2004, 03:43 PM
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Avoid ANY financing the dealer will offer....Go to your bank or Credit union...thats the best deal you will get.
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  #12  
Old 12-21-2004, 04:35 PM
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actually I'm going with bonehead on this one join a credit union and work the loan with them before you ever step on a lot. The only thing a dealer would have is a manufacturer subsidised rate on a new car. Used car you're on your own and they will make a couple points on you.

Never ever let a dealer finance a used car for you.
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  #13  
Old 12-21-2004, 04:45 PM
Ta ra ra boom de ay
 
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Quote:
Originally Posted by tkamiya
I beg to differ....

For my 1994 E320 purchase, the dealer got me a better rate than my going to C/U or bank on my own. (this was a few years ago - The earlier new purchase ocurred a week ago)

It's probablly a rare situation, but what can I say... it worked to my advantage.

I guess my point is, don't assume one outlet or another is always better or worse than the other. Check out as many as you can and go with the best.

I also make a habbit of asking if any loan has an "early payment penalty." This is because I tend to pay off all my loans very agressively and don't want to be penalized by paying early.
Problem is the dealer will use this to cloud the real dollar amount of the sale and keep the price higher than with a cash sale.
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  #14  
Old 12-21-2004, 05:25 PM
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check you email
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  #15  
Old 12-21-2004, 05:28 PM
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Quote:
Originally Posted by A264172
Problem is the dealer will use this to cloud the real dollar amount of the sale and keep the price higher than with a cash sale.
This can happen, but reading you contract and bill of sale before you sign is the antidote.

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