Just depends on what you paid for the car vs the blue book value. If you have horrible or no credit, then usually you still will not get approved for a better interest rate only a couple months later. It usually takes 12 months or so to establish or significantly increase you credit rating.

If you buy your car used at a good price then obviously it will be easier to refinance without having to put more money down. And in this case your right, you wouldn't have paid much towards interest.

However if you get screwed on the price, put $0 down, or buy a new car like I did...it becomes more difficult to refinance. If you put $0 down then you end up paying a couple grand more then the price of the car. So if you pay blue book for the car, then even if you can refinance within a couple months, you usually owe a couple grand more then blue book and have to put that money down on the refinance.

Then of course if you purchase brand new you pretty much will never get out from under the payments unless you put a large amount down (enough to cover the initial depreciation).

 

@EvoVIIIxoxo: That's pretty ignorant.
and @Everyone Else: I dont see what the big deal of this is i thought evos were more reliable than DSMs and i have a safety net of 2 grand incase i f**k up the t case or trans or whatever and i can afford the monthly payments with a second payment on my dsm which will be paid off very soon so ill have even more wiggle room. Since when have numbers lied?

 

The difference is a GST is worth liek 3 to 5k now and a GSX around what 7k. Cheapest evo is around 15k.

Insurance is nothing for a old dsm also. More dsm around and older cars means cheaper parts.

Also you prove one hugly valid point. You've already got a DSM wtf do you really need a evo? Pure want.

It took me forever to realistically get a evo and i've almost jumped onto bad situations like you several times.

I owned a 92 accord to a 97 gst to 92 nissan nx to a 07 eclipse gt to a 06 evo.

I took that long of a time to have very stable credit and income. Also pay the DSM off first. There will always be another evo. Especially if you're not looking for any evo in particular. If you dont care about a sunroof then evos are pretty easy to find.

We just dont wanna see you own something just to loose it.

Save until you can put a nice $8000 down.

 

You know he won't. Not sure why he even asked for advice when we all know he won't listen.

 

It's up to you man. The issue I would have with it (if I were in your position), is the amount of money I am giving to a bank.

The car is $15k
add on about $2k for tt&l, fee's, etc
You will be financing $17k if you put $0 down
$17k for 5 years at 29% would be $540 a month
$540 a month for 60 months will equal $32,400

If you don't mind giving a bank over $15,000 then go for it man.

 

No no no no the loan would not be @ 29% it will be (at highest) 14% which is 350 a month and tt&l fees in illinois are not 2k or even close to 1k at that

 

I didn't see you were approved at 14% instead of 29%.

But I think tt&l should be higher then $1k. I can't say 100% but just a quick google search is showing Illinois state tax to be 7.25% and the county tax will range from .25% to .75%. So taxes will range from $1,125 (7.5%) to $1,200 (8%).

Then you will have registration for $78-$118
Plate transfer fee of $25
The dealer might try to throw on some "documentation fees" or whatever obsurd fee's they feel the need to try and charge for. But assuming they only charge you taxes it looks like at least around $1,200.

With zero down you will be financing $16,200
at 14% your payments will be around $377
The car will cost around $22,600.
So roughly $6,000 in interest

At $0 down, 14%, 5 years, and $15k for the car, how are you coming in at $350 a month?

 

its private party so there is no tax involved in the cost

 

There is tax involved when you try and transfer over the title. You know the gov't will get theirs. So if you get a loan to cover the car and the taxes or you pay out of pocket for them it is still a cost to factor in. And if Illinois is like Texas, you will pay tax for blue book private party value. There is none of that saying you paid less for the car or saying it was a gift here. Texas does not care. Illinois might be different but you will still pay some kind of taxes.

 

There is a tax in IL but it's usually a lot cheaper than buying from a dealer unless the car is more than $15K. In this case, the tax is $750 because the purchase price of the car is between $15K and $20K. If the OP can somehow talk the seller into selling it for $14,999 then the tax would only be $90 at the most (depends on the year of the vehicle).

 

Must be nice to be in Illinois then. Like I said in Texas they don't care about how much you said you bought it for. It can be $200 or $2 million. They will simply look up the private party value and will tax you on that. Condition and amount paid for the car does not matter.

Either way it is how I have told the OP. Even with no taxes you will pay $6,000 in interest to the bank. $15k at 14% and $0 down for 5 years is $350 a month. So you will pay $21,000 for the car. If you don't mind giving the bank $6,000 then do it. If like me this doesnt sit well with you, then do as others have recommended on this thread. It's your life and the choice is yours.

 

yea the guy said i can pick it up for 13500 without the rims it has atm if i wanted

 

a complete evo for 13.5...have fun kid, see you in the "evo general help/troubleshooting" section of this site in abit

 

Banned. Good day sir.

You asked a question, and were given legitimate answers. However, you seemed to have had your mind made up before you made the post.

Also, word of wisdom, you said your family doesn't come from money and never has money to spare (something to that effect). Go through with this, and continue to operate this way, and you will continue that legacy.

 

Since you asked for some advice mcgee, please consider the following suggestions.

1. save an emergency fund that is equivalent to approximately 3-6 months of your living expenses depending on your job security feeling

2. use any surplus cash to pay down existing debt

3. save up to buy the things you want with a more reasonable rate of interest on the financing or better yet, with cash

I know this may not be what you want to hear, but I too was in your shoes 16 years ago when I wanted to buy my first car, a used BMW 3 series (e32, what a sweet ride). I was lucky enough to have parents that would cosign for me and I treated their liability as if it were my own and paid that car off as soon as I could. That, not my several years of acting as a transactor with credit cards, is what established my initial good credit rating.