Anyone good with car loans?

[MillerPKA]

Found a decent 4runner here in Charlotte that looks like a great project vehicle, but I'm either going to have to sell a lot of my things (not out of the question) or get a loan for a while. In case anyone is experienced with auto financing in NC I just wanted to drop a note on here...either that or I may be willing trying to sell some goodies (55" samsung, guitar amp [Micah haha], Crown Royal throne).

1999 Toyota 4Runner - Furrst Class Cars Charlotte, NC

 

[shadow247]

I have gone through the credit union for the last 3 car loans. They usually have good rates. I am at 5.99 on my 99 Runner

 

[DC runner]

Always better to pay cash and not pay any interest, but obviously that isn't always possible.

Second. Credit Union. Hands down. They do not have a mandate to make a profit, only to serve members and as such most credit unions are able to give interest rates that are far better than banks.

Usually there is an age limit. Since auto loans are essentially collateralizd loans with the car being the collateral, there is usually a limit. Every play is different, but from my experience 7 years tends to be pretty industry standard. That said, credit unions are the places that will go beyond that if need be. Big Banks tend to not care.

 

[Dezert4Runner]

I have a credit union, and aside from my current vehicle, I've been getting financing for all if my cars. Check into their policy regarding how much of KBB or NADA they're willing to lend. My bank (Navy Federal Credit Union) will finance up to 125% of NADA!

 

[zonedriven]

Whats up Miller? ZD from Ski nc. I just got a loan for my new 01 from Family trust in Rock Hill. I got 3.2% on 3 years. The loan will cost me about $300. It's not worth the money or time to use my money to not take the loan. Ask yourself if you will take a $300 lose if you sell your tv or pull your assets. Let me know if you need some help my loan officer is great.

 

[zonedriven]

Also I want your wheels!

 

[Victor_inox]

f online would be cheaper.i`v got 1.99% 3 weeks ago,credit union quoted me 3.49 for the same purchase how is your credit score?eloan.com

 

[IanB]

When I bought my truck, I put it on a secured line of credit tied to our mortgage. The interest rate was better than any loan I could find, and they don't even ask you what the money is for, so you don't have to worry about the age/money limits banks are willing to lend out for car loans. It's probably a bit more work to set up, but once in place it worked beautifully, and it's now in place incase I need money for something else down the road.

 

[4-Ripcord]

:snacker:

 

[Running4life]

I used to work at a credit union processing and closing auto loans. I agree they can probably give you a better rate. Most put a 7 year limit on the vehicle but some will go 10yrs. Also they make money on Credit Life/Disability and GAP insurance. Sometimes they will have that in the payment when they tell it too you so make sure you ask if it is already in there. Here are some other things I would recommend:
1. If you need to get your credit score up, finance the vehicle, pay on it for one year at the regular set up payments and then pay it off.
2. If you plan on a major purpose, like a house pay cash for the vehicle and save the money for a down payment on the house.
3. Make sure you tell them if you are buying the car out of state. And ask how that process works with licensing and taxes. You may be required to pay the taxes on the vehicle when you register it and then get all of that information back to the CU.

 

[PitbullRescuer]

I've worked in mortgages for the last 10 years but prior to that worked in the used car business. My family owns a small dealership here locally for the last 25 years. I would tell you that you have your work cut out for you here based on a few things:

1.) It's 13 years old
2.) It has over 200K miles on it.
3.) Most will have a minimum loan amount, usually about $5,000 if not more.

If they'll let you roll tax, tags, etc into you might get over the $5K mark but if it's out of state, you won't pay tax on it until you register it in your home state.

Good luck and keep us posted, I'm interested to see how it works out for you.

 

[Clemsonfan15]

I'll put in an opening offer of $500 for the TV.

 

[LittleCaesar]

Cash, for an auto that old and with that many miles, that is not considered a collectable.

Keeping looking in GA; I saw one outside of Athens with 144,xxx miles, 02 sport 4wd in silver, for $6800 in January.

 

[the great him]

i know im on the west coast, but i dont think it matters all that much. about 18months ago we financed our runner (a 97 with over 200k on it) we went through our credit union. they didnt like the fact that it was so old and had so many miles on it, but i gave them a page and a half list of upgrades and features the runner had on it (either as origonal options or aftermarket) and the loan officer took one look at that and said oh, ok, and then approved approved the 4runner. now i know most of the time upgrades and stuff dont really do all that much for the resale value of a vehicle(in most cases), but then again of the $5500 selling price, we only financed $4500 of it. so i think the CU knew they could easily sell the 4runner if we had defaulted on our loan as most 3rd gen 4runners here in the PNW sell for well over $6k probably closer to $8-9k. so they CU knew they would not come out losing any money. in the end i think we paid like another $400 in intrest, so we technically paid like $5900, still a screaming deal if you ask me.

-as far as the list, i put every little thing down like tow package, the air bags for towin, power windows, tented window, bug deflector, auto trans, records*(only some), new tacoma alloy wheels, CB radio, and bluetooth stereo, grille guard w/lights.... im not saying that my list was what got us the loan, but it sure didnt hurt. and it made the lady think we knew what we wanted and checked it out good before hand. we also had the seller bring the truck to the CU so they could look at it if they wanted.

 

[T4R_Finally]

There is nothing across the board in NC that would prevent you getting a loan. If you have decent credit, then it's just a matter of if the institution will finance the vehicle for you. Some may have their own rules about how old the vehicle can be to get a loan. Others will have limits on how long you can finance it depending on the age.

That looks like the type of dealer that would have "on the lot financing" but I doubt the interest rates are very attractive. Depending on your credit, your other assets, and the institution, you may be able to get a loan without taking it against the vehicle itself. Some people use home equity lines or deed of trust loans against their real property to purchase vehicles. What's nice about those is that the interest is usually deductible because the loan is against real property (your house) and not the vehicle itself. The downside is that, if you default on the loan, it's a lien against your home (real property) and not the vehicle.

 

[DC runner]

The problem with financing a vehicle this old is you are automatically underwater and will be for a long time. While most used cars are underwater, at least for the first 6-8 months; this truck isn't worth a fraction of what you would pay for it.


Dealers like this make good money on this price point. He got it at an auto auction for 1 or 2 grand and is going to sell it for 5 or 6. They make bank and you will be underwater for the majority of the loan. If you are even considering fiances a 4-5-6k vehicle, then I suspect your fiances are not is such a place that you could afford to cover the difference if ever in an accident; which means gap insurance, which is very expensive on older cars, since the probability of needing it increases due to being underwater for the majority of the loan.

You may find a credit union and you may not, but it will be hard. It isn't worth a lot of money where it counts, at auction. If you are curious what auction prices are, you can usually tag along or find a way to get one. You would be shocked.

If you walked, with cash, that truck could be yours for MUCH cheaper. He knows it won't get 5k for it, but put it up there to keep the bidding well above his margin. I just pulled auction values for the truck and it is telling me anywhere from 1000k to 2000k is what he likely paid for it.

 

[durrell]

If you can get in at NCSECU, you can probably get financed. But that requires that either you or someone in your family be a state employee. You can easily get a loan there as long as three factors are met: the loan is at or less than NADA value, you have enough income to meet their ratio requirements, and you have somewhat decent credit.

I disagree on the idea that financing a used vehicle automatically results in being underwater. I financed my 98 Honda and my 98 4Runner and I could sell both right now for more than I have in them. You just have to be patient and smart about finding a good deal. If you go out and pay dealer asking price on a 4Runner with 200k miles, then yeah, you're going to be underwater.

I have my 98 financed at 4.75 percent. I don't understand the whole "cash is better than bank financing" idea. Sure, it's nice to have 6k sitting in the bank and to be able to pay straight up cash for a vehicle. But I don't have that kind of income to put away that kind of cash. If you walk up to the dealer and tell him you have bank financing, that's basically a blank check (up to whatever you were approved for) that will get you a bottom dollar price just as fast as cash will. At least, that's been my experience.

 

[T4R_Finally]

Most institutions don't loan based on auction value. If they did, none of us would ever get a loan for a vehicle without huge down payments. If you don't repay the loan and they have to repo it, they need to recoup as much as they can by selling it. They don't usually do that at auction, but if they do - it's their call and they take the hit. Financing vehicles is a large reason why "book values" exist. This is what they go by to determine what the car is worth and then, depending on the institution, they may loan up to the book value, a percentage (80 or 90), or some may even go a little over 100% to help cover the added costs of purchasing a vehicle. Often, going over 100% is only available for new car purchases. Still, some places may have rules that won't allow them to finance a vehicle over a certain age. Credit Unions are a good place to start. I've banked with NCSECU for many years and they have financed the majority of the vehicles I've purchased while I have been a member. The interest rates are always best or at least competitive and they tend to have rules that are in your favor. The only times I have not used them were in situations where the dealer was offering really low or even 0% interest. The last couple of used vehicles I purchased, I used a company benefit where I can take a loan against my 401k account. I can borrow up to 50% of my vested balance at 3.25% and the interest I pay goes back into my 401k. So, even though I pay interest, I'm paying it to myself. Other than the $50 loan fee I have to pay, I don't get penalized for doing it and since I'm not withdrawing money from it, I'm only borrowing against it, there are no IRS penalties or issues either. Many people don't even realize they have this option, and some may not. But it has worked well for me.

 

[DC runner]

Yea. Thats not how it works at all. Banks and Credit Unions are not in the business of selling cars and if your car is repo'ed, it heads directly to the closet auction.

And as for the difference between sold and owed, that is your fault, as by law you are responsible for the difference.
Everyone gets to determine their own risk. I didn't say don't do it, I said it isn't the wisest move financially. I would never in a million years take out a loan against my 401k. Taking a loan out against your retirement is up to you, but not worth it in my book. If you were to be injured or laid off and could not repay that loan, they will take that money from your retirement.

As for book value. First off, there is 1 book. There are many, and the value of a car is dependent on the situation. I wasn't suggesting he didn't take a loan out, I was simply stating some issues that can come up. Also, when you see that industry standard is 7 years, there is a reason. Past that, a typical used vehicle no longer has enough value up to be able to recoup the cost in the event you default on the loan.

You are awesome apparently. You have no problem living on credit. More power to you, but It doesn't hurt to hear different opinions. If I am the older stodgy, don't buy **** you can't afford voice of reason, then so be it. I have 0 debt. Own my own house. And under no circumstances could someone take my house or car.....

We are in a pretty ****ty economy.. and I think being a voice of economic conservatism isn't bad.

 

[durrell]

We are in a pretty ****ty economy.. and I think being a voice of economic conservatism isn't bad.

I hope you didn't take me wrong. I completely support the idea of buying a car with cash and most definitely support economic conservatism. I just think it's a bit unrealistic in this economy. At least for me it is, but then again I'm a recent college graduate with a fair amount of college debt. I hate the debt I have more than anything and am trying hard to adhere to some of the Dave Ramsey principles to get out of it.