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12-13-2014, 12:13 PM
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#1 | | Everyone wants a piece of R S...
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| Subprime Automotive Financing
I know this may be better off in the finance and business forum, but it applies mainly to automobiles so here it goes.
Basically I couldn't get re-financed on a vehicle because of my short credit history (1 year) and 1 missed payment. I was wondering if anyone has had experience with subprime financing (15-20% interest) on a vehicle. Regrets? Issues? Suggestions?
A co-signer is not an option right now and I am getting the car at wholesale cost, so that's why I am even considering this.
Last edited by bicboi; 12-13-2014 at 12:19 PM.
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12-13-2014, 12:33 PM
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#2 | | Rs has made me the woman i am today!
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At 15~20% interest, the "good deal" is probably not a good deal anymore.
As hard as it may be, walk away.
It's much easier to build up your credit than it is digging yourself out of a financial hole.
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12-13-2014, 12:45 PM
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#3 | | Rs has made me the woman i am today!
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subprime? sounds like loan shark territory.
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12-13-2014, 01:11 PM
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#4 | | I contribute to threads in the offtopic forum
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15-20% interest loans are idiot loans. if you're an idiot, theres nothing that anyone in here can say to stop you. if you've got even half of a brain, you'll walk away.
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12-13-2014, 02:40 PM
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#5 | | OMGWTFBBQ is a common word I say everyday
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Do not do it. One would have to be FOOLISH to finance a car via subprime. Use your brain and go buy a $500 beater. 
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12-13-2014, 02:58 PM
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#6 | | Everyone wants a piece of R S...
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Yeah I just found out I would be paying 16000 in interest ammoritized over 72 months on a 32 000 vehicle. Lol
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12-13-2014, 08:33 PM
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#7 | | OMGWTFBBQ is a common word I say everyday
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...What did you expect from subprime...
Do you currently own a vehicle?
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12-13-2014, 09:24 PM
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#8 | | I *heart* Revscene.net very Muchie
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I'm afraid he's already hopeless due to the fact that he asked this question.
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12-14-2014, 12:17 AM
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#9 | | I contribute to threads in the offtopic forum
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| Quote:
Originally Posted by bicboi  Yeah I just found out I would be paying 16000 in interest ammoritized over 72 months on a 32 000 vehicle. Lol | which vehicle were you thinking of buying?
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12-14-2014, 01:08 AM
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#10 | | Meow
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Maybe so for something less expensive? When I first turned 19, I financed a $13,000 civic coupe with 0 credit history and got their best certified pre-owned rate. I would never consider rates that high unless I an recovering from bankruptcy.
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12-14-2014, 01:30 AM
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#11 | | Everyone wants a piece of R S...
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Don't want to get into too much detail, but bottom line is that a subprime loan is not the way to go lol. I didn't get the concept of amortization on a 72 month finance. I thought I would be paying 15% of 32 000 ($4800) over the course of 72 months in interest. Thanks for the input guys and yes I do currently own a vehicle which is for sale here http://www.revscene.net/forums/70016...%2A%2A%2A.html | |
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12-14-2014, 08:45 AM
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#12 | | OMGWTFBBQ is a common word I say everyday
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Are you currently financing it? Is it subprime?
If it isn't keep it. Or sell it and buy a $500 beater...
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12-14-2014, 10:10 AM
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#13 | | Everyone wants a piece of R S...
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^ Yes but at 6% interest. I don't have a problem paying for it really but when something catches my attention like the other car in question, I'll jump on it like a bitch in heat. That's just me though because I get bored of things real fast.
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12-14-2014, 10:17 AM
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#14 | | OMGWTFBBQ is a common word I say everyday
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That's just fine to swap cars often. If you can afford it.
You clearly cannot. Sell your car and buy a $500 beater, or keep paying the current one.
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12-14-2014, 11:32 AM
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#15 | | Everyone wants a piece of R S...
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Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater?
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12-14-2014, 01:57 PM
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#16 | | My AFC gave me an ABS CEL code of LOL while at WOT!
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12-14-2014, 02:15 PM
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#17 | | OMGWTFBBQ is a common word I say everyday
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| Quote:
Originally Posted by bicboi Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater? | ...I was suggesting you sell your current car and buy a $500 beater to save money.
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12-14-2014, 05:07 PM
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#18 | | Rs has made me the woman i am today!
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^That's an extreme suggestion..lol.
OP, I don't know what your situation is since you're not telling us, but there are very very few cases in which loans with terrible interest rates are financially beneficial.
If you actually considered (misinformation about amortization aside) getting a 20% interest loan because you're "bored easily", then I'd put all my effort into learning to be thankful for what you have.
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12-14-2014, 05:29 PM
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#19 | | OMGWTFBBQ is a common word I say everyday
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| Quote:
Originally Posted by inv4zn ^That's an extreme suggestion..lol.
OP, I don't know what your situation is since you're not telling us, but there are very very few cases in which loans with terrible interest rates are financially beneficial.
If you actually considered (misinformation about amortization aside) getting a 20% interest loan because you're "bored easily", then I'd put all my effort into learning to be thankful for what you have. | More or less what I was getting at!
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12-14-2014, 07:39 PM
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#20 | | RS.net, where our google ads make absolutely no sense!
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Originally Posted by bicboi Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater? | Because you might be surprised that you can get 90% of the satisfaction of owning the car with 20% of the cost.
I'm about to buy an ISF, but I personally still think my '91 MR2 was the most fun to drive out of all the cars I owned.
The other thing to consider is also if you stretch yourself so thin financially to buy a new car now, you're probably never going to be able to save up to buy yourself something very nice down the road.
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12-14-2014, 10:51 PM
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#21 | | Everyone wants a piece of R S...
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"It's more fun to drive a slow car fast than a fast car slow"
I agree 100%. Having a "nice" car down the road for me will not be an issue. For the time being, my parents know I #yoloswag shitty financial endeavours like this all the time so they are not funding me in any way. It's a learning experience.
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12-14-2014, 11:00 PM
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#22 | | I don't get it
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15-20% is horrible. Don't make young and dumb mistakes. You'll pay for it down the road.
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12-15-2014, 12:19 AM
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#23 | | WOAH! i think Vtec just kicked in!
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u want excitement?
u want thrill?
u want speed?
u want to hit 280kph FAST?
u want to feel like a boss?
u want to live your life on the edge?
buy a bike.
cheap and it will get your blood pumping as you hit some sweepers going knees down full throttle. 
not man enough?
do it squid. badassery level 11/10
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12-15-2014, 02:25 AM
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#24 | | I contribute to threads in the offtopic forum
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| Quote:
Originally Posted by bicboi Don't want to get into too much detail, but bottom line is that a subprime loan is not the way to go lol. I didn't get the concept of amortization on a 72 month finance. I thought I would be paying 15% of 32 000 ($4800) over the course of 72 months in interest. Thanks for the input guys and yes I do currently own a vehicle which is for sale here http://www.revscene.net/forums/70016...%2A%2A%2A.html | if you are as financially illiterate as your post would indicate, only ever pay for things with cash, if not you will end up in a world of financial hurt, such as believing you will pay off 15% interest over 72 months, or in your mind 2.5% annual interest (Assuming non compound in your head).
there's nothing wrong with not knowing anything about financing, just manage that lack of knowledge by staying clear of any financial activities. for you, cash is king.
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12-15-2014, 06:26 AM
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#25 | | RS.net, helping ugly ppl have sex since 2001
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is it just me or is the name "subprime" extremely misleading......at 20%, you might as well just take money from your credit card......
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