[bicboi]

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.

[inv4zn]

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.

[JesseBlue]

subprime? sounds like loan shark territory.

[Gucci Mane]

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.

[dared3vil0]

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. :derp:

[bicboi]

Yeah I just found out I would be paying 16000 in interest ammoritized over 72 months on a 32 000 vehicle. Lol

[dared3vil0]

...What did you expect from subprime...


Do you currently own a vehicle?

[flagella]

I'm afraid he's already hopeless due to the fact that he asked this question.

[Gucci Mane]

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?

[Araaadi]

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.

[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/700163-%2A%2A%2A%2A%2A%2A2013-fiat-500-abarth%2A%2A%2A%2A%2A%2A.html

[dared3vil0]

Are you currently financing it? Is it subprime?

If it isn't keep it. Or sell it and buy a $500 beater...

[bicboi]

^ 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.

[dared3vil0]

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.

[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?

[bing]

http://stephenrees.files.wordpress.com/2013/08/img_0470.jpg

:troll:

[dared3vil0]

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.

[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.

[dared3vil0]

^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!

[heleu]

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.

[bicboi]

"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.

[dvst8]

15-20% is horrible. Don't make young and dumb mistakes. You'll pay for it down the road.

[Grim]

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. :D

not man enough?
do it squid. badassery level 11/10

[4444]

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/700163-%2A%2A%2A%2A%2A%2A2013-fiat-500-abarth%2A%2A%2A%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.

[shenmecar]

is it just me or is the name "subprime" extremely misleading......at 20%, you might as well just take money from your credit card......

[heleu]

My interest on my unsecured line of credit is 4.0%.
If I secure it on my house, it's 3.5%.

Build up your credit over time, and you'll be rewarded with much lower borrowing rates in the future.

[GLOW]

at the rates in OP's thread i'm thinking the 'office' giving those rates have this on the wall for 'collections'

http://1.bp.blogspot.com/-yp2MwPbZ7o4/Taev-RQGZUI/AAAAAAAAAAY/-boYjsSuACg/s1600/bat%2Bshelf%2B012.JPG

[xpl0sive]

wondering if dumb thread made to generate views for the "for sale ad" of OP's vehicle.... :suspicious:

[tofu1413]

subprime is capped up to 29.9% :heckno:

whats wrong with the abarth? :lawl:

[white rocket]

subprime is capped up to 29.9% :heckno:

Depends on the lender. I've seen unsecured finance contracts at 45%. I believe usury is 62% so anything under that and you are within the law.

[dared3vil0]

^ To put that into perspective, with an amortization period of 60 months (extremely common for a used vehicle) let's suppose total out the door cost of $15,000.00

60 months @ 62% $814.65

Paying a total cost of $48,879.00

or 3.1 times the cost of the vehicle.

Predatory lending.

[bicboi]

subprime is capped up to 29.9% :heckno:

whats wrong with the abarth? :lawl:

Absolutely nothing. I love the car, but as I said before I get bored real fast of anything. lol

In any event I am probably going to keep the Abarth and as suggested by Grim, purchase a motorcycle which was next on my list anyway.

[4444]

Absolutely nothing. I love the car, but as I said before I get bored real fast of anything. lol

In any event I am probably going to keep the Abarth and as suggested by Grim, purchase a motorcycle which was next on my list anyway.

and there it is... the summing up of a generation in 2 lines.

"I want to buy a car on 20+% interest b/c i get bored of a perfectly good car that's a couple years old"

the journey to being broke will likely be a quick one for you.

[GLOW]

"I want to buy a car on 20+% interest b/c i get bored of a perfectly good car that's a couple years old"

the journey to being broke will likely be a quick one for you.

if that's the scenario, technically wouldn't you already be there?