Loan Question

portagyplaya12 · 03-19-2010, 11:27 AM

I currently drive a 5-speed Saab and it's getting a little boring, so I've been saving to get myself a new car. I'm looking to get a Type-S as my second car since it's something I've always wanted. I've found a few used ones in the 6-7 thousand range, which is reasonable IMO. I have about $3000 saved up from working, and my dad is willing to give me another $1k if I need it. I would basically need a $3000 loan for the car that I want. However, what I want to do is purchase the car now and have it in the garage to work on, but drive the Saab until it's inspection expires in a few months. My dad tells me that I can't get a loan on a car unless it's registered and insured, which doesn't really seem right to me. Would I be able to purchase this car and get a loan for it, but not register/insure/drive it right away? If anyone is familiar with this type of stuff I'd appreciate your input. I'm 19 years old, never applied for any sort of loan or anything. Do you think this would be a wise decision for me? Thanks in advance

Sorry if this is in the wrong forum, I'm new here, still getting used to it haha.

desii · 03-19-2010, 12:52 PM

do you work? u wont get a loan if you dont work, and if you get approved its a stupid decsion, so im assuming u can afford the payments (even though its only 3k which is about 60$ a month on a 4 year loan)

u dont exactly need to get the car registered and insured to get the loan, you can always get approved for the loan, go buy the car, and just show them it was signed over to your self, however, the bank may choose to change your loan from a car loan, to a personal loan. with that said, you rate could go from 3.99% to 12% (throwing out numbers, but it is that big of a difference)

since your 19, i would still have your dad or someone with more credit history co sign with you, especially in this economy.

also, you can wait till the saab expires, and if you think you will have the all the money ready by then, that would be a good choice since its garunteed, and you can do what ever you want with the car

portagyplaya12 · 03-19-2010, 01:25 PM

I do work, I have a part-time job at the moment making about $200 a week. I also make a bit of money on the side every once in a while as a waiter at a local portuguese club, but that's not very often. It's not a lot, but enough for a kid my age with minimal bills (just insurance/iPhone). My dad would be co-signing regardless of the type of loan, but as I said before I wasn't sure how the payments and interest rates and all that would work out.

Also, reason I wanted to get the RSX now is so I'd have some time to make a bit more money and get some parts under the hood while I still have another car to drive. I don't get that much free time and I don't like rushing things, I'd rather take my time and make sure things are done right especially if I'm learning how to do something new, so this way I could keep it in the garage while I play around under the hood, and still have another car to drive so I don't have to screw anything up. Maybe I'm just being picky and anxious haha but that's just me. Would successfully paying off a loan help my credit score? If I can build some credit at the same time that's a plus IMO. I don't have any credit cards, just a bank-issued debit card that I use for small purchases.

Edit: Is this something I should discuss with my bank? I wouldn't mind taking a ride down there and having a quick discussion with someone

**erik loza** · 03-19-2010, 01:53 PM

If your loan is through a bank or credit union, they will need it insured and registered, since they will be holding the title on it.

12oclock · 03-19-2010, 02:13 PM

Quote:

Originally Posted by portagyplaya12

I currently drive a 5-speed Saab and it's getting a little boring, so I've been saving to get myself a new car. I'm looking to get a Type-S as my second car since it's something I've always wanted. I've found a few used ones in the 6-7 thousand range, which is reasonable IMO. I have about $3000 saved up from working, and my dad is willing to give me another $1k if I need it. I would basically need a $3000 loan for the car that I want. However, what I want to do is purchase the car now and have it in the garage to work on, but drive the Saab until it's inspection expires in a few months. My dad tells me that I can't get a loan on a car unless it's registered and insured, which doesn't really seem right to me. Would I be able to purchase this car and get a loan for it, but not register/insure/drive it right away? If anyone is familiar with this type of stuff I'd appreciate your input. I'm 19 years old, never applied for any sort of loan or anything. Do you think this would be a wise decision for me? Thanks in advance

Sorry if this is in the wrong forum, I'm new here, still getting used to it haha.

a 15% interest rate would make the loan $95 a month for 3 years, that's nothing, go for it.

**erik loza** · 03-19-2010, 02:21 PM

15%? Jesus Christ...

Dannie · 03-19-2010, 02:23 PM

Quote:

Originally Posted by portagyplaya12

I currently drive a 5-speed Saab and it's getting a little boring, so I've been saving to get myself a new car. I'm looking to get a Type-S as my second car since it's something I've always wanted. I've found a few used ones in the 6-7 thousand range, which is reasonable IMO. I have about $3000 saved up from working, and my dad is willing to give me another $1k if I need it. I would basically need a $3000 loan for the car that I want. However, what I want to do is purchase the car now and have it in the garage to work on, but drive the Saab until it's inspection expires in a few months. My dad tells me that I can't get a loan on a car unless it's registered and insured, which doesn't really seem right to me. Would I be able to purchase this car and get a loan for it, but not register/insure/drive it right away? If anyone is familiar with this type of stuff I'd appreciate your input. I'm 19 years old, never applied for any sort of loan or anything. Do you think this would be a wise decision for me? Thanks in advance

Sorry if this is in the wrong forum, I'm new here, still getting used to it haha.

It would have to be insured - registered I don't think so. Try a personal loan, usually you wont need collateral.

Vibral · 03-19-2010, 02:24 PM

Talk to the bank or banks especially Credit Unions if you get the chance. Loan officers are SALESMEN! so take that into consideration. Don't sign anything without talking with your folks (even if they could approve just you) and don't go balls first into anything you should be fine.

DidIt4TehLulz · 03-19-2010, 02:29 PM

you're not going to get even a $3K loan without credit history, a job, and/or a co-signer. used car loans are especially fucked because the bank doesn't want to give you a loan for something you don't have in hand (title/vehicle), but you can't have that unless you have the money, so it's a fucked catch22. you'll probably have to end up opening a credit line for $3K and pulling cash from that, if you even qualify.

MarcD · 03-19-2010, 02:45 PM

you will definetly need insurance if you get a loan since you techinally dont own the car, the bank does...and if something were to happen to that (even if youre not driving it...ex. garage fire,natural disater) the bank would definetly want to be able to recoup their losses....and good luck getting a loan without a job(or some type of income) and decent credit history...

DC6auto · 03-19-2010, 02:54 PM

I think the best thing to do is just go ahead and license and insure it and get your dad to cosign for the entire cost of the car. That way you can choose to spend your free cash either on paying off the loan faster or for upgrading the car sooner. And once you get the car it will probably be torture not being able to drive it untill you've already gotten rid of your other car, and as far as I know it's about the same price to insure 2 cars as it is to insure 1 car.

Clean 02 · 03-19-2010, 03:44 PM

Like others said, I think you may have to insure the car. You probably wont get approved for a loan in this economy at your age without credit history. If you can, go under your own name. Your intrest will be higher percent. BUT for a loan that little of an amount its not going to accure a huge dollar amount in the end. This is the only way you will actually build credit so when you want to buy a more expensive car later, you will get approved for more $. If you have a co signer, the co signer builds the credit not you. A personal loan will be even harder to get and a higher rate. Auto is easier because the vehicle is collateral for the bank to collect on if you dont pay the loan.

desii · 03-19-2010, 04:21 PM

Quote:

Originally Posted by 12oclock

a 15% interest rate would make the loan $95 a month for 3 years, that's nothing, go for it.

fuck man thats too much interst, even with this economy

i work at a bank, best bet for a low intrest rate is a credit union if you can some how get into one. my bank charges about 9% on a car loan vs 5% at my credit union. so it a big difference

also, in order to get the car loan, obviously need good credit, the car cannot be salvaged, and you cannot get a loan for higher than blue book value of the car.

also they do require insurance, it may be full coverage, (although mine didnt require full coverage)

id say go for it, register and insure the car. if you dont register the car, youll have to pay fees when you go register it. and insurance, might aswell, i know ur going to take it for a spin when you get the car, it wont be sitting there

12oclock · 03-19-2010, 04:40 PM

Quote:

Originally Posted by desii

fuck man thats too much interst, even with this economy

i work at a bank, best bet for a low intrest rate is a credit union if you can some how get into one. my bank charges about 9% on a car loan vs 5% at my credit union. so it a big difference

also, in order to get the car loan, obviously need good credit, the car cannot be salvaged, and you cannot get a loan for higher than blue book value of the car.

also they do require insurance, it may be full coverage, (although mine didnt require full coverage)

id say go for it, register and insure the car. if you dont register the car, youll have to pay fees when you go register it. and insurance, might aswell, i know ur going to take it for a spin when you get the car, it wont be sitting there

Ya I know but I was over estimating bcause he's a young kid with probably no established credit. It'd probably be more like 8-12%.

portagyplaya12 · 03-19-2010, 08:56 PM

Alright, guess I'll try that then. I'm still discussing the whole thing with my dad, I just wanted someone else's opinion on the whole situation. I just wanted to avoid having to pay insurance on two cars when I'd only be driving one.

DvSk type R · 03-20-2010, 01:44 AM

Tell your dad to get a personal loan. (He would provably get a lower intrest), and just pay ur dad.
If u get a car loan, u need to have full coverage (with is hella expensive for some one ur age). Get the car
Under ur dads name. (Cheaper insurance). Register ur car as non operational (its only like 30 bucks for that)

desii · 03-20-2010, 04:17 AM

u may not have to get full coverage on a car loan, i didnt

given a personal loan interest rate at 3k wouldnt be that much interest in the end, but i still say get a car loan, personal loans are very hard to get, your credit has to be high, and u have to have very loan debt

stevens40z · 03-20-2010, 08:05 AM

15% isn't out of the question. I got my RSX back when I was 19 and had 13.99% apr.

Drewski's · 03-20-2010, 01:04 PM

15% is high!!!!

03-19-2010, 11:27 AM	#1
portagyplaya12 New Member Join Date: Mar 2010 Posts: 9 iTrader: (0)	Loan Question I currently drive a 5-speed Saab and it's getting a little boring, so I've been saving to get myself a new car. I'm looking to get a Type-S as my second car since it's something I've always wanted. I've found a few used ones in the 6-7 thousand range, which is reasonable IMO. I have about $3000 saved up from working, and my dad is willing to give me another $1k if I need it. I would basically need a $3000 loan for the car that I want. However, what I want to do is purchase the car now and have it in the garage to work on, but drive the Saab until it's inspection expires in a few months. My dad tells me that I can't get a loan on a car unless it's registered and insured, which doesn't really seem right to me. Would I be able to purchase this car and get a loan for it, but not register/insure/drive it right away? If anyone is familiar with this type of stuff I'd appreciate your input. I'm 19 years old, never applied for any sort of loan or anything. Do you think this would be a wise decision for me? Thanks in advance Sorry if this is in the wrong forum, I'm new here, still getting used to it haha.

03-19-2010, 12:52 PM	#2
desii Master Member Join Date: Jan 2008 Location: SoCal Posts: 2,664 iTrader: (23)	do you work? u wont get a loan if you dont work, and if you get approved its a stupid decsion, so im assuming u can afford the payments (even though its only 3k which is about 60$ a month on a 4 year loan) u dont exactly need to get the car registered and insured to get the loan, you can always get approved for the loan, go buy the car, and just show them it was signed over to your self, however, the bank may choose to change your loan from a car loan, to a personal loan. with that said, you rate could go from 3.99% to 12% (throwing out numbers, but it is that big of a difference) since your 19, i would still have your dad or someone with more credit history co sign with you, especially in this economy. also, you can wait till the saab expires, and if you think you will have the all the money ready by then, that would be a good choice since its garunteed, and you can do what ever you want with the car __________________ My Show-off Thread Last edited by desii; 03-19-2010 at 12:56 PM.

03-19-2010, 02:24 PM	#8
Vibral Senior Member Join Date: Feb 2010 Location: Colorado Posts: 118 iTrader: (1)	Talk to the bank or banks especially Credit Unions if you get the chance. Loan officers are SALESMEN! so take that into consideration. Don't sign anything without talking with your folks (even if they could approve just you) and don't go balls first into anything you should be fine. __________________ "How could one man have slipped through your force's fingers time and time again? How is it possible? This is not some agent provocateur or highly trained assassin we are discussing. The man you have consistently failed to slow, let alone capture, is by all standards simply that—an ordinary man"

03-19-2010, 02:29 PM	#9
DidIt4TehLulz Hellaflush be Hellagay Join Date: Oct 2006 Location: SoCal (and BC <3) Posts: 3,342 iTrader: (1)	you're not going to get even a $3K loan without credit history, a job, and/or a co-signer. used car loans are especially fucked because the bank doesn't want to give you a loan for something you don't have in hand (title/vehicle), but you can't have that unless you have the money, so it's a fucked catch22. you'll probably have to end up opening a credit line for $3K and pulling cash from that, if you even qualify. __________________ '06 ASM RSX-S ███ GO LAKERS :: ANGELS :: CANUCKS :: WILDCATS

03-19-2010, 02:54 PM	#11
DC6auto Member Join Date: Jan 2010 Location: Fresno, CA Posts: 74 iTrader: (3)	I think the best thing to do is just go ahead and license and insure it and get your dad to cosign for the entire cost of the car. That way you can choose to spend your free cash either on paying off the loan faster or for upgrading the car sooner. And once you get the car it will probably be torture not being able to drive it untill you've already gotten rid of your other car, and as far as I know it's about the same price to insure 2 cars as it is to insure 1 car. __________________ 2005 RSX Auto(for sale) 2006 Accord EX-L V6 6-speed

03-19-2010, 01:25 PM	#3
portagyplaya12 New Member Join Date: Mar 2010 Posts: 9 iTrader: (0)	I do work, I have a part-time job at the moment making about $200 a week. I also make a bit of money on the side every once in a while as a waiter at a local portuguese club, but that's not very often. It's not a lot, but enough for a kid my age with minimal bills (just insurance/iPhone). My dad would be co-signing regardless of the type of loan, but as I said before I wasn't sure how the payments and interest rates and all that would work out. Also, reason I wanted to get the RSX now is so I'd have some time to make a bit more money and get some parts under the hood while I still have another car to drive. I don't get that much free time and I don't like rushing things, I'd rather take my time and make sure things are done right especially if I'm learning how to do something new, so this way I could keep it in the garage while I play around under the hood, and still have another car to drive so I don't have to screw anything up. Maybe I'm just being picky and anxious haha but that's just me. Would successfully paying off a loan help my credit score? If I can build some credit at the same time that's a plus IMO. I don't have any credit cards, just a bank-issued debit card that I use for small purchases. Edit: Is this something I should discuss with my bank? I wouldn't mind taking a ride down there and having a quick discussion with someone

03-19-2010, 01:53 PM	#4
erik loza Been there, done that... Join Date: May 2005 Location: Austin, TX Posts: 16,467 iTrader: (26)	If your loan is through a bank or credit union, they will need it insured and registered, since they will be holding the title on it.

03-19-2010, 02:21 PM	#6
erik loza Been there, done that... Join Date: May 2005 Location: Austin, TX Posts: 16,467 iTrader: (26)	15%? Jesus Christ...

03-19-2010, 02:45 PM	#10
MarcD Senior Member Join Date: Feb 2010 Location: STL Posts: 201 iTrader: (0)	you will definetly need insurance if you get a loan since you techinally dont own the car, the bank does...and if something were to happen to that (even if youre not driving it...ex. garage fire,natural disater) the bank would definetly want to be able to recoup their losses....and good luck getting a loan without a job(or some type of income) and decent credit history...

03-19-2010, 03:44 PM	#12
Clean 02 New Member Join Date: Feb 2010 Posts: 18 iTrader: (0)	Like others said, I think you may have to insure the car. You probably wont get approved for a loan in this economy at your age without credit history. If you can, go under your own name. Your intrest will be higher percent. BUT for a loan that little of an amount its not going to accure a huge dollar amount in the end. This is the only way you will actually build credit so when you want to buy a more expensive car later, you will get approved for more $. If you have a co signer, the co signer builds the credit not you. A personal loan will be even harder to get and a higher rate. Auto is easier because the vehicle is collateral for the bank to collect on if you dont pay the loan.

03-19-2010, 08:56 PM	#15
portagyplaya12 New Member Join Date: Mar 2010 Posts: 9 iTrader: (0)	Alright, guess I'll try that then. I'm still discussing the whole thing with my dad, I just wanted someone else's opinion on the whole situation. I just wanted to avoid having to pay insurance on two cars when I'd only be driving one.

03-20-2010, 01:44 AM	#16
DvSk type R Senior Member Join Date: Jun 2008 Location: East LA Posts: 177 iTrader: (2)	Tell your dad to get a personal loan. (He would provably get a lower intrest), and just pay ur dad. If u get a car loan, u need to have full coverage (with is hella expensive for some one ur age). Get the car Under ur dads name. (Cheaper insurance). Register ur car as non operational (its only like 30 bucks for that)

03-20-2010, 04:17 AM	#17
desii Master Member Join Date: Jan 2008 Location: SoCal Posts: 2,664 iTrader: (23)	u may not have to get full coverage on a car loan, i didnt given a personal loan interest rate at 3k wouldnt be that much interest in the end, but i still say get a car loan, personal loans are very hard to get, your credit has to be high, and u have to have very loan debt __________________ My Show-off Thread

03-20-2010, 08:05 AM	#18
stevens40z Luck of the Irish Join Date: Nov 2007 Location: Indiana Posts: 387 iTrader: (1)	15% isn't out of the question. I got my RSX back when I was 19 and had 13.99% apr. __________________ ABP Crew Member #33 2004 Acura RSX Type-s ABP