HELP... FINANCING!!!

[manda1983]

Hello Again!!!


So I officially sold my current vehicle today... here's the bad part... I was asking $10,500 (even though it's worth over $11,500)... was offered $10,000 (because that's the biggest loan the girl could get)... then got an e-mail saying she needed to drop it to $9500 because the bank was going to charge her fees.

So here's my concern... the plan had been all along to pay off any credit card debt I currently have and pay for the Fall semester at school, then use the remaining $4500 as a down payment on a new Prius.

I thought paying off my bills completely would help raise my credit score and help me to get the best deal possible on financing the new car.

What does everyone think? Should I continue with this idea and accept the offer of $9500 (I've been trying to sell my car all summer) ? Should I try to finance through a bank or credit union instead of through Toyota? Or should I completely give up for now and go back to trying to sell my car for the original price? Any insight would be much appreciated, I'm a soon-to-be college graduate (with a decent paying job), so money is a concern of mine!!!

[Spoid]

<div class='quotetop'>QUOTE(manda1983 @ Aug 18 2007, 12:14 PM) [snapback]498392[/snapback]</div>

Hello Again!!!
So I officially sold my current vehicle today... here's the bad part... I was asking $10,500 (even though it's worth over $11,500)... was offered $10,000 (because that's the biggest loan the girl could get)... then got an e-mail saying she needed to drop it to $9500 because the bank was going to charge her fees.

So here's my concern... the plan had been all along to pay off any credit card debt I currently have and pay for the Fall semester at school, then use the remaining $4500 as a down payment on a new Prius.

I thought paying off my bills completely would help raise my credit score and help me to get the best deal possible on financing the new car.

What does everyone think? Should I continue with this idea and accept the offer of $9500 (I've been trying to sell my car all summer) ? Should I try to finance through a bank or credit union instead of through Toyota? Or should I completely give up for now and go back to trying to sell my car for the original price? Any insight would be much appreciated, I'm a soon-to-be college graduate (with a decent paying job), so money is a concern of mine!!!
[/b]

It sounds like by buying the Prius, you'll be going into more debt. While I'm obviously a big fan of the Prius, taking on more debt while in school probably isn't the best idea. If your car is worth $10k, it probably runs just fine. Why not keep it and use the money you would have used for a car payment to pay down your credit card debt? You'll have plenty of time to enjoy a Prius (or whatever comes around later) in the future.

Sorry, I know this isn't the answer you were looking for.

[manda1983]

<div class='quotetop'>QUOTE(Spoid @ Aug 18 2007, 03:01 PM) [snapback]498405[/snapback]</div>

It sounds like by buying the Prius, you'll be going into more debt. While I'm obviously a big fan of the Prius, taking on more debt while in school probably isn't the best idea. If your car is worth $10k, it probably runs just fine. Why not keep it and use the money you would have used for a car payment to pay down your credit card debt? You'll have plenty of time to enjoy a Prius (or whatever comes around later) in the future.

Sorry, I know this isn't the answer you were looking for.
[/b]

I appreciate the advice... when I said money was a concern, I simply meant that I want the best deal possible (I don't want to get taken just because I'm young and I'm female). As far as making payments on the car goes, with my current job, that will not be a problem... I simply need advice on whether to accept the offer made on my current car and whether I should finance through Toyota (I'm currently also looking into the Costco Membership deal). THANKS AGAIN

[galaxee]

we got a baaad deal financing through toyota. at the time i had a credit score in the low "excellent" range and still got 8.24% on my loan. they gave us 400 off and a 6-mo deferment through the college grad program, but we ended up paying $1000 in interest over those 6 months, so we lost a lot there.

i would skip the toyota finance altogether if you can, or really bargain them down. if i had to do it all again, that's what i'd do.

[tballx]

<div class='quotetop'>QUOTE(manda1983 @ Aug 18 2007, 01:46 PM) [snapback]498416[/snapback]</div>

I appreciate the advice... when I said money was a concern, I simply meant that I want the best deal possible (I don't want to get taken just because I'm young and I'm female). As far as making payments on the car goes, with my current job, that will not be a problem... I simply need advice on whether to accept the offer made on my current car and whether I should finance through Toyota (I'm currently also looking into the Costco Membership deal). THANKS AGAIN
[/b]

I wouldn't accept the offer. If someone is claiming that fees on a car loan are equal to 10% of the principal then I don't believe they are being truthful. I would also use the money you would've made on a car payment and throw it into a higher yielding money market account to save for a new prius. Consumer debt on a car is a rip off. If you can avoid it, you'll be thankful you did later.

[Rangerdavid]

Never finance a depreciating asset. Basic principle of economics. That being said though, most of us do, and I certainly do. So why would you want to put so much down on the vehicle? The Prius will not depreciate as quickly as most other cars, so if you have to trade in 3-4 years you won't be in as bad a position, and may not even be inside out on the loan.

I'd make the minimum down payment, try to get the best interest rate, and make sure its a payment you can afford, and don't forget to think about the insurance in you payment. You may even consider a used Prius. Up to you. There are a lot of financing deals out there, and a lot of options.

Choose wisely grasshopper!!

[daveleeprius]

<div class='quotetop'>QUOTE(tballx @ Aug 18 2007, 04:00 PM) [snapback]498421[/snapback]</div>

I wouldn't accept the offer. If someone is claiming that fees on a car loan are equal to 10% of the principal then I don't believe they are being truthful. I would also use the money you would've made on a car payment and throw it into a higher yielding money market account to save for a new prius. Consumer debt on a car is a rip off. If you can avoid it, you'll be thankful you did later.
[/b]

Agreed, don't accept the offer. They're just trying to scam you! And keep your car, put off buying a new car until you have an established career and can afford to pay your car off in two or three years.

[SW03ES]

I agree, stay firm at your $10k. Tell the girl if she can't come up with $500 in fees then she should buy a cheaper car. Thats not your problem.

As for the financing. TFS (Toyota Financial Services) generally doesn't have very good rates unless they are running some sort of promotion. What is your credit score? Even with excellent credit its going to be 8% probably. The benefit of going with them is they will approve pretty much anyone, so if you are having trouble getting a loan due to poor credit, lack of a downpayment (you can drive off without spending $1 with a TFS finance), or difficulty documenting your income they're your best bet (this is true of ALL manufacturer's captive finance arms).

If none of these things are an issue for you, you'll almost certainly get a much better rate by contacting a direct bank or credit union.

I wouldn't put the money down personally, unless you're apt to squander it. Pay off your credit cards (and CUT THEM UP!) and then put the rest in a nice safe CD or something.

[JimN]

<div class='quotetop'>QUOTE(manda1983 @ Aug 18 2007, 03:14 PM) [snapback]498392[/snapback]</div>

Hello Again!!!
So I officially sold my current vehicle today... here's the bad part... I was asking $10,500 (even though it's worth over $11,500)... was offered $10,000 (because that's the biggest loan the girl could get)... then got an e-mail saying she needed to drop it to $9500 because the bank was going to charge her fees.

So here's my concern... the plan had been all along to pay off any credit card debt I currently have and pay for the Fall semester at school, then use the remaining $4500 as a down payment on a new Prius.

I thought paying off my bills completely would help raise my credit score and help me to get the best deal possible on financing the new car.

What does everyone think? Should I continue with this idea and accept the offer of $9500 (I've been trying to sell my car all summer) ? Should I try to finance through a bank or credit union instead of through Toyota? Or should I completely give up for now and go back to trying to sell my car for the original price? Any insight would be much appreciated, I'm a soon-to-be college graduate (with a decent paying job), so money is a concern of mine!!!
[/b]

All you are doing is swapping credit card debt for car debt. I'm sorry, but I don't think you are in a position to afford a new car that is going to cost at least twice as much as the one you are driving. 1. Keep your car. 2. Stop using the plastic. 3. Pay down the cards as fast as you can. 4. Don't close the accounts. Open accounts will improve your credit score. 5. There will still be new cars available when you are in a better position to afford one. Probably "better" ones as well.

[Rangerdavid]

Excellent JimN.... I whole heartedly agree!!