[Z06] Question about financing
10-18-2016, 01:43 AM
#41
Melting Slicks
This may be harsh but holy heck you sound like a complete mess. If you couldn't afford to pay someone to fix a simple motorcycle, then how in the world will you afford this Vette. You'll have this thing on blocks at the first set of tires or balancer failure. Then this whole suspended license bit..
I wish you luck but I believe you have made a very very poor financial decision here.
I wish you luck but I believe you have made a very very poor financial decision here.
10-18-2016, 07:07 PM
#42
Team Owner
What the hell is a license surcharge? What state do you live in?
10-19-2016, 11:09 AM
#43
This may be harsh but holy heck you sound like a complete mess. If you couldn't afford to pay someone to fix a simple motorcycle, then how in the world will you afford this Vette. You'll have this thing on blocks at the first set of tires or balancer failure. Then this whole suspended license bit..
I wish you luck but I believe you have made a very very poor financial decision here.
I wish you luck but I believe you have made a very very poor financial decision here.
So I bought a vette as reliable transportation. I can literally pay off this entire car in 4 months. Money wasn't the issue here, it was I no longer trusted my bike to be a reliable way to get to and from work and I felt bad driving my roommates Cobra to and from work every day.
Texas. So back in 2013 I didn't have much money, and after getting my motorcycle brand new I did ride around for a couple months without insurance. Yes I know that's really stupid. That was years ago and I'd never do it again. Anyways, I got pulled over for something, not speeding, and the cop was like, "I'm only going to ticket you for not having insurance." At the time I thought that was really nice of him.
Turns out in Texas that means a very expensive fine, and then every year for 3 years you have to pay a "surcharge" which is another bunch of money, and if you don't pay it on time your license status becomes "ineligible" which they differentiate from suspended by having it only be caused by this, and the only way to fix it is to pay the surcharge and wait a couple days for your payment to be processed.
I can only imagine their thought process when they came up with this. "Hey, so you know how some people are too poor for insurance? Well, what if, instead of just charging them a massive fine, we then charge them an annual "**** you" surcharge without any warning, that way they either lose their job to not being able to drive, get another immense fine for driving with an ineligible license, or skip paying their bills to give us another grand or so over the next three years?" "Woah man, that's like, free money. Great idea! Pass the bill!" It did catch a lot of flak when it originally passed but people seem to have forgotten it exists.
I didn't know it was a 3 year recurring thing so I didn't have it paid when I bought the car. It's already been taken care of as of today and I'm currently finishing up my insurance so I can pick up the car this weekend.
Last edited by 6MT; 10-19-2016 at 11:28 AM.
10-19-2016, 11:50 AM
#46
I needed to build credit, I wanted a car anyways because after 4 years riding in the rain it'd be neat to stay dry, and I've always liked vettes. So I found an affordable c6 vette that I liked and bought it. It's immaculate and barely broken in with 20k miles, perfect except kinda slow. Next week I'll get my bike fixed (again) and that way I'll have two ways to get to work.
Now I'm building credit with easy to make monthly payments. I also bundled renters insurance with my comprehensive on the vette so it's actually cheaper at $240 a month.
Like, I've done a lot of stupid irresponsible **** when it comes to cars and bikes, but this doesn't feel like one of those moments.
Where am I going wrong here?
10-19-2016, 12:02 PM
#48
I seem to get that a lot.
I needed to build credit, I wanted a car anyways because after 4 years riding in the rain it'd be neat to stay dry, and I've always liked vettes. So I found an affordable c6 vette that I liked and bought it. It's immaculate and barely broken in with 20k miles, perfect except kinda slow. Next week I'll get my bike fixed (again) and that way I'll have two ways to get to work.
Now I'm building credit with easy to make monthly payments. I also bundled renters insurance with my comprehensive on the vette so it's actually cheaper at $240 a month.
Like, I've done a lot of stupid irresponsible **** when it comes to cars and bikes, but this doesn't feel like one of those moments.
Where am I going wrong here?
I needed to build credit, I wanted a car anyways because after 4 years riding in the rain it'd be neat to stay dry, and I've always liked vettes. So I found an affordable c6 vette that I liked and bought it. It's immaculate and barely broken in with 20k miles, perfect except kinda slow. Next week I'll get my bike fixed (again) and that way I'll have two ways to get to work.
Now I'm building credit with easy to make monthly payments. I also bundled renters insurance with my comprehensive on the vette so it's actually cheaper at $240 a month.
Like, I've done a lot of stupid irresponsible **** when it comes to cars and bikes, but this doesn't feel like one of those moments.
Where am I going wrong here?
IMHO you are going wrong by being more worried about owning a Corvette instead of taking advantage of ridiculously low mortgage rates. I'd be more focused on being a home owner instead of a renter.
You specifically mentioned comprehensive insurance on the Corvette. Are you saying you are driving without liability insurance?
10-19-2016, 12:06 PM
#49
Start a credit line with a bank of choice. Use the card for fuel and groceries and pay it off every month. Just opening up a credit line will bump your score up to 50 points in the right direction (I know, stupid system). You'd think people should get rewarded for having lots of savings and living within their means to a point of not needing other people's money. But whatever --> that's another topic for another day. Definitely a rigged system to encourage irresponsible spending habits.
If you do this for 6 months or so, you would likely have no problem getting a somewhat decent interest rate. It's not hard to get a loan for a car but getting a decent interest rate for a used vehicle that is 10 years old may be a different story.
That said, I do NOT recommend you co-signing with someone with a 650 credit rating. By default, assuming you pay 95% of your bills on time, you will have 700+ credit rating even on small, simple purchases. No one starts out at 650. You have to screw up to get 650. Likewise, the co-signer should not sign with you either. It's not worth risking your relationship with each other over a car that you don't really need.
One final point, and consider this my .02 of wisdom (if you can even call it that). The writing is on the wall about this economy. It's going to take another dive if any unfortunate or unstable event occurs. An example? If the feds increase their interest rates.. for one, it means that when you can reliably pay for the car, the interest rate might be between 5-10% instead of 1-4% like it would be now. Secondly, the wealth holders of this country will stop spending on credit and starting saving money because they will have good returns you see. It means we borrow more money for higher interest rates, meaning increased monthly payments while the wealthy stop investing into our economy. It's a slippery slope that can easily lead to another recession (aka depression) and cause many of us to lose good paying jobs. Consider whether your job is secure or not and make sure you have lots of empirical evidence for that argument because in the blink of an eye you can be shown the door - leading you to financial stress and defaulting on loans and such. Tread carefully and thoughtfully.
If you do this for 6 months or so, you would likely have no problem getting a somewhat decent interest rate. It's not hard to get a loan for a car but getting a decent interest rate for a used vehicle that is 10 years old may be a different story.
That said, I do NOT recommend you co-signing with someone with a 650 credit rating. By default, assuming you pay 95% of your bills on time, you will have 700+ credit rating even on small, simple purchases. No one starts out at 650. You have to screw up to get 650. Likewise, the co-signer should not sign with you either. It's not worth risking your relationship with each other over a car that you don't really need.
One final point, and consider this my .02 of wisdom (if you can even call it that). The writing is on the wall about this economy. It's going to take another dive if any unfortunate or unstable event occurs. An example? If the feds increase their interest rates.. for one, it means that when you can reliably pay for the car, the interest rate might be between 5-10% instead of 1-4% like it would be now. Secondly, the wealth holders of this country will stop spending on credit and starting saving money because they will have good returns you see. It means we borrow more money for higher interest rates, meaning increased monthly payments while the wealthy stop investing into our economy. It's a slippery slope that can easily lead to another recession (aka depression) and cause many of us to lose good paying jobs. Consider whether your job is secure or not and make sure you have lots of empirical evidence for that argument because in the blink of an eye you can be shown the door - leading you to financial stress and defaulting on loans and such. Tread carefully and thoughtfully.
10-19-2016, 12:08 PM
#50
Haha, it's not any better in person. When I was at the dealership the salesman just watched my roommate and I walk around without saying anything.
Asked him where to fill out the finance application, and he just said, "Hey I don't wanna waste your time or anything, but I don't think you're going to be approved." Had me follow him to the financing person/manager, "Hey XXXX, this guy doesn't have any vehicle purchase history, wanna be straight with him or let him down easy?" The other guy just kinda looked at me, asked "How much do you make?" I told him then we sat down do discuss which one I wanted. Felt a little vindicated lol.
My roommate and I also went to look at the 2017 GT350s cause he decided he just had to have one last night and got the same reaction lol.
I'm sorry, the vette has full coverage. I worded that wrong. I just renewed the lease which would make buying a house awkward. Also, I don't know that I'm ready for that kind of commitment to be honest. My current drive is pretty long, but I like where I'm at. Maybe in a couple years when I settle down I'll be ready for that. As well as like living with my best friends, and I don't know how well that thought process would mesh with buying a house.
Asked him where to fill out the finance application, and he just said, "Hey I don't wanna waste your time or anything, but I don't think you're going to be approved." Had me follow him to the financing person/manager, "Hey XXXX, this guy doesn't have any vehicle purchase history, wanna be straight with him or let him down easy?" The other guy just kinda looked at me, asked "How much do you make?" I told him then we sat down do discuss which one I wanted. Felt a little vindicated lol.
My roommate and I also went to look at the 2017 GT350s cause he decided he just had to have one last night and got the same reaction lol.
IMHO you are going wrong by being more worried about owning a Corvette instead of taking advantage of ridiculously low mortgage rates. I'd be more focused on being a home owner instead of a renter.
You specifically mentioned comprehensive insurance on the Corvette. Are you saying you are driving without liability insurance?
You specifically mentioned comprehensive insurance on the Corvette. Are you saying you are driving without liability insurance?
10-19-2016, 12:11 PM
#51
IMHO you are going wrong by being more worried about owning a Corvette instead of taking advantage of ridiculously low mortgage rates. I'd be more focused on being a home owner instead of a renter.
You specifically mentioned comprehensive insurance on the Corvette. Are you saying you are driving without liability insurance?
You specifically mentioned comprehensive insurance on the Corvette. Are you saying you are driving without liability insurance?
Also, owning a home of similar monthly payments to an apartment will reduce his ability to save income. Period. Maintenance. New furniture/appliance/etc purchases and taxes will easily make it more difficult for him to save. One isn't better than the other in terms of renting vs. owning. People with lots of wealth have an easier time convincing themselves of owning a home but given that the average home over a lifetime brings about 4% returns and the average homeowner over a lifetime spends about 3% to maintain the home, not to mention the interest rate - the net return is 1% or even less sometimes. It's not unheard of to actually have more into a home than what you get out of it in the end.
Last edited by fueledpassion; 10-19-2016 at 12:12 PM.
10-19-2016, 12:12 PM
#52
Safety Car
If he actually can generate $30k of extra income in 4 months, I don't understand why his license was suspended for failing to pay fines or why a 3-4 year old bike can't be made reliable or why he can't afford a $4k used car to drive for a few months. How much could a $4k car depreciate in a few months anyway? He could even keep it for winter months.
There are far more choices than financing a $30k sports car on the drop of a hat because a co-signer was in town and your bike is broken.
I'm not trying to harp on the OP. I just don't understand why _we_ are called clowns because we see better alternatives to his choices.
10-19-2016, 12:15 PM
#53
Start a credit line with a bank of choice. Use the card for fuel and groceries and pay it off every month. Just opening up a credit line will bump your score up to 50 points in the right direction (I know, stupid system). You'd think people should get rewarded for having lots of savings and living within their means to a point of not needing other people's money. But whatever --> that's another topic for another day. Definitely a rigged system to encourage irresponsible spending habits.
If you do this for 6 months or so, you would likely have no problem getting a somewhat decent interest rate. It's not hard to get a loan for a car but getting a decent interest rate for a used vehicle that is 10 years old may be a different story.
That said, I do NOT recommend you co-signing with someone with a 650 credit rating. By default, assuming you pay 95% of your bills on time, you will have 700+ credit rating even on small, simple purchases. No one starts out at 650. You have to screw up to get 650. Likewise, the co-signer should not sign with you either. It's not worth risking your relationship with each other over a car that you don't really need.
One final point, and consider this my .02 of wisdom (if you can even call it that). The writing is on the wall about this economy. It's going to take another dive if any unfortunate or unstable event occurs. An example? If the feds increase their interest rates.. for one, it means that when you can reliably pay for the car, the interest rate might be between 5-10% instead of 1-4% like it would be now. Secondly, the wealth holders of this country will stop spending on credit and starting saving money because they will have good returns you see. It means we borrow more money for higher interest rates, meaning increased monthly payments while the wealthy stop investing into our economy. It's a slippery slope that can easily lead to another recession (aka depression) and cause many of us to lose good paying jobs. Consider whether your job is secure or not and make sure you have lots of empirical evidence for that argument because in the blink of an eye you can be shown the door - leading you to financial stress and defaulting on loans and such. Tread carefully and thoughtfully.
If you do this for 6 months or so, you would likely have no problem getting a somewhat decent interest rate. It's not hard to get a loan for a car but getting a decent interest rate for a used vehicle that is 10 years old may be a different story.
That said, I do NOT recommend you co-signing with someone with a 650 credit rating. By default, assuming you pay 95% of your bills on time, you will have 700+ credit rating even on small, simple purchases. No one starts out at 650. You have to screw up to get 650. Likewise, the co-signer should not sign with you either. It's not worth risking your relationship with each other over a car that you don't really need.
One final point, and consider this my .02 of wisdom (if you can even call it that). The writing is on the wall about this economy. It's going to take another dive if any unfortunate or unstable event occurs. An example? If the feds increase their interest rates.. for one, it means that when you can reliably pay for the car, the interest rate might be between 5-10% instead of 1-4% like it would be now. Secondly, the wealth holders of this country will stop spending on credit and starting saving money because they will have good returns you see. It means we borrow more money for higher interest rates, meaning increased monthly payments while the wealthy stop investing into our economy. It's a slippery slope that can easily lead to another recession (aka depression) and cause many of us to lose good paying jobs. Consider whether your job is secure or not and make sure you have lots of empirical evidence for that argument because in the blink of an eye you can be shown the door - leading you to financial stress and defaulting on loans and such. Tread carefully and thoughtfully.
I actually do have one on a 6% interest card. TCCU.
I've already bought the vette, but I didn't know that. Thank you.
My job is extremely secure. I'm a Microsoft High Availability Engineer. It's so secure there isn't even a job market lol. There's literally like 15-20 Tier 3 HA's in the world. Outside of Azure at least, but I'm not good enough to make it there yet. We only provide work for a select few Microsoft Premiere customers, Ford, Walmart, Govt, etc. One thing I thankfully don't have to worry about.
10-19-2016, 12:19 PM
#54
What is your point? Are you saying that the only reasonable solution for the OP was to finance a Corvette?
If he actually can generate $30k of extra income in 4 months, I don't understand why his license was suspended for failing to pay fines or why a 3-4 year old bike can't be made reliable or why he can't afford a $4k used car to drive for a few months. How much could a $4k car depreciate in a few months anyway? He could even keep it for winter months.
There are far more choices than financing a $30k sports car on the drop of a hat because a co-signer was in town and your bike is broken.
I'm not trying to harp on the OP. I just don't understand why _we_ are called clowns because we see better alternatives to his choices.
If he actually can generate $30k of extra income in 4 months, I don't understand why his license was suspended for failing to pay fines or why a 3-4 year old bike can't be made reliable or why he can't afford a $4k used car to drive for a few months. How much could a $4k car depreciate in a few months anyway? He could even keep it for winter months.
There are far more choices than financing a $30k sports car on the drop of a hat because a co-signer was in town and your bike is broken.
I'm not trying to harp on the OP. I just don't understand why _we_ are called clowns because we see better alternatives to his choices.
I explained that earlier, wasn't that I couldn't pay them, but that I didn't know they existed. I thought they were gone when I paid them last year. Just now looked them up fully and read that they're a recurring annual fee for 3 years.
I'm sure the bike could be reliable, I was just fed up with it. That many breakdowns in a 6 week period is unacceptable. Batter, rectifier, stator, rectifier, battery, ECU.
Fixed it each time. Just tired of it after that.
And honestly you guys have been helpful, it's not like your thoughts or concerns have been unreasonable. This is a great community and I've been reading it since I was 16, 6 years ago. Glad to finally be able to join!
Last edited by 6MT; 10-19-2016 at 12:20 PM.
10-19-2016, 12:19 PM
#55
What is your point? Are you saying that the only reasonable solution for the OP was to finance a Corvette?
If he actually can generate $30k of extra income in 4 months, I don't understand why his license was suspended for failing to pay fines or why a 3-4 year old bike can't be made reliable or why he can't afford a $4k used car to drive for a few months. How much could a $4k car depreciate in a few months anyway? He could even keep it for winter months.
There are far more choices than financing a $30k sports car on the drop of a hat because a co-signer was in town and your bike is broken.
I'm not trying to harp on the OP. I just don't understand why _we_ are called clowns because we see better alternatives to his choices.
If he actually can generate $30k of extra income in 4 months, I don't understand why his license was suspended for failing to pay fines or why a 3-4 year old bike can't be made reliable or why he can't afford a $4k used car to drive for a few months. How much could a $4k car depreciate in a few months anyway? He could even keep it for winter months.
There are far more choices than financing a $30k sports car on the drop of a hat because a co-signer was in town and your bike is broken.
I'm not trying to harp on the OP. I just don't understand why _we_ are called clowns because we see better alternatives to his choices.
Last edited by fueledpassion; 10-19-2016 at 12:20 PM.
10-19-2016, 01:25 PM
#57
Yea, I'll probably look into getting one in about 12 months when I have this vette paid off. Most the ones I wanted were around 40k, so ideally they'll have come down a bit in a year, if not it's no big deal since I'll be trading in a car and can add a down payment if needed. I'm already almost to 700 credit score so things can only get better!
10-19-2016, 02:53 PM
#58
Team Owner
Yea, I'll probably look into getting one in about 12 months when I have this vette paid off. Most the ones I wanted were around 40k, so ideally they'll have come down a bit in a year, if not it's no big deal since I'll be trading in a car and can add a down payment if needed. I'm already almost to 700 credit score so things can only get better!
Last edited by MTPZ06; 10-19-2016 at 02:54 PM.
10-19-2016, 03:02 PM
#59
I know you say that vette is slow, but do yourself a favor...leave it stock. You're looking to unload that in a year, so make it as attractive as possible to a buyer (or dealer) when you look to sell/trade in. Nothing you can do without cracking open the motor and/or spending a ton of cash to make that car significantly faster...so again, just leave it alone and enjoy the dryness that 4 wheels and a roof brings you over your bike. You took an unconventional path here, but just stay the course now and you should come out alright.
This vette is purely for credit building purposes. I plan to just pay it off soon and upgrade. If I trade it in for ~20k and put some down I can't imagine not being approved.
10-19-2016, 05:01 PM
#60
Instructor
I'm not quite sure I understand the train of thought here. I thought the bike was broken and was too much a hassle to have repaired. Wasn't that the reason for needing a new car? Also, the last time I checked, a Cobra is a car that you can drive. Not trying to be brash, I'm just not sure I'm following you here.