+1 on the credit union...

I live in MI. I found my 2003 Vette at a dealer in TX. I figured it would be easier to just handle financing there and then look for options when I got home.

So...the dealer financing was at 10%!! Ridiculous...but it was easy to just sign and drive.

When I got home my local credit union not only didn't blink an eye at financing a car that was 12 years old with 85K miles on it, then even offered me an interest rate of 3%! That allowed me to keep the same payment but shaved a whole year off the loan term.

That sealed the deal for me. I recently bought a new Tahoe. Got a good rate at 2.99% but I went to the same CU and got the same loan term for 2.25%.

 

Wow thats awesome....i think i might have only 1 credit union that is willing to go older thwn 2005 locally....ill have to look more into them

 

A credit union was the only place that even considered giving me a loan for my 1998 with 65K miles when I purchased her in 2011. Ended up getting a 2 year loan at a rate of 1.99%... but I also put over 50% down on the vehicle.

Doesn't make it any less annoying about how big banks will never finance a car older than 5 years, even the ones that you primarily bank with. Doesn't even matter if you've never missed a payment on their card, or if you could purchase the car a few times over with your savings and/or if you have stellar credit... it's just a flat "Nope, too old." Somehow they think it's too risky or something. Oh, but you want to buy more house than you can afford? TAKE OUR MONEY!! At least it feels that way sometimes.

 

Haha i agree..i dont get it...i know every guy out there in a c5 doesnt pay 18k cash money for it...so im just wondering where they all get loans out of....a 2 year loan is oretty dang short term... thanks for info tho man i appreciate it.

 

Not all, but most probably do.

 

Either that or they bought it many years ago

 

If you don't mind, I'd like to explain a couple of things about borrowing money for any purchase. The first and most important thing that a lender looks at when loaning money is the person's ability to repay the loan. It doesn't matter how good your credit score is. If the lender does not think you have the resources to repay the loan, then you won't get it. Second, no reputable financial institution will make a loan on a car if the loan amount is unreasonable for that year, make and model of vehicle. If you think the a car is worth considerably more than the blue book value of the car, then be prepared to have enough cash to bring the loan amount down to the blue book value for that vehicle. If you keep those facts in mind, you'll have no trouble getting your loan. Keep you credit rating as high as possible because that will help you get the best loan rate. A bad credit report equals high interest!

 

In other words unjust need to make a crap load of money..I totally get thatm.and i agree..im currently in nursing school so better career is just around the corner. .however my current loan of 15k for my g6 is relatively close to the price im looking at for a c5 ( even though of course its years are quite older). I think its a reasonable price range to be in and ive chexked the nada and blue book on many c5s.

 

Then save your money and pay cash for a C5 in 2 years. You might be in a better financial position.

 

I definitely will be thars why im lookin at the timeline..ill be LPN after 1 year...RN in 2...my main concern is if there r any lenders thwt will work wth me...i wont have 18k cash but i will have some for sure

 

This is what I did. I called my CU and asked for 15k. They said yes and for anything older than 2004 the interest rate would be higher. Just check after you are ready because if you are asking now then they are counting your current loan against you.

Good luck.

 

I'm with JR-01 and DBGoodwin; BIGtime...

you say I didn't read every post, but it seems to me that upon finishing school, you wanna "celebrate" with a Corvette. Why would you choose a Vette as your first unnecessary necessity with a just paid-for G6 in the garage!? (yeah, "winter", I know... or conversely--"summer... hmmmm") Will you have a student loan to pay off? Any plans in that future to get out from under roommates and cheap rent into a more desirable habitat? (and furnish it, etc.?) You say you have no debt but a mediocre 620-640 credit rating hangs over you, but that'll clear itself up by your deadline. Why?, because you'll spend more on the CC and pay it off totally and concurrently to boost your rating? (that's how it works--not by just 'avoiding debt')

You say that right now you don't have debt, but you have no net worth to speak of; though you infer an anticipation of some kind of "instant" financial-status change once a full-time 'big money' career kicks in upon an immediate hiring when you finish school. Or is your current full-time work paying enough to show big dividends after these coming two years of school expenses?

What happens if you don't survive the probationary hiring period? Or don't get hired for 4 months? Or forbid, you have some kind of personal emergency requiring long-distance flights and a weeks' stay somewhere? Standard financial wisdom states you'll need at least a 6-months'-GROSS emergency fund to cushion unforeseen living costs for the rest of your life. Two years is a LOOONG time--we'll change presidents; Hilary will prolly be president; the country will be in complete financial chaos--not the stock market--the country; guys like JR-01, DBG and I will prolly still be in the "1%" rootin' the stock market on...damn the national debt; the oil-saturation war the Saudis are waging will probably finally break several international financial institutions by that time. Interest rates and stagnation could be rampant. Those with enough squirreled away will make money on their contrarian market moves/plays. At the current rates of projection, even cheap rentals will skyrocket no matter where you are--by your own description you're just making it a paycheck at a time. Will you really trade your finished G6 car payment for another 2-4 year debt so's to drive a Vette on weekends and summer? To be prudent and save financial headache, ruin, and stress, you might consider building a 9-month reserve first before incurring any more expenses.

No insult intended.

 

I would pick up a copy of Hemmings Motor News or Autoweek, they both have ads from lenders that specialize in older cars with limited usage, such as cars like Corvettes.

 

The truth is at this point in his life he can not afford a C5 or any $20K toy. Perhaps in two years, but with his current plan I doubt it. Lining up a lender 2 years before the loan shows an obsession.
I know he will get pissed about our responses but we speak the truth.

 

Drive your G6 until you're out of nursing school and working for a year or two. With a better job you'll better credit score and a better rate. In the meantime, save all you can. Paying cash for a used C5 is a great feeling.

 

I lived in nebraska most of my life. I used pinnacle bank once for my truck loan. Wasn't bad. Maybe give them a try and see what they say. I was in the same boat as you. Just got out of school, had a good job, wanted a vette. I hate loans, so I saved for 4 years, bought mine in cash. Well worth it. Ins isn't bad but unless you do repairs yourself those bills are expensive. Take it from a guy that knows. Just remember if you buy a c5 your car will be atleast 11 years old. Stuff breaks.

 

My advice would be to work hard to pay off the G6 early. Once it's paid off, start saving what you were paying on it and whatever else you can save and put it into a C5 fund. When you have enough saved up to pay cash, then you can decide if you really want the C5 after all.

Old cars are cash cars for a reason. Banks don't want to loan on them because they aren't good collateral. I'm assuming you're young based on the scenario. The last thing you want to do is strap yourself down with debt at a young age. Go out and have fun and put cash in the bank instead of letting the bank profit off of you.

 

Yah, I didn't know how to write my thoughts diplomatically; after posting and reading them, they sound quite abrasive--but I stand by all of it. Corvettes have a reputation of being a "rich buyer's" car, and deservedly. The c4's and c5's have finally aged enough to cost as little as a new entry Honda, Toyota, or American coupe/sedan, and that makes them really appealing to the rest of the buying public....like me. I paid (prolly too much) cash for mine three years ago ~$27 as I recall including warranty. Now he's looking at a car that is prolly rightfully priced at "$17-20". That's not so bad; it sounds like a small number compared to $80,000 for a '16.

I went back and read your posts much more thoroughly, Aliens5. Right now you're making $34; and you anticipate "40-60" after graduation. That means that you should have $17-30,000 saved as an emergency fund before you leave your roommates. At graduation, theoretically you'll have the G6 paid. Land a $50,000 job and pray your rent stays flat; dunno what you're paying but you're lucky if you keep your rental costs under 1/3 your gross income. That leaves $35,000 gross; skim $8G's for income tax (a generous estimate in your favor because you have no deductions whatsoever), and you're left with $27. (I'll bet this number, 27, is just barely more than what you're left as a yearly gross right now after rent.) Skim $400 a month for a Corvette payment plus $150 for 2 cars' insurance, and your auto payment/insurance without gas gouges your 27G's by $6600, leaving you $20,000 a year to live on. We'll call misc monthly living expenses a ballpark $1000 because "I like your idea". Gas, cellphone, utilities, dining out, movies, dates; all that falls under the $1000. That leaves 8G's... for a 3-year savings campaign to set your finances aright--$24,000 for an emergency fund, and no budgeted "spending money"--no trips to Cancun, no visits out of state to friends/relatives, no new stereo/HT, etc.

That is to say, 3 years after you graduate and land a $50,000 job you'll have nothing but your emergency fund, a 7yr old G6, and a Corvette. Finance-wise though, you can finally leave your roommates; you'll be what, 25-30yr old, looking for your first place to call your own?

Like JR said, we don't mean to **** you off, but you've got the cart before the horse. Yeah, I'm an old dude; lemme tell you an age-old story... unexpectedly one day, my mother had a stroke. I spent 10 days in a hotel, and paid for the last minute arranged flight because I couldn't plan it ahead. The funeral ran $18G's. I was ready for the 18; eating out and staying at the hotel with the flight costs ran 'nother $3G's that came out of the E-fund. Shipt happens; plan for it. We don't mean to **** you off.

 

I just raided my 401k for a $15k loan - painless...

 

What kind of 401k "loan" is painless? Come April won't you have to account for the deferred taxes and the 10% early withdrawal penalty (plus taxes on it, too)? As I recall the only built-in "tolerances" on a 401k are for buying a home, education, and maybe starting a business. As I recall the penalty clause for such loans is much more tolerant.

In any case, loan payments are paid back with after-tax dollars, so there's an extra screw from the IRS. And don't quit/lose your job--then it's a loan that comes due in 60 days. Nevermind that $15,000 isn't growing at compound interest rates, ain't tax-deferred, and ain't salted away for retirement. Hopefully you're wise to the extreme loss potential of tapping a 401k, or at least, have a metric ton of money in it already.