Hello,

I have a couple of questions regarding financing a c5 corvette. So my current situation is that im currently in my 3rd year of financing mt 2009 g6 thru wells fargo. I have all positive credit for the past 3 years but do have a couple collections (paid off but still on the report). My credit right now is in the 620-640 range.

Im looking at purchasing a c5 here in the next 2 years after my current loan is done with wells Fargo. By then a couple of collections will be off my report and id guess my credit would be probably in the high 600s by then.

The plan is to keep the g6 for my.winter car and buy a c5 for . weekend and summer driving. (Live in nebraska).

Questions i have if you can help me are Who would finance an older car? Looking at primarily 2002-2004 but any c5 really is a possibility. My lender who im in great standing with will only loan on cars 5 years old and newer and there are several local credit unions however none thst loan back past 2005.

Im looking at a loan of around 17 to 20k for the c5s ive seen that ive liked these are reasonable price and well taken care of in this range. So with this amount im guessing a personal loan is out of the question (my credit wont be excellent and im only making around 32k a year.

I know i can afford it cuz i habe zero debt other thwn current car. My main issue is finding a lender. ( i live in omaha nebraska if that helps) .

Any suggestions or experiences youve encountered are helpful.

 

FWIW...If you're looking at a C5 purchase in 2 years or so, first extrapolate what the value of the car would be then. Most financial institutions won't finance an older car for much over 36 months. Take the estimated value, for 36 months, at I'd guess about 5-6% to get your payment. Then start setting that aside as if you were making payments on the car. When the g-6 is paid off, you'll then have a fair amount to put toward the 'vette. There's a great book called "Richest Man in Babylon" that might be worth a read as well. Nothing to do with 'vette's though.

 

credit union is probably your best bet... will you be putting any money down or getting a loan for the whole amount?... if you can put around half down and get a loan for the other half that might help your chances of them financing it for you... the interest rate on a personal loan would probably make it not even worth trying, especially if you're trying to get the full amount

 

What is your net worth?

 

First off no net worth to speak of as far as property etc other than my car....i share cheap rent as im in nursing school. Im not poor work full time dont have debt other than my g6 ..no credit card debt but i do have positive credit card payments for credit history.

My 2009 g6 was 15k and i have about 6k left on the loan..so im lookin at my next car to be slightly above what i loaned for my g6 because i know i can adford it...my interest on the g6 wasnt cheap either. My payments right now are 340 and i xan easilt afford the same payments if not more. By the time i get the vette ill be making between 40 and 60k salary depending on my nursing degree.

Id probablybe able to put about 4k down if not slightly more by then. Like i said ive chexked local credit unions here in omaha...none of them that i qualify for loan on an earlier year than 2005 as of today..1-2 years from now i imagine it will coorelate with the current year..so idk how much of an option local credit unions are..

Ive been interested in PenFed credit union as they are soon openint up a branch here however i also known they are primarily geard toward military. Which i have no foot in the door there.

As far as if can i affoed it..yes i can. Its going to be the 3 next car i get and its a strict goal if mine. Thanks for the suggestions so far..does anyon3 have a specifc lender in mind?

 

You should have 6 months living expenses in the bank before you buy a $20K toy or you are asking for trouble.

 

You might want to give a call to Sun Trust. They handled a lot of Corvette loans through the Chevy dealer that I bought my C4 from. It took all of 8 minutes to approve my loan over the phone. For what it's worth, you do have 2 years to improve your credit rating and potentially build up your savings to help with a down payment. Your odds of getting a loan on an older car does improve greatly once you get pass that 700 credit rating.

 

Thanks so much i habe heard suntrust is good..the lightstream thru them i believe


Jr...thanks...im ok on the in the bank part...i dont have 20 million in there ...but enuff..unless 20.million is what I need
.

 

Good luck. I have seen too many people get in too deep and spend the rest of their lives trying to dig out of the hole.

 

I financed my c5z but I had a downpayment of over half the value of the car. For the fact that I had hardly any credit at all, financing an 11 year old car, I think i got a good rate of 3.45% for 48 months. Paid the car off in 2 years and have been totally happy with it.

 

I'm currently searching now, but I intend on taking $5k of my money and some from the bank to get a C5...then pay it off as quickly as possible...though I could pay cash if I wanted, but with interest rates low, I choose to borrow...

D.

 

This is huge too. I would not have bought my car without having more than enough to live for a year without additional income.

Another thing you could do is sell the Pontiac (assuming you have equity in it) and buy a beater cash so you only have one open car loan.

 

Dbgoodwin is ur lender just a local for u?

Also yes i get u need to have money saved in case of things happening. ...im ok in that aspect.

I would sell my g6 however i owe 6k on it...dealer trade is around 4500...provate party barely over 6..i wouldnt mwke any moneu at all on it if i sold it right now..in fsct i might lose some...i would hate to sacrifice spending money just to not habe a car payment for a beater for only a year or 2..wouldnt rlly help me there unfortunately.

Im looking to fulfill the loan on my g6 also t9 build up credit history

 

I purchased my 2004 from a dealer in 2013. 5k down and got a loan from Wells fargo. credit was at that time around 690. got an 8 percent interest rate. way too high, but took it knowing i was going to be deployed, so i paid the car off a year later. I like to think i didnt get raped to hard from the interest rate. Title in hand is a wonderful feeling. Best of luck.

 

Interesting....did they call it a different type of loan other than an auto loan? I spoke with my wells fargo banker recently...id say 6 months ago..about financing an older vehicle. .i asked him specifically what years can i finance in any price range. He told me very bluntly we do not ever finance a vehicle older thwn 5 years old regardless of how good ur credit is or how much u have down. This is also what the dealer told me about wells fargo when i first financed my g6 over 3 years ago (thats why i had to get a 2009 or newer)

Should i call corperate?

 

Yes it was a Auto loan. The only reason they gave me the loan was the cash brought to the table, atleast that is what i was told. I would call corporate, you dont have anything to lose.. worst case they say no.

 

Yeah just call the bank in 2 years lol. Everything somebody says about a loan at this point is just speculation. Call the bank when your ready. In 2 years a lot of things can change.

I started looking for my car AFTER I was preapproved for the amount I wanted to spend. Not before. Same with my house. If you do it backwards you could just be wasting your time...

 

In 2 years your situation could be totally different.

 

Thats for sure. .i get what ur sayin...however if i wait 2 years to look for a lender...when i start looking after 2 years...2 now becomes 3......then i find a lender...now i gottw find a car...3 becomes 4....u know how that goes...i just am looking for suggestions to get a head start on research...

 

I've found a credit union to be the best place to seek financing for an older vehicle. The last time I financed one was back in 2009 when I bought my current C5, which was 6 years old at the time.

Perhaps check back with a bank in 2 years when you are ready to buy, and in the meantime start saving your money for a nice down payment on the vehicle.