Financing a vette
Thread Starter
Cruising
Joined: Oct 2017
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Financing a vette
I'm looking to make a purchase on my first vette I've been thinking of buying one but my credit isn't in good shape. I have a score of 600 and putting down 12k I want to buy a C5 2003 50th Anniversary any advice on what I could do to get a good deal?
Last edited by Johnny92; Oct 4, 2017 at 12:14 AM.
Safety Car
Joined: Jan 2015
Posts: 3,830
Likes: 394
From: Rocky Mountains
Honestly, I'd just take the 12k and buy something outright with it.
Avoid used car dealers, shop private party, 12k should get you a pretty nice coupe. Maybe not a 50th anniversary, but a decent car.
Safety Car
Joined: Mar 2016
Posts: 3,534
Likes: 432
From: Atlantic Beach FL.
I would do the above mentioned and possibly borrow against it after your credit improves if you feel like you need to recoup your emergency savings.
Do your banking with a credit union that isn't too stingy about lending.
A 600 score is repairable if your diligent. You could get it up close to 700 in a year. You need two open lines of credit with low balances and dispute any baddies on your report.
Buy here pay here dealers and that type of lender are what keep people in bad financial straights.
Do your banking with a credit union that isn't too stingy about lending.
A 600 score is repairable if your diligent. You could get it up close to 700 in a year. You need two open lines of credit with low balances and dispute any baddies on your report.
Buy here pay here dealers and that type of lender are what keep people in bad financial straights.
Last edited by Rob 02; Oct 4, 2017 at 06:19 AM.
Melting Slicks
Joined: Aug 2015
Posts: 3,111
Likes: 304
My take is a little different.
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
Safety Car
Joined: Mar 2016
Posts: 3,534
Likes: 432
From: Atlantic Beach FL.
With a substantial down payment you should be able to get a better rate at a credit union though. Who knows if the local dealer would even report your payments the credit reporting bureau. If you miss a payment they will repo and your out 12K. The credit unions are more legit.
Le Mans Master
Joined: Sep 2016
Posts: 6,480
Likes: 555
My take is a little different.
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
That's what I was thinking too...his substantial down payment should make a big difference...
Melting Slicks
Joined: Oct 2016
Posts: 3,340
Likes: 2,084
From: Lehigh Valley PA
Get in touch with Lexington Law. They are a credit repair company and they worked wonders for me after my divorce.
I used to have a 605 credit score, and only after 2 months, my score was over 800. You dont realize that bad credit isnt just caused by late payments...
They are not expensive at all - and worth every penny.
Now in terms of financing a C5 - even with an 800 credit score, lenders will bang you with a high rate due to the age of the car.
May I suggest you look at either a higher mileage C5 or a super clean C4...so you can pay cash for the car and not finance it.
I used to have a 605 credit score, and only after 2 months, my score was over 800. You dont realize that bad credit isnt just caused by late payments...
They are not expensive at all - and worth every penny.
Now in terms of financing a C5 - even with an 800 credit score, lenders will bang you with a high rate due to the age of the car.
May I suggest you look at either a higher mileage C5 or a super clean C4...so you can pay cash for the car and not finance it.
Last edited by Mayor111; Oct 4, 2017 at 08:21 AM.
Drifting
Joined: Mar 2013
Posts: 1,496
Likes: 353
From: Little Rock Arkansas
The problem isn't necessarily that a higher down payment will be made to offset the cost it's that with bad credit you're effectively not going to make a good financial decision with such an old car. Unless you have a really good credit union you're looking at a very high interest rate, and if all you do is pay the minimum note every month you'll in the end pay quite a bit more for the car, even with a sizeable down payment.
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
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Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
Get your finances in shape before you even consider buying a toy like a C5.
Buying things you can't afford is probably what ruined your credit in the first place.
Buying things you can't afford is probably what ruined your credit in the first place.
Last edited by JR-01; Oct 4, 2017 at 09:10 AM.
Melting Slicks
Joined: Jan 2016
Posts: 2,398
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From: jefferson texas
Melting Slicks
Joined: Aug 2015
Posts: 3,111
Likes: 304
Well we don't know the whole story. He could be a young adult who has never financed anything, so not much credit history to speak of. That would explain the low score.
As for as getting his finances in order, having 12K socked away for a used car down payment doesn't strike me as someone who is careless with money.
I just hope this isn't another "drive-by" post from a newbie. One and done, so to speak. We have been getting a lot of those around here lately.
Shakey
As for as getting his finances in order, having 12K socked away for a used car down payment doesn't strike me as someone who is careless with money.
I just hope this isn't another "drive-by" post from a newbie. One and done, so to speak. We have been getting a lot of those around here lately.
Shakey
Safety Car
Joined: Mar 2016
Posts: 3,534
Likes: 432
From: Atlantic Beach FL.
People that use cash for everything may not have established credit.
That is not necessarily bad financial habits but hurts you when you need a loan.
With 12K to spend It doesn't sound like the OP has bad spending habits.
That is not necessarily bad financial habits but hurts you when you need a loan.
With 12K to spend It doesn't sound like the OP has bad spending habits.
Last edited by Rob 02; Oct 4, 2017 at 10:46 AM.
Burning Brakes
Joined: Aug 2017
Posts: 958
Likes: 177
From: Newark Delaware
I just went through this same problem a few months ago. I have decent credit but was over extended and didn't have a lot of cash on hand. I went to every bank I could think of and got the stop light at every turn. It was either, you need more money down or we don't finance cars that old etc. Short story long, I ended up getting a personal loan from a credit union and took a small cash advance on a credit card. It was enough to make my purchase. My only advice, if you want it bad enough, you'll find a way. My persistence paid off. Three month corvette owner and very happy.
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The problem isn't necessarily that a higher down payment will be made to offset the cost it's that with bad credit you're effectively not going to make a good financial decision with such an old car. Unless you have a really good credit union you're looking at a very high interest rate, and if all you do is pay the minimum note every month you'll in the end pay quite a bit more for the car, even with a sizeable down payment.
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
This is very good advice.
Thread Starter
Cruising
Joined: Oct 2017
Posts: 14
Likes: 0
My take is a little different.
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
Having 12K for a down payment, you already have ~60% of the cost of a very nice example of a C5. If you could pay the balance off in a year of so, you won't be hit with a lot of interest. And at the same time you will be improving your credit score.
Now if you told me you wanted to finance the entire note with a 600 credit score, my advice would be different.
Shakey
Thread Starter
Cruising
Joined: Oct 2017
Posts: 14
Likes: 0
i have always managed my finances well the main reason for my low score is that I had a medical bill go to collections as far as my debt ratio I keep it under 30% I put away 500 every month and have been wanting to buy a vette for awhile now
Thread Starter
Cruising
Joined: Oct 2017
Posts: 14
Likes: 0
The problem isn't necessarily that a higher down payment will be made to offset the cost it's that with bad credit you're effectively not going to make a good financial decision with such an old car. Unless you have a really good credit union you're looking at a very high interest rate, and if all you do is pay the minimum note every month you'll in the end pay quite a bit more for the car, even with a sizeable down payment.
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
Also remember these cars are old. If you need tires ($800-$2,000), something big maintenance wise hits, etc, can you afford it?
Personally I'd;
1) Look for a car within your price range (if $12K is what you have find a C5 for $12K)
2) Save a bit longer. C5s are probably not going to gain any value within any sort of foreseeable future.
3) Not buy a Corvette
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
Sounds good but in order to give you sound advice we need to know a little more. Age? Do you own a home or rent? Is that $12K your total life savings? Do you have an emergency fund? Do you have job security?
Intermediate
Joined: Oct 2017
Posts: 29
Likes: 3
Yeah that's what I figured the corvette i found was roughly 23k but only has 45k miles. I pay high interest for maybe a year or 2 might even be able to refinance for a lower rate after paying on time for a year. I talked with Wells Fargo and they didn't want to approve me due to the fact that it's not a new car so I'm going to seek into a credit union near me hopefully it goes well
