Financing A C5??
Drifting
Joined: Apr 2015
Posts: 1,893
Likes: 295
From: Buffalo NY
One of the best pieces of advice I ever got was:
"NEVER buy a toy unless you can pay for it in cash. If you can't afford it, then you can't afford to take out a loan for it".
Never steered me wrong...
"NEVER buy a toy unless you can pay for it in cash. If you can't afford it, then you can't afford to take out a loan for it".
Never steered me wrong...
Melting Slicks
Joined: Jan 2014
Posts: 2,764
Likes: 375
From: Central Florida
Melting Slicks
Joined: Aug 2013
Posts: 2,491
Likes: 315
St. Jude Donor '15-'16-'17-'18-'19-'20-'21-'22
Good advice. Only makes sense to borrow if you can get a higher interest/return payoff than loan repayment amount. (very rare).
Instructor
Joined: Dec 2016
Posts: 239
Likes: 28
From: Manassas Park, VA
My daughter got shot down by a couple banks since she had no credit history...decent income just never had any revolving credit accts...we encouraged her to buy a new car so it had a warranty, maint plan, etc...we simply co-signed and she was good to go...that's all she needs is a co-signer and she's golden.
Safety Car
Joined: May 2016
Posts: 4,662
Likes: 1,846
From: Erlanger, Kentucky
Have her try Lightstream, it’s a division of SunTrust Bank. I used them for mine last year and very good rates for short terms. They will deposit the money right in her bank account and she will then write you a check. She will get multiple emails telling her what she needs to do and obtain for records to send back to them.
www.lightstream.com
Good luck.
Brad
www.lightstream.com
Good luck.
Brad
Racer
Joined: Mar 2014
Posts: 345
Likes: 86
From: Goodlettsville Tennessee
Mine's not a toy, Its the daily grinder. Put over 56K miles in 4 years.
My S2k is the "toy".
Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
Weak financial advice (or lack thereof). Buy buying cars/toys on loan, it means one likely doesn't have a 6 month to 1 year emergency fund, it delays retirement, delays a down payment on a house....etc etc.
And you build up credit easily just by having open accounts (eg. credit card bills paid in full each month), spending foolishly is not advised to get a good credit score.
I'm a CPA so I might know what I'm talking about here.
And you build up credit easily just by having open accounts (eg. credit card bills paid in full each month), spending foolishly is not advised to get a good credit score.
I'm a CPA so I might know what I'm talking about here.
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Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
Just a little update, PenFed did in fact finance the car for her! She could not be happier. The car passed Maryland inspection with flying colors did not even need a windshield wiper replacement! Her insurance went up 20 bucks a month.
Thanks to those who actually gave advice.
Thanks to those who actually gave advice.
Melting Slicks
Joined: Jan 2016
Posts: 2,005
Likes: 99
From: Emmaus pa
thats good news, I didn't understand why some were telling you not to sell her the car. Especially not knowing the full story, they were assuming she had no one in her life to advise her. Also if you didn't sell it to her what would stop her from going to a dealership and paying more, plus hitting her with a high interest loan. Credit Unions have great rates, I hope she enjoys the car :thumbs
Race Director
Joined: Apr 2017
Posts: 10,247
Likes: 888
From: Hickory NC
2025 C5 of the Year Finalist - Modified
2022 C5 of the Year Finalist - Modified
2020 C5 of the Year Finalist - Modified
St. Jude Donor '17 thru '26
Just a little update, PenFed did in fact finance the car for her! She could not be happier. The car passed Maryland inspection with flying colors did not even need a windshield wiper replacement! Her insurance went up 20 bucks a month.
Thanks to those who actually gave advice.
Thanks to those who actually gave advice.
Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
thats good news, I didn't understand why some were telling you not to sell her the car. Especially not knowing the full story, they were assuming she had no one in her life to advise her. Also if you didn't sell it to her what would stop her from going to a dealership and paying more, plus hitting her with a high interest loan. Credit Unions have great rates, I hope she enjoys the car :thumbs
Melting Slicks
Joined: Apr 2012
Posts: 3,364
Likes: 100
From: IOWA!!!
Let me be the first
yeah it's amazing how everyone seems to know the answers about other peoples lives when they really don't know a damn thing. I forgot to mention she got a 3.9% interest rate. If she had gone to a dealer and bought a car she would've gotten nailed with a rate at least twice that maybe triple. Not sure why so many people think this car which is in mint condition is going to give her so many problems. As if other used cars are 100% reliable. All cars have problems but mine treat me very well because I take very very good care of them
steve
Instructor
Joined: Oct 2014
Posts: 110
Likes: 30
Penfed's shortest auto loan is 36 months. At 3.9% she's probably in a 48 month loan on a 19 year old car. It will be 23 years old when the loan is up.
Since she was unable to pay in full for the car, she is likely unable to afford any significant repair on the car. Her insurance and fuel costs went up as well. Brakes, tires, waterpump, clutch, etc. are far more likely to need replaced on a 19 year old car than a 2 or 3 year old car.
Justify it all you want; this was not a financially responsible decision. Ask this young girl how she feels about this purchase three years from now. I'll wager she'll regret it.
Now, you didn't initially ask *should* she get a loan on it, but rather *could* she get a loan on it. But...the forum can't help itself (been there, done that).
Peace.
Since she was unable to pay in full for the car, she is likely unable to afford any significant repair on the car. Her insurance and fuel costs went up as well. Brakes, tires, waterpump, clutch, etc. are far more likely to need replaced on a 19 year old car than a 2 or 3 year old car.
Justify it all you want; this was not a financially responsible decision. Ask this young girl how she feels about this purchase three years from now. I'll wager she'll regret it.
Now, you didn't initially ask *should* she get a loan on it, but rather *could* she get a loan on it. But...the forum can't help itself (been there, done that).
Peace.
Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
Penfed's shortest auto loan is 36 months. At 3.9% she's probably in a 48 month loan on a 19 year old car. It will be 23 years old when the loan is up.
Since she was unable to pay in full for the car, she is likely unable to afford any significant repair on the car. Her insurance and fuel costs went up as well. Brakes, tires, waterpump, clutch, etc. are far more likely to need replaced on a 19 year old car than a 2 or 3 year old car.
Justify it all you want; this was not a financially responsible decision. Ask this young girl how she feels about this purchase three years from now. I'll wager she'll regret it.
Now, you didn't initially ask *should* she get a loan on it, but rather *could* she get a loan on it. But...the forum can't help itself (been there, done that).
Peace.
Since she was unable to pay in full for the car, she is likely unable to afford any significant repair on the car. Her insurance and fuel costs went up as well. Brakes, tires, waterpump, clutch, etc. are far more likely to need replaced on a 19 year old car than a 2 or 3 year old car.
Justify it all you want; this was not a financially responsible decision. Ask this young girl how she feels about this purchase three years from now. I'll wager she'll regret it.
Now, you didn't initially ask *should* she get a loan on it, but rather *could* she get a loan on it. But...the forum can't help itself (been there, done that).
Peace.
Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
"Thanks" Steve! I know there are many many c5s (and C4s) out there with well over 200K. She makes decent money and plans on paying the car off in less than two years. Bye then her credit will be stronger and then she's going to get a newer vehicle and keep the vet as a toy. This forum has really gotten bad, worse than I remember. Far too many financial experts and psychiatrists for me. 😂 Cheers to you!
Drifting
Joined: Feb 2014
Posts: 1,657
Likes: 195
From: Boxford Massachusetts
Congratulations on getting the deal done. A C5 does not have to be a toy, it can be driven daily and is not expensive to maintain. My only hesitation for this young lady would be winter driving. If she can't drive it in Jan-Feb because of ice and snow, how will she get to work? I gather that she's thought this through, since it's February now. As for the rest - the C5 is a good every day car as long as you don't have little kids who need a back seat. I'm sure that she'll love the car, and I'm glad she found a way to buy it.
Thread Starter
Drifting
Joined: Jan 2002
Posts: 1,261
Likes: 4
From: Middle River MD
Congratulations on getting the deal done. A C5 does not have to be a toy, it can be driven daily and is not expensive to maintain. My only hesitation for this young lady would be winter driving. If she can't drive it in Jan-Feb because of ice and snow, how will she get to work? I gather that she's thought this through, since it's February now. As for the rest - the C5 is a good every day car as long as you don't have little kids who need a back seat. I'm sure that she'll love the car, and I'm glad she found a way to buy it.