Need advice please
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Need advice please
I am young (21) and would love to have a Corvette Having grown up in France, it has always been my dream car along with the Mustangs. I currently own a 2003 Cobra that I don't like. I looked into a black mn6 with 3LT at a dealership and was looking to trade in. Now i'd probably have to finance 20k and was wondering, being that I am 21 if a bank would approve me, and if it did, what would the payments look like. I am in College and going back to work part time after a very difficult fall semester during which I had to drop work and focus on classes. I really appreciate any advice on my chances of being approved and on the amount I may have to pay. The complicated part of the story is that having lost my parents I have inherited enough money to get through my education and purchase the Vette. However I don't want to outright buy since I want to earn it for myself and work for it. However I don't know how my credit score is because I don't use my credit card much in fear of debt or not paying on time so I don't know how they will evaluate if I can or not get approval...
Melting Slicks
Joined: May 2006
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From: MN
The Irony of Credit
Excellent questions.
1. On the amount you think you'd have to finance, I think you are being overly optimistic on the trade-in on your Cobra. I seriously doubt you'd get $30k for it (a nearly 5 model year old car with unknown mileage and condition - specifics would help). You could start by checking the value on www.kbb.com, but I doubt it's worth what you think it is. Also, a 3LT car would sticker for a little north of $50k, so I think it's far more likely you'll need to finance about $35k (with fees, taxes, etc.).
2. Since you don't know what your FICO (credit score) is, I cannot tell you what you'd have to pay. But, I can tell you that, ironically, a bank looks more favorably upon an applicant that has a lot of available credit with small balances rather than someone who doesn't use credit. I can certainly tell you that they won't look favorably upon someone in college who is not really working. Very rough guess, but I would easily imagine a payment around $500-$600/month, plus insurance (VERY high for a 21 year old for this kind of car), maintenance, etc. Also, being in a college town, your collision and comprehensive insurance will be sky high as well. Plan on about $150-$200/month for insurance, plus the usual gas, maintenance, etc.
Hope this helps.
Happy Vette-ing, All!
1. On the amount you think you'd have to finance, I think you are being overly optimistic on the trade-in on your Cobra. I seriously doubt you'd get $30k for it (a nearly 5 model year old car with unknown mileage and condition - specifics would help). You could start by checking the value on www.kbb.com, but I doubt it's worth what you think it is. Also, a 3LT car would sticker for a little north of $50k, so I think it's far more likely you'll need to finance about $35k (with fees, taxes, etc.).
2. Since you don't know what your FICO (credit score) is, I cannot tell you what you'd have to pay. But, I can tell you that, ironically, a bank looks more favorably upon an applicant that has a lot of available credit with small balances rather than someone who doesn't use credit. I can certainly tell you that they won't look favorably upon someone in college who is not really working. Very rough guess, but I would easily imagine a payment around $500-$600/month, plus insurance (VERY high for a 21 year old for this kind of car), maintenance, etc. Also, being in a college town, your collision and comprehensive insurance will be sky high as well. Plan on about $150-$200/month for insurance, plus the usual gas, maintenance, etc.
Hope this helps.
Happy Vette-ing, All!
Safety Car
Joined: Jan 2006
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From: Miami FL
2020 C6 of the Year Finalist - Unmodified
St. Jude Donor '08-'09-'10-'11-'12-'13-'14-'15-'16,'17,'18-'19-'20-'21-'22
A suggestion . . .
Go to the bank where your money is, and explain what you want to do. They will be glad to loan you the money since they will have both the car and your inheritance as collateral.
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I'm assuming the Cobra will be worth 24k. It's a vert with almost 7000 miles. The MSRP on the corvette is $51,000 I believe. The dealer did state that he could most likely work on the price. The validity of that statement, I don't know. Perhaps he's taking a few hundred dollars but I made it clear that i couldn't really go past 46k...
Thanks for the advice!
Thanks for the advice!
Last edited by Newfrance6; Mar 20, 2007 at 09:23 PM.
Team Owner
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From: Coppin' a tan from the Messiah's aura
St. Jude Donor '08-'09
Very sorry to hear about your parents. 
You sound like a bright young man with a wise plan ... the kind of customer the bank will want to court as a long-term prospect.
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Thank you for the support.
So I shouldn't go through the dealer? I'm really sorry if i'm completely ignorant on the matter but would my bank provide a better interest rate or is it just that if I go through the dealer's bank I may not get approval? I've gone through a careful budget and I can afford a $680 monthly payment and that's assuming my insurance stays the same between the Corvette and the Cobra at this point. Since i'm confident that it'll increase, I need to check what the increase may be tomorrow.
So I shouldn't go through the dealer? I'm really sorry if i'm completely ignorant on the matter but would my bank provide a better interest rate or is it just that if I go through the dealer's bank I may not get approval? I've gone through a careful budget and I can afford a $680 monthly payment and that's assuming my insurance stays the same between the Corvette and the Cobra at this point. Since i'm confident that it'll increase, I need to check what the increase may be tomorrow.
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The Cobra definitely has a lot of potential. However it's interior just kills me everytime I get in. I also don't like the convertible as much as the coupe. A Fusion looks better inside... More than just raw power I'm looking for something a little more refined. I sat in the Corvette at the dealership and was amazed... That car looks fantastic and I don't understand the complaints about the interior. It felt just perfect, at least it did to me...
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Brett Foote
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From: Dayton Ohio
I always err on the conservative side for advice. Recommend saving your $$ for a few years. Keep your eye on the goal. Post a great poster right under your bank statement file. Going out to eat? Choose to feed the Vette fund instead!!
Mine is paid for, and it's a fantastic feeling. Adds at least 50% to my enjoyment of the car. Hope you take that in the spirit intended- not bragging just advocating smart $$ decisions.
Mine is paid for, and it's a fantastic feeling. Adds at least 50% to my enjoyment of the car. Hope you take that in the spirit intended- not bragging just advocating smart $$ decisions.
Instructor
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IF (IF) you get $24 for a trade (probably $18K) and the dealer gives you invoice, you are looking at about $30k, or $200 for every $10k financed assuming a 60 month loan. I had an '01 coupe in college and the insurance was $130... Less than my Civic ($150)! It matters the car too, vettes are more expensive to fix/replace but they get in far less collisions than those cars driven by a younger demographic.
Your gas usage should be the same, seeing as how your current moo-tang and future P-magnet are both premium gas guzzling fuel burners.
My senior year in college kicked azz... that car was the cherry on top, I say DO IT!!!!
Your gas usage should be the same, seeing as how your current moo-tang and future P-magnet are both premium gas guzzling fuel burners.
My senior year in college kicked azz... that car was the cherry on top, I say DO IT!!!!
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If it's going to be 30k then i just won't do it. Up to 22k is what i can do. I reealize it seems far fetched but the kbb value seems to be about 23k and the nada value is about 24k for trade ins. He's starting at 51 so I was hoping he could drop to the mid 40's. I know they took $7000 off a convertible that had a sticker of 61k...
Instructor
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Sorry, looking back I see you have a vert... That adds some $$$. If you are like me, you want the loaded coupe, try a used '06. Shoot, there might even be a few used '07's out there for about $45. (and if you buy private, the tax is less... I think.)
JUST DO IT!!!
I'm tellin' ya, no better debt than VET DEBT! (saw it on a license plate
)
JUST DO IT!!!
I'm tellin' ya, no better debt than VET DEBT! (saw it on a license plate
)
Racer
Joined: Feb 2007
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From: Dallas TX
St. Jude Donor '07-'08
Don't just look at the one deal. Search the internet . . . you could save yourself thousands of dollars in some areas. Also, you can expect to make more off your car by selling it outright vs. trade-in but consider the differences in sales tax to find your 'break-even' point. Find/get the cheapest insurance allowed by law. Use your nest egg investment to insure yourself until you hit the magic 25. Use the internet to get free quotes to give yourself an idea of what you are facing. Good luck in your decision, and condolences for the loss of your parents.
Pat
Pat
Instructor
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From: Alabama, Georgia, Hawaii
Wait for GMAC to offer 0% again...maybe they won't, but there are a lot of vettes on dealer lots. Then sell the cobra privately. When I ordered my c6 in december, I was going to pay cash and trade my bmw. My dealership magically changed their offer of $12k trade-in once my c6 was close to delivery and then offered a max of $7500 instead. I got $13,500 privately after having it listed for only 4 days. You could do the same. I also got lucky w/ financing...my car came in 2 days before the 36 month 0% ended. $22k for 36 months 0% is only $611/month. As for insurance, i went from $675/6months for my '01 bmw 330Ci to $707/6months for my 07 c6. not a significant increase. Also, GMAC approved me in about 3 minutes (i'm 23 with a mortgage and a separate $30k (1%) loan...so a lot of debt already). Unless for some reason you have bad credit, you should be able to get approved. Don't get stuck with a whole bunch of debt with a lot of interest, though. Use your credit card and pay it off...it helps. hope this helps from one young guy to another...
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Thanks a lot Fly, that's exactly what I was looking for. I'll see what the dealer appraises the cobra at tomorrow and determine what to do from there. At 611/month I can do it and that would be amazing! The one I saw didn't have the Z51 package. How much of a difference is there?