2003 Expedition loan approved! 7.4%

Re: Re: 2003 Expedition loan approved! 7.4%

So Too Much...Did you pay cash for your house? Do you have any credit cards? Why are you here in the first place?

 

Re: Re: Re: 2003 Expedition loan approved! 7.4%

Here's another clue: That is the dumbest piece of "advise" I've heard on here thus far.

 

Too Much,

Yes, I agree that a brand new car loses a lot of its $ value the second it is driven off the parking lot by the buyer. But the joy and happiness that people feel when they purchase THEIR brand new car is priceless especially after having credit problems. Not everybody who come here for help had financial problems. Some were screwed up by the creditors and they are trying to get things straightened out. The ones who had financial problems before are now trying to do something about it. I don't think anybody here wants to go through all the trouble of repairing the credit just so they can mess up again. We are here to help each other repair our credit and get back on our feet. You are talking about making smart financial decisions. Don't you think it is smart to clean up one's credit so he/she does not have to pay high credit card or loan interest? I don't know about you, but I think it's the right thing to do. Many people here who manage to clean up their credit do not ruin it again because they finally realized how important credit worthiness here.

You probably have tons of money that you can afford to pay cash for your car (new or used). Some people need car to be able to work. In that case, they need to get financing. There are many reasons why people do what they do. But it is not nice to ruin somebody's parade just because you think you're smarter and know everything.

Let's leave it at that.

-GC

 

Re: Re: 2003 Expedition loan approved! 7.4%

Bravo!

 

Re: Re: Re: 2003 Expedition loan approved! 7.4%

7.4% on a new expedition w/rebate vs. 0%? I hope you enjoy it cause more than likely you got ripped a new one when you financed it at that rate.

Bottom of the line expedition invoices @ $28,640 according to Kelly Blue Book. Base retail is $32435.

At 7.4% the bottom of the line model would cost over $2K in interest charges the first year alone and over $5K if it was financed for 48 months.

One of the better equipped models around $40K could cost over $7K to finance for 48 months @7.4%.

As you can see, it would take one heck of a rebate to offset the 0% financing.

 

Re: Re: Re: 2003 Expedition loan approved! 7.4%

I did pay cash for my house, after saving up for 7 years.

I have a credit card that carries no balance.

The reason most people have trouble with credit is because they simply don't understand credit. They never take the time to do the math and understand the stupidity of borrowing money to buy an overpriced item.

Buy what you can afford. If you can't afford it, save up until you can afford it. It's really that simple.

 

Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

So, you would rather that everone here just patted each other on the back for making bad financial decisions?

You're not doing anyone a favor by sugar-coating things.

Financing a Ford SUV at any interest rate is a bad idea. It just doesn't make sense, and it's one of the reasons why so many people have credit problems.... buying things you cannot afford doesn't make sense.

 

Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

...AND YOU ARE HERE BECAUSE???

 

Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

CONGRATULATIONS!!!???? For what?? For financing a $40,000 vehicle that is nothing more than gross excess??? Are you that financially secure that you can borrow more than $40,000 over 3-5 years on something that will lose 40% of its value in the first 2 years. Did you do it to make yourself 'feel happy' Have you factored in insurance, repairs & depreciation????, or was this purely an impulse buy??

Also, she probably 'chose to finance' because these days YOU MUST finance a car with the dealer in order to qualify for an advertised or negotiated price.

If you pay cash or finance thru a third party on your own, you will pay full MSRP plus a dealer markup of 10 - 15%, or full kelley blue book plus 20% for a late model used vehicle.

Unless you are purchasing from saturn or a strict 'no haggle' establishment where everyone received the same price, then it is a bad idea to buy a car from a dealer, unless you closely fit their ideal customer profile (under 35, white, income over $50,000, FICO 700 or better)

 

Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

Sorry for the hijack, but I "kind of" agree with Too Much. In today's market it is so much cheaper to buy a year or two year old car. Especially if you are patient and can wait for the great deal. I bought a 2002 BMW Z-3 convertible in January for $27,100.

In case you don't believe me, here's the link:

http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&category=6056&item=2400097239&rd=1

It was 13 months old when I bought it, had less than 9k miles, still smelled new, AND WAS CERTIFIED PRE-OWNED. This bumped the original warranty from 4 years/50k miles to 6 years/100k miles. To top it off, the sticker new was $36,675. By buying a year old car, I got a better warranty, all the original papers and perks, and saved almost 10 thousand dollars over buying the car new. (It costs the dealer between 1 and 2 grand to have the car cerfified. I financed with my credit union for 4.75%.

It pays to be patient. If the Expedition makes you happy though, it's all that matters. I'm just saying I see his point, even though it was a bit harshly delivered.

 

Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

Do you realize how much money you LOST because you choose NOT to finance you house? You choose to wait 7 years to save up enough money. What was that same house worth 7 years BEFORE you bought it? You paid for 7 years of appreciation on a house you could have bought earlier.

I do agree with alot of what you say but this board is not to put people down. I think thats why alot of people are having problems with what you are saying.

 

Re: Re: 2003 Expedition loan approved! 7.4%

Everyone drives a used car. The "new car feeling" isn't worth $10k+ of instant loss, no matter how good it feels.

The average American feels a sense of entitlement when it comes to owning a new car, house, clothing,etc. That sense is dilled into them by tv, radio, etc, advertisements. "Get the car you deserve"

Unfortunately, most people simply do not make enough money to afford all those things they are taught to desire. This is why people get into trouble with credit. The lenders are all-too-willing to lend the money for the new car, and they are very unforgiving when the bill becomes past due. This is where this website comes into play.

People come here looking for help with their credit woes, never realizing that the real problem is a failure to show restraint with their spending.

Many people go about the business of buying a car or house backwards. When they go to the lender, they ask the question: "How much house/car can I be approved for?" They don't stop and think that the proper question should be one they ask themselves at home, long before they start shopping. "How much can I afford." They shop with their desires, and they ignore their budget.

If you want to help someone who's having credit/debt problems, tell them to learn to live within their means. Obiously, I'm not talking about people who have had huge medical bills, etc. I'm talking about the majority of people with debt problems; the ones who overspend because they want more than they can afford.

Look at the majority of the "help wanted" posts on this board. They are asking for help on how to dump old, unpaid debt, so that they can get approved for new debt. It's just frightening. Most of them would have much better credit if they would stop trying to get credit, and instead focused on paying for things with cash, and not shopping for things they clearly can't afford.

You can be frustrated with what I have to say here, but it doesn't change the fact that most people in debt got there because they didn't ever bother to ask themselves if they could really afford something in the first place.

 

Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

You buy something on credit & understand the agreed terms that the loan will be paid back. You do the math and calculate the true cost of financing the item.

The PROBLEM is that the media and everyone else is convinced that money is so cheap for everyone, and that everyone can qualify for the 'lowest interest rates in a generation'

NOT SO, If your credit score is below the mid 600's, you will not get a used car loan (forget new) under 14% with 25% down, or a mortgage for less than 8% with significant fees & surcharges.

The media needs to do a better job EXPLAINING the criteria for qualifying for 0% car loans, 5% mortgages etc...

 

Re: Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

I'm absolutely not trying to put anyone down -- just the opposite. I'm trying to explain why people have credit problems. If you ignore the cause, you'll never really solve the problem. If you treat the problem with the wrong solution, you'll make matters worse.



I didn't lose anything when I purchased my home, because I didn't buy a house that was in a "bubble" like most of the US has experienced lately.

Also, I bought my home at a forclosure auction, so I saved about 20% off of market prices.

Having financial security isn't about having a lot of credit. Instead, its about living within your means, and doing without things until you can afford them.

 

Re: Re: Re: 2003 Expedition loan approved! 7.4%

ARE YOU KIDDING ME???

First of all, lenders are not stupid and are not 'all too willing to lend people money for homes & cars'.

That is why FICO scoring is widely used to establish an objective criteria of granting credit.

If you are meet the score, you are approved, if you score below, you are denied, plain and simple.

Many people are not & probably never will qualify to buy or rent a home or a car. Their income is too low or their credit is too poor.

No one is going to lend money to someone who can't afford to pay it back. DO NOT blame the lenders for being all to willing.

Remember, I am single make close to 50K and have a FICO of close to 630. It is nearly impossible for me to get any car loan under 15% (with 25% down). No lender has shown an iota of willingness to lend me money at anything close to prime, even though I paid off my last car loan 2 years early never being late, & have no lates or chargeoffs on any credit in 3 years.


The problem is that these days stuff happens, people lose their jobs, become sick are disabled, have family emergencies. THESE THINGS COST MONEY and take priority.

The others have only themselves to blame for simply sloppy financial management.

 

Re: Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

"Too Much" sure sounds like a Troll from the YM boards on MSN....... The auro of arrogance tips him off. Care for a payday loan Too Much??

 

Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

I think you will find that there is no shortage of lenders willing to lend money to people who truly cannot afford the loan.

For example, over the past several years the debt to income ratio for mortgages has gone crazy. It used to be 28%, now people are routinely getting approved with D/I ratios in the 40-50% range; and that's on 5% down mortgages. Any responsible banker will tell you that kind of lending is not responsible. However, that doesn't stop lenders from writing those loans, and then dumping them on Fannie Mae, who is all too happy to buy them so they can keep their balloon inflated.

Credit isn't a yes/no decision. If your credit score is low, you don't always get denied. Instead, you get approved, but at a higher interest rate. This is another trap that many people fall into. They go into the car dealer because they've seen the 0% interest advertisement on tv. They get themselves all excited about driving that new car. However, when the salesman pulls their credit, and they don't qualify for the 0% loan, it's too difficult for them to walk away and refuse the 18% loan. They then proceed to sign on the line, and another person is buried in a car they cannot afford. Heck, many of them don't even understand that they've taken out an 18% loan. Many of them don't understand interest rates at all.



If you were to stop relying on credit for a few years, your credit score would rise significantly. However, doing so would involve hardship on your part. Move into a less expensive place, drive a less expensive car, etc. Take every extra dime you have and use it to pay down debt. Don't apply for any credit, and stop using your cards unless you pay off the balance in full.

A higher credit score is like waiting for a pot of water to boil. It's never going to happen if you're watching it.

 

Re: Re: Re: Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

Sorry, I'm not a troll. I'm expressing my opinion of credit and the problems that credit presents.

If you would like to refute my remarks, please do so. I would be interested in hearing your opinion.

 

Too Much,

If you can afford to pay cash for everything, then by all means do so. You cannot expect everybody to do what you are doing. Yes, it feels great to not have any debt. But people have their own reasons for borrowing money or financing cars or getting mortgage. I currently live in an apartment. I have been here for over a year and a half. I have a baby and I want my family to live in a better place and better neighborhood than this box where I am in right now. I am not going to wait 10 years to save up money so I can pay cash for my house! You mean to tell me that it is better to raise my child in an apartment than to have my OWN home where I can build and cherish memories? The money I give my landlord is money lost. It paid for the time I stayed in my apartment but it is not a good investment. I'd rather buy a house NOW and benefit from the tax deductions and equity that builds up.

Having no debt is great but only if you can afford it. Not all debt is bad. I had no money to pay for my education. Based on your principle, I should have saved money before going to college. Let's see. That would have taken me at least 3 to 5 years to save up for my college education. Then another 3-4 years to get my degree. In that case, the whole process took about 6 to 9 years. Look at what I did though. I applied for a loan, got my degree, and steadily working towards paying off my student loans.

By the way, I financed a car while going to school to get my education. If I had to save money to pay for my car, that would have taken me another year or so to save. My oh my it would have taken me a decade to get a degree.. *wink*

I'm happy that you can pay cash for all the things that you buy. But let the lady who used to have credit problems and now able to finance her OWN car for 7.9% (although it may seem high to others, for her it's a great rate) enjoy her success. Let's just congratulate her.

-GC

 

Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

{{{{Credit isn't a yes/no decision. If your credit score is low, you don't always get denied. Instead, you get approved, but at a higher interest rate. This is another trap that many people fall into. They go into the car dealer because they've seen the 0% interest advertisement on tv. They get themselves all excited about driving that new car. However, when the salesman pulls their credit, and they don't qualify for the 0% loan, it's too difficult for them to walk away and refuse the 18% loan. They then proceed to sign on the line, and another person is buried in a car they cannot afford. Heck, many of them don't even understand that they've taken out an 18% loan. Many of them don't understand interest rates at all.}}}}

Many times the F&I managers don't even give you the interest rate, only the monthly payment amount.

Why can't they 'walk away' from a 18% loan?? If you can't pay cash for a car, then you can't afford it, PERIOD.

These days there are many reliable used cars & they don't have to be bought from used cars dealers who routinely screw & scam people.

Also, a 630 FICO score (with no repos, BK, or recent chargeoffs) is not great, but not horrible either, so why am I being quoted used APR rates of 15% - 17 with at least 25% cash down with no discount at all off the sticker price. According to every dealer I have spoken to I can't qualify for a new car, so if I need a car this is 'the best' they can do for me.

I have told them to shove it & walked out many times..