Auto Needed.

Discussion in 'Credit Talk' started by Erica, May 21, 2001.

  1. Erica

    Erica Well-Known Member

    Hey everyone!

    I need a car. I have a car, but I think that it's going to cost more to repair than I paid for it. So, I'm thinking of going with a lease. Does anyone know where I can get a lease without a cosigner?

    I want a new car and I only want to lease for 36 months.

    Background...August 2000, bought 1989 Plymouth Reliant with 38,000 original miles on it for $2000 Cash. Now, the check engine light keeps coming on and I believe its the transmission. As many of us know, transmissions are VERY expensive and I don't have any money to put towards that.

    I don't have any money to put towards a down payment on any car. The Kelly Blue book value for trade-in is $675. So, as you can see, This situation sucks.

    Does anyone have any suggestions? If you know of a cheap repair shop in Rochester, NY, PLEASE LET ME KNOW!!!

    Thanks in advance.
  2. roni

    roni Well-Known Member

    I would call state farms. they have autofinancing
  3. Erica

    Erica Well-Known Member

    Thanks for the advice. But, I'm not sure about that. The last auto loan I had was at 21% Interest. I'm not sure my scores have increased enough to get a better rate yet. I'll check them out though, for sure!
  4. DaveLV

    DaveLV Well-Known Member

    A 36 month lease is a pretty long one. Also keep in mind you are responsible for excess wear and excess mileage.

    You might want to compare the cost of a 36 month lease to a 48 month purchase contract. Be sure to factor in fees you might incur like those mileage charges on the back end of your lease before doing the comparison.

    Remember, at the end of the 36 month lease, you own nothing. At the end of a 48 month purchase contract you own a car. Even at high finance rates, this might be a better deal. Keep in mind that the higher the finance rate the shorter you should try to keep your contract. I speak from experience having suffered through a 60 month high rate loan that I was wishing would go away. All to save about $50 a month in payments over the 48 month contract.

    You might even be able to get some kind of financing for the repair of your existing car if you think that's all that is wrong with it. A credit card, or some kind of private label financing might be a better way for you if you can at all swing it.

    GEORGE Well-Known Member

    GOODYEAR AND FIRESTONE offer 0% for 3 or 6 months...

  6. Fat Jake

    Fat Jake Well-Known Member

    Check Engine Lights are almost always connected to some type of Electrical Component of the Engine. I've never heard of one being hooked into the transmission. What is your car doing? Check engine light could be anything from a $5 part on up.

    Since you decided to buy an old car last year you should have went Japanese. I know this doesn't halp now but for future reference.

    GEORGE Well-Known Member

    My sister's car had a check engine light that she found out was a "reset button" that cost $25.00 to push!!!

    Technically it is a "MILEAGE CONTROLLED" thing, so you take it in for "preventative maintenance"...
  8. Shantel

    Shantel Well-Known Member

    Also Erica, I don't want to be the bearer of bad news, but if you're credit scores aren't good enough to get a decent finance rate, you almost certainly won't qualify for a lease. In essence, because you are "renting" a car, they require your credit to be better than if you were buying the car.

    You might want to look at some highly rated used cars (Honda, Toyota) and go with a credit-rebuilding financer if you don't want to use or can't find a co-signer.

    Find out how much it might be to have the car fixed also, because with no down-payment, that's going to jack up your monthly the long run costing you more.
  9. tom65432

    tom65432 Well-Known Member

    I also had a 1989 Plymouth Reliant. It was the worse car I ever had. It was the main reason I started buying Japanese. I will never buy an American car again. Dump it immediately. It's junk.
  10. LoFico

    LoFico Well-Known Member

    Try Ford Motor Credit. They offer rebates to help with down payments and are a lot easier to get leases and financing. Good luck.
  11. Nave

    Nave Well-Known Member

    True...They are "idiot" lights that can pop on for a myriad of reasons like overheating, electrical damage, emission or oxygen sensor failure etc...and in some cases simple maintenance check indicators as George's sister found out. (named idiot lights because usually when they light up it is too late)

    The check engine light is undoubtedly unrelated to your transmission slipping or making funny noises though, as Jake said - I've never heard of one hooked into the transmission either. Before you jump the gun make sure you can not simply fix the problems with some transmission fluid and a $25.00 oxygen never know.

    Still you may need or want to get a new car, and while new is great the depreciation hit when the tires meet the pavement and you drive off the lot is so huge that you can finance a late model used car with low or no mileage much cheaper than a new car...just a thought. Definitely shop around. If you want a new one, your trade in, and incentives to buy new can get you a good deal. Good luck.

  12. Erica

    Erica Well-Known Member

    Thanks for the advice guys. Would leasing help if I have proof that I'm a recent college grad?

    I will definately heed the advice of those on this board. Thank you.
  13. Nave

    Nave Well-Known Member

    Leasing can appear good because you need a lower down payment (sometimes nothing) and your monthly payments are usually lower (depending on the residual value of the car after you drive it for the lease term). However, after the term of your lease you do not own the car, yet you may have paid for most if not all of it. Also as DaveLV said you may have to pay penalties if you don't keep really good care of the car (some leasing companies really nit pick) or drive more than like 15,000miles/year.

    Unless you are looking for a higher end car you may be worse off in a lease. Cars that hold their value really well Mercedes and Lexus for example, may actually be cheaper to lease than a Ford (not picking on Ford but residuals are lower). The lease payments for cars like that may be 500 or more a month.

    Nice to get a new car every 2 years but I am not sure leasing is that attractive as it used to be unless you can write it off as a business expense or lease a car through your business. It can be a tax advantage for some but not most people who don't work for themselves.

    Also don't forget to finance or lease you will have to have complete insurance not just liability. Alot of reasons to buy a moderately priced used car over a new one...even if you have the cash they are big expenses these days.

    I like the new car smell and hate buying used cars for obvious reasons of not knowing the previous owner but I find the amount of time I spend in my car is not worth it for me to go new.

  14. Erica

    Erica Well-Known Member

    Ok, Here's an Update!

    I scheduled an appointment at the local Pep Boys where a friend of mine works. He is going to hook the car up to the computer to find what exactly is wrong with it. If it costs more than the Kelly Blue Book trade in value ($650) I'm not sure what I'm going to do, but maybe I can trade it in at a real auto dealership for a next to new car.

    So, I guess I'll keep you all posted on what the outcome is. Thanks for all of your advice.
  15. DaveLV

    DaveLV Well-Known Member

    Re: Ok, Here's an Update!

    You have that $650 figure too firmly implanted in your head. What's better, spending $800 to fix a car worth $650 and having it run trouble-free for two more years while you repair your credit or buying (or leasing) another car and having car payments for three or four years at a subprime rate? You'll easily spend four or five times that $650 in extra interest.

    This is assuming the best case where your current car can be fixed for $800-1000 and that takes care of all of the problems. If it has a major systemic problem then you will probably need to move on with another vehicle.

    Best of luck.
  16. Fat Jake

    Fat Jake Well-Known Member

    Re: Ok, Here's an Update!

    I agree with Dave... get rid of that $650 figure. Plus you have to look at... it's not running right. This is no real help after the fact but the "real" street value of your car has been about $600 for the last 4 years. Look at a used old Honda or Toyota. These things last forever... $1500 will usually find you a nice early 90's model one. I see you are up in Rochester.. Have any relatives in the south? Cars are realatively cheap down here and they go through alot less hell. I'm a native NYer.
  17. Erica

    Erica Well-Known Member

    Re: Ok, Here's an Update!

    Ok, got the car diagnosed today. Throttle Position Sensor. Parts and Labor are $70. I'm so glad I didn't go to a dealership and pick out a shiny new to me car. Thanks for making me wait!
  18. Nave

    Nave Well-Known Member

    Re: Ok, Here's an Update!

    wooooo hooooo...knew it wouldn't be better than you anticipated. Glad to hear it. -Dave
  19. DaveyBoy

    DaveyBoy Well-Known Member

    Re: Ok, Here's an Update!

    Congrats, Erica!!!

    Just keep the oil changed, and you'll "make money" every day you drive that car!!

    oh, and if you're able, start saving for something nice and shiny down the road.

  20. DaveLV

    DaveLV Well-Known Member

    Re: Ok, Here's an Update!

    The one good thing about getting all worked up over something bad is that when it turns out good you feel that much better!

    I'm glad to hear your good news!

    You know if you are REALLY disciplined now (much much more than I would be) you could start putting the money you were going to spend on those lease payments into a savings account to save towards your REAL new car.

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