Ok, here%26#039;s my situation in a nutshell: I am a 23 year old male living in New York with not a lot of money saved up and in desperate need of a car (to get to work and such). I have been shopping for a used car for a while with a budget of $6,000 - $6,500 (only have $1,200 saved, the rest will be financed). The only problem is I have never dealt with a dealer before and I know close to nothing about cars.
So here%26#039;s the car: 2002 Mitsubishi Eclipse RS, 53k miles, seems to be in good condition. The car costs $5,995 and the dealer told me that the total after taxes is $7300. The car is going under my girlfriends name and while her credit is not amazing, it%26#039;s definitely not bad either. After putting down $1200 the guy is telling me there is a 19% interest rate. Now I don%26#039;t know much about this stuff but that seems like a ton. Am I getting screwed here or is that about average for people with average to good credit? Any help/advice would be appreciated!
Am I getting screwed in this used car purchase?
yep, you%26#039;re getting screwed. 10 to 12% interest rate on a used car is norm.
Am I getting screwed in this used car purchase?
19% is terrible. Sounds like a scam to me. That is more than you pay on most credit cards. Don%26#039;t get the loan through the car dealership, get one through your (or your girlfriend%26#039;s) bank. I hope you haven%26#039;t signed anything or given this guy any money yet!
Am I getting screwed in this used car purchase?
Yes, you are being screwed.
1. Mitsubishi is not a brand a person with limited means can afford to maintain and - especially - repair.
2. In NY, being 23 + male + single + sports car = insurance bill you can%26#039;t even imagine
3. 19% interest is an armed robbery, and every sob even offering that should be shot on the spot.
Am I getting screwed in this used car purchase?
You are. hes not.
Am I getting screwed in this used car purchase?
If you have bad credit you can get an Auto loan for around 10% with Citi Financial ....... Or go through your bank. and 7300 for a 2002 with only 53K on a Eclipse is GREAT!!! Talk him down to 6500 total, and tell him thats all you have. Remember Don%26#039;t Settle if he doesn%26#039;t want to give it to you for 6500 then walk and find a better deal.
Am I getting screwed in this used car purchase?
typically an interest rate like that is from dealerships specializing in high risk purchases basically people with no credit bankruptcy and so on. and have to agree with another poster limited funds are not a good idea for a sporty car like that.
Am I getting screwed in this used car purchase?
your getting a high interest, but thats normal. i think you should shop around more and let the sales guy know that you are. haggle the price down cause they bought the car for about 3K and sales people dont make much on used cars.
i bought a mitsubishi galant for 7k in 2002 and just now finished paying it off but i haggled it down from 10K. and put it in your name but you%26#039;ll have to have a co-signer maybe your girlfriend or the next time you buy a car you%26#039;ll get a better interest rate as long as u pay on time
Am I getting screwed in this used car purchase?
19% is almost the limit allowed by states with even the worst usury laws (South Dakota). Auto dealers get a kick back from the unscrupulous lenders they work with. Their F%26amp;I people love to inform people with A-tier credit that their credit isnt so good so they can hammer them on an interest rate. Go to a bank or credit union for a loan and then get the price of the car down some more. Keep in mind dealers make more money on used cars than selling new ones!
Am I getting screwed in this used car purchase?
This is not a good interest rate at all, especially if you have good credit. You should try financing your the vehicle through your bank or credit union that you normally bank with. They will usually be able to give you a better interest rate than the dealership.
Am I getting screwed in this used car purchase?
At 19% her credit must suck pond water. Whats with the 1300 in taxes? Somethings not right here.
Walk away. Why isn%26#039;t the car in your name? Believe me, you%26#039;ll regret putting it in hers.
Am I getting screwed in this used car purchase?
Wow. Used car loan interest rate in Singapore is around 3-5%. I can%26#039;t imagine paying for a 19%.
Am I getting screwed in this used car purchase?
Check out your girlfriend%26#039;s credit score. If she has poor credit then you are going to get an interest rate higher than 12%. Credit rates on used cars are generally higher than for new car purchases. Don%26#039;t forget to look to get financing through someone other than the dealer if the best you can get is 19%.
Am I getting screwed in this used car purchase?
FIRST OF ALL, DO NOT PUT THE CAR IN YOUR GIRLFRIENDS NAME. SECOND FIND A RELATIVE THAT IS CLOSE IN RELATION TO PUT THE CAR IN THEIR NAME. LIKE A CO-SIGNER SUCH AS MOM OR DAD. THIS COULD BE TROUBLE IN THE FUTURE IF YOU PUT THE CAR IN HER NAME. 19% IS VERY HIGH. I WOULD ADVICE THAT YOU EITHER KEEP SAVING, OR FIND A CAR TO BUY FOR THE MONEY YOU HAVE ALREADY SAVED. BE SURE TO GET A MECHANIC THOUGH. ALSO THE YEAR OF THE CAR IS TOO OLD TO BUY FOR THE PRICE IN THE LONG RUN. YOU ARE CHARGED MORE FOR A USED CAR RATHER THAN A BRAND NEW ONE AS FAR AS INTEREST RATE. THE CAR SHOULD GET A CAR FAX TO MAKE SURE WHAT THIS CAR HAS BEEN THROUGH, SINCE YOU KNOW NOTHING ABOUT CARS. ALSO, HIRE A MECHANIC TO COME AND CHECK THE CAR FOR YOU. YOU WANT SOMEONE WHO IS ON YOUR SIDE. THE CAR DEALER HAS FIRST RAISED THE PRICE OF THE CAR BECAUSE HE NEEDS TO MAKE HIS CUT, AND MOST LIKELY KNOWS NOTHING ABOUT THE CAR OR WHERE IT CAME FROM. LOOK INTO YOUR LOCAL NEWSPAPER OR SOMEWHERE IN YOUR CITY WHERE MAYBE AN OLDER PERSON HAS A CAR THEY WANT TO SELL. DO NOT BUY A CAR OVER 100,000 MI. NOT WORTH PUTTING FULL COVERAGE ON BECAUSE THERE IS NO WARRANTY.AVERAGE CREDIT IS ANYTHING OVER 620. MOST PEOPLE R ABLE TO GET WHAT THEY WANT IF THE CREDIT LOOKS GOOD TO THE DEALER, HOWEVER, KEEP IN MIND THEY JUST WANT YOUR MONEY. YOU COULD PROBABLY GO IN WITH LESS THAN $1000 TO PUT DOWN AND THEY WOULD TAKE IT. I THINK YOU SHOULD SHOP AROUND, MITSUBISHI IS NOT A GREAT CAR ANYWAY AND THE INSURANCE IS GOING TO KILL YOU BECAUSE IT IS A SPORTS CAR. FRANKLY I THINK IT IS MORE OF A WOMANS CAR. YOUR DECISION.
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