| Vancouver Auto Chat 2016 VAC Community Head Moderator: Raid3n |
 | | 
12-13-2014, 01:13 PM
|
#1 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
| Subprime Automotive Financing
I know this may be better off in the finance and business forum, but it applies mainly to automobiles so here it goes.
Basically I couldn't get re-financed on a vehicle because of my short credit history (1 year) and 1 missed payment. I was wondering if anyone has had experience with subprime financing (15-20% interest) on a vehicle. Regrets? Issues? Suggestions?
A co-signer is not an option right now and I am getting the car at wholesale cost, so that's why I am even considering this.
Last edited by bicboi; 12-13-2014 at 01:19 PM.
| 
|  | |
12-13-2014, 01:33 PM
|
#2 | | Rs has made me the woman i am today!
Join Date: Jun 2006 Location: Burnaby
Posts: 4,073
Thanked 6,796 Times in 1,658 Posts
Failed 213 Times in 86 Posts
|
At 15~20% interest, the "good deal" is probably not a good deal anymore.
As hard as it may be, walk away.
It's much easier to build up your credit than it is digging yourself out of a financial hole.
| |
| | |
12-13-2014, 01:45 PM
|
#3 | | Rs has made me the woman i am today!
Join Date: Oct 2001 Location: Here! n There!
Posts: 4,149
Thanked 498 Times in 222 Posts
Failed 121 Times in 59 Posts
|
subprime? sounds like loan shark territory.
__________________
Go Canucks Go!
| |
| | |
12-13-2014, 02:11 PM
|
#4 | | I contribute to threads in the offtopic forum
Join Date: Jun 2013 Location: SRY
Posts: 2,632
Thanked 2,595 Times in 922 Posts
Failed 504 Times in 165 Posts
|
15-20% interest loans are idiot loans. if you're an idiot, theres nothing that anyone in here can say to stop you. if you've got even half of a brain, you'll walk away.
| |
| | |
12-13-2014, 03:40 PM
|
#5 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
|
Do not do it. One would have to be FOOLISH to finance a car via subprime. Use your brain and go buy a $500 beater. 
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-13-2014, 03:58 PM
|
#6 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
|
Yeah I just found out I would be paying 16000 in interest ammoritized over 72 months on a 32 000 vehicle. Lol
| |
| | |
12-13-2014, 09:33 PM
|
#7 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
|
...What did you expect from subprime...
Do you currently own a vehicle?
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-13-2014, 10:24 PM
|
#8 | | I *heart* Revscene.net very Muchie
Join Date: Jul 2007 Location: BC
Posts: 3,558
Thanked 3,814 Times in 957 Posts
Failed 715 Times in 210 Posts
|
I'm afraid he's already hopeless due to the fact that he asked this question.
| |
| | |
12-14-2014, 01:17 AM
|
#9 | | I contribute to threads in the offtopic forum
Join Date: Jun 2013 Location: SRY
Posts: 2,632
Thanked 2,595 Times in 922 Posts
Failed 504 Times in 165 Posts
| Quote:
Originally Posted by bicboi  Yeah I just found out I would be paying 16000 in interest ammoritized over 72 months on a 32 000 vehicle. Lol | which vehicle were you thinking of buying?
| |
| | |
12-14-2014, 02:08 AM
|
#10 | | Meow
Join Date: Dec 2010 Location: Burnaby
Posts: 1,285
Thanked 652 Times in 215 Posts
Failed 77 Times in 17 Posts
|
Maybe so for something less expensive? When I first turned 19, I financed a $13,000 civic coupe with 0 credit history and got their best certified pre-owned rate. I would never consider rates that high unless I an recovering from bankruptcy.
| |
| | |
12-14-2014, 02:30 AM
|
#11 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
|
Don't want to get into too much detail, but bottom line is that a subprime loan is not the way to go lol. I didn't get the concept of amortization on a 72 month finance. I thought I would be paying 15% of 32 000 ($4800) over the course of 72 months in interest. Thanks for the input guys and yes I do currently own a vehicle which is for sale here http://www.revscene.net/forums/70016...%2A%2A%2A.html | |
| | |
12-14-2014, 09:45 AM
|
#12 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
|
Are you currently financing it? Is it subprime?
If it isn't keep it. Or sell it and buy a $500 beater...
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-14-2014, 11:10 AM
|
#13 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
|
^ Yes but at 6% interest. I don't have a problem paying for it really but when something catches my attention like the other car in question, I'll jump on it like a bitch in heat. That's just me though because I get bored of things real fast.
| |
| | |
12-14-2014, 11:17 AM
|
#14 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
|
That's just fine to swap cars often. If you can afford it.
You clearly cannot. Sell your car and buy a $500 beater, or keep paying the current one.
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-14-2014, 12:32 PM
|
#15 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
|
Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater?
| |
| | |
12-14-2014, 02:57 PM
|
#16 | | My AFC gave me an ABS CEL code of LOL while at WOT!
Join Date: Dec 2003 Location: vancouver, B.C.
Posts: 1,843
Thanked 563 Times in 229 Posts
Failed 63 Times in 31 Posts
|
__________________
Cars:
02' Lexus IS300 5spd
07' BMW 323iA
05' BMW Z4 5spd
06' BMW 330i 6spd
10' Audi A4 quattro
08' BMW M3 6spd
15' Kawasaki Ninja300
08' Yamaha R6
10' Honda Ridgeline
17' Audi Q5
16' BMW X5D
| |
| | |
12-14-2014, 03:15 PM
|
#17 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
| Quote:
Originally Posted by bicboi Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater? | ...I was suggesting you sell your current car and buy a $500 beater to save money.
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-14-2014, 06:07 PM
|
#18 | | Rs has made me the woman i am today!
Join Date: Jun 2006 Location: Burnaby
Posts: 4,073
Thanked 6,796 Times in 1,658 Posts
Failed 213 Times in 86 Posts
|
^That's an extreme suggestion..lol.
OP, I don't know what your situation is since you're not telling us, but there are very very few cases in which loans with terrible interest rates are financially beneficial.
If you actually considered (misinformation about amortization aside) getting a 20% interest loan because you're "bored easily", then I'd put all my effort into learning to be thankful for what you have.
| |
| | |
12-14-2014, 06:29 PM
|
#19 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
| Quote:
Originally Posted by inv4zn ^That's an extreme suggestion..lol.
OP, I don't know what your situation is since you're not telling us, but there are very very few cases in which loans with terrible interest rates are financially beneficial.
If you actually considered (misinformation about amortization aside) getting a 20% interest loan because you're "bored easily", then I'd put all my effort into learning to be thankful for what you have. | More or less what I was getting at!
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
12-14-2014, 08:39 PM
|
#20 | | RS.net, where our google ads make absolutely no sense!
Join Date: Sep 2008 Location: Rmd
Posts: 924
Thanked 435 Times in 194 Posts
Failed 16 Times in 13 Posts
| Quote:
Originally Posted by bicboi Can't afford to swap cars every year on my own right now no, but why would I go out and buy a $500 beater? | Because you might be surprised that you can get 90% of the satisfaction of owning the car with 20% of the cost.
I'm about to buy an ISF, but I personally still think my '91 MR2 was the most fun to drive out of all the cars I owned.
The other thing to consider is also if you stretch yourself so thin financially to buy a new car now, you're probably never going to be able to save up to buy yourself something very nice down the road.
| |
| | |
12-14-2014, 11:51 PM
|
#21 | | Everyone wants a piece of R S...
Join Date: Oct 2011 Location: Above&Beyond
Posts: 357
Thanked 1,127 Times in 134 Posts
Failed 270 Times in 37 Posts
|
"It's more fun to drive a slow car fast than a fast car slow"
I agree 100%. Having a "nice" car down the road for me will not be an issue. For the time being, my parents know I #yoloswag shitty financial endeavours like this all the time so they are not funding me in any way. It's a learning experience.
| |
| | |
12-15-2014, 12:00 AM
|
#22 | | I don't get it
Join Date: Feb 2011 Location: Hawaii
Posts: 432
Thanked 783 Times in 136 Posts
Failed 87 Times in 30 Posts
|
15-20% is horrible. Don't make young and dumb mistakes. You'll pay for it down the road.
| |
| | |
12-15-2014, 01:19 AM
|
#23 | | WOAH! i think Vtec just kicked in!
Join Date: Feb 2010 Location: B.C
Posts: 1,659
Thanked 2,532 Times in 446 Posts
Failed 358 Times in 70 Posts
|
u want excitement?
u want thrill?
u want speed?
u want to hit 280kph FAST?
u want to feel like a boss?
u want to live your life on the edge?
buy a bike.
cheap and it will get your blood pumping as you hit some sweepers going knees down full throttle. 
not man enough?
do it squid. badassery level 11/10
__________________
I <3 my S14 Quote:
Originally Posted by westopher "Not driving your car hard to keep it in nice shape for the next buyer is like not banging your girlfriend to keep her fresh for her next boyfriend" | | |
| | |
12-15-2014, 03:25 AM
|
#24 | | I contribute to threads in the offtopic forum
Join Date: Jun 2006 Location: not vancouver
Posts: 2,642
Thanked 1,941 Times in 765 Posts
Failed 532 Times in 202 Posts
| Quote:
Originally Posted by bicboi Don't want to get into too much detail, but bottom line is that a subprime loan is not the way to go lol. I didn't get the concept of amortization on a 72 month finance. I thought I would be paying 15% of 32 000 ($4800) over the course of 72 months in interest. Thanks for the input guys and yes I do currently own a vehicle which is for sale here http://www.revscene.net/forums/70016...%2A%2A%2A.html | if you are as financially illiterate as your post would indicate, only ever pay for things with cash, if not you will end up in a world of financial hurt, such as believing you will pay off 15% interest over 72 months, or in your mind 2.5% annual interest (Assuming non compound in your head).
there's nothing wrong with not knowing anything about financing, just manage that lack of knowledge by staying clear of any financial activities. for you, cash is king.
| |
| | |
12-15-2014, 07:26 AM
|
#25 | | RS.net, helping ugly ppl have sex since 2001
Join Date: Sep 2008 Location: Vancouver
Posts: 8,858
Thanked 2,420 Times in 669 Posts
Failed 530 Times in 136 Posts
|
is it just me or is the name "subprime" extremely misleading......at 20%, you might as well just take money from your credit card......
__________________
2014 Honda Civic Si | |
| | | |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off
| | |
All times are GMT -8. The time now is 12:26 PM.
|
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!
The banners on the left side and below do not show for registered users!
