I really want a car and I can save up to about 6000 dollars but I want to buy a car that's around 11k (used car) and I don't want do financing because I would have to get full coverage for the insurance which could cost a lot. If I get a loan I can just get liability right?
I'm a student and probably would need a cosigner since I don't have any credit.
If I get a loan can I pay it back after I graduate? which is in 3 years?
What's a good loan company??
help~
2007-02-10 19:14:57 · 10 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
these are good loan companies
capital one
wfs financial
2007-02-11 06:15:40 · answer #1 · answered by kpotter47 3 · 0⤊ 0⤋
1
2016-09-26 11:03:34 · answer #2 · answered by Corey 3 · 0⤊ 0⤋
No. The car will not be free. At the end of 7 years, assuming the car is 5 years old when you buy it, it will be worth next to nothing in 7 years. Now for investing verses outright purchase. There are a couple of things that you might not have considered. First you may not make 7% annually. You may make more or you may make less. Second, the type of investment may mean more to your return than you might imagine. If you were to invest in bonds paying 7% for example, your after tax return would be much less, maybe only 5% not considering inflation. If however you were to invest in a growth stock expected to growth 7% annually, and do not sell the stock during the 5 years, then your total return would be 40.2% with a very low capital gains tax rate when you do decide to sell. Unfortunately, there is not tax advantage to the interest on the car loan. Now there is another consideration. If you pay cash for the car and then take the money that you would have used to make the monthly payment and instead invested it, then you do not have the interest on the car loan to worry about. If you invested the monthly amount in a good mutual fund, you might do very well indeed.
2016-05-25 09:45:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can NOT get ANY kind of loan, and have your car insured with anything less than full coverage. If you try, the lending institution will put their own insurance and tack-on the cost of that insurance to the amount of your loan.
You can NOT get a loan for a car and start paying back in 3 years. Financing a car is not the same as financing furniture at Rooms-To-Go.
2007-02-10 19:22:36 · answer #4 · answered by rob1963man 5 · 0⤊ 0⤋
no. no matter how the situation is a long as you get a loan to finance the car, you have to have FULL COVERAGE. the finace company will want a copy of your insurance card and information. and they do call the insurance company once in a while to make sure the car is fully covered. you can shop around for loans and interest rates. every company has different terms and conditions
2007-02-10 19:23:38 · answer #5 · answered by DERECK A 2 · 0⤊ 0⤋
the bank will want to know what the loan is for - once they know you are buying a car, you pretty much are stuck with the insurance requirements. You can't just get a loan without telling the bank what its for. Also, you can get a capital one auto loan even as a first time buyer - so, you don't need credit if you have some money in the bank and a job.
2007-02-10 19:19:17 · answer #6 · answered by T D 3 · 0⤊ 0⤋
Try to avoid a loan if possible. You end up paying back a lot more than you originally got. Either find a way to raise the money that doesn't involve loans or get a less expensive car.
2007-02-10 19:19:57 · answer #7 · answered by jjc92787 6 · 0⤊ 0⤋
any bank that gives you a loan will want full coverage to cover the loan no you cant pay it back after graduation they will want monthly payments
2007-02-10 19:20:07 · answer #8 · answered by gregs111 6 · 0⤊ 0⤋
check with the local credit unions. ask someone at the financial aid office at your school.
2007-02-10 19:17:23 · answer #9 · answered by annc 3 · 0⤊ 0⤋
i`m not a banker or agent
2007-02-10 19:25:38 · answer #10 · answered by Difi 4 · 0⤊ 1⤋