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Hunting loan companies online

 
 
Reply Wed 20 Aug, 2008 06:25 am
I am looking for a place that will give me a short life 2,500 used car loan.
My plan is to purchase a used car for 2,000 ( already know what car) and put the 500.00 in an interest earning checking account so that i can add to it and have a little money on the side in case I need to repair something major during the life of the loan.
I want loan for about 16 months with plans to pay off the majority of the loan by christmas.

while I am looking through odd ball companies, banks, and car lots.. what should I look out for with small loan companies?

Some places have websites that look like cheap blogger sites thrown together in an hour. Untrustworthy and scam-ish. Obviously I wont use those..

but what else gives away a 'bad' loan company?

Anyone know of a specific company I could try?
my credit is only around 600 right now and , though it was supposedly resolved , Ian had his truck repossessed about 4-5 years ago that I co-signed for that is still showing on my credit. So I have to get around that and I need a company that does not require stellar credit..
 
FreeDuck
 
  1  
Reply Wed 20 Aug, 2008 07:05 am
@shewolfnm,
I have Capital One, but for a bigger loan.

I would NOT finance at the lot. Their rates are high and they are very quick to repossess.
shewolfnm
 
  1  
Reply Wed 20 Aug, 2008 07:19 am
@FreeDuck,
ohhhhh no. I would never finance at the lot. I want to go TO the lot with the check in hand. Actually, the car I want to buy is for sale by the owner. But some small car lots can give financing.. I think? for outside purchases..
FreeDuck
 
  1  
Reply Wed 20 Aug, 2008 07:25 am
@shewolfnm,
Try Capital One. I'm not sure what their loan minimum is, but they have a very simple process. They send you a check for up to the maximum total loan amount and you can write it in for whatever the total comes to. I got a half percentage point discount for doing auto-debit, which you may or may not want to do. I only do it for the car and the house.
0 Replies
 
Rockhead
 
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Reply Wed 20 Aug, 2008 07:30 am
@shewolfnm,
Hey Wolfie, good to see ya back...

No recent personal experience, but some dooozzies years back.

I found credit unions to be the best. Had and seen ugliness and 25%+ and crazy rollover fees with "finance companies" (not gonna name names here, but you got my number)
0 Replies
 
DrewDad
 
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Reply Wed 20 Aug, 2008 07:32 am
@shewolfnm,
Go join a credit union.
shewolfnm
 
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Reply Wed 20 Aug, 2008 07:38 am
@DrewDad,
will do.
0 Replies
 
Butrflynet
 
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Reply Wed 20 Aug, 2008 09:31 am
@DrewDad,
Agreed. A credit union is the best place for what you are looking for.
0 Replies
 
Linkat
 
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Reply Wed 20 Aug, 2008 10:22 am
@shewolfnm,
I agree with others regarding a credit union - one other thought is ING, they only do stuff on line or over the phone so their rates should be lower than a typical bank.
0 Replies
 
JPB
 
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Reply Wed 20 Aug, 2008 12:50 pm
shewolf (hey!)

You want to find a bank that will give you a 2500 car loan but only use 2000 of it towards the car which is financing the car at 100%, right? Dunno that you're going to have much luck. Most car loans that I'm familiar with will require the details of the sale price to make a loan and will want some sort of collateral or at best fund less than 100% of the value of the car.

It looks like what you're talking about is more in line with a $2500 personal loan, $2000 of which would be used for the car. Or, perhaps a $1500 car loan and a $1000 personal loan to make up the difference.

HOWEVER, interest rates on loans are always higher than interest rates on savings. Not sure that the concept of paying interest on a loan in order to set up a savings account is a great idea.
shewolfnm
 
  3  
Reply Wed 20 Aug, 2008 04:55 pm
@JPB,
Well my thinking was this..

my payment would be around 150.00-180.00 a month on an 18 month plan if I borrowed 2500.00

My collateral would be my Corolla ( if I could pull that off) because it is paid for and its value is around 4500.00-4,800.00 . Almost twice the loan amount. Clear title etc.

September , when my photography works gets into full swing, I was going to pay twice the amount on the loan until December. That should have paid off almost 80% of the loan, leaving a minimal monthly payment of around 50.00 for the remaining life of the loan. Since 99% of places do not want you to pay off a loan early and will penalize you , I dont mind making such small payments .

Because the payment would make a small dent into my monthly income, I would not want to rely completely on what I make to repair the car if anything major happens. And if I have to pay interest on that peace then that is ok.
It may not make perfect financial sense.. because I will be paying on 500 or so that I will not be using.. but.. I would rather have a high cost nest egg, then nothing at all.

but, my credit line will not allow for a loan right now.
My car is paid off , yes.
In fact I have three paid off cars on my credit, 4 paid off credit cards... and hospital bills. Ugh. Oh yeah. Lets not forget Ians repossessed truck.

But yaknow the real kicker? I just learned about?

Toyota financial held the loan for my Corolla.
Some how, some where they said I signed and agreed to an 1100.00 balloon payment. Bull-crap. But, argue with it.. I can not.
So I called Toyota and agreed to a two month extension so that I did not have to come up with that 1100.00.
Paid it off on time, just as planned.

Well.. that extension? Shows up as being three months BEHIND on my car payments.

Guess whos credit is questionable right now huh. X(

Im actually considering just filing for bankruptcy and clearing it all up .
I cant jump into this whole single thing with credit I cant use. I know in a few months everything will even out, and I will be ( hopefully) where I was before , around 610.
But I have no open line of credit any more. Nothing to build on that number and thanks to this so called 'recession' loans are hard to get right now unless you have spotless 800 point credit it seems.

(sigh)
JPB
 
  1  
Reply Thu 21 Aug, 2008 08:52 am
@shewolfnm,
Don't file for bankruptcy unless you completely understand the ramifications. You are operating your business under your name, not as a separate entity. Filing bankruptcy could jeopardize your ability to get your business off the ground. You can't undo a bankruptcy once done. Lots of folks file bankruptcy thinking it's a viable answer when sometimes it's a bigger kettle to swim in.

Sorry about the loan snafu, but I still don't know that bankruptcy is the best option.

Quote:
September , when my photography works gets into full swing, I was going to pay twice the amount on the loan until December. That should have paid off almost 80% of the loan, leaving a minimal monthly payment of around 50.00 for the remaining life of the loan. Since 99% of places do not want you to pay off a loan early and will penalize you , I dont mind making such small payments .


For when you do qualify for a loan... Prepayment doesn't necessarily reduce the monthly payments for the remaining term. It simply reduces the term. If your monthly payment is $150 for 18 months and you make 4 double payments in the middle then, unless you refinance the balance, you'll pay the loan off 4 months sooner rather than reduce the monthly payment. Refinancing the balance is akin to taking out a new loan which will also affect your credit score. Make sure you understand the terms of any loan, including prepayment penalties and application of prepaid funds completely before you sign.

I know it's hard right now, shew. It sucks feeling trapped in a financial well, particularly when there are other personal dynamics bringing you down. One day at a time, hun. S'all you can do.
0 Replies
 
DrewDad
 
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Reply Thu 21 Aug, 2008 09:34 am
@shewolfnm,
shewolfnm wrote:
Since 99% of places do not want you to pay off a loan early and will penalize you , I dont mind making such small payments .

In my experience, this is only the case if they have big up-front incentives.

A straight collateral loan shouldn't have major, if any, pre-payment penalties.
0 Replies
 
Green Witch
 
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Reply Sun 25 Oct, 2009 10:39 am
Hmmm. were you formerly known as Bear Stearns or Lehmann Brothers?
djjd62
 
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Reply Sun 25 Oct, 2009 10:40 am
@Green Witch,
they're currently known as reported Wink
0 Replies
 
 

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