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      11-20-2009, 10:13 PM   #1
red998
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Angry Need some financial advice!

hey guys

thanks for all the support and criticism. So here is my debacle:
2010 models with everything except carbon roof, premium sound, PDC i have prices out the door for about 66-67. So i was happy with that. Next was 5.9% financing through BMW. I then contacted my bank who rejected me for the reason that i never had a car loan (i am putting under 10K down) and then the dealer went their route to get banks to compete for the loan. same end, i need a co signer to be approved for the loan. bank is providing loan at 4.xx% and it saves a lot over the course of 5 yrs.
i have no cosigner.
i don t plan on asking someone to do that.
its either bmw select, or finance it through bmw. anyone have other ideas?
i wasn t pushing for a car but my truck is dying and it almost kill me with it when it turned off all the power while i was driving it.
my original plan was to save up 10-15k and do ED with financing...however i need a car now and so i pushed the car purchase to now.
credit score is 800s on all 3 reports.

thanks

red

ps i would have bought the car if it werent for this hitch.
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      11-20-2009, 11:51 PM   #2
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Do you have extra cashflow coming in over the upcoming months that would have comprised your downpayment?

If you take the slightly higher interest rate but put some down towards the principal early in the payment schedule, then you're not paying that much more over the life of the loan (assuming no pre-payment penalties of course). Overall, 5.9% isn't "bad" for historical norms. You're going to lose a 5-figure amount of $ when you drive the new car off the lot, and easily $25-30k in depreciation over 5 years, so I wouldn't have so much anxiety over a 5.9% loan over a 4.xx loan that you can't get.
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      11-21-2009, 12:18 AM   #3
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I'm sorry, I do not understand your question. Do you have a question?
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      11-21-2009, 12:56 AM   #4
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I wouldn't put too much pressure on yourself to hurry and get into this vehicle.

Since you need a car right away and you're having a difficult time with the financing, I would go for a safer option by looking into getting a more affordable vehicle.

Sometimes it's not good to force your way through, since it could lead to regret later down the road. I would seek other options, if possible.

Just trying to help. Please don't take me the wrong way.
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      11-21-2009, 01:04 AM   #5
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What about a 135i?
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      11-21-2009, 02:01 AM   #6
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Very simple.

This car is not for you. You can not afford it. Go and buy another cheap truck. Too many people in this country are living on money they don't have. Again very simple this car is not in your budget. reality check.
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      11-21-2009, 02:29 AM   #7
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Quote:
Originally Posted by red998 View Post
hey guys

thanks for all the support and criticism. So here is my debacle:
2010 models with everything except carbon roof, premium sound, PDC i have prices out the door for about 66-67. So i was happy with that. Next was 5.9% financing through BMW. I then contacted my bank who rejected me for the reason that i never had a car loan (i am putting under 10K down) and then the dealer went their route to get banks to compete for the loan. same end, i need a co signer to be approved for the loan. bank is providing loan at 4.xx% and it saves a lot over the course of 5 yrs.
i have no cosigner.
i don t plan on asking someone to do that.
its either bmw select, or finance it through bmw. anyone have other ideas?
i wasn t pushing for a car but my truck is dying and it almost kill me with it when it turned off all the power while i was driving it.
my original plan was to save up 10-15k and do ED with financing...however i need a car now and so i pushed the car purchase to now.
credit score is 800s on all 3 reports.

thanks

red

ps i would have bought the car if it werent for this hitch.
Did your bank decline you for any lower amounts. If you have credit scores of 800 if you have a mortgage or any other payments a month that do not quite match up to your income level they probably couldn't finance you at the amount you wanted. I would assume you would have been able to get about a 40k loan for a vehicle. At this time I would suggest you either: a, purchase a used 08 with about a 10k dp. Or b, purchase a used old cash truck to supplement your car until you decide to buy. After you secure your financng and then shop for the car it might be the more "sound" route. Plus, you could always sell the truck. Depriciation is killer in markets like this so becareful of your financial situation. If you plan on keeping the car indefintily or till you have kids that will take it, go new, I wouldn't go new bc you will lose 15-20k right when it gets titled plus I go through cars on a yearly basis.

So, my advice, buy a truck with your down payment money and wait to get the m. You did good by going to bank (hopefully credit union) because most dealers get a % off the top for financing through them from the bank the put you with. It is easy to get ahead of yourself when wanting to buy a car, just be patient and maybe even save until you have your dp that will satisfy your loans balance when buying the car.

Am I wrong or do most m drivers have a secondary vehicle?
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      11-21-2009, 03:57 AM   #8
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Originally Posted by artifice View Post
Did your bank decline you for any lower amounts. If you have credit scores of 800 if you have a mortgage or any other payments a month that do not quite match up to your income level they probably couldn't finance you at the amount you wanted. I would assume you would have been able to get about a 40k loan for a vehicle. At this time I would suggest you either: a, purchase a used 08 with about a 10k dp. Or b, purchase a used old cash truck to supplement your car until you decide to buy. After you secure your financng and then shop for the car it might be the more "sound" route. Plus, you could always sell the truck. Depriciation is killer in markets like this so becareful of your financial situation. If you plan on keeping the car indefintily or till you have kids that will take it, go new, I wouldn't go new bc you will lose 15-20k right when it gets titled plus I go through cars on a yearly basis.

So, my advice, buy a truck with your down payment money and wait to get the m. You did good by going to bank (hopefully credit union) because most dealers get a % off the top for financing through them from the bank the put you with. It is easy to get ahead of yourself when wanting to buy a car, just be patient and maybe even save until you have your dp that will satisfy your loans balance when buying the car.

Am I wrong or do most m drivers have a secondary vehicle?
Mate I don't have a secondary vehicle... but when I need one I have access to Mum and Dad's cars... so use that when required.
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      11-21-2009, 04:43 AM   #9
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I may have a different view than some of you. But this car you don't buy, because you need it. This car you buy because you WANT it.
Then the question is, are you willing and ABLE to afford this car the next 5 years... Buy it for 65k, drive off the lot and it's worth 50k. Then it goes down to 25k in 5years. Assuming nothing bad will happen to the car, no unfortunates... So you have no room for a quick sell in those 5 years, you will end up with debt. Basically, I would never lease a car like this. Don;t have the money yet? Save or take a small loan (max the residual value). For now, buy the car you need...
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      11-21-2009, 07:51 AM   #10
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If you can't buy it outright you can't afford it. I hate how this country runs on credit

Too many people living a life they cant/shouldn't be financing
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      11-21-2009, 09:13 AM   #11
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[quote=yemenmocha;6245597]Do you have extra cashflow coming in over the upcoming months that would have comprised your downpayment?

If i do overtime i should make over 180K easily for the year. i don t have any other expenses like mortgage or school loans(yet). i pay rent and bills r not that much.

Quote:
Originally Posted by Nawaaz View Post
Just trying to help. Please don't take me the wrong way.
No offense taken. This is the reason i posted here so i can get some unbiased reality checks.

Quote:
Originally Posted by zenderm3 View Post
Mate I don't have a secondary vehicle... but when I need one I have access to Mum and Dad's cars... so use that when required.
thats funny cause the truck belongs to me folks.

I spoke to the dealer and he said he was shocked i was rejected as my salary is plenty. I guess i will go the route of financing through the dealer when the time is right. i just hope the saying is true good things come to those who wait.
Thanks for all the replies. made my morning, especially the dude with the benz in the profile, lol.
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      11-21-2009, 10:37 AM   #12
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I'm 25, first car in my name, I had to put $35k down to get financing in my name, I can definitely afford this car but I was denied for the same reasons, no credit history even though I've had a credit card since I was in 4th grade. Just because someone has a high APR doesn't mean they can't afford a car. I would suggest going through BMW, don't do select, and at least you will have the rebate.
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      11-21-2009, 12:15 PM   #13
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35K? i guess from what DiamondG is saying i may have the same scenario.

dealer said he will talk to finance department and maybe they finance my purchase.

i guess lease is the next option...or bmw select( can select whether i want vaseline or not with my order?)
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      11-21-2009, 12:25 PM   #14
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^^ Well I didn't have to put $35k down but that's what I did after $7500 wasn't enough I figured half the car's value ought to satisfy BMW. If you don't have everything taken care of, contact me via PM I can try and get you a loan with State Farm Bank, we have 5.29% which is what I went with BMW only went down to 6.25%. You can also go up to 84 months, which I don't recommend but it's an option.
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      11-21-2009, 05:24 PM   #15
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got the call from bmw.
So i am approved. i was totally going to do it, but then i started to reason and think about the advice you guys gave.
7% for 61K, car total is 68K. Turns out to be 80K.
I think i m gonna pass on it.
I figure the economy is still crap. The rate may come down (or go up) like last year i don t expect for the 0.9% hell freezing over deal, but something a little more reasonable. i figure ED would be the way to go and i can drop more cash on this purchase.
Thoughts? Is this a great deal? The reason i ask is cause i don t have much experience in this field and a good amount of money is involved. I know i am partially blinded in this situation and just asking for some opinions.
I work hard for my money and i don t want to throw it at someone just for the sake getting the car that i want.
thanks
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      11-21-2009, 05:43 PM   #16
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Quote:
Originally Posted by Panda///Monic View Post
If you can't buy it outright you can't afford it. I hate how this country runs on credit

Too many people living a life they cant/shouldn't be financing
the whole world is run on credit for your info...

So if you cant buy a house outright you shouldnt buy it?...
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      11-21-2009, 05:45 PM   #17
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Quote:
Originally Posted by red998 View Post
got the call from bmw.
So i am approved. i was totally going to do it, but then i started to reason and think about the advice you guys gave.
7% for 61K, car total is 68K. Turns out to be 80K.
I think i m gonna pass on it.
I figure the economy is still crap. The rate may come down (or go up) like last year i don t expect for the 0.9% hell freezing over deal, but something a little more reasonable. i figure ED would be the way to go and i can drop more cash on this purchase.
Thoughts? Is this a great deal? The reason i ask is cause i don t have much experience in this field and a good amount of money is involved. I know i am partially blinded in this situation and just asking for some opinions.
I work hard for my money and i don t want to throw it at someone just for the sake getting the car that i want.
thanks
you might want to get a 2009 with 2.9 financing.
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      11-21-2009, 05:47 PM   #18
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Quote:
Originally Posted by red998 View Post
got the call from bmw.
So i am approved. i was totally going to do it, but then i started to reason and think about the advice you guys gave.
7% for 61K, car total is 68K. Turns out to be 80K.
I think i m gonna pass on it.
I figure the economy is still crap. The rate may come down (or go up) like last year i don t expect for the 0.9% hell freezing over deal, but something a little more reasonable. i figure ED would be the way to go and i can drop more cash on this purchase.
Thoughts? Is this a great deal? The reason i ask is cause i don t have much experience in this field and a good amount of money is involved. I know i am partially blinded in this situation and just asking for some opinions.
I work hard for my money and i don t want to throw it at someone just for the sake getting the car that i want.
thanks
Everything happens for a reason. Its just not your time to get a M be patient.
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      11-21-2009, 06:13 PM   #19
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Ya you cannot afford this car. A 7% car loan is crazy. I would get a co-signer just for the lower interest rate.
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      11-21-2009, 07:21 PM   #20
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Originally Posted by Boosted335 View Post
you might want to get a 2009 with 2.9 financing.

Funny u mention it coz dealer has a 09 model i would jump on. they told me 2.9% is not available just the 1500. i would drop that 1500 no questions.

i can afford the payments on the 7% no issues. i just find it hard to accept i will blow off 12-13K on interest.

i guess i need me a cosigner...and i don t plan on that so the saga continues.

anyhow thanks for all the help guys, positive and negative comments have been helpful.
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      11-21-2009, 07:51 PM   #21
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Quote:
Originally Posted by red998 View Post
Funny u mention it coz dealer has a 09 model i would jump on. they told me 2.9% is not available just the 1500. i would drop that 1500 no questions.

i can afford the payments on the 7% no issues. i just find it hard to accept i will blow off 12-13K on interest.

i guess i need me a cosigner...and i don t plan on that so the saga continues.

anyhow thanks for all the help guys, positive and negative comments have been helpful.
2.9 is available on a 09.
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      11-22-2009, 02:58 AM   #22
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[quote=red998;6246550]
Quote:
Originally Posted by yemenmocha View Post
Do you have extra cashflow coming in over the upcoming months that would have comprised your downpayment?

If i do overtime i should make over 180K easily for the year. i don t have any other expenses like mortgage or school loans(yet). i pay rent and bills r not that much.



No offense taken. This is the reason i posted here so i can get some unbiased reality checks.



thats funny cause the truck belongs to me folks.

I spoke to the dealer and he said he was shocked i was rejected as my salary is plenty. I guess i will go the route of financing through the dealer when the time is right. i just hope the saying is true good things come to those who wait.
Thanks for all the replies. made my morning, especially the dude with the benz in the profile, lol.

Just a thought ... If you make 180k you shouldn't really worry about 7%. You should easily pay this car off in a year or two. Plus if double up on payments Per month you will effectivly cut the intrest accrued significantly.
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