how much totally for the sti??
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Joined: Apr 2003
Posts: 1,013
From: california, LOS ANGELES
Car Info: dream car Subaru STi
ok.. very interesting.. but i THOUGHT that if u pay in full cash at once then u get wayyyy better credit and loaning.. its like.. why would'nt the dealer want all the cash up front? please explain to me... i dont c how paying monthly shows better credit than paying all once in full..
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Just the opposite.
Paying cash for everything = NO CREDIT = bad credit, essentially.
I've heard of people that pay cash for everything when they're young then try to buy a house and guess what, no home loan!
Dealer gets all the money up front whether you take out a loan or not. If you take out a loan, the bank gives the dealer a check then you pay back the bank.
It's actually very simple. Let's say it's time for a home loan. You want $200k for a house, let's say. You think, "wow, they're going to love me. I do awesome finances, I have never needed a loan for anything and I have a nice bank account." So you go to the bank and ask for $200,000.
The bank runs your social security number through a computer and pulls up....... TADA.... a blank record. The bank says, "Hmm... you've never had experiences paying off a loan or debit. You've only bought things which you already had the money for. You don't have the money for this house, obviously, but how do we know you're good at paying off credit you owe when you've never done this before?" ... and they're not going to trust you with $200k!
The thing to remember is, in the bank's eyes, EVERYONE can make payments on something they have the money for (ie, if you have $30k in the bank, obviously you can buy an STi) but what they want to know is "Can you pay off something you don't have the money for?" (ie, if you only have $5k in the bank, are you a good enough person to keep on your monthly payments so that you can buy a $30k car?)
It's kinda ironic but remember, the bank only knows what your credit history shows.
MORAL: Take a loan out for a part of the STi. As I said, $5k would be nice... you'll pay little interest, although since you have no history you may or may not have a higher rate (either way, better now than later). Since you have the money, just pay double the monthly rate and pay off the loan twice as fast ... this gives you 1/2 the interest and DOES look good on credit history!
Hope that helps.
Paying cash for everything = NO CREDIT = bad credit, essentially.
I've heard of people that pay cash for everything when they're young then try to buy a house and guess what, no home loan!
Dealer gets all the money up front whether you take out a loan or not. If you take out a loan, the bank gives the dealer a check then you pay back the bank.
It's actually very simple. Let's say it's time for a home loan. You want $200k for a house, let's say. You think, "wow, they're going to love me. I do awesome finances, I have never needed a loan for anything and I have a nice bank account." So you go to the bank and ask for $200,000.
The bank runs your social security number through a computer and pulls up....... TADA.... a blank record. The bank says, "Hmm... you've never had experiences paying off a loan or debit. You've only bought things which you already had the money for. You don't have the money for this house, obviously, but how do we know you're good at paying off credit you owe when you've never done this before?" ... and they're not going to trust you with $200k!
The thing to remember is, in the bank's eyes, EVERYONE can make payments on something they have the money for (ie, if you have $30k in the bank, obviously you can buy an STi) but what they want to know is "Can you pay off something you don't have the money for?" (ie, if you only have $5k in the bank, are you a good enough person to keep on your monthly payments so that you can buy a $30k car?)
It's kinda ironic but remember, the bank only knows what your credit history shows.
MORAL: Take a loan out for a part of the STi. As I said, $5k would be nice... you'll pay little interest, although since you have no history you may or may not have a higher rate (either way, better now than later). Since you have the money, just pay double the monthly rate and pay off the loan twice as fast ... this gives you 1/2 the interest and DOES look good on credit history!
Hope that helps.
People have brought up the important point about building credit...but an more important one is the economic principle of opportunity cost. If you drop 30 k you lose the potential of doing anything else with it...investing in the marke for instance! Talk to a financial manager if you dont believe me
EDIT: i've got to know...how old are you? (not a flame)
EDIT: i've got to know...how old are you? (not a flame)
Thread Starter
Registered User
Joined: Apr 2003
Posts: 1,013
From: california, LOS ANGELES
Car Info: dream car Subaru STi
thanks guys im glad i talked on this forum and got ur responses. by the way im still young im 20 years old.. anyways... so wats the best idea... finance the STi right. i got lets say $30,000 saved up. start off with $5,000 and then keep paying $5,000 every month until it hits a total of the cost of the car lets say the STi is $35,000 so i have to pay $5,000 for 7 months then im done? and my credit will be good? and thats it?
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if u dont get approved get a co-signer..
try www.bankrate.com to find best loan rates...
try www.bankrate.com to find best loan rates...
thanks guys im glad i talked on this forum and got ur responses. by the way im still young im 20 years old.. anyways... so wats the best idea... finance the STi right. i got lets say $30,000 saved up. start off with $5,000 and then keep paying $5,000 every month until it hits a total of the cost of the car lets say the STi is $35,000 so i have to pay $5,000 for 7 months then im done? and my credit will be good? and thats it
edit: i had to go with the 02 rs - wrx insurance would have been 2.2 grand a year - thats on my no ticket record
Thread Starter
Registered User
Joined: Apr 2003
Posts: 1,013
From: california, LOS ANGELES
Car Info: dream car Subaru STi
ima get the lo jack and free alarm system that come with the window tinting, and of the course the AUTOLOCK.. the new silver one instead of the red one =) and pay for LIABILITY insurance only. ill b set
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