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Best way to purchase an s2000?

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Best way to purchase an s2000?

 
Old 04-03-2016, 02:14 PM
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Default Best way to purchase an s2000?

Hey guys, I am currently 19 years of age. I really want to purchase an s2000 later on this year maybe around September time or so. I have a solid full time job , just got a secured credit card a few months back To start building my credit. Plan is to have around 5,500 saved up to use as a downpayment on a 2002-2005 model s2k, ap2 is more preferable.
Is it possible that the bank will help me out with a Loan around September time considering I will have only had a credit history of 6-7 months?
I just wanted to hear other peoples input since I haven't had experience with loans before. Thanks guys
=)
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Old 04-04-2016, 07:56 AM
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A couple things.

First, you will have a hard time getting financed. not because of your credit (well, at least partly), but due to the age of the car. Many banks will have a fairly firm cutoff for not financing a car that's over a decade old or with more than 100k miles. The newer you can go, the more likely you'll get someone to say yes. You will have to shop around several banks and credit unions, and you'll likely have more luck with a CU.

Second, your interest rate will be high based on lack of history. Expect something in the neighborhood of 6-8%, where most prime buyers are in the 2-2.5% range. If you're financing through a dealer, you might see as much as 13-15% just because of the kind of dealer you're probably shopping from and your lack of history - they're trying to make money through jacking up your rate. This is why you secure your own financing ahead of time. Also, don't finance for any longer than 5 years, that's just asking for problems.

Third, what is your price range? You can get a good AP2 in the upper teens. For simplicity's sake we'll assume $15500 for a $10k plus TTL financed at 7%. On a 5 year note that's roughly $215 a month, but being 19 with an S2000 and full coverage (because your loan requires it), expect to pay at least that in insurance. It will cost you close to $500/month just to own the car.

I'm not trying to scare you away, just giving you some of the financial realities of how much this is going to cost you.
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Old 04-04-2016, 02:31 PM
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@duffman13 I've checked into insurance, it'll be about 110$ a month for an ap2 full coverage , or if I get an ap1 90 a month full coverage.
Thank you for your input though. Maybe I should just hold off and wait till I'm a little older to get my dream car
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Old 04-04-2016, 02:32 PM
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Originally Posted by duffman13 View Post
A couple things.

First, you will have a hard time getting financed. not because of your credit (well, at least partly), but due to the age of the car. Many banks will have a fairly firm cutoff for not financing a car that's over a decade old or with more than 100k miles. The newer you can go, the more likely you'll get someone to say yes. You will have to shop around several banks and credit unions, and you'll likely have more luck with a CU.

Second, your interest rate will be high based on lack of history. Expect something in the neighborhood of 6-8%, where most prime buyers are in the 2-2.5% range. If you're financing through a dealer, you might see as much as 13-15% just because of the kind of dealer you're probably shopping from and your lack of history - they're trying to make money through jacking up your rate. This is why you secure your own financing ahead of time. Also, don't finance for any longer than 5 years, that's just asking for problems.

Third, what is your price range? You can get a good AP2 in the upper teens. For simplicity's sake we'll assume $15500 for a $10k plus TTL financed at 7%. On a 5 year note that's roughly $215 a month, but being 19 with an S2000 and full coverage (because your loan requires it), expect to pay at least that in insurance. It will cost you close to $500/month just to own the car.

I'm not trying to scare you away, just giving you some of the financial realities of how much this is going to cost you.

Price range would probably be 13k or so , so I would only finance 7,500 or so
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Old 04-04-2016, 05:12 PM
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Your biggest problem at that price point is going to be the age/mileage of the car thing. Based on what S2000s go for, you're going to have a rough time finding one that a bank will actually finance, though a down payment that big should definitely help.
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Old 04-04-2016, 05:45 PM
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Originally Posted by duffman13 View Post
Your biggest problem at that price point is going to be the age/mileage of the car thing. Based on what S2000s go for, you're going to have a rough time finding one that a bank will actually finance, though a down payment that big should definitely help.

I'm think I'm just going to keep saving my money until I'm saved up to a decent amount to where I can comfortably purchase a nice one.
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Old 04-08-2016, 01:10 AM
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Since this in the money and investing section my advise to you is not to buy a s2000. The fact is you cannot afford it. Spending you life savings of $5,000 on a down payment for a 10-15 thousand dollar car that's over 10 years old is not a smart move. Can you do it, probably yes. Should you.... NO


But to answer your question. These are the issues you will face. Your lack of credit, your age and the fact that the s2000 is so old with higher mileage will make the interest rate much higher than normal. You may also need a cosigner to get you approved for a loan. Also insurance will be high because of you age and the fact that you much buy full coverage Because you have a loan.
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Old 04-20-2016, 01:50 AM
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Originally Posted by duffman13 View Post
Your biggest problem at that price point is going to be the age/mileage of the car thing. Based on what S2000s go for, you're going to have a rough time finding one that a bank will actually finance, though a down payment that big should definitely help.
Nationwide bank actually loans 100% based on the value of the car. I bought an 01 with 130k on the odometer in 2014, financed $10k @ less than 2% interest for 5 years (I can earn better return on investing as opposed to paying $ for the car). I will call them for all future car loans
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Old 04-20-2016, 02:01 PM
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i would say save up to 15k~18k then buy an ap1 or ap2 outright in a year or two. dont waste your money paying interest
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Old 04-21-2016, 06:05 AM
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Originally Posted by 623baller View Post
i would say save up to 15k~18k then buy an ap1 or ap2 outright in a year or two. dont waste your money paying interest
If you can get a loan for less then 3% you are wasting your $ by NOT getting a loan IMO
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