Were you guys able to get a five year loan on these older model cars? A five year loan fits my budget better and I plan to keep the car for a long time.

 

You may be able to, but it will be harder to find a lender willing to do it. As the others have suggested, the credit unions are probably the best place to go for this. Low mileage will also help you get approved.

 

Yeah, USAA ans SSFCU both offered 5 and I think even 6 year loans. I also forgot to mention that my credit score is fairly high so that may have helped.

 

Unless you're paying a good deal out of pocket, you're probably out of luck. In my area, that car is priced over 4k higher than KBB private sale value. Maybe they are higher in your area. I would strongly advise you to think twice about financing a 7-8 year old car for 5 years even if you find someone willing to do it.

 

Even if Im planning on keeping it for well over 5 years?

 

Is anybody aware of what has been going on over the last 9 months or so???? There has been this credit crisis going on because banks were lending out tons of money to people with lousy credit and couldn't afford to pay the loans back. Now I think they are actually starting to look at peoples credit histories, ability to repay the loans, and the actual value of the asset they are making the loan on. Not saying that you can't get financing but the days of easy credit are gone. Also, I would be very suprised if you could finance the whole 16k. You may have to put quite a bit of money down. Good luck with the search and hope you find something.

 

Ok... from a bank's perpective... (and completely ignoring the fact that this is for buying an s2000, the best car ever made)

a 2002 car is already 9 years old.
at the end of your 5 year loan, it will be 14 years old (at least)
So, from bank point of view (not caring about model of car - only black book value), nearing the end of your 5 year loan, they have this automobile (14yrs old) as security that has a value that has depreciated by 5 more years. If at this time, you default on your loan, there is a good chance that the bank will not be able to recoupe enough value on the car to pay off the remaining balance on the loan... remember how interest is paid highly at first and hardly at all near the end.

basically... I work for a bank, and I cannot secure any automobile that is older than 5yrs old. This is canada though... and from the looks of things, the USA has been a little more lenient on lending so you might have some luck

 

I bought a 2002 in the spring of this year for $15,700 for a car with 18.000 miles on it and got 4 year financing for approximately 6% through a credit union. They offered longer terms as well. I put $2,000 down on the car. Like you, I plan on keeping this car for a long time.

 

Different banks/credit unions have different lending parameters.

For example:
My old credit union: cars cannot be over 7 years-old. Period.
My current credit union: no age limit. Loan amount cannot exceed 100% of KBB Retail value.

Of course you have qualify with your credit & income.

 

Yeah it really depends on your credit union/bank. Typically they'll base the rate/term on how old the car is. Of course a new car loan will offer the lowest interest rate, anything from a year old to less than 10 years old usually have the same terms/rate. Also, a lot of places are basing the amount they'll lend to you based on your credit score. If you have "A" credit you should get 90-100% of the loan to value amount, and the percentage amount should go down from that depending on your score.

We financed our 2001 for 72 months at 4.60% two years ago. But my CU (I work there) isn't doing the 72 months so much anymore since the credit crisis started. Now we usually do 60 month terms for a max. But it really depends on your situation.

If you have a bank/credit union you like, but are not digging their rates/terms, do some rate shopping and print out what you find. Take in the rate sheets from the other banks/CU's to your bank and see if they'll do a rate match. If you have a good credit score and good income ratio, they should do a rate match for you. Most banks/CU's are willing to do rate matches to keep your business!

Basically I agree with most of everyone - Check out a Credit Union!

This might help you find a CU:
http://www.creditunion.coop/cu_locator/quickfind.php

Good luck!


Monica