I currently have a 96 automagic, and I want to buy a 5th generation in addition to it. I am only 19 so I don't have the best chance of obtaining financing for this purchase, however, I do have several credit cards that can handle this purchase (i.e there is a large enough balance to purchase a car) My question is, can I walk into the dealership and purchase the car completley on the credit card, or what if I put 2 thousand in cash down, then put the balance on the credit card. I also have two motorcycles, can I finance some, pay some in cash, and credit the rest, and put the motorcycles up and collateral. Please let me know what my options are. I live in Florida, if that matters. Each of the bikes are worth over $6000, (and I don't want to sell either one). The APR on the cards are only 11.9% so it's probably a better interest rate then if I were to obtain financing. Any help, comments, suggestions is greatly appreciated. Thank you in advance.

 

I usually confine my posts to diagnostic and repair advice, but your situation cries out for the Voice Of Sweet Reason.

You are only 19 and you want to own two motorcycles and two cars and are willing to go deeply into debt to do this?!? You think 11.9% APR is "only"?!? Don't do this! You will never get ahead of the debt curve by paying The Man 11.9% for renting his money.

Please... don't get into spending habits at age 19 which will keep you in debt for your whole life!

 

Damn, did you win the lottery?

 

Daniel, I appreciate the advice. Thank you. However, I am currently debt free. Both of my bikes are paid off. I bought my first maxima in cash, and my house is paid as well. Aside from the monthly bullsh*t (FPL, Bellsouth, Water, Cable, Alarm...etc) I'm looking to have fun. I was under the impression that 11.9% wasn't the best intrest rate, but it isn't bad. What's a reasonable interest rate on a car loan, and if I plan on having this debt paid off in 30 months, is it still a poor choice. Thank you again for your sensible advice, and thank you in advance for anyone else who wants to throw in their two cents.

 

No serious, did you win the lottery?

 

Who are you, damn you?????

Arggg this is wierd, i have a slight clue, but damn man, didnt know you had it like that, whoosh

 

Hey GT-R, what's up man. It's me, "The Guy From Boca". I have the white Max on 20's. I told you to come up an visit some time, you never want to chill. Come check sh*t out bro.

 

OH snap, truuuuuu!!!!!

I knew it was you This is madness, your always busy thats why I dont talk online with ya. Aww hells yea

 

Yeah, bro, sorry about that. You know how business is Hit me up sometime on the AIM. You can reach me at Diamondcd5. I'm on that a lot, but I still have my sizos name.

 

Dealerships usually impose a cap on how much you can place on a credit card, when buying a car. The maximum I could charge, when I bought my car, was $3000. The rest had to come from the down payment and the loan.

11.9% is a good credit card rate, but far worse than the rate you can get from a loan - especially with the recent interest rate drops, and especially since you're looking to buy a *new* car. No one can tell you what a good rate is because it varies according to your geographic location, credit history, age, and other factors. Eloan.com is currently offering 6.39% interest in new car loans, but of course this is for the best case scenarios.

Good luck.

 

If you own your house free-and-clear you qualify for a Home Equity Loan regardless of your age. I don't know the loan rates in Florida, but they will be much less than 11.9%.

My best advice: If you are debt-free, stay that way!

 

Thanks for the info bro. I've had a few people tell me that if you are ready to purchase, they'll let you throw the entire thing on the card, but I guess it varies from dealership-to-dealership. I'm not planning on buying a new car though, so I don't know if that makes the info you gave me different. I was looking at a 2000, or maybe a 99 if I change my mind on style. So this will be a used car purchase, so please let me know if that changes anything. Thanks.

 

Hmmm, i didn't even think of that. Not a bad idea

But I am still looking to take in all possibilities so any other advice is greatly appreciated. Thanks again, Daniel, for your advice.

 

Also, if it's not to personal, (I know how everyone on this board likes a little competition), I would appreciate it if you could post your interest rate if you got a loan on a used Maxima, and what part of the country you live in, and any other info you would deem helpful. Thank you.

 

Check your PMs.

There will be an interest rate difference between buying a new car and buying a used car. Interest rates are typically half point or more lower if you're financing a new car.

 

Yes. Buy Assets, not liabilities.

Asset= Something that puts money in your pocket
Liability= Something that takes money away from you

Eg A car, boat, house are not assets as 90% of people think.

 

I see bad credit all the time. Don't do it that way. You should be able to get a loan if you have established credit. Your age should matter very little if you have good credit and make enough money.
Credit Cards are only good for purchasing if you can pay them off in full every month. Why pay that interest rate. 11.9% on a 27k car would be over 2800/year. Good luck, try getting a loan, and save your credit.

Put that extra $200/month in a Roth IRA, by the time you are 55, you should be a millionare. That is if you start now. Then you can pay cash for your dream car. My 2 cents.

 

Ummm... houses usually appreciate in value, unlike cars or boats. So how is a house a liability?

 

He must have read that book "Rich dad, poor dad" It says that houses are liabilities to the rich or something like that. Because their money is better spent investing it instead of buying a house because it's not going to generate the same return as a wise investment. Something like that.

 

You own a haouse, you pay rates, insurance, etc.
Money out of your pocket.
You usually have to do something to the house most of the time for it to gain value ie spend money on it

money thats out of your pocket.

But who am I to know.

 

Dude:

Go talk to a professional financial advisor...
because quite frankly, you are in need of such assistance. Just because you have everything you need right now, doesn't mean it will automatically stay that way.