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Old 01-19-2010, 11:11 AM   #1
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Default Difficulty of getting a loan

So i cant even make it passed the starting level of getting a loan for the car i want.... The car is only $5,500 so i figured no biggie jst go get a loan for the amount and start paying it off... Ofcourse not! my bank requires the loan be no less than 7,500. Now this causes a big problem for me. I could always apply for the loan for that high and take a hit on the APR because it is above the value of the car. I just cant believe they make such a limit for someone buying a used car kinda ticks me off!!!!
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Old 01-19-2010, 11:21 AM   #2
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It'* all about collateral. They want something of value to help write off the debt if you fold on paying it back. Not that it'* a reflection on you, but policies are made given experiences in general. The monthly difference between the 2 amounts isn't alot. Aim higher in your choice of vehicle. LOL!
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Old 01-19-2010, 11:57 AM   #3
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Well what they dont know is the vehicle is cheaper than that... im very specific in year because of certain reasons the extra cash id ask ontop of what person is asking is for the boost that will be added
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Old 01-19-2010, 09:57 PM   #4
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If you really really want the car, and the bank will give you the $7,500 for it, do it. Just use the "extra" to buy more goodies, or just immediately pay that extra $2k off and cut off about a year of the loan.
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Old 01-19-2010, 11:26 PM   #5
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Quote:
Originally Posted by MouSe View Post
If you really really want the car, and the bank will give you the $7,500 for it, do it. Just use the "extra" to buy more goodies, or just immediately pay that extra $2k off and cut off about a year of the loan.
+1 I agree Or you could put the money in a higher earning interest savings account and draw interest off of it, or put it in stocks or something wise where you couldn't lose money. I invested in hershey'* chocolate when I was a kid and stuck 1,300 in there and every school quarter I earned 300.00 something just in interest. How could you go wront with doing something like that?
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Old 01-20-2010, 08:42 AM   #6
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Ha very nice guys! I agree with you completely first goal is to try and secure a private loan for around 6K itll give me a little extra money but not a ton if not ill have to go with anauto loan :( (private loan car wont be colateral.... Storage insurance in the winter!!!!)
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Old 01-20-2010, 09:14 AM   #7
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Most banks require full coverage with a 500.00 deductible or so. I tried storage insurance and they said no to me, and that I had to have full coverage. So I guess its worth a try, just make sure to keep up on your insurance, if you stop insurance payments they will fax a copy saying you have no coverage to your bank and your bank won't be happy with you, not sure what the consequences are, but there not good. Don't lie and tell your insurance you own the car either, cuz if it comes down to a bad accident they will want to see the title where it says lein on it and you might not be covered at all then.
later
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Old 01-20-2010, 09:24 AM   #8
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If i get an ato loan i agree with you. But my premise is to get a private loan that i can use for anything. Therefor the car will not have a lein on it from the bank. So i will own the car outright (however full coverage will be on it when im actually driving it)
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Old 01-20-2010, 09:27 AM   #9
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Storage insurance = comprehensive coverage WITHOUT collision coverage. Why your bank told you no makes not sense to me. The way insurance works is; Liability = Collision but no Comp, Full coverage = both + a few other things. If you have your car stored, and have the storage insurance, it will be covered for anything, and therefore making the bank happy.

Also with most banks, if you DON'T keep the proper insurance on the car, the bank will insure it for you. This "bank insurance" only covers the car and not you and is usually not legal to drive with. This coverage is also WAY more expensive than a regular insurance company policy.

And one other thing, when you insure a car, they will ask you if you own the car, if you are leasing, or if you have it financed. Just make sure you tell them the right one.
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Old 01-20-2010, 09:31 AM   #10
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Heres the question when they ask me. If i have a private loan for the vehicle... which i have the title in my name (no lein from the bank) is that considered owned or financed?
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