Zaku

Hey guys I've been lurking the forums for a while now. A little back story before I get into this little problem. I'm currently 19 and use to drive a Subaru BRZ(Amazing car btw). Some things happened with my parent's financially and I had to get rid of the car . This will be my first time buying a car by myself. I am in the process of trying to get a 2008 Is250 with about 89,000 miles on it for 13,375(out the door price). I was gonna put 5k down on the car and finance the rest. I got approved for the financing part but it's 10.08%apr(not to happy about that). Now this guy keeps telling me I won't find a better deal somewhere else. Should I try to find somewhere that could maybe finance it lower or just forget the car?

getafewliv

Unless you want to end up in financial troubles yourself, I would highly advise against getting a loan at 10% for a car that is almost 10 years old.

Also, that price is quite high for an IS250 with that many miles.

In my opinion, find something cheaper and less flashy. Pick up a civic or something and pay with cash. Now, take all that money that you would have been spending every month to pay off the loan and put it in a savings account. Save up another $10,000, sell the civic and then buy the car you want, without a loan.

Zmon

iTrader: (2)

Going to +1 this. 10% is extremely high on a 10 year old car. 150-170 a month (assuming it'll be a 60 month), + whatever insurance will be (figure 100 a month or so, usually need to do full coverage on cars you're financing), may be a bit overwhelming. I'd put that money you'd spent on the loan every month instead into your savings

That price is high for a 08 250 anyways. IIRC, my 08 350 had 80k-ish miles when I bought it last year for $14k if you want to use that as a basis of comparison.

Take the $5k, buy a cheap car and drive it for a few years.

MikeyK02

iTrader: (7)

You can find a better deal for sure. Take that money, buy a 2-3k solid beater that you can run into the ground. Save 400 a month (part would've been going to your car note @10% and insurance on a lexus) for 24 months will put you at 9600, in addition to the 2-3K you didnt put down=11600, sell beater for 2k= 13600

you're welcome

and yes there are better "deals" out there, but money talks

P128sniper

No no no, like others have stated price is too high, apr is too high and stay away from 250, save up more and get urself a 350.

Rezno

iTrader: (1)

In my opinion, NEVER EVER finance any car under 25k or if it is over 5 years old. Because you never know what problems can occur and you could end up paying too much money on repairs and other stuff. Also, at that price point, might as well go for a 350. Much more power and gets very similar fuel economy. If I were you I'd just save up some more and keep looking for a better deal. $13375 for an almost 9 year old IS250 is a bit much. Give it some more time and you will find a much better deal and you'll have the cash to pay for it. If I were you (unless you absolutely need a car right now) save that 5k and get to about 11-12.5k and not only will prices have decreased a little bit but there is a much better chance you'll find a better deal. Not trying to discourage you from buying the car, just explaining what will be the best financial option for you.

Zaku

Thanks for the reply's everyone! After reading everyone's reply's I was planning on passing up on this deal. I could put more down but I wanted to have like a safety cushion for whatever life throws at me you know. But when he told me the apr rating I felt like it was a slap in the face. I honestly really don't need a car until the summer. So I guess saving money is my best option right now! Once again thank you everyone!

Koolsport

Solid advice from experienced peeps..
Get a good beater, doesn't even have to be a "beater" my son got this 2005 manual scion tc and its a fun zippy car, looks good too... for $5K with 85k mi.
Might be a downgrade for you though It's no BRZ ..lol

Aspect

10% are you kidding me? My opinion for used cars is to buy them out right and never finance a used car. Try looking at some Infiniti G35s, they've got enough pep with the first gen having 250 hp, to the later gens with 280, 300, 330 etc but are very affordable right now. A decent low km one can prob be found for $5k USD since they go for like $7-8k CAD here

Gville350

iTrader: (10)

Find yourself a local credit union and get yourself setup with them and have them finance you. My local CU offers rates for durations over 5yrs starting at 2.49%. If under 5yrs, it's less. And this is for used autos too! Of course a teen with minimal credit history will not get the greatest rates; however, CUs tend to lend at a lower rate.

The350Girl

Old car gives you headache most of the time and we can't afford new car, new car in Canada especially Ontario and Quebec an average car will cost you 25k CAD unless you want a Yaris or Honda Fit or cheap Hyundai, Ford Focus 4 cylinders, 4cyl tend to have more problem after 4-5 years except Civic and Corolla, his interest rate is 10% that means his credit isn't that good, a good creditor rate is around 4-7% interest, the higher amount the longer time to pay and higher interest in the end after you pay off, excellent credit can lend out 20k$ 30k$ no problem, a good credit might need a co-sign, average credit person sometimes won't get approve by most Bank and private Financial Company but if Private accept you the interest rate will be up high.

They will lend you based on your monthly income with at least 3 years steady job or else no one will approve even private lender, i'm currently financed my 2011 IS350 AWD here, i traded in my 2010 RWD IS350 for 15k$ and the 2011 AWD cost me 28k$ and had 13k$ loan with 3 years 300$ a month, i'm an average credit person interest rate is 5.7% because i have good income and 8 years steady job, 1st i thought financing is easy but once i got into it NO its not that EASY most Banks wants CO-SIGN on me i just moved to Quebec and my friend still in Victoria BC, i've looked into those 7-8k$ G35 and 12-15k$ G37, g37 is alright but G35 with that price is garbage, buy a cheap car you end up spend more money on repair, buy new car can you afford ? i go for Lexus over a Mercedes and Audi because of repair's complication. you don't need to finance a brand new car just 3-5 years old.

Zaku

Well I haven't responded for a couple days now. The bank guy just texted me saying he could do a better rate for the car at 8.33%. I haven't had a chance to talk to other banks since I was just gonna forget it. But if he could lower it, idk maybe lol. I would go for the car if this dude would lower the price on it. The door panels on all side are like beat up and he said there was a recall on them from Lexus to get replaced. I recently called Lexus and they said it wasn't a recall, that I would have to take the car in for them to examine and they would go from there. The rearview mirror is f'ed up. The speaker on the driver side is like cracked. The dude won't budge on the car.

Aspect

The used car fear is really overexaggerated. Simply do your due diligence and research every single car and find one without or with the least problems, get the carproof reports, maintenance records, and get a pre purchase inspection . Buying "old cars" is why I have my 2007 IS250 AWD - paid $12k CAD in cash - no transmission issues, no carbon build up, minimal aesthetic damage, 100,000km, came with wheels and tires for both summer(Enkei RSF5 with Michelin PSS) and winters(OEM on Michelin X-Ice 3s) basically brand new. The only major mechanical fix I had to do were the rear brake calipers and that's it. The G35/G37 powertrain is solid and can last 200,000 miles. The number of G35s on the road to this day is numerous. Only problem with older Nissans are the electrical aspects like windows, locks, cd players, etc. You should expect to fix a thing here and there with all used cars.

I don't know the OPs financial situation aside from the $5k cash on hand but regardless on an almost 10 year old car I definitely wouldn't finance. I say if you can't pay for it in cash fully out the door it's not worth it. Given that he's 19 there could be other expenses such as post secondary education, living expenses, etc. The extra he pays for interest isn't economical and can be saved for other things. You shouldn't put yourself in a situation that all you're doing is car payments( not saying the OP is doing so but what if). Pick up a part time job here and there and save. You could make the $8k in a year or so. By that time the prices can or will be better and you have the bargaining chip of cash(although not as powerful as in the past, still works). You could possibly even get a 2011/2012 refresh model possibly.

If the OP is in the desperate need of transportation I would suggest a beater. Good things come to people who wait.

Koolsport

Like you earlier said, "forget it" walk away from this and move on to find a better deal somewhere else.
Look like the guy didn't take care of it.

Rezno

iTrader: (1)

Just wait on it man. You'll find much better deals than anything you're getting now I guarantee it.