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car loan questions


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i was looking online at lendingtree and eloan or whatever, but they will only give you a loan for a car thats like 2002 or newer. one also had a 7500 dollar minimum loan.

 

so then i went to my bank's website (5/3) same deal. they would only let me apply for a loan for a newer car.

 

so if i want to buy an 1989 car for 5 grand, where do i go about getting a loan for it?

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Guest 78novaman

No bank is going to finance a 20 year old car. A 20yr old car is worth nothing to the bank, therefore there is no collateral in case you default on your loan.

 

See if you can get a personal loan for the $5,000. However the interest will be high since there is no collateral. Only other option is a line of credit.

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No bank is going to finance a 20 year old car. A 20yr old car is worth nothing to the bank, therefore there is no collateral in case you default on your loan.

 

See if you can get a personal loan for the $5,000. However the interest will be high since there is no collateral. Only other option is a line of credit.

 

yeah thats what i was thinking... from what i read on 5/3 site though, their personal loans and their line of credit are basically secured by your home (which i do not own).

 

 

im not very well versed in the world of loans and finance, so any other information/advice would be helpful :)

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Personal loan is what you have to do since you don't own a house. You will pay more for it but that is just how it goes. It depends on your credit card company but sometimes a personal loan is cheaper then putting it on the credit card, but not by much. Auto loans are for newer cars =/
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when i bought my 95 gsr, it was thru 5/3. they told me 3 years was the max, but supposedly they did something or another to get it approved. i think they financed me like 4600 and i put 500 down, my intrest rate was like 11.89%
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Credit Unions.

 

My local credit union here told me I can buy whatever I want 99 and older, but they will only give xxx months loans to prevent it from getting out of control.

 

Its worth a try. I have found the credit unions to be the MOST flexible on stuff like this..

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Credit Card. Get one of those checks for a balance transfer, should be able to get lower apr than car loan. Deposit it in your checking account. Pay cash for car. Pay off credit card when convenient.

 

seconded.

 

you could take that road or try and find a card with a spending limit around the price of the card and pay for it that way.. either way, the apr will be less than a personal or classic car loan.

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http://www.capitaloneauto.com

 

They'll give you a loan based on your personal credit history and not on the car. The only rate changes are based on how you're buying (dealer or private, new or used). You can get a fixed rate installment loan from them. The rates are a bit higher, but nothing crazy.

 

I believe that they have a $7500 minimum as well though, so you may just have to work out something goofy there, but you can finance a 1960 Mustang if you want!

 

 

BTW, completely awesome signature! I may have to steal that.

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Do you have a 401K at work? You can always borrow money from that.

 

NOOOOOOO.... Never borrow from your 401k for anything unless it's your own retirement. The money you take out of your 401k will grow and benefit you a hell of alot more than wasting it on a liability like a car.

 

Sorry mensan, not trying to jump your case and your right it is an option. I just dont think it's the best option.

 

John, what kind of car is this your looking at? I can say that when I bought my old talon I had to take out a 'signature' loan and my brother co-signed for me (i was 18). The best bet is to look at some credit union's. The credit card route is a possability as long as you can deifnitly get an APR lower than you could on any loan.

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