Long story short Im pretty much selling off my stocks and bonds and draining my savings this week to get rid of the $18k in student loans I have.
Ill still owe $5k to my parents but other than that Ill have $1500-2k a month of income that I won't need to set aside for bills or anything.
I'm not worried about being able to make payments or anything but I am looking to buy within the next couple weeks and I wont have anything saved to make a down payment with.
If I go through a dealership will the lack of a down payment hurt my interest rate?
I think I can finance it through the delta credit union without a down payment if I need too but it would be easier to have a dealer arrange it if possible.

I think the only downside is higher monthly or bi-weekly (whatever kind of payment your doing).

I might be wrong.

i dont think it will hurt ur interest rate but do you have a good credit? I know my friend had to put 7k down when he bought his mazda speed cuz he has no credit really and if he didnt want to but that down payment he couldnt have gotten the car

This post was edited by Andre32 on Nov 17 2013 11:43pm

dont do a down payment save your money and leave it in the bank

put it this way you let's just say you have 5k cash right now and youre thinking to put it as a down payment or save it

~let's just say the car you want is 25k so if you put down 5k on it, it'll be 20k, financing 20k at 48 months (4years) is $416 a month

~let's say you keep 5k in your bank and DO NOT put it as a down payment, just sign the papers @ 25k and youre driving it off the lot. 25k at 48 months (4years) is $520

the difference between putting down 5k a month is "lowering" the payment monthly by $104

now this is why you save your money. If you have 5k in the bank right now and you buy a car @ 25k, you basically have enough monthly payments ALREADY for 9.6 months (5000 /520)

now everyone is different of course your numbers are gonna be different. You can't finance through your dealership, you have to get a loan from an actual bank?

what are the interest rate they are giving you? and how much money do they want down to lower the % if anything?

what is the car anyways?

This post was edited by boisssy on Nov 17 2013 11:48pm

You're just about to be debt free and you want to get into more debt?

Bad idea bra.

If you can keep the job and handle the payments, then do it. As long as you have a mid 600 range or so, you can get around a $20k car easily without a down payment. I am speaking from past experience though. It all depends in your credit history and all that jazz, but since you just got rid of that high amount of student loans, I don't see you having much of a problem.

This post was edited by Archer on Nov 18 2013 07:33am

So, let me get this straight. You have:

1. Student Loans
2. Money Owed
3. Shitty Income

and you think it's a good idea to purchase a new vehicle with no down payment (because you have no money)?

You're trading your student loan, where the interest is tax deductible, for a car loan and your entire financial portfolio.



I can't even fathom how you think this is a good idea...

/ignore


ask the dealer if they have incentive rates on that model. Lots of times you can get a sub 2% interest rate instead of a shitty rebate. If you can get that kind of rate no down payment will barely cost you any money in the long run.

The guy is obviously an idiot, I doubt he has any sort of actual portfolio.