Djbombsquad

End of august I am going to get the box all by my self. I just got my 1st credit card in the mail due to my business they said I was making enough.
Now how should I go about paying so I can do installments and build up my credit. I will have at least 4000 for a down payment. Should I go with credit or the dealership. Credit card I get 6 months interest free. than like 7% apr dealership is 10% interest.

ack154

iTrader: (7)

You want to put a car on your credit card? And this is your first credit card? That just sounds like a bad idea to me.

And beware... that 6 months interest free is probably more like they don't charge you interest for 6 months but it accumulates anyways one the side and is dumped on your account after the end of the 6 months. It's a good thing only if you plan on paying off your purchase within that 6 months. If not, you still usually get the accumulated interest dumped on you.

How is your credit score anyways? Have you checked into any local banks or credit unions or anything like that to see what kind of rate they'll give you? I financed my tC right through the dealer and got a good rate thanks to the College Grad program.

tanker

Hold on their camper!!!!!! I take it you are fresh from school or such, take a moment and breath. DO NOT put this on your card unless you are planning to pay it off in less than a year. The intro APR is just that intro. They want you to charge it up and then you get hit with a new apr in the area of 20-29%.

I know it reads differently on the letter but if you scan the whole letter you will read the clauses they throw in that seem not to apply to you, the first time you are late on a payment or a payment does not clear the apr raises to the max they can charge.

I suggest go to the dealer or you bank or credit union and they should have programs in place for 1st time buyer with a decent apr for you. I do not suggest the credit card route. I know you are saying to yourself that this guy is insane, I will never be late. I can tell you that unless you are physic than you will never know the future. Life happens!

Good luck on whatever you do and I will tell you that the Xb is awesome and you will love it. I bought my wife one and went back and bought mine a week later. The Xb is a value friendly vehicle and fun to drive if you have always driven 1 ton trucks all your life like me and the 31 miles to the gallon I am getting is a plus, I laugh when my daughter thinks I really bought it for her to drive when she turns 16. Makes my day.

Not to sound like a parent but us older folks have made those mistakes and I hate to see you make them......Man, I sound like my dad! I am old!!!!!

Whispaz

save $$$ for the DP

Djbombsquad

Well if I can pay over 50% than my interest will only be for 50% I don't have credit. I run my own business and I was never able to get a credit card. Finally after my tax returns they approved it saying my business is legit im making enough money. I was going to finance my xb threw the dealer at 10% than refinance it 6 months later for 7% or something like that. Let me know your thoughts and opinions.

tanker

If you are putting down 50% of the price than you can write your own ticket anywhere. The dealer or bank will give you a fair rate with the amount under 10,000.00 and collateral of the vehicle. Shop finance and choose wisely.

I just bought a new semi truck and put 40% down and the bank gave me a rate of half % above prime and the dealer was offering 10%. Just shop and the few points you save will add up.

Enjoy.

rsw1124

I will bet the best rates for a loan are at a credit union!!!!! SIt down with loan officer and see what they can do for a good rate.

Djbombsquad

well I can for sure put a down payment of at least 4000. Possibly 5000.

midtowndesi

the xB is cheap enough - work hard and pay for it in cash. trust me. you will feel like an idiot if you finance the car and after 5 years you wound up paying like $25k+ for it rather than just the $18k dealers are asking.

2008Xb

Finance the car. It will help you build credit for future purchases like a house or another car. Do Not Charge it on the card. The zero % for 6 months will change to the normal rate and you will pay all the interest from purchase day one if ballance is not paid in full befor the 6 month deadline. Do Check local credit unions for rate also when you find a rate let your dealership try to beat it that will save you money in the long run. First time buyers with good credit and 20% down should get in around a 7.5% rate or even less depending on time at the job, income, how long you have been at your home. All these factor together. Hope this helps if you have any questions please feel free to ask.

Djbombsquad

Well I run my own business and I think Scion said 10% interest I forget. I will go to my bank monday and ask them what they have to offer. I do need to build credit and I will defiantly down 4k at least. Do you think the scion dealership will beat it . If not they loose out and i just go with the bank you know.

2008Xb

The dealership Has many options They don't have to use toyota/scion for financing if they can get you a better rate thru another lender they use and that lender will buy your loan then they will take that route. If your own lender will beat what the dealership is offering just get a purchase order to take to your bank and the bank will cut a check for the amount of the loan and then take it to the dealership. Its that simple. Best of all you end up with one of the best cars out there. Good luck and enjoy the new ride.

scionofPCFL

Is the 4k cash, or is that comming from your credit card?

Here's why you want to keep everything off your credit card:

- As mentioned, the interest accumulates throughout the "interest free" period. if you have $.01 left at the end of the "interest free" perood, you will now have all of that interest accumulated and added to your tab. The interest free offers are only for people who have the income and discipline to pay it off before the interest free period is up.

- Secondly, and more importantly, whatever intro rate you have for now, is fully adjustable by the CC company. If you're late on any other payment with any other creditor, they can jack your APR to the moon, and there's nothing you can do about it.

Get the parameters of your deal, down payment/out the door figure, and look around. For a zero beacon and only one line of credit, 10% is outstanding.

Paying cash is a silly idea for someone starting out in the credit world. There will be a time (like when you wan't to buy property) that a solid credit profile will be extremely helpfull. You don't have to stick with the minimum payment due (like on your credit card too), you can pay over. Your loan should be a simple interest loan with no pre-payment penalties. Send in extra dough with every payment, and the extra loot goes straight to the principal of the loan...by law. You won't lower your payment any, but you'll pay it off much quicker.

rygar

Seriously, DO NOT BUY YOUR CAR ON A CREDIT CARD. Unless you just won the lottery and want to put it on a credit card for airline miles and pay the balance off right away - DO NOT DO IT.
When I was younger and much more foolish I bought a '71 MGB on a credit card cause it was only $750. I thought to myself, "Oh it's only $750, I can pay that off really quickly." A blown engine, rebuilt suspension and a new top later - all on credit too - quickly turned in to a few thousand dollars. Oh and it was low interest - at first. I wound up selling the car after a few years but the credit card payments remained. It took me YEARS to pay it off. By the time I finally paid it off my interest rate was close to 25% and I wound up paying close to 4 times my initial investments.

Credit card companies will bend you over at the first opportunity.

If you've got your own licensed business, why not lease a car. Often you can write off most if not all of your lease as a business expense and down payment and monthy payments are usually cheaper.

scionofPCFL

Leasing is usually out of the question for people with shallow, no, or poor credit.