Car loans

I wouldn't dream of buying a used car. I know absolutely nothing about engines, and let's face it—they constantly need repairs. You never know if you're getting a decent mechanic or someone who'll just bleed you dry. Plus, I’d have to take out a loan again. Sure, it would be a smaller loan with a shorter term, which is a win, but my monthly maintenance costs would skyrocket.

As for public transit, 🙂 I've been riding the bus for ages. I honestly never thought I'd actually buy a car, but I am officially done lugging heavy groceries around on the city bus... and dealing with the constant scheduling headaches whenever I need to pick up anything bulky.

And then there's the monthly utility bill, which comes out to $133. I really hate throwing money away like that, especially considering how subpar the service is all the way to my front door. 😢

I’d also suggest going for it, but make sure you're buying the car you actually need, not just one that looks better idling in the driveway than the neighbor's.

Charles Ramos7 hit the nail on the head.
Do you actually need a car, or do you just want the status of owning one?
I bike to work and back—9.3 miles every single day—and honestly, I don't miss driving at all. It’s better for my bank account and better for my physique. As for what the neighbors think... let them think what they want. Once you start living your life based on other people's opinions, you've already lost.

boldeagle3 said:I honestly think we’ve reached the point where taking out loans just isn't worth the headache anymore. And I don't just mean because everything feels like it's spiraling—though, let's be real, it is—but also because of the looming threat of interest rate hikes and those looming energy price spikes hitting businesses... it's a mess.
If you aren't in an absolute bind, my advice would be to stick to public transit for a little while longer, or maybe pick up a beat-up used car for maybe $2,500 or $3,000 and just rattle around in it until things stabilize a bit better... 🤷

If everyone followed that logic, the whole country would collapse within a year. Look, the only way out of a recession is through increased production and increased spending. That's basic economics.
Besides, a recession doesn't hit everyone the same way. For someone working at a powerhouse like Lockheed Martin or a major bank, a recession might not mean much if their paycheck stays steady—unless they get laid off. And if they do get laid off? Well, then either the company isn't as rock-solid as they thought, or they weren't as indispensable as they claimed.
As for those living paycheck to paycheck? They’re already stressed to the breaking point without a recession. The difference is they aren't pulling double shifts to stay afloat, so they have every right to be terrified.

Brian Robinson8 said:I wouldn't dream of buying a used car. I know absolutely nothing about engines, and let's face it—they constantly need repairs. You never know if you're getting a decent mechanic or someone who'll just bleed you dry. Plus, I’d have to take out a loan again. Sure, it would be a smaller loan with a shorter term, which is a win, but my monthly maintenance costs would skyrocket.

As for public transit, 🙂 I've been riding the bus for ages. I honestly never thought I'd actually buy a car, but I am officially done lugging heavy groceries around on the city bus... and dealing with the constant scheduling headaches whenever I need to pick up anything bulky.

And then there's the monthly utility bill, which comes out to $133. I really hate throwing money away like that, especially considering how subpar the service is all the way to my front door. 😢

Brian, look at your driving experience and consider how long you plan to keep this vehicle. If you are a beginner, buying a brand-new car makes little sense. Get a reliable used one and learn on it. Once you gain confidence and master your driving, then you can decide if a new car is truly worth the investment.
For context, I saved for five years for a down payment on a home, and from those savings, I bought my first car. I wasn't an expert either, but I consulted friends who knew their way around engines to ensure I purchased a dependable vehicle that required minimal maintenance.

A car, whether new or old, is strictly an expense. Maintenance, registration, gas, parking, accessories...
A new car loses 20-30% of its value the moment you drive it off the lot.

I understand the impulse to want something nice with your own hard-earned money, especially when you're fed up with current options. You want a car that looks good. But you must weigh all the factors and think twice. Find someone knowledgeable to give you honest advice tailored to your specific financial situation.

Here is my situation,

I’ve spent the last nine months grinding away at a well-known corporation here in the States. Ultimately, I decided to hand in my resignation because a much better offer landed on my desk—and let’s be honest, we’re all just chasing the almighty dollar, aren't we? I plan to jump ship to this new firm as soon as I wrap up my final month here. Naturally, the new gig will start me out on a six-month contract before they transition me to a permanent role. Given all these moving parts, does anyone know if I’d actually stand a chance at securing an auto loan for about $11,000?

Greetings, everyone.

I have a question for the group. We are looking at buying a car for roughly $57, and I would truly appreciate it if someone could walk me through the math. Here is how the interest rates break down:

* 7.00% annual, variable for USD-based loans
* 6.55% annual, variable for Swiss Franc-based loans
* 6.95% annual, fixed for US Dollar loans

Furthermore, they list this:
The most favorable effective interest rate is:

* 8.40% for USD-based loans
* 7.90% for Swiss Franc-based loans
* 8.34% for US Dollar loans

Based on my own assessment, it seems you always have to look at the APR, since that represents the actual cost of the loan. Now, regarding this currency clause business—looking at these numbers, which option is actually better: the Swiss Franc option with a currency clause, or the US Dollar option without one?

Many thanks!!

It’s honestly pretty tough to say which option is "better"... there are just so many moving parts involved here...
In a perfect world—purely theoretical, of course—it makes sense to take out a loan in whatever currency you’re actually getting paid in. That way, at least you aren't constantly sweating over exchange rate fluctuations. But then again, even that logic can fall apart if interest rates start climbing and the bank decides to hike up your monthly payment.
On the flip side, who really knows what the future holds? For all we know, the dollar could shift significantly, or market trends could swing the other way entirely...
If you ask me, it’s a bit of a gamble. You really have to sit down and weigh which risks feel more daunting to you right now versus what might happen down the road—especially considering how long you'll be stuck making those payments.

Alexander Campbell7 said:It’s honestly pretty tough to say which option is "better"... there are just so many moving parts involved here...
In a perfect world—purely theoretical, of course—it makes sense to take out a loan in whatever currency you’re actually getting paid in. That way, at least you aren't constantly sweating over exchange rate fluctuations. But then again, even that logic can fall apart if interest rates start climbing and the bank decides to hike up your monthly payment.
On the flip side, who really knows what the future holds? For all we know, the dollar could shift significantly, or market trends could swing the other way entirely...
If you ask me, it’s a bit of a gamble. You really have to sit down and weigh which risks feel more daunting to you right now versus what might happen down the road—especially considering how long you'll be stuck making those payments.

Aha... so basically, a currency clause is just a safety net for the lender (the bank) to protect themselves against inflation and devaluation.

So, looking at this from a layman's perspective, what is the actual difference between a loan with a currency clause and one without? Which path is the smarter move?

Does anyone know if there's any way—and if so, which bank would actually deal with me—to get an auto loan if I've only been at my job for a month on a permanent contract, pulling in about $900 a month net?
I really don't want to sit around waiting for six months to pass... anything less than that would be ideal..

thx

It’s an uphill battle when you're fighting alongside an accomplice, especially when dealing with them is such a nightmare...

ruggedmaker20 said:Does anyone know if there's any way—and if so, which bank would actually deal with me—to get an auto loan if I've only been at my job for a month on a permanent contract, pulling in about $900 a month net?
I really don't want to sit around waiting for six months to pass... anything less than that would be ideal..

thx

Going straight through a bank is going to be tough. Your best bet is to head down to a dealership and let them handle the financing... A friend of mine works at a local clinic and makes about $1500. She wanted to pick up a Chevy that was priced at $10,000... she went to her bank first to ask for a loan, but they turned her down, or rather, wouldn't approve anything over $5,000. After that, she just went to the dealership, picked out the car, and they handled all the paperwork and the loan themselves. She had the keys within a week. So, yeah, doing it solo through a bank is a long shot, but through the dealer? That's doable.👍

So, what does it actually mean for my title to list the bank that approved my auto loan as the owner?😕 😕?

I know I have to carry full coverage for the entire life of the loan, but what happens if I end up wrecking the car or if I just decide I want to sell it?

I’m thinking about selling my car—the one I’m still paying off—just so I can pick up something smaller and pocket whatever cash is left over. I really need the extra liquidity, and honestly, I’d rather not deal with the headache of taking out another personal loan. I have the title in hand and I'm listed as the owner. Is it actually possible to sell the car and just keep making the monthly payments to the bank myself? Thanks!

Hey everyone,
😉
I wanted to reach out and see if anyone here has some insight or maybe some firsthand experience regarding auto loans. I'm trying to figure out which bank offers the most reasonable rates right now. Also, does anyone know if certain lenders offer any kind of safety net—like relief options if you happen to lose your job and can't make payments for a bit? I'm looking for the best interest rates possible. I'm eyeing a vehicle priced at around $14,000, and I think I could probably put down about $2,000 upfront. That would leave a principal balance of roughly $12,000 to pay off...

Honestly, I'm not even sure if I should be looking at a traditional loan or if leasing might actually be the better move here. Any advice at all would be huge!

Stay sharp! 👍

If you’d just taken a second to actually look at the first page of the banking section, you would have realized this topic has already been covered...

Please take a moment to familiarize yourself with the forum rules and the specific subforum guidelines (which are pinned at the top)...

Hey. I’m looking for some advice here, hoping someone might have a lead... So, here's the situation: I have an auto loan where the car itself serves as the collateral, through Wells Fargo, set for a seven-year term. I've managed to pay it down for three years now. However, I'm being laid off in about a month, which means I won't be able to keep up with the payments. On top of that, I've got another personal loan over at JPMorgan Chase with about three and a half years left on it. My monthly car payment is roughly $230. I actually went into the bank to see if they could just repossess the car to settle the debt and call it even. They told me they couldn't handle it because it's out of their hands—apparently, since the loan is insured, the matter falls under the jurisdiction of a major insurance provider like State Farm. What should my next move be? Is there anything else I'll be facing besides them eventually seizing the car?

Look, don't just sit there waiting for the sheriff to show up at your door and seize everything you own... that's a massive mistake. You’re just inviting a mountain of extra legal fees and penalties—which, let's be honest, I bet are absolutely staggering—and it's a total psychological nightmare. It's pure mental torture.

If I were in your shoes, I'd find a way to borrow some cash from someone you trust to wipe out that loan immediately. Sell your car if you have to, just get that money back to them and clear the slate.

Kimberly Nguyen said:Look, don't just sit there waiting for the sheriff to show up at your door and seize everything you own... that's a massive mistake. You’re just inviting a mountain of extra legal fees and penalties—which, let's be honest, I bet are absolutely staggering—and it's a total psychological nightmare. It's pure mental torture.

If I were in your shoes, I'd find a way to borrow some cash from someone you trust to wipe out that loan immediately. Sell your car if you have to, just get that money back to them and clear the slate.

hm... the gap between what I actually owe and what I can get for the car is more than $1,000 😕 and I don't have that kind of cash sitting around... do you guys really think this is a better move than letting them garnish everything? should I maybe try reaching out to State Farm and see if there's any room for a settlement? 🙄 one other thing to consider is that once I lose this job, I'll be heading back home to the Midwest...

So, how does a $1,000 deficit even make sense? I get it, you aren't going to get back every single cent you poured into a car, but you've still paid down a chunk of that loan...

Honestly, I still maintain that your current situation is the smarter, more cost-effective move...

Look, it doesn't cost you a dime to just pick up the phone. Actually, you should probably just drive down to the bank in person and lay it all out for them. Who knows? Maybe they have some kind of restructuring model or a way to work with you...

And this whole idea about moving across the country just because of your layoff? That’s a total non-starter. It won't change a thing. All you're doing is dragging out the misery and racking up relocation costs that are going to dwarf that $1,000 gap in no time.