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View Full Version : What do you think about personal loans?


BWillie
01-04-2008, 10:34 PM
I want to buy a 2001 Honda Insight for $8000. They get 62 miles per gallon. I don't want to get a loan from a bank, and get a lien on my car because I do not want to pay for comprehensive or collision coverage for a $8000 car.

I get 17 mpg right now. I drive about 25K - 27K miles a year. I figure if I get this car I will save $3100+ a year on gas. Liability on this thing is $167 for six months, but if I get a 1K Comp and Collision deductible it goes up to $502. Needless to say, I do not want to carry these coverages.

I have been looking into getting a personal loan, because they I could use the money on whatever I want and I would be the sole owner of the vehicle. I could probably afford to buy the car outright, but I do not wish to do so right now. I would prefer to keep my "oh shit" cushion in my savings account. I would like to get a personal loan for 7-8K with around a 7-9% interest rate.

Can it be done? I've been looking at Capital One and it appears one can if they have good credit, and I definitely have good credit. Only problem is that you have to get a loan for 15-30K though, and I have no need for a 15K loan.

What is the best way of securing a $7k loan for a decent interest rate so I don't have to pay full coverage. Are there any credit cards that have no APR for 4-5 years or can anybody loan shark me? Come on, I'm good for it. :D

Extra Point
01-04-2008, 10:51 PM
Do it through a bookie. Chiefs to win the SB in '08. Sure thing.

Sorry, can't help. Good luck on your deal, BWillie.

Baconeater
01-04-2008, 10:51 PM
You need some type of collateral to secure any loan. It's also extremely risky to run liability only on an $8,000 car, but I feel your pain with those rates, being young sucks when it comes to that shit.

BWillie
01-04-2008, 10:59 PM
You need some type of collateral to secure any loan. It's also extremely risky to run liability only on an $8,000 car, but I feel your pain with those rates, being young sucks when it comes to that shit.

Yeah, but I have the "oh shit" cushion. Honestly, even if I did get in a minor fender bender I wouldn't really care if it was fixed or not. As long as the car is still driveable, and saving me tons of money on gas I don't care. I plan on driving it until it dies anyway.

I haven't got in a real wreck with another car in my entire life; only inanimate objects. Sure I hit things from time to time, but never anything serious. Insurance is sharing the risk..and I have enough money in the bank to take care of the car if I had to. I just wouldn't want to.

Capital One..on their website anyways says you don't have to give ANY collateral to get a 10K loan for 7%. I thought it was kind of strange because that sounds too good to be true of a deal.

elvomito
01-04-2008, 11:00 PM
the first one has no lien but minimum $10k... maybe just repay the extra $2k on the first payment?
http://www.bankrate.com/brm/rate/auto_ratehome.asp?params=KS,1013&product=74&refi=0

Bump
01-04-2008, 11:23 PM
don't sign up through progressive like I did. I though $240 for 6 months was good for 6 months, renew fee = $340. I'm like WTF??? I've NEVER been in an accident of any type in 14 years of driving *knock on wood* and my last traffic ticket was in 1999!!!! I only renewed because by the time I realized I only had a few days to renew so I went with the easy route. I'll be more prepared in about 5 months.

BigMeatballDave
01-04-2008, 11:31 PM
Just get the full coverage. If you are at fault in an accident, you are gonna be paying to repair your car, plus re-paying the loan.

Baconeater
01-04-2008, 11:32 PM
Yeah, but I have the "oh shit" cushion. Honestly, even if I did get in a minor fender bender I wouldn't really care if it was fixed or not. As long as the car is still driveable, and saving me tons of money on gas I don't care. I plan on driving it until it dies anyway.

I haven't got in a real wreck with another car in my entire life; only inanimate objects. Sure I hit things from time to time, but never anything serious. Insurance is sharing the risk..and I have enough money in the bank to take care of the car if I had to. I just wouldn't want to.

Capital One..on their website anyways says you don't have to give ANY collateral to get a 10K loan for 7%. I thought it was kind of strange because that sounds too good to be true of a deal.
$8K is just too much to risk IMO, can you get a higher deductible than $1K?

As far as borrowing, I don't know if you have one or if it has enough value, but when we bought the Mrs her last car we borrowed against her 401k. We still pay interest, but it goes back into her account. That way we have clear title to the vehicle so we can sell or trade it in if we want. Nevertheless, I still pay for comp & coll on it, although I can drop it if I feel inclined. It's only $30/mo extra on it so it's worth it.

BWillie
01-04-2008, 11:36 PM
don't sign up through progressive like I did. I though $240 for 6 months was good for 6 months, renew fee = $340. I'm like WTF??? I've NEVER been in an accident of any type in 14 years of driving *knock on wood* and my last traffic ticket was in 1999!!!! I only renewed because by the time I realized I only had a few days to renew so I went with the easy route. I'll be more prepared in about 5 months.

Wow really? I'm with drive insurance, which pretty much is progressive. As far as liability only rates go they were by far the best I looked. Geico, All-State, E-Surance..all wanted to charge me about $100 more per six months. I think progressive only counts the last 3 years for your tickets instead of 5. I haven't had a problem yet. I can't complain about $29 a month being 24 years old.

Nightfyre
01-05-2008, 12:23 AM
If you own a home, you can get a home equity loan that has tax-deductible interest.

Mr. Flopnuts
01-05-2008, 12:28 AM
IF and I mean IF your credit is good enough. You can absolutely, positively get a non collateral personal loan. I suggest it. Why would you want someone else as a lien holder on any property of yours? If it's an option, no one should get an auto loan. Unless of course the interest is much lower.

blueballs
01-05-2008, 01:07 AM
62 miles to the gallon
how about a bridge in San Fransico
it solid gold - I'll take $7999

btlook1
01-05-2008, 05:45 AM
If you buy an 8k car owe 7K on it with only liability then wrap it around a pole some night...your fault...guess what you owe 7k and have no car! Seems to me if you for the price difference just pay the full coverage. Think of it as protecting your assets!

Count Zarth
01-05-2008, 05:54 AM
http://img142.imageshack.us/img142/4726/hondainsightef3.jpg (http://imageshack.us)

That's a gay car you're after.

WTF are you supposed to do if one of the rear tires has a flat?

Bob Dole
01-05-2008, 06:02 AM
http://img142.imageshack.us/img142/4726/hondainsightef3.jpg (http://imageshack.us)

That's a gay car you're after.

WTF are you supposed to do if one of the rear tires has a flat?

Remove the panel that's covering the rear wheel and tire.

BigMeatballDave
01-05-2008, 07:13 AM
I have American Family. I have checked all the major companies, and AMFAM has the best premiums.

BigMeatballDave
01-05-2008, 07:14 AM
http://img142.imageshack.us/img142/4726/hondainsightef3.jpg (http://imageshack.us)

That's a gay car you're after.

WTF are you supposed to do if one of the rear tires has a flat?Again, you prove why when someone around here calls you a dumbass, its not for nothing...

Bwana
01-05-2008, 07:15 AM
Just get the full coverage. If you are at fault in an accident, you are gonna be paying to repair your car, plus re-paying the loan.

What Bid D said........ It's not worth the risk of hitting another car and not having the full boat. Check with State Farm, Farmets or Allstate for rate. My guess is, one of those guys will have the best rate.

Braincase
01-05-2008, 07:22 AM
I would check out the status of those batteries beofre I blinked at a 6 year old Insight.

dj56dt58
01-05-2008, 09:35 AM
What about tha website someone posted on here? Were people bid to give you a certain amount of what you need and the people that charge the highest interest rates are knocked out?

HonestChieffan
01-05-2008, 09:38 AM
Whats wrong with the car you have other than mileage? Is it paid for?

Borrowing money for a car is never a smart thing.

stonedstooge
01-05-2008, 10:38 AM
If you have a life insurance policy you can borrow against it if you have enough equity built up at a reasonable rate. Watch out for the credit card checks. I borrowed $5,000 on on of those locked in at 4% in January of last year, had a payment two days late in November and they jumped the rate to 26%. I called them and told them if I had a choice I would rather they break a couple of my fingers then pay that kind of interest. Bastards. I can't believe the government allows them to get away with their Gestapo tactics.

L.A. Chieffan
01-05-2008, 10:43 AM
You don't have to have insurance to register your vehicle?

blueballs
01-05-2008, 10:46 AM
Whats wrong with the car you have other than mileage? Is it paid for?

Borrowing money for a car is never a smart thing.

If you need a new or another car is one thing
but getting one thinking your saving money on gas is another
you really got to travel alot to pay for higher payment and all
the fees and taxes involved in getting another vehicle

Baconeater
01-05-2008, 10:56 AM
You don't have to have insurance to register your vehicle?
Most states only require liability coverage, he has to have that. What he's talking about is not carrying the collision or comprehensive which is required with a conventional auto loan.

BWillie
01-05-2008, 11:04 AM
I would check out the status of those batteries beofre I blinked at a 6 year old Insight.

Not to worry my friend. Honda backs every car with a 150K 10 year warranty on the battery and replacement of it. I've yet to find ONE insight owner that does not like their car.

As for having liability on a 8K car. As I said earlier, I have enough money to pay for the car outright, but I just don't want to. If I had to, I could. That is exactly what I keep the money around for, in case shit happens. Like totalling the car. If you have enough money laying around, and it won't screw you financially then there is no point in paying an insurance company to share the risk of your asset.

For example, if you had a 100K house, and had 140K in the bank, and your house was paid for, you really don't have much of a need to have insurance on the brick and mortar of the house. Most people don't have that kind of money sitting around, but alot of people have 10-20K sitting around.

blueballs
01-05-2008, 11:07 AM
your and idiot

Baconeater
01-05-2008, 11:17 AM
For example, if you had a 100K house, and had 140K in the bank, and your house was paid for, you really don't have much of a need to have insurance on the brick and mortar of the house. Most people don't have that kind of money sitting around, but alot of people have 10-20K sitting around.
I can see you working with the car, sort of. By fully covering it, you're basically betting that the odds are good you're going to wreck it. It's still risky.

But when it comes to a home, you'd be absolutely focking nuts to not insure it, regardless of your financial position. There's too many things beyond your control that can happen to it. Not to mention my homeowners insurance costs me less per year than what I spend insuring my vehicles.

DenverChief
01-05-2008, 01:26 PM
why not take out a 15K loan use the 8K and use the remaining 7 K to pay off the loan @ $1,000 a month for 7 months, then pay down the loan from there

DenverChief
01-05-2008, 01:36 PM
why not take out a 15K loan use the 8K and use the remaining 7 K to pay off the loan @ $1,000 a month for 7 months, then pay down the loan from there


actually then you could refinance and get a lower monthly on the 8K or so left

CoMoChief
01-05-2008, 01:53 PM
I got a $2K loan from Commerce Bank. $55 a month for a couple years, though I paid part of it off with a Xmas bonus I got.