Expected APR% w/ Co Signer - Used Auto Loan

[disneysteve]

I guess I'm behind the times - don't understand how you can convert an auto loan into a student loan.

Student loans tied to school expenses. When I was in school, I was able to borrow a lot more than I needed for school. It was used for living expenses, rent, food, etc. I had several friends who used student loan money to buy cars. The loan terms are better than what someone in that position can typically get on a car loan.

[ActYourWage]

NEVER co-sign or have some one else co-sign...PERIOD.

You can't afford this vehicle, buy a cheaper car, you will thank yourself later. I made the mistake of buying a $20,000 car when I was 23 when I could not afford it.

[poundwise]

From your wisdom, is this a good vehicle purcahse (taking into account the vehicle itself, depreciation, value, longevity, etc.)?

No.. because that vehicle is not worth that price

No.. because you do not have a substantial down payment

No.. because you do not make enough to justify the monthly payment

No.. because the purchase price is nearly half of your annual income

No.. because the APR you will pay will be ridiculous, unless you overpay for the vehicle, which allows the dealer and/or lender to manipulate the rate

No.. because co-signing is idiotic; you shouldn't want to put your parent on the hook for this debt and they shouldn't enable you to purchase such an expensive vehicle at your age, with your credit, and with your income, etc.

[Merch]

I want to answer your question from a slightly different way.

What are your goals over the next 5 or so years? And how does this car fit into your goals. I used to be of the mindset I can afford the payments on this and that. What I found out was that pretty sound most of my income was going to debt payments. Then my mindset changed to I can out earn my debt. Then I got married had kids and I could no longer out earn my debt.

Maybe you want to do a little traveling next year. Wouldn't it be great to pay $4,000 cash for a car and use those monthly payments to save for a vacation? Or maybe you want to start fixing your credit for the future when you buy a house or condo?

I am just saying where does this car fit in your goals? It is great you have a good job and income. Use it wisely, and you will be rewarded.

God luck.

[rizzmo]

What are your reasons for wanting this vehicle?

[QuangSiicle]

So I am going to update everyone with the information on what ended up happening. Thanks for all of the advice and thanks for some of the somewhat rude comments.. no matter how realistic they are. I ended up finding the perfect 2008 Infiniti G35 Journey sedan with the upgraded premium package that I wanted. I was able to talk to the price of the vehicle down from 17998 to 14999 after taxes licenses and fees I was looking at about 16,500 out the door. I put down a down payment of $10,000 and left myself about $1500 in my savings acct. My dad DID co-sign for me.. let me add that I am asian and in my culture, our family ACTUALLY HELPS EACH OTHER OUT! I was able to get a 4.9% APR with his credit and mine. I thought my credit was 545 but it was actually 620(I know thats still bad but hey it was wayy better than I thought) My Payments are 133.94/Month on a 48 month Loan which I believe is wayy more than affordable. Also this vehicle ended up dropping my insurance costs by $37/ month. So between my car payment and my insurance I am paying $221.94/month. With my income of 2700/month I think that for both a car payment and insurance that is more than reasonable. I know that there could have been better options like everyone says and get a junk car that I am probably going to have problems with in the future but now I am happy! In terms of my other bills I guess I forgot to leave out that I live with my BF and we make our bill payments together, at least in terms of rent/utilities/groceries/normal living expenses. I pay about $850/ month for all my other bills such as my rent/internet tv/cell phone/gas. So after taxes that leaves me still with about $1000/month for saving, food, and extra costs. Of course I had figured out all of these things prior to deciding whether or not purchase this vehicle. I know everyone has been telling me NO NO NO but i think with all this information it makes enough sense that I purchased this vehicle and that it will help me with my credit. I realize I could have bought a 10,000 car outright and saved $133.94 a month but cmon.... I probably would have spent that little by little every month on something else without even thinking about it anyway(Don't act like everyone of you doesn't see something on occasion where you think, " I guess i'll purchase that, within reason)

Now my Bf also has an income of $3700/month and of course like i said before he takes care of half of the bills and has a few of his own but I think we are doing fine for a young couple living on our own for the first time(its been almost 2 years that we've lived together)

Anyway sorry for the rant but i thought i should update with what has happened.. especially after all of the negativity that I've heard on here.

Thank you to all of the comments though.. especially the nice people who actually gave me information that I could use.

[BuckyBadger]

...let me add that I am asian and in my culture, our family ACTUALLY HELPS EACH OTHER OUT!...I realize I could have bought a 10,000 car outright and saved $133.94 a month but cmon.... I probably would have spent that little by little every month on something else without even thinking about it anyway(Don't act like everyone of you doesn't see something on occasion where you think, " I guess i'll purchase that, within reason)

Well, as long as we're just throwing out racial stereotypes willy-nilly, I guess I would have thought that an Asian kid would have parents who were smart enough not to throw good money after bad on a kid who wants to buy a car that the kid can't afford when the kid has already made the poor choices that have led to the kid at the age of 19 already having a repossession and two credit cards that went into collections...

And if you aren't able to figure out some way to save $133.94 a month, I think you're in for a rude awakening later on in your life when people stop co signing for you.

Advice doesn't have to be "nice," it just has to be true.