Questions about financing and loans

[TheMidnightNarwhal]

I'm interested in a car at a used car dealer. It says rates starting from 4.49%. I have a credit score of 701 an I am 19 years old. I'm in Quebec province. Is it possible to get a better rate elsewhere? What should I be searching for, should I call up all major banks or do I need to stick with specefic car loan companies? If you did finance your purchase, which company did you use? Bank, dealer? Etc.

Thanks for the info!

[EnVe46]

I used a credit union for all mine and always got 2% on my financing with a slightly higher credit score but my debt to income ratio is pretty good which is a factor. Credit score only plays a role. Going directly to the source you should be able to do better on the interest rate cause the dealer will tack on points to make money on the back end. Not sure how it is up there but I assume it's similar

[///M Power-Belgium]

1-Work first
2-Work for the money
3-Make money
4-Save money
5-Buy car

Car would be a lot cheaper !

[TheMidnightNarwhal]

Originally Posted by ///M Power-Belgium

1-Work first
2-Work for the money
3-Make money
4-Save money
5-Buy car

Car would be a lot cheaper !

Yes I know... that was my original plan but figuring since I have a guaranteed job/income (Government Canda) I figured why not. I do have a big down payment ready for it though, about 45% of the cost.

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

Yes I know... that was my original plan but figuring since I have a guaranteed job/income (Government Canda) I figured why not. I do have a big down payment ready for it though, about 45% of the cost.

Keep in mind..
While you drive the car , she will cost non-stop !

About what car are you talking about ?

[EnVe46]

I actually disagree to an extent. With a good interest rate there's no reason not to use it and keep liquid cash. Obviously if you have all the money to buy a car and still have a good deal of liquid cash then of course but I utilize financing whenever possible when it makes sense.

[TheMidnightNarwhal]

Originally Posted by ///M Power-Belgium

Keep in mind..
While you drive the car , she will cost non-stop !

About what car are you talking about ?

Totaly understand that. I have money on the side for that.

Well... I didn't mention it explicitly but we are on M3 post, so if you wana take a guess

So I do already have money planned for rod bearings change. Also, the car comes with a warraty until may 2019. Not sure yet of the details of it but I'll check that in detail.

[TheMidnightNarwhal]

Originally Posted by EnVe46

I actually disagree to an extent. With a good interest rate there's no reason not to use it and keep liquid cash. Obviously if you have all the money to buy a car and still have a good deal of liquid cash then of course but I utilize financing whenever possible when it makes sense.

Would it make sense at 4.49%?

I'm just not sure if it's a good deal or not. I don't know what's the average.

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

Totaly understand that. I have money on the side for that.

Well... I didn't mention it explicitly but we are on M3 post, so if yo wana take a guess

So I do already have money planned for rod bearings change. Also, the car comes with a warraty until may 2019.

Hope you realize an ///M3 is absolutely not cheap . Maintenance ,lots of fuel for the V8, tires, insurance, taxes ect..

Bearings...Yeah , you got that right . It's actually a pain in the a$$.
But maybe it's not necessary , depends how she sounds, the miles she ran and her oil change history.
Warranty is good in your situation . Is this a BMW warranty ? And are the bearings covered in the warranty ?

Can you post a link to the car ?

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

Would it make sense at 4.49%?

I'm just not sure if it's a good deal or not. I don't know what's the average.

Google is your friend..

[EnVe46]

This is all opinion so take with a grain of salt. If you have little debt, good income and a decent credit score you should be able to do better. Do you have credit unions in Canada? If so, find one and go directly to them, apply for desired amount. This is purely my opinion and differs from others. No one is right or wrong just based on your view

[TheMidnightNarwhal]

Originally Posted by ///M Power-Belgium

Hope you realize an ///M3 is absolutely not cheap . Maintenance ,lots of fuel for the V8, tires, insurance, taxes ect..

Bearings...Yeah , you got that right . It's actually a pain in the a$$.
But maybe it's not necessary , depends how she sounds, the miles she ran and her oil change history.
Warranty is good in your situation . Is this a BMW warranty ? And are the bearings covered in the warranty ?

Can you post a link to the car ?

Yeah I know. Insurance is covered in my buget right now an a bit of spare money per month.

How much a month would you say you need of spare change? Looking around from my deductions I have enough but more opinions is always great.

It has all the maintenance records. I called all BMW dealerships and it's regular stuf like oil, one was a valve cover I believe. Nothing on throttle actuator unfortunetely.

I don't know, pretty sure it's used dealer warranty. Don't know yet. Didn't check car in person yet since it's about 3 hours away.

Here is link

[TheMidnightNarwhal]

Also I do DIY mostly every regular maintenance things. Won't daily the car.

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

Yeah I know. Insurance is covered in my buget right now an a bit of spare money per month.

How much a month would you say you need of spare change? Looking around from my deductions I have enough but more opinions is always great.

It has all the maintenance records. I called all BMW dealerships and it's regular stuf like oil, one was a valve cover I believe. Nothing on throttle actuator unfortunetely.

I don't know, pretty sure it's used dealer warranty. Don't know yet. Didn't check car in person yet since it's about 3 hours away.

Here is link

How much a month ? Depends how much you drive it .

From your link...

Price looks +/- right for the build year and miles/km .
It says it has a sunroof , but from the pics I can see the roof is black (maybe it's a black wrap)
A black roof means with a E92 it has a carbon roof and with a carbon roof a sunroof is not possible .
If you have no carbon roof , you will regret it !

The interior pics..

I saw the black Novillo leather and steering wheel is done with some shiny stuff (produkt) , while our leather actually looks matte from the factory .
I saw the passenger seat has several scratches in the leather and the driver seat has a big scratch in the leather .
Side bolsters show also wear on the leather . And personal I think you can better see the car first in person , also for a test drive..

The driver seat...

[TheMidnightNarwhal]

Originally Posted by ///M Power-Belgium

How much a month ? Depends how much you drive it .

From your link...

Price looks +/- right for the build year and miles/km .
It says it has a sunroof , but from the pics I can see the roof is black (maybe it's a black wrap)
A black roof means with a E92 it has a carbon roof and with a carbon roof a sunroof is not possible .
If you have no carbon roof , you will regret it !

The interior pics..

I saw the black Novillo leather and steering wheel is done with some shiny stuff (produkt) , while our leather actually looks matte from the factory .
I saw the passenger seat has several scratches in the leather and the driver seat has a big scratch in the leather .
Side bolsters show also wear on the leather . And personal I think you can better see the car first in person , also for a test drive..

The driver seat...

I intend to negotiate to 30k. It's been up for a while.

I think it's jujst reflection, no wrap on roof. Honnestly yeah at first I wanted carbon roof but after reading some posts it doesn't seem to really matter much. It's not that big of a difference. And for the price this is the only car I can find.

My ony issue is there is now BMW dealer nearby for PPI. The BMW independent dealer that is in the area is the one I'm buying the car from, they have a shop to. I do plan on doing inspection back in my town by a guy I now who is pretty good. But it has some warranty so it might not be to much of shooting in the foot you know.

Nice find I did not spot the seats. The shiny on the leather I know, I'm a big fan of auto detailing and got the right products at home.

My dream M3 wouljd be white with carbon roof in 6spd but it's very hard to find and space gray is still pretty nice and growing on me.

Yeah just gotta plan it since it's 3 hours away.

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

I intend to negotiate to 30k. It's been up for a while.

I think it's jujst reflection, no wrap on roof. Honnestly yeah at first I wanted carbon roof but after reading some posts it doesn't seem to really matter much. It's not that big of a difference. And for the price this is the only car I can find.

My ony issue is there is now BMW dealer nearby for PPI. The BMW independent dealer that is in the area is the one I'm buying the car from, they have a shop to. I do plan on doing inspection back in my town by a guy I now who is pretty good. But it has some warranty so it might not be to much of shooting in the foot you know.

Nice find I did not spot the seats. The shiny on the leather I know, I'm a big fan of auto detailing and got the right products at home.

My dream M3 wouljd be white with carbon roof in 6spd but it's very hard to find and space gray is still pretty nice and growing on me.

Yeah just gotta plan it since it's 3 hours away.

Keep us/me posted

[MaximusB]

4.49% is a bit high but not outrageous. Since you have enough to pay off 45% of the car up front, you're really not financing all that much. I guess it depends on how fast you're planning on paying the car off. Obviously the faster you pay it off the less you pay on interest. Having said that you should also find out if they will allow you make double payments, that way if you find yourself with extra saving down the road you can pay it off even faster.

Also do you have a line of credit with your bank? If you do, check to see what the rate is as it might be less than 4.49%. If that's the case borrow from line of credit because that is something you can always pay off as fast as you want/can.

Personally I wouldn't stretch yourself out too much financially on a car because it is always a depreciating asset.

[TheMidnightNarwhal]

Originally Posted by ///M Power-Belgium

Keep us/me posted

Will do, thank you for your help and info on the whole subject!

[TheMidnightNarwhal]

Originally Posted by MaximusB

4.49% is a bit high but not outrageous. Since you have enough to pay off 45% of the car up front, you're really not financing all that much. I guess it depends on how fast you're planning on paying the car off. Obviously the faster you pay it off the less you pay on interest. Having said that you should also find out if they will allow you make double payments, that way if you find yourself with extra saving down the road you can pay it off even faster.

Also do you have a line of credit with your bank? If you do, check to see what the rate is as it might be less than 4.49%. If that's the case borrow from line of credit because that is something you can always pay off as fast as you want/can.

Personally I wouldn't stretch yourself out too much financially on a car because it is always a depreciating asset.

Well there is still that 15% tax to...

But yes, originally my plan was to finance it longest a can while also having good rate and certainly pay it off before the loan ends. But as my mother pointed out, I don't know yet if I can pay off the loan withotu having the interest or I can only pay off loan with interest ,in which case there won't much of a point really.

No I do not. I will call my bank and ask them options and like you said for credit line and check that out to.

I totally understand. I'm just looking at having something fun that's isn't crazy expensive. A M3 fits that IMO. I won't even daily it. I take the bus to go to work because of traffic. M3 does well if I want to try it out at a track, fun car, can go out with friends. Originally I wanted a Focus RS but I said F that, at 20k more expensive and I always really wanted a sweet 2 door M3 Lol I know it might not seem like a good comparaison at all I know I agree.

But I digress

[Yvette]

I say go for it if you can afford it.
M3 was a dream car for me when I was 19. It is not a collectors car, just DD it!

[///M Power-Belgium]

Originally Posted by TheMidnightNarwhal

Will do, thank you for your help and info on the whole subject!

I forgot this yesterday..

1- Try to contact the previous owner of the car and request more info about the car.
2- Check the history from the keyfob.

[TheMidnightNarwhal]

Originally Posted by Yvette

I say go for it if you can afford it.
M3 was a dream car for me when I was 19. It is not a collectors car, just DD it!

Man I would if I could. With 20$ a day for parking, and shitty traffic that makes it not fun...

I had a 330ci before and I used it to go to work once. Man, all the fun was gone due to traffic. I left the next day at 5am and then it was fun hahaha.