OKay, I’m looking to take out a ~$5K car loan. My question is, will I need to put full collision on the car? The car is only worth like 6 grand, but full collison will be around 2 grand on the car(because I’m 20)
The thing is, I have plenty of money but I took it out of my savings account and put it in a CD for 9 months.
Is there anyway I can use that as collateral to show the lender that I infact have the money to pay off the loan if I do wreck it?
you could always put on full coverage then take it off and ride it out until they notice?
So if you wrecked the car would you be able to cash in the CD?
[quote=“ultradriver10000,post:2,topic:33546"”]
you could always put on full coverage then take it off and ride it out until they notice?
[/quote]
Like, take off full coverage and put just basic on it? that’s what I was thinking.
It’s rediculous, I’m not paying 2 grand for full cov. a year.
Liability only is still $700 a year.
My truck is on my rents insurance but I pay it, it’s only 1200 a year for full,
But i;m putting the car in my nam eonly
[quote=“BikerFry,post:3,topic:33546"”]
So if you wrecked the car would you be able to cash in the CD?
[/quote]
YES, there is a small penalty but You can do it incase of emergencys
Gotcha. I guess it’s implied, but it’s mandatory for the loan company that you have full coverage?
You will be told you need full coverage, I never ran into an issue with even no insurance on a car while it was off the road though.
:gotme:
I’m going thru the O.P credit union. 5.9% apr on auto loans, I’m going to see today, but i’m pretty sure you need full coverage.
Just wondering if there is anyway around it. I’ll check out personal loans too
[quote=“Willybeen,post:7,topic:33546"”]
personal loan… so its not tied to a title of a car?
[/quote]
X2
^ do you have to be a member of the credit union to get a loan?
[quote=“93dx–hatch,post:11,topic:33546"”]
^ do you have to be a member of the credit union to get a loan?
[/quote]
Yes, you have to have a minimum of $20 in your account
a 5k loan at a rate 2 % higher since its a personal loan is way better than the 1500 dollar difference in insurance
I would go personal loan. I’m sure the CU will give you one with a good rate if you have that much cash on hand. They can probably even secure the loan with the CD if needed.
I got 7.low% (25 or something) on a personal loan secured by a CD of the same size. I had a cosigner though and decent credit rating on my own. I wouldn’t hesitate to do it again.
Are you planning on paying off the car with the money in the CD once the time limit is up? What’s the penalty on the CD? You’re not farther ahead cashing in the CD instead of paying interest on the car are you?
[quote=“BikerFry,post:16,topic:33546"”]
Are you planning on paying off the car with the money in the CD once the time limit is up? What’s the penalty on the CD? You’re not farther ahead cashing in the CD instead of paying interest on the car are you?
[/quote]
I plan on paying the car off this winter. I don’t make enough money in the summer to save up for the car but this winter I should have It payed off by febuary.
I figure I’ll take out the loan for 48 months so I have a very small payment and only pay maybe a few hundred in intrest before I pay it off.
I’m going there in an hour so I’ll let ya guys know how it goes
Good luck.
I think I’m gonna go to that bank and try to get the same loan.
Where is it?
I’ll stop hijacking your thread now
Two grand your getting ripped off. i would see how much for you, unless you have accidents or tickets