Great Success

[crazymikey]

Some of you are aware of the financing situation I am in with my 2005 Mazda 3.

I purchased the car in July, however was bent over the table with no lube with a 20% interest rate upon approval due to my poor and lack of credit history.

I have currently paid off $2000 on the car ,and also put 10 000km on it in 3 months.

I'm currently paying $333/mo for 60 months on this car. Yes, add that up and that will be around $19k.

I applied for a $10 000 car loan from my bank and was denied. When I called back to ask why, they explained to me that I have my Visa, which is my only source of credit, and I am owing near $5000 on it. If they were to lend me $10k, I'd owe them $15k, which is beyond my limit of what they can lend to me.

Several months ago I did miss 2 credit card payments and due to this, my interest rate shot from 11.9 to 16.9. The guy on the phone explained to me that if I make my payments on my credit card for 3 more months, my credit will be back in better standing and my interest rate will be renegotiated, ans as well I will then be able to get approved for the car loan.

In this case, in 3 more months, I will owe around $9000 on my car. A 10k loan will be at 8.4%, with payments of $321/mo for 36mo or $247/mo for 48mo. This way my car is paid off, and then I am just paying off a personal loan and I own the car outright.

In this case, I plan to put the car up for sale, and then I can get myself back into another CB7, a CD5, DA6/8 or a BB6. I'm actually really interested in getting a RHD CB or DA. Finding a RHD 5 speed CB7 coupe would be the unltimate plan, and I can get an H22 with a tranny for $400.

As much as I really like my Mazda, its not a car I want to be with for 5 years, but I had to choose the 5 year financing to afford the payments.

So, good news finally came out of being denied loans and trade ins and other ways of trying to get out of this contract. 3 more months and I'm good.

Anyone want to buy a 2005 Mazda 3 GT?

[ibr_adam09]

Sounds like your going through a mess. I hope I never have to go through anything like this, especially for a car.

[crazymikey]

yeah it's a total pain in the ass. but it's the cheapest and easiest way of getting out without having to finance another vehicle afterwards.

[wed3k]

so you already owe 5k and you tried to apply for a loan?

[crazymikey]

I owe $4900 on my Visa, which was issued to me through my bank. I applied for a $10 000 car loan through my bank. So, since the money owed on my Visa is from the same bank, I would technically be in debt to them for $15 000. Or that's what the guy on the phone explained to me anyways.

I owe $10 500 on my car right now. A $10k loan and 1 months payment plus another $167 ontop will clear up my finance contract from the dealership and buy me the car outright.

[wed3k]

you could also just spend less money?

[foamypirate]

Credit cards are bad. Not entirely sure how to go about racking up 5k on one...mine gets paid off every month, in full.

['93CB7Ex]

Sorry, but I had too. lol

[crazymikey]

Credit cards are bad. Not entirely sure how to go about racking up 5k on one...mine gets paid off every month, in full.

Try being unemployed for 8 months, moving across the country, working for a friend and another deadbeat employer who are slow at paying their employees and spending $3000 on your shitty old truck to fix it to pass interprovincial inspection.


That's how.

[crazymikey]

you could also just spend less money?

That's the whole point of getting this loan. It will be paid off in 3 or 4 years instead of 5, at a much lower insterest rate, thus putting more money in my pocket each month, not leaving me so broke.

I also didnt get the raise at work that I was expecting this summer, so that put a real bummer on things. Plus rent where I live is high for where I'm living and we have the house for sale and looking to downsize to lower our rent.

[HondaB18]

The guy on the phone explained to me that if I make my payments on my credit card for 3 more months, my credit will be back in better standing and my interest rate will be renegotiated, ans as well I will then be able to get approved for the car loan.

In this case, in 3 more months, I will owe around $9000 on my car. A 10k loan will be at 8.4%, with payments of $321/mo for 36mo or $247/mo for 48mo. This way my car is paid off, and then I am just paying off a personal loan and I own the car outright.

So, good news finally came out of being denied loans and trade ins and other ways of trying to get out of this contract. 3 more months and I'm good.

Borrowing must be different up north. No way, no where in the US would interest rate drop after missing 2 credit card payments. If what the guy says is true you got it good.

Well you already know my decision on what I think about you buying this car. But don't count your chickens before they hatch. Thats all I gotta say.

[crazymikey]

Borrowing must be different up north. No way, no where in the US would interest rate drop after missing 2 credit card payments. If what the guy says is true you got it good.

Well you already know my decision on what I think about you buying this car. But don't count your chickens before they hatch. Thats all I gotta say.

No, I was at 11.9%. I missed 2 payments and it jumped up to 16.9%. Now, I'm in a probation period for 6 months to make my minimum payments. When I've done that, they will renegotiate my rate, and most likely get it back to where it was, and at the same time, will probably be approved for the loan, as my credit will be back in good standing.