Financing '02 Celi GTS, 6-speed

I was hoping you folks might be able to help me come to terms with some financing issues because I am a newbie both to this forum and to the world of financing cars.

I have a poor credit history, unfortunately, which included a personal bankruptcy from which I was discharged a few years ago (there are still a few negative things on my credit history, though).

I am in Canada and I wasn't able to get financing through any of the normal channels ie. Toyota or my own bank. I have been able to get financing through a company that deals with less-than-ideal candidates such as myself but I am concerned that I am going to get screwed. I was hoping that if I provide a few details, somebody could tell me how badly I am being screwed. Note however that I am willing to accept some pain to get into the car, ie. there is a price I'm willing to pay because I don't see any other way and I can afford the payments. Here's the scoop (don't laugh too hard):

$700/mo. for 6 years financing (not a lease, no buy-out). My calculator indicates a total cost of $50,400 (canadian). The car I'm looking at costs about $30,000 (canadian). Now am I nuts or is that a heck of a lot to pay?! I could probably do it for 1 year and then my bank would likely let me re-finance at that time with a much better interest rate. But as it stands, how could I be paying $50K for a $30K car? That's an added 2/3 of the cost of the vehicle!

It's not a done deal yet and the finance lady at Toyota is going to try to convince my own bank to finance me but if they won't and this is the only way to get into the car, I just don't know if I am being "taken for a ride". Any advice or consolling you can offer would be greatly appreciated. I haven't signed on yet but I am getting pretty close.

[XYRCNCP]

How's your financial situation? Is it good enough that those $700/mo won't hurt you? if not, get another car, something cheaper, stay on top of your bills, payoff some stuff, and get your credit back on track. If it won't hurt you at all, yeah IMO is kinda high, but if you want it go for it, but you pretty much answered your own ?, you KNOW you will pay more in the long run that the car is worth.

[Stress]

I don't know a lot about financing either, but YES, that is WAY TOO MUCH interest to pay on a $30,000 car. I co-signed with my dad, who has a very good credit record, and I will only be paying $1000 worth of interest on a 4 year term. That is on only $10,000 dollars though.

What is the interest rate you were offered on that $720 a month over 6 years deal? It seems REALLY high.

[CeliRacer]

$700CDN a month is alot. For that amount, that should include full insurance coverage. Even if you can afford it, that is still alot of money.

Three options I can think of:

!. Try to see if you can get somone with good credit to co-sign with you.

2. Save up some addtional money so you can show the bank that you have money for either a generous down payment and/or proof that you have some collateral.

3. Try a credit union. Most of the time, they have cheaper interest rates than a regular bank.

If those don't work, what about getting a used GTS?

[109/302]

Your getting a bad rate there for sure.

You didn't mention your current car situation but if you got a car and just want something cooler I would save the $700 a month you would have paid to the car for a year. Then you would have $8400 to add to what ever deposit you have now. That would also give you time to clean up your credit. With a bigger deposit you probably can get a loan through Toyota or other more convention channels

It's your money do as you wish no one can stop you.

[XYRCNCP]

Originally posted by CeliRacer
$700CDN a month is alot. For that amount, that should include full insurance coverage. Even if you can afford it, that is still alot of money.

Three options I can think of:

!. Try to see if you can get somone with good credit to co-sign with you.

2. Save up some addtional money so you can show the bank that you have money for either a generous down payment and/or proof that you have some collateral.

3. Try a credit union. Most of the time, they have cheaper interest rates than a regular bank.

If those don't work, what about getting a used GTS?

1. The Cosigner route might work.

2. Bigger down payment might also work, as for collateral, in a car loan, the car itself is the collateral.

3. Actually believe it or not it could be harder to get it through a Credit Union. I work for the largest one in the world (NFCU) and a. you have to be a member of a credit union, b. credit unions protect their assets more aggresively than commercial banks and c. they do have lower interest rates.

But like said already, is your money and only you can decide what to do with it. IMO, I would wait. Save up the $$, dont get more credit, and if your debt is skyrocketing and you are paying out more than you are making, you might want to seek the help of a reputable Credit Counseling Agency (CCCS) that can help you get your debt straight.