CarMax is going crazy!

[superj]

they view everyone as bad though, i bet. i get 0% interest from ford and nissan but carmax, carvana, and the other car place like that wanted to give me 10 or 12.

 

[Eddo Rogue]

Dunno much about it, but I would imagine. The big thing is that they will finance almost anyone and rate, I’m assuming, is based on what they view as the risk.

It's easier to get financed for stuff that's important to not miss a payment on, and easy to take back....like cars, and houses. A jet ski or even a mini bike is very difficult to get a loan on surprisingly, mainly because it's the first payment to get missed when money gets tight, and easy to stash from the repo man too. But it's all a game of poker, the idiot willing to pay 17% interest is a high risk/reward gamble.

 

[97RangerXLT]

It's easier to get financed for stuff that's important to not miss a payment on, and easy to take back....like cars, and houses. A jet ski or even a mini bike is very difficult to get a loan on surprisingly, mainly because it's the first payment to get missed when money gets tight, and easy to stash from the repo man too. But it's all a game of poker, the idiot willing to pay 17% interest is a high risk/reward gamble.

And this is a shining warning light to all of you out there taking a loan out for essentially a "toy"... I am specifically talking to the ones that are scraping by and decided that they need to finance a boat or jetski, quad, sxs etc and are planning on dipping a bit into savings for down payment and are otherwise living paycheck to paycheck. seen quite a few people do that when I lived in IL... Toys are great, but if you are in or can be easily put into a place where it means making a house or car payment vs making a toy payment.... you can't afford the toy.

AJ

 

[Snoranger]

And this is a shining warning light to all of you out there taking a loan out for essentially a "toy"... I am specifically talking to the ones that are scraping by and decided that they need to finance a boat or jetski, quad, sxs etc and are planning on dipping a bit into savings for down payment and are otherwise living paycheck to paycheck. seen quite a few people do that when I lived in IL... Toys are great, but if you are in or can be easily put into a place where it means making a house or car payment vs making a toy payment.... you can't afford the toy.

AJ

Paid cash:

Actually... I paid cash for my newest SxS.
My last one, I financed $5000 then paid it off the next month. They were running a special... $500 off, no interest for the first 6 months, must use Yamaha finance.

 

[Eddo Rogue]

And this is a shining warning light to all of you out there taking a loan out for essentially a "toy"... I am specifically talking to the ones that are scraping by and decided that they need to finance a boat or jetski, quad, sxs etc and are planning on dipping a bit into savings for down payment and are otherwise living paycheck to paycheck. seen quite a few people do that when I lived in IL... Toys are great, but if you are in or can be easily put into a place where it means making a house or car payment vs making a toy payment.... you can't afford the toy.

AJ

Many of my buddies did this back in my 20's. They financed their dirt bikes, one of em managed to get a loan for a pickup truck, motocross bike, and a pit bike for his kid. They just kept financing him, I dont think he even had a legit job. I was baffled....Meanwhile I tried to finance a pit bike just to build some credit. It was $2300 out the door, and I was gonna put $1000 down. They rejected me. I was baffled. Pretty sure they all defaulted. I went and bought a used pit bike for $500 bucks cash.

 

[Blmpkn]

I financed my wheeler, whole damn thing.

Spent 3k more on the wheeler than I spent on the vehicle I used to haul it around the first year I had it

Only paying like.. 3% interest though and it only takes me about.. an hour and 15 minutes of work a week to pay for it.

 

[Eddo Rogue]

I financed my wheeler, whole damn thing.

Spent 3k more on the wheeler than I spent on the vehicle I used to haul it around the first year I had it

Only paying like.. 3% interest though and it only takes me about.. an hour and 15 minutes of work a week to pay for it.

3% ain't bad. Especially for a toy and 0 down.

 

[Blmpkn]

3% ain't bad. Especially for a toy and 0 down.

I was excited. I had good credit at the time.. but i was still questioning whether or not they'd give me that much money for a non-essential.


What I don't understand, is the people who moan about how hard it is to either GET good credit or rebuild credit.

When I got my last truck my score must have been under 500.

6 months later I got my first credit card, checked my score after my first month with it and it was around 530.

6 months after that I was at 680 or so, got a couple more cards.. over 700.

When I got my wheeler, the dealer told me I was around a 780.

Doesn't take awfully long to go from the worst credit you can have, to close to perfect... so long as your smart.. and pay your bills.

 

[Eddo Rogue]

I was excited. I had good credit at the time.. but i was still questioning whether or not they'd give me that much money for a non-essential.


What I don't understand, is the people who moan about how hard it is to either GET good credit or rebuild credit.

When I got my last truck my score must have been under 500.

6 months later I got my first credit card, checked my score after my first month with it and it was around 530.

6 months after that I was at 680 or so, got a couple more cards.. over 700.

When I got my wheeler, the dealer told me I was around a 780.

Doesn't take awfully long to go from the worst credit you can have, to close to perfect... so long as your smart.. and pay your bills.

Yea I use to work in Real Estate/ Mortgage, and people were terrified to apply for a loan. They acted as if you go to jail if you don't get approved lol. I've since gotten a few friends and co workers to purchase homes by simply helping them get over the fear of consequences.

Speaking of there's two kinds of debt to the banks, Front and back end. Front end is loans secured by collateral, like a house or car. Back end is unsecured, which is mostly credit cards. The debt to income ratio banks lend is about 20-30% for front end, and up to 80% for back end...which is where bad debt usually comes from.

And yea my credits gone from junk to awesome many times, it aint a big deal lol

 

[Roert42]

Only problem is, you can have a good credit score, without much of a credit history. The credit history is just as important when looking to get a lone as the score.

 

[Blmpkn]

Only problem is, you can have a good credit score, without much of a credit history. The credit history is just as important when looking to get a lone as the score.

I recently took a sizable hit to my credit because my oldest account (9 years, student loans) got closed and brought the average age of accounts down quite a bit.

They've been paid off for.... 5 years at least... idk what the exact deal is... but yeah.. bit of a bummer.


Credit and lenders are wierd.

Last year I tried to get a credit line increase on my ebay card which has a measly 300$ limit... got told "not until you have real estate experience"

Then I applied for a discover card and they gave me 3000

 

[Roert42]

I recently took a sizable hit to my credit because my oldest account (9 years, student loans) got closed and brought the average age of accounts down quite a bit.

They've been paid off for.... 5 years at least... idk what the exact deal is... but yeah.. bit of a bummer.


Credit and lenders are wierd.

Last year I tried to get a credit line increase on my ebay card which has a measly 300$ limit... got told "not until you have real estate experience"

Then I applied for a discover card and they gave me 3000

When I got out of high-school I got an Amex with a 5k limit, couple years later they upped it to 15k.

Credit score was about 780 at that point.

Tried to get a 10k loan with 5k down for a truck and the only place that would give me a line was for 7%. Insufficient credit history.

Paid it off within a year, that gave me enough of a credit history to give me line up to 250,000 for a house at 3%.

Banks are very weird...

 

[Jazzer]

I was running 830-850 for years until I paid off my mortgage. Now it’s mid-high 700’s, I guess I’m underutilizing credit.
It doesn’t matter though, I don’t really need to borrow.

-Jazzerr

 

[4.0blue98]

I was running 830-850 for years until I paid off my mortgage. Now it’s mid-high 700’s, I guess I’m underutilizing credit.
It doesn’t matter though, I don’t really need to borrow.

-Jazzerr

I've heard this happen to several people I know.
Still can't figure out how those sites that you visit can instantly bump up your score. Seems like the whole thing is a bit of a joke... unfunny joke.

 

[sgtsandman]

When I bought my F150, they offered me a better deal if I financed it instead of paying cash. The rate was very low, so I took their financing. You can you use other financing, but they will probably negotiate a higher price for that.

In my case paying 3% interest to use their money was better that using my money, which was earning 5% interest. Coming from a real estate and mortgage banking background, I always factor interest and other fees/costs etc when crunching numbers for purchases.

My credit card has no annual fee, and I pay it off every month interest free, and earns points from purchases.....which I then cash in for home depot gift cards. So I'm technically profiting off of them.

It would depend on the fine print but I don't blame you on going for the better deal. Being that you had cash, if the fine print allowed it, I would pay it off the first month payment is due. They might hit you with the interest fee anyway though. Some companies do that. They will list a payment and a pay the balance total but the balance is more than the original cost of the vehicle.