Used car financing

[judicator]

Hey, got a little problem, would appreciate some advice. The transmission is going out on my current vehicle, '92 Nissan pickup. My options are to:

1. Replace tranny, continue driving the otherwise reliable beater.

2. Go to a used car lot, buy something inexpensive but hopefully reliable($4,000 - 7,000), and finance through the dealership.

3. Go to a credit union, get pre-approved for an auto loan, and buy something a little more expensive, because banks and CU typically require that a vehicle be within a particular age/price bracket in order to get the loan through them.

A little more info: I don't have a lot of liquid cash at the moment, but I do have a steady job with good long-term potential. I would prefer not to buy a brand-new car right off the lot. A private purchase would be cool, but again, not enough cash.

My problem is that I have good credit, but I have zero experience with loans. What would you do in my situation? Thanks in advance.

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[Gunner69]

Go to your credit union/bank get pre-approved to $$$ amount. Then go car shopping, find what you want in your price range. Keep in mind just because your approved for say 15k doesn't mean you have to spend it all. Once you have agreed on a set price toss in your Nissan as a trade off the negotiated price. As a general rule credit unions will always give you better financing over a used car lot.

They way I tend to handle the above situation is very simple. Find the vehicle you want ask them how much they want for it. If they ask "what kind of payments can you afford?" Tell them that that's not what you asked and if they can't understand and comprehend english, you would like to speak with someone who does. Rinse and repeat until you either get tired of it or get a straight answer.

 

[pease]

make sure and get the new car check out before you buy one. if the old trunk is still in good shape I would really think about fixing the old one depending on the cost.

 

[Mookie]

make sure and get the new car check out before you buy one. if the old trunk is still in good shape I would really think about fixing the old one depending on the cost.

Especially if it is low miles. two grand for a new tranny is a lot cheaper than a used car that you have no idea what is wrong with it. There is not a financial adviser that would recommend spending double or triple on an unknown vehicle.

Now, if you want a different vehicle anyway then it doesn't matter.

Just imagine all the shooting you can do with the money you save. See, the logic.

 

[BlvdKing]

I understand the real world isn't as black and white as the Internet. If you cant afford to repair your current vehicle get preapproved through your CU and start shopping. PM me if you get close and I will help you make a good decision. Usually repairing your current vehicle if its an option and isn't deminishing returns makes the most sense.

 

[Redcap]

Manual trans in your Nissan pickup?

Transmission swaps really aren't hard. Your local boneyard will most likely have one or more. When looking for parts like a transmission, look for a parts rig that is in the boneyard due to a wreck. Chances are, the transmission is completely fine.

Besides, a couple hundred bucks sounds better than spending $1200-1500 on a rebuilt trans...and a LOT better than going into debt for a used car/truck you have no idea about.

 

[Trlsmn]

+1 on the used trans if it's a manual. Easy job if it's a 2wd. The whole job will be less than one months payment on a newer vehicle.

 

[judicator]

Thanks for the input, I am looking at going the CU/pre-approval route for the following reasons:

I don't have the time or expertise to do a tranny swap, and if I pay someone parts & labor to do it, the repair WILL cost more than the vehicle is currently worth. '92 Nissan, manual trans, 2WD, 385,000 on the odometer. Private party value is $1,000 IF everything is serviceable, which it most definitely is not.

I'm looking at getting another small pickup, Ford Ranger or Nissan Frontier, etc. If I fix the current issue, there's no telling what's going to go out next. At some point, it's not worth it to sink money into a vehicle to the point where you never see a return on your investment.

Again, thanks for the advice, if I get off work soon enough tomorrow, I'll have a chat with the local Onpoint representative.

 

[Mookie]

That many miles I would say to look for a new vehicle. Those Nissans sure do run good.

 

[Bajablast]

Forget about the Ford Ranger, there are far fewer of those with high miles than Nissans. You have almost 400k on your Nissan, I say get another. My 99 Frontier has 164k currently, and I am planning on 300k + before I think about something newer.

Definitely go the credit union route. In most cases, it keeps the money local, and builds strength in the credit union.

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"LIFE IS NOT A JOURNEY TO THE GRAVE...WITH THE
INTENTION OF ARRIVING SAFELY IN A PRETTY AND WELL
PRESERVED BODY, BUT RATHER TO SKID IN BROADSIDE,
THOROUGHLY USED UP, TOTALLY WORN OUT, AND LOUDLY
PROCLAIMING----WOW----WHAT A RIDE!!!"

 

[Cougfan2]

+1 on the Nissan Frontier. I have about 156K miles on my 2002 and it still runs great.

 

[judicator]

OK, got the pre-qual application done, turns out I've got really good credit, something like 742. Onpoint gave me a 48-mo. term for 3.74%. Had today off, spent a couple hours touring some car lots. Small, inexpensive used pickups are almost impossible to find in my area, might have to settle for a small car instead, or dig around auto trader and find something in salem or hillsboro. Fun stuff.

 

[talntid]

What price range were you approved for? If you were approved for more than you want to spend, what do you want to spend?

This is a bad economic market right now. Everyone is trying to sell stuff for top dollar because they need money, but the fact of the matter is, they will soon sell it for less because they NEED the money.

 

[Mookie]

I do have a recommendation on what year Frontier not to buy. Stay away from the 97. It came with a funky engine that produces zero power and has terrible gas mileage. A full sized 4wd Dodge/Chevy/Ford is a better economy vehicle.

My brother had a 97 Frontier with the 4 cyl 5spd and 4wd. It did run nice, but it was a gutless wonder and averaged 14MPG. The dealer said that is what they get. He took it to a local import tune up shop, well known and has a great rep, he said the only way to make more power was to ad a supercharger for $2,500 installed. It would not go up a hill at more that 50 MPH.

 

[drew]

I do have a recommendation on what year Frontier not to buy. Stay away from the 97. It came with a funky engine that produces zero power and has terrible gas mileage. A full sized 4wd Dodge/Chevy/Ford is a better economy vehicle.

My brother had a 97 Frontier with the 4 cyl 5spd and 4wd. It did run nice, but it was a gutless wonder and averaged 14MPG. The dealer said that is what they get. He took it to a local import tune up shop, well known and has a great rep, he said the only way to make more power was to ad a supercharger for $2,500 installed. It would not go up a hill at more that 50 MPH.

Ouch. So did he get passed by many VW buses or vanagons?

Was your brother's a 2wd or 4wd? I don't generally like little 4wd pickups or suvs with the 4 cylinders.

 

[judicator]

Well, the ordeal is finally over. Picked up a 2004 Hyundai Elantra GT, with 94,000 miles, from the Toyota dealership yesterday. It was a really slow day for them, so I had some bargaining power. Got it for basically the private party KBB price, $6,000 flat, plus three free oil changes.

Car was previously owned by a friend of one of the employees at the dealership, well-maintained, with records of the work done. Has all the options possible for this make and model, except the sunroof. Kenwood sound system, leather, cruise, power everything.

Normally I wouldn't make such a quick decision about a vehicle, but one of the salespeople was an old co-worker, and I trust her well enough to listen when she recommends a car. So far I really like it, vast improvement in comfort over my last vehicle.

 

[absoluterik07]

Well this post couldn't have come at a better time as I am in the same situation. FYI the 91 geo prism I've been driving won't go faster than 25mph up a hill. It does have 300,000 miles on it though and it is a geo.

 

[Mookie]

Ouch. So did he get passed by many VW buses or vanagons?

Was your brother's a 2wd or 4wd? I don't generally like little 4wd pickups or suvs with the 4 cylinders.

4wd. Every time I went up a hill I thought about the little engine that could. If it wasn't for the lack of power and small cabin space I really would have liked it.

 

[MrNiceGuy]

Well, the ordeal is finally over. Picked up a 2004 Hyundai Elantra GT, with 94,000 miles, from the Toyota dealership yesterday. It was a really slow day for them, so I had some bargaining power. Got it for basically the private party KBB price, $6,000 flat, plus three free oil changes.

Car was previously owned by a friend of one of the employees at the dealership, well-maintained, with records of the work done. Has all the options possible for this make and model, except the sunroof. Kenwood sound system, leather, cruise, power everything.

Normally I wouldn't make such a quick decision about a vehicle, but one of the salespeople was an old co-worker, and I trust her well enough to listen when she recommends a car. So far I really like it, vast improvement in comfort over my last vehicle.

Ouch...

I sure wish I found this thread yesterday.... Now, anything I would say would just be peeing on your parade.

You sound like someone who keeps cars for a long time and does regular maintenance. These are important in your current situation.
Hope it all works out for you.

And remember, pay as much as you can each month. Every penny you pay over your scheduled payment goes directly to the principle. That is a penny you will never have to pay interest on. Paying extra will get you into an equitable situation sooner, and that's important.

 

[judicator]

Ouch...

I sure wish I found this thread yesterday.... Now, anything I would say would just be peeing on your parade.

You sound like someone who keeps cars for a long time and does regular maintenance. These are important in your current situation.
Hope it all works out for you.

And remember, pay as much as you can each month. Every penny you pay over your scheduled payment goes directly to the principle. That is a penny you will never have to pay interest on. Paying extra will get you into an equitable situation sooner, and that's important.

Now you've piqued my curiosity, have you had a bad experience with Hyundais, or did you have a better deal on something different? Don't worry about upsetting me, all of this has been good experience, and I want to learn everything I can about doing it right next time.

+1 on paying off the loan quickly. Already planning on it.