Looking at financing a car loan with bad credit or no credit can cost you thousands of dollars more than the value of the car.
I had some bad times in the past, and it affected my credit, and I totaled my car so I needed to find a new one quickly. A little-used car dealer offered to help me out when I found a car there that I liked. And when the dealer acquired the financing for me, I was actually grateful.
Thanks for charging me an exorbitant rate? I am happy about this?
The used car I bought cost me close to $10,000 and after four years of financing the totaled my payments will come to closer to 19,000. I am paying approximately 430 a month. Was there any type of alternative?
I live in New Jersey right outside of Newark. And after I bought the car I discovered that I could have possibly rented a car for months at a time for approximately $10-$12 a day if I was willing to pick it up next to one of the local lots next to the Newark airport.
The car-rental options also came with unlimited mileage and allowing you to leave the state. There was a limit to as to how far south I could travel, I believe I could not go further south past North Carolina.
Now if I did this and multiplied out of $12 per day, it almost comes out the same amount in paying for the vehicle on a monthly payment term. I don’t need to use a car every day of the week.
I could also try to use public transportation to get to work, and maybe only need to use a car two or three days out of the week. This will definitely offset the cost difference between my monthly payment and what it will cost me to rent a car for perhaps 10/12 days out of the month.
One of the other things is the fact that I no longer have to carry full coverage insurance which is another expense monthly fee that is eliminated. And one of the advantages if I did do the rental option, and I become cash tight, I can always return the car and take a backup when I can afford to do so. With my loan whether can I meet the payments or not I still have to make the payments.
When I did have to send my car to the shop for repairs, I did pick up a rental car for $12 day, and the car was actually a much nicer car than mine.
One of the other things you do get when you do choose to rental option is the fact that you do not have to worry about your maintenance costs.
Maintenance of a car nowadays is not that expensive but you are still probably looking at over the course of the year to total $200 or $300. Again, here is another $20-$30 per month that would you not have to be paying for when using the rental option.
Now one of the things you do have to have in order to rent a car. You need a valid credit card. This credit card must have at least a $300 limit or available credit on it. And you must have a valid driver’s license that is current. You should have your own car insurance, but you can get insurance from the rental agency. But remember, they do not cover a majority of the losses and you need to be very specific as to what type of coverage you’re looking for.
I did not find out about the rental option before I made a commitment to a 4-year note on a used car. But perhaps if I’d have realized this option, it may have been another route I could’ve taken, and I would’ve had to spend less money and be committed to less dollar amount in the long run. I also must look at though the fact that when I am done paying for the vehicle I have to return it and I really have nothing left. At least with a used car, I have the resale value so it is not a total waste of money.