so, credit line vs. auto loan

T

Thorn Bird

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May 24, 2005
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what are the differences between credit lines and auto or personal loans? i've never taken out a loan before (aside from a mortgage,) and i have no idea how this process works.

anyone been though something like this? what's the best way to find the best rates? any hidden tips/secrets you can pass on?
 
Auto loans are usually simple interest, credit lines usually compound interest
 
get a couple of pre-approvals online first like a capital one auto loan. Then when you are shopping the dealer and they try to push their financing on you you can have comparable rates and they will sometimes adjust theirs to beat the online rates which helps you get a little ahead. if not, then just get the loan from with the best rates that you can find online (from a reputable source of course).

Also, check this site, lots of tips about car buying, scams, financing, etc.

http://www.carbuyingtips.com/
 
Dont go to Sunbelt Credit, bwhahahhaa, took out like 800 bucks for new school computer @ 30% lol

I thought I was just gonna pay if off immediately but then the company went under, youch
 
BeeRad said:
I am paying 12.5% on my credit union auto loan :eek:
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usually they do give very good rates...I shudder to imagine what your credit looks like :fly:

my last auto loan I got a better deal at the dealer than my own freakin' bank I've been with for 10 years+ :rolleyes:
 
Credit lines are unsecured debt and auto loans are secured debt. Auto loans tend to have lower interest rates because of this. If you want to be a financial whiz about it, there's a certain break point when leasing becomes more economical than buying. My dad actually worked up some spread sheet that takes into account TCO and figures which is the better deal : paying cash, leasing, or buying via loan.
 
fly said:
Thats cause they backdoored you somewhere else.
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nope, not really...I walked away from the car after falling in love with it and they called me non-stop for a week+.. then I went back and got them to knock 4k off the price too :)
 
theacoustician said:
Credit lines are unsecured debt and auto loans are secured debt. Auto loans tend to have lower interest rates because of this. If you want to be a financial whiz about it, there's a certain break point when leasing becomes more economical than buying. My dad actually worked up some spread sheet that takes into account TCO and figures which is the better deal : paying cash, leasing, or buying via loan.
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I believe Edmunds has a similar type comparison.
 
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fly said:
I hope you didn't have a trade-in.

edit: Did you sell the Tib to your gardner?
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yes, I did trade in the tib...they got me a little there.. I knew that was coming because hyundai's depreciate faster than I was paying off the loan...I booked it and knew what it was worth...overall I came out on top though...the vette still books for a few k more than I payed for it :cool:
 
why_ask_why said:
yes, I did trade in the tib...they got me a little there.. I knew that was coming because hyundai's depreciate faster than I was paying off the loan...I booked it and knew what it was worth...overall I came out on top though...the vette still books for a few k more than I payed for it :cool:
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Is it weird having a driver for your vette?
 
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