Using my GN to get a loan...

[86GN-862+2]

So, I thought I'd consolidate some debt by getting a loan with my car as collateral. Talked to the loan officer at my local credit union and after 3 days they gave me a response. Their interest rate at just over 12%, the loan amount around $12k so I thought- not good but not bad either. Well, I thought about it for another day and called them back. They now want me to get the car appraised which will run $50-$100 out of pocket. My question is that if the car shows blue book at that amount, why the need to appraise It? In a non TB' owner's opinion, the car will be worth much less so his opinion will "cost" me if I did that. Plus since I am not selling my car, I am not keeping the receipts on the upgrades. I think I'll pass on the loan. Not in a bind just thought that would help my finances some. My car needs paint badly so that would probably be about 30% hit on it's value. Any thoughts?

 

[SilverBulletGN]

So, I thought I'd consolidate some debt by getting a loan with my car as collateral. Talked to the loan officer at my local credit union and after 3 days they gave me a response. Their interest rate at just over 12%, the loan amount around $12k so I thought- not good but not bad either. Well, I thought about it for another day and called them back. They now want me to get the car appraised which will run $50-$100 out of pocket. My question is that if the car shows blue book at that amount, why the need to appraise It? In a non TB' owner's opinion, the car will be worth much less so his opinion will "cost" me if I did that. Plus since I am not selling my car, I am not keeping the receipts on the upgrades. I think I'll pass on the loan. Not in a bind just thought that would help my finances some. My car needs paint badly so that would probably be about 30% hit on it's value. Any thoughts?

I had a Loan a year ago from my credit union and had no problem. Try another Bank but don't spend extra money if you don't have too... Good Luck

 

[Dabigguy]

I'm not a fan of taking out loans on imoprtant things....House, car, dog. If you lose your job, you lose your car too. 12% interest isn't that good, unless you pay off a high interest credit card.

 

[86GN-862+2]

I'm not a fan of taking out loans on imoprtant things....House, car, dog. If you lose your job, you lose your car too. 12% interest isn't that good, unless you pay off a high interest credit card.

i hear that. I was trying to pay off my never ending c.c. balance and with the "extra" cash I was going to get a built 200r4 and possibly paint the car. So it was supposed to help my finances AND get my car done faster. Still thinking about but may end up not getting the loan after all. I was just trying to figure out how having the car appraised would affect its value when an individual would give his opinion of what he thought it is worth. The bank goes by blue book on everything else except my car.

 

[Whut]

I had mine appraised by a shop here where the guy specializes in old muscle cars, a GN is to new for him. He did everything by the book and after grading my car went online to get more cars that showed better and worse than mine. He made a very well informed decision in my opinion and placed the value at $25,000. My insurance company was happy to have such a thorough appraisal and covered my car for the full amount without an issue.

 

[Dabigguy]

i hear that. I was trying to pay off my never ending c.c. balance and with the "extra" cash I was going to get a built 200r4 and possibly paint the car. So it was supposed to help my finances AND get my car done faster. Still thinking about but may end up not getting the loan after all. I was just trying to figure out how having the car appraised would affect its value when an individual would give his opinion of what he thought it is worth. The bank goes by blue book on everything else except my car.

My GN has tons of $ in it, but she needs paint which lowers the resale value. Our hobbies never give us a 100% return on investment, and I'm OK with that because after I factor all the pleasure it's given me I'm WAY ahead!

 

[86GN-862+2]

I agree with you on that Dabigguy but reality is that you can use your car's value to your advantage. On the flip side, if it were to get totalled or stolen, you'd want the maximum you can get from it to make up for your time and money invested. My car needs a paint job so if blue book says it's worth $12k but appraiser thinks it's only worth $7500 because of the paint issue. That's my gripe. I don't plan on selling my car unless someone offers me what I got in it-which will never happen.

 

[turbo39151]

Paint and any other issues are going to hurt the appraised value. If finances are tight, it would indicate lack of money for "necessities"- A paint job and a trans are nice but not necessities. If you're wanting this loan in order to catch up on the cc debt, why not just get the amount you need to pay it off? Or, even better, use the money you'd use to pay the loan and pay the cc debt off first without risking the car or paying for an appraisal?

I hate to be the "wet blanket"- so don't flame me... You asked for an opinion and I guess, I'd rather pay the debt to something manageable before dumping more money into one of my moneypits... BTW, I need a paint job and a trans as well but I'm paying the bills down first... just my .02.

Good luck either way.

 

[SS_Sean]

http://www.turbobuick.com/forums/turbo-lounge/317070-using-my-gn-get-loan.html

 

[86GN-862+2]

No problem at all here. I am paying off my debts after all then get my car done. I'm alsmot done. Just needed to pay off another $8k to be done. After that, all I for left is the mortgage on my house which goes on for another 10 yrs. Thanks foe helping me clear up my head. I was REALLY wanting to put more $$ into my car make it better. It can wait a few more months.

 

[turboc87gn]

Heres what i did pay minimum payments on all your cards except the one with the smallest balance,Toss a nice chunk down on that one continue till its paid off then start on the next one up the totum pole..That way you feel like ur makin progress and interest isnt cha chingin you to death...If you try to do moderate amounts on all of them at once you will be frustrated cause you wont make near as much headway....

 

[CaptainInsane-O]

Heres what i did pay minimum payments on all your cards except the one with the smallest balance,Toss a nice chunk down on that one continue till its paid off then start on the next one up the totum pole..That way you feel like ur makin progress and interest isnt cha chingin you to death...If you try to do moderate amounts on all of them at once you will be frustrated cause you wont make near as much headway....

Classic "Debt Snowball" you been listening to Dave Ramsey?

This IS a very effective way to knock out your debt & get out from under the yoke of the credit card company's APR (oh the sky is blue today lets raise our rates) games!