car loan from bank..? how does it work?

[1jVu]

Also how hard is it to get a car loan?
theres basically a car for sale that i want to buy thats about $7,000 but its a private sale so cash only. how does a car loan from a bank work? where i can just get a loan and pay off the loan monthly as if im financing a car? let me know guys thanks

edit: a bit of info that might be needed:
i work part time at $10/hour with commission. on average its about 16-18 an hour.
i work about 2-3 times a week.

[cgtlky]

Also how hard is it to get a car loan?
theres basically a car for sale that i want to buy thats about $7,000 but its a private sale so cash only. how does a car loan from a bank work? where i can just get a loan and pay off the loan monthly as if im financing a car? let me know guys thanks

edit: a bit of info that might be needed:
i work part time at $10/hour with commission. on average its about 16-18 an hour.
i work about 2-3 times a week.

Depend how good your credit is? if you have no debt, no bad credit. I don't see the bank will reject your loan or LOC for a $7000.00 . The bank will set a minimum monthly payment as well as the interest rate.

[sexpuppet6000]

A lot of people are going to tell you this is a bad idea. And yes, it is a bad idea.

[Thalo]

Judging by the price, it's likely a pretty old vehicle. Is it older than 7 years? Bank won't accept it as collateral if it is, so you'd basically be applying for an unsecured loan. In such a case, if you're actually approved for it, the bank can just dump the loan proceeds into your checking account and you can take it out as cash, no problem.

For an actual car loan, the vehicle must be "newish" (5 years or younger) to be considered collateral for the loan. Since the loan then has collateral, it's generally much easier to be approved for than the unsecured loan above. In such a case however you'll never get cash proceeds; bank will want to see purchase/sale agreement and will issue a draft to the seller.

[dux]

A lot of people are going to tell you this is a bad idea. And yes, it is a bad idea.

+1 :)

[1jVu]

A lot of people are going to tell you this is a bad idea. And yes, it is a bad idea.

instead of saying its a bad idea you might want to state why? im asking a question because i dont know how it works. telling me its a bad idea and not stating why doesnt really help at all.

[UrbanPoet]

instead of saying its a bad idea you might want to state why? im asking a question because i dont know how it works. telling me its a bad idea and not stating why doesnt really help at all.

Just b/c your putting so much money into interest for an asset that'll go down in value very quickly...
You could easily save $5-$7k to buy a used car in a year or so.

[dux]

instead of saying its a bad idea you might want to state why? im asking a question because i dont know how it works. telling me its a bad idea and not stating why doesnt really help at all.

Simple math:

You borrow 7000 at 8% for 5 years.
In 5 years you are going to pay a total of 8,500. (1,500 interest)

But at the same time, your car value has depreciated by 50% and you can only sell it for 3500.

So in 5 years you've lost 5,000 (8,500-3,500)

[wheel]

nm

[wheel]

nm

[1jVu]

Simple math:

You borrow 7000 at 8% for 5 years.
In 5 years you are going to pay a total of 8,500. (1,500 interest)

But at the same time, your car value has depreciated by 50% and you can only sell it for 3500.

So in 5 years you've lost 5,000 (8,500-3,500)

at the sametime its just like financing a car, there are interests.
interests i dont mind paying because i dont have 7k just laying around.
and yeah things taht should be factored in such as time saved from point a to point b everyday.

[series1000]

Simple math:

You borrow 7000 at 8% for 5 years.
In 5 years you are going to pay a total of 8,500. (1,500 interest)

But at the same time, your car value has depreciated by 50% and you can only sell it for 3500.

So in 5 years you've lost 5,000 (8,500-3,500)


5k in 5 years is not that bad. Try owing $25,000 for a $14,000 car after 3 years (2005 Chryslers, Infinitis or Nissans anyone?)

It's a good thing he is buying an older used car instead of trying to finance something that was built within the last 5 years. Those depreciate much faster.

[angel_wing0]

for a $7000 car, i would rather u save up enough to buy it than getting a bank loan unless you must have it within a short period of time for whatever reason. But that's just me....