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the_new_santa1
07-27-2006, 12:50 AM
Hi,
I am curious about getting an auto loan for a fairly small amount about 9,000. I went to my bank and they said I would have to get colission coverage for the car. I do not want to pay for colission, just liability, I personaly think that colission is a waste of money..but that is just me, anyways can I just get a loan and say I am buying stuff for a fence or a deck or building a garage or something like that, so I dont have to get colission coverage. I also will be getting this loan now, and in about 2 months I will be coming into some money about 5 g's will I be able to pay out some of the loan early?

Thanks for the help,
Kelsey

the_new_santa1
07-27-2006, 01:12 AM
I need on this tonight as I have a meeting in the morning please help....

ShOwOfF
07-27-2006, 01:29 AM
Who is your bank? I don't know of any major institution that requires collision insurance on a secured vehicle loan to qualify. Even if they did, the car is only worth $9000 so i'm assuming that it is relatively old.

To answer your question though, i believe your lender will likely want to secure your vehicle to provide you the loan. Asking for a loan to build a fence would provide them nothing to secure against the funds they provided to you, thus will be harder to qualify for.

I would ask for an unsecured line of credit, or just a flat unsecured loan. Let them know that you don't want collision and weigh your options that way. If they still say they need to have collison to qualify you for a secured car loan, walk away and go to another lender.

the_new_santa1
07-27-2006, 01:36 AM
ok, Thanks alot for your help.....

the_new_santa1
07-27-2006, 11:39 AM
My question still stands though would I be able to pay out a good portion of the loan early....?

CRX-R
07-27-2006, 11:41 AM
Yes you will with most major banks. Lump sum payments are allowable

lint
07-27-2006, 12:08 PM
As long as the loan is open, you can make additional payments without penalty. But making additional lumpsum payments won't reduce your monthly repayment amount, it will just shorten the over all length of your loan.

richardchan2002
07-27-2006, 12:10 PM
Listen to showoff and get a line of credit. Lower intest rate, less restrictions, plus you can pay back any amount anytime you want. I used that to buy my first car.

Xtrema
07-27-2006, 12:53 PM
Yes, every bank require collison coverage for car loans to protect their investment.

Unsecure line of credit is the way to go and usually loan officer would have brought that up if you qualify.

RX-7_TWINTURBO
07-27-2006, 01:05 PM
My secured car loan did not require collision coverage :dunno:

the_new_santa1
07-27-2006, 03:42 PM
So intrests rates on an unsecure line of credit are better than that of a auto loan....Got it...!Any thing else I should know? and for anybody that has a line of credit right now what intrest rate are you at...?

Thanks

lint
07-27-2006, 04:21 PM
your rate will depend on your credit rating and the amount you borrow. You should talk to your bank about what you would qualify for and which option would be best for your particular situation.

If you're still a student, a student LOC is the way to go. Best interest rate.

scat19
07-27-2006, 11:56 PM
Originally posted by CRX-R
Yes you will with most major banks. Lump sum payments are allowable

It is now law that you cannot be penalised for paying early.

nonsane
07-28-2006, 09:29 AM
I applied for a loan of 2000$ about 2 years ago. the banks told me they would give it to me with about 19%-21% interest.

What i ended up doing was getting a low interest credit card(10.5%) And this way i could pay it off whenever i want, i ended up paying it off in about 5/6 months instead of the 2 years that the bank wanted me to do.

(and then, no collission is neccessary)

What interest rates did the bank give you?

benyl
07-28-2006, 09:40 AM
do careful calculations on those credit cards. They are compounded daily. Bank loans are compounded monthly.

10.5% might seem a lot lower, but in the long term it isn't.

codetrap
07-28-2006, 10:02 AM
.

benyl
07-28-2006, 10:04 AM
Why wouldn't you want to get collision?

i mean, would you want to be stuck paying for a car that doesn't move that you crashed and can't afford to repair?

I mean, we are all good drivers, but people do screw up

lint
07-28-2006, 10:28 AM
Originally posted by codetrap
Ok.. a bank will always want to secure thier loan, and I've NEVER heard of one not requiring you get have collision on it.

Collision Insurance

Collision insurance coverage pays for damage caused to your vehicle in an automobile accident, when you are "at fault". A standard collision automobile insurance policy will pay for any repairs up to the fair market value of your car.

I'd be shocked if a bank let you NOT have collision insurance, as it secures thier money for them.

As for unsecured lines of credit vs car loan. A good friend of mine just got her car loan at 3.9%. Unsecured lines of credit are more in the range of 7.25%. You do the math.

Nice rate, I assume that is for a new car though and financed through the dealer. Car loans at the bank usualy can't touch the rates you can get at the dealerships.

codetrap
07-28-2006, 10:45 AM
.

the_new_santa1
07-28-2006, 10:54 AM
Originally posted by benyl
Why wouldn't you want to get collision?

i mean, would you want to be stuck paying for a car that doesn't move that you crashed and can't afford to repair?

I mean, we are all good drivers, but people do screw up

Insurance for me with colision, would be retarted....it is about 5000 a year, I am only 16 I work pretty much everyday, and I still only make about 1000 a month, which is not much once you subtract, payments for a car, insurance, food..., and women....These is nothing left, it seems, I was on a tournamnet paintball team and I have to leave because A new car means more to me than paintball....... :( ...

kaput
07-28-2006, 11:02 AM
.

lint
07-28-2006, 11:04 AM
Originally posted by codetrap
Actually.. she tells me it's a bank rate.. I'm looking into that now.

Wow, that's pretty good. Let me know what bank that is.

lint
07-28-2006, 11:07 AM
Originally posted by the_new_santa1


Insurance for me with colision, would be retarted....it is about 5000 a year, I am only 16 I work pretty much everyday, and I still only make about 1000 a month, which is not much once you subtract, payments for a car, insurance, food..., and women....These is nothing left, it seems, I was on a tournamnet paintball team and I have to leave because A new car means more to me than paintball....... :( ...

Maybe you need to rethink your priorities... 16, $1000/month and you NEED a $9k car?

Anton
07-28-2006, 11:09 AM
How are you getting a loan if you're 16? I thought you had to be 18.

I just read it again, 1000 a month??? (I thought he said 1000/paycheck)

Get some beater, wait until you get that $5,000 and buy something a bit cheaper but without taking out a loan.

codetrap
07-28-2006, 11:28 AM
.

ShOwOfF
07-28-2006, 01:52 PM
16? You'll definitely need a co-signor as you're not able to sign a legal contract.

Xtrema
07-28-2006, 04:31 PM
Originally posted by RX-7_TWINTURBO
My secured car loan did not require collision coverage :dunno:

I underlined the reason why it doesn't require collision coverage.


Originally posted by codetrap
Lint..
After some careful questioning.. it's a dealer rate. Too bad.. I was thinking I'd switch too...

Had to be dealer. I don't think she blowing the bank manager can get a rate that low.

RX-7_TWINTURBO
07-28-2006, 04:40 PM
Originally posted by Xtrema


I underlined the reason why it doesn't require collision coverage.



Had to be dealer. I don't think she blowing the bank manager can get a rate that low.

Whoops I meant to write unsecured loan. no collateral, just based on credit

Crymson
07-28-2006, 04:43 PM
Ok, that makes more sense!

I for sure wouldn't have a car loan without collision insurance, that's for damned sure.

You're just asking to be riding the bus for 4 years.

Tyler883
07-30-2006, 09:34 AM
So whats happening, is there a new crack down on this? because I have never been asked to show proof of collision coverage. and I have always used the vehicle as it's own colateral.

Xtrema
07-31-2006, 12:37 AM
Originally posted by Tyler883
So whats happening, is there a new crack down on this? because I have never been asked to show proof of collision coverage. and I have always used the vehicle as it's own colateral.

Is collision coverage that expensive that everyone is avoiding it?

It's only 20% of my insurance.

I guess not every car loan require one but like Crymson said, you better get your ass covered if you do total it on your own fault.

Crymson
07-31-2006, 04:45 PM
collision can't be that much? We moved to alberta after the big insurance re adjustment a few years ago, and didn't notice any significant change from Saskatchewan to here, I think it actually went DOWN like 18$ a year for full covereage, and the package policies are much more encompassing. We managed to get another 4 million in liability for what it cost to get 2 in saskatchewan.

BebeAphrodite
08-01-2006, 01:09 PM
Originally posted by Xtrema


Is collision coverage that expensive that everyone is avoiding it?

It's only 20% of my insurance.

I guess not every car loan require one but like Crymson said, you better get your ass covered if you do total it on your own fault.

My insurance w/o collision is about $1000/year. With collision, the insurance goes up to $492/year to around $1500.

Xtrema
08-01-2006, 04:33 PM
Originally posted by BebeAphrodite


My insurance w/o collision is about $1000/year. With collision, the insurance goes up to $492/year to around $1500.

How much is your call worth? Must be pimped out, :D

My collision is $250 and covers a $35K vehicle.

the_new_santa1
08-03-2006, 02:58 AM
:eek: how is it that cheap, I was quoted 3500 with liability, collision and comprehensive, on a 92 civic worth maybe 5 g's....this is what pisses me off, It is my first year driving, as a fulling insured driver, no tickets or anything, so it shouldnt be that much....btw I am through morgex, and the insurance company is york auto and fire or something like that....

Luv2Boost
08-11-2006, 10:27 PM
i took out a $29 000 loan from my bank. I had the option to secure the loan with the car and pay it out over 7 years at a lower interest rate, or take it unsecured over 5 years at a slightly higher rate. If i used the car as collaterol i was told i would have to show proof of collision coverage. But because i chose not to use teh car as collaterol so that i could sell the car when i wanted to without worrying about leins and the such i did not need the collision coverage.

max_boost
08-11-2006, 11:25 PM
Originally posted by BebeAphrodite


My insurance w/o collision is about $1000/year. With collision, the insurance goes up to $492/year to around $1500. I think that's how much my insurance is a month. LOL Have to get that shit adjusted ASAP. :rofl: