Jezilynn Posted January 20, 2008 Report Share Posted January 20, 2008 So I got a new car in June of 07, and I'm beginning to wonder if i got a good deal or not. Heres the basics, its a 2007 Hyundai Elantra off the lot with 19 mi (my first new car ever and I LOVE it.)Last time I checked my score it was around 470-500 FAKO. My dad was so unbelievably gracious enough to co-sign for me so my interest rate is 10.99. Payments are $409.72 for 70 months.I have the payments auto setup to come out the same day I get paid mid-month so I don't ever have a late payment.Is this something that will help me in the long run, or will it just boost his credit?His name is also first on the loan, does that matter? Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 20, 2008 Report Share Posted January 20, 2008 if you're both on the loan (don't matter who's 1st or 2nd), it will show up on your CRs as "joint account". It will help you both. But 400 a month for a Hyundai? No offense, but that car probably didn't cost more than 15K right? Get your scores up over the next year, you should be able to refinance IN YOUR OWN name (which will help you more) with 600's or better. Link to comment Share on other sites More sharing options...
willingtocope Posted January 20, 2008 Report Share Posted January 20, 2008 His name is also first on the loan, does that matter?Basically, that means the loan is in his name...you're just making the payments. Probably won't help your credit scores at all, because the CRAs won't know you're involved unless he defaults. Link to comment Share on other sites More sharing options...
Jezilynn Posted January 20, 2008 Author Report Share Posted January 20, 2008 It is showing on my credit reports.In my defense, I know that Hyundai's aren't generally known for being one of the "Top Manufacturers" but I did get the top of the line Elantra, minus the leather seats cause those really suck in FL, and the 10 yr bumper to bumper if the door handle falls off its covered warranty, including all my regularly scheduled maintenance is paid for for 10 years.Off the lot it was about 22k with taxes and gap everything included, my old car kept breaking down so I didn't have a down payment.My best friend has a 03 Elantra with over 130k mi on it (she drives cars harder than anyone I've seen and its still going without any problems.)And my plan was to fix my credit and refi in my own name in a couple years, or when my score allows me to.. still working on that Link to comment Share on other sites More sharing options...
spango Posted January 20, 2008 Report Share Posted January 20, 2008 congratulations!!!! My mom co-signed for me a year and a half ago for a new ford expedition, I paid on it for a little over a year, I traded it in on another new one in my name only, and I bought another used ford truck in my name. Don't be late and you will reap the benefits. My scores were in the low 500's then. Its a start and hyundai's are great cars with a great warranty!! Link to comment Share on other sites More sharing options...
jq26 Posted January 20, 2008 Report Share Posted January 20, 2008 Looks like it is boosting your credit, but the large balance appears to be dragging down your score. Whether you got a new deal or not depends on your point of view. You shelled out $28,700 in after-tax money over 6 years for your vehicle (to some people, that would be financial suicide, but if you are high income, then go for it). If you can bring up your scores and refi it lower, then you can reduce that cost by a $1000 or $2000. That may be a little better. Link to comment Share on other sites More sharing options...
VeVe Posted January 20, 2008 Report Share Posted January 20, 2008 If you can afford to make two payments a month, you should probably do that, especially if you're going to refinance in a couple years, otherwise, you may actually end up paying even more with the refi. The second payment should be going to principle only (someone correct me if I'm wrong on that), which will reduce your overall cost in the end. Basically, you pay more interest at the beginning of a loan, so by the time you refi, you may actually end up financing the entire cost of the loan all over again, minus maybe $1-2k, even after making payments for a year. Link to comment Share on other sites More sharing options...
jq26 Posted January 20, 2008 Report Share Posted January 20, 2008 If the OP refi'ed into a loan with a lower rate and there was no fee to refi, then it would impossible for the OP "pay more" than not refi'ing. There would be a reduction in total interest costs. Whether it be a mortgage or a car payment, the ONLY reason interest is more upfront is because you owe more principle at the beginning. You are not "pre-paying" interest in any way. The first few years of payments are primarily interest due to the large principal balance, which is only slowly reduced in the first few years. Then like a snowball rolling down a hill, the fixed payment amount means that more and more % of payment gets applied to principal, further reducing interest. Just thought I'd share because I see this misconception posted frequently. Link to comment Share on other sites More sharing options...
VeVe Posted January 20, 2008 Report Share Posted January 20, 2008 If the OP refi'ed into a loan with a lower rate and there was no fee to refi, then it would impossible for the OP "pay more" than not refi'ing. There would be a reduction in total interest costs. Not necessarily true. I bought a new car in September for around $18.5k. Interest rate was 16.5%, payment are $411/month. I just refinanced it. After making four monthly payments (~$1600), the payoff rate, which included NO penalties from either financier, was actually higher than the originally financed amount. Yes, I'm saving a lot of money by refinancing, since it's almost 7% lower than the rate with the first lender, but it's like four months of payments were never made. The amount of monthly interest was actually higher than the payments, making the loan go up rather than down. After making a year of payments, maybe the balance would be $1k less than the original amount, but by that time refinancing wouldn't have been such a great deal since the $4k saved was already thrown away in a year of payments that never applied to the principle. If the refi rate wasn't such a huge difference, and I waited longer, yes, I could have ended up paying more in the end.In my situation, I'm not concerned about the $1600 since it's still less than what I would have paid to have my VW pass state inspection. I am glad that I refi'd when I did. Link to comment Share on other sites More sharing options...
jq26 Posted January 21, 2008 Report Share Posted January 21, 2008 That means you had a negative amortizaton on your car loan if your payments didn't even cover interest. Never heard of a teaser rate on a car note. I'd go back and check your figures. If you made even one car payment and your balance owed INCREASED, you got screwed. Link to comment Share on other sites More sharing options...
skinny Posted January 21, 2008 Report Share Posted January 21, 2008 Jezilynn,Congrats on your new car and the co sign ... Have you considered refinancing through a local credit union. Search the site for links to credit unions in your area. I think that is an awful lot for that type of car, but we all must start somewhere. Once your score goes up, refinance with a CU and put the saved cash towards better investments ( 401K, saving account, a house, pay down on other debt , etc)Congrats!!! Link to comment Share on other sites More sharing options...
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