Loan Questions...

[Macdaddy4738]

Im probably going to be taking a loan out for a new car (1989 Jeep YJ, 3500 bucks but I THINK i can get him down to 2800 or thereabouts!)

Anyways..Im wondering what is the better option to go for..

Either

A. Take a Loan out for something like 4500. Ive already got 1000 saved for a car, and Im thinking of using the 1000 to pay of loan and insurance payments for the first few months so I dont have to work my ass off right away. Id use the extras to fix up whats wrong with the Jeep (New Tires, Side Mirrors, Carpet cleaning, stereo...stuff like that)

Or

B. Take out a Loan for 1800-2500 (depending on how low he will go on the Jeep!) Id use my 1000 to pay for the rest of the Jeep, and just work extra hard to get the payments on both Insurance and Loan paid off. This way my loan payments are less, and I can pay the loan off faster. Im sure Id end up paying less than the 4500 loan in terms of Intrest, but getting the Jeep fixed up with what it needs would be a bit harder. Id rather not be paying off a Loan while in college, because Im not 100% sure if I can handle a job as well as college school loads. But if it means having a Jeep with bad tires, no stereo (At least I dont THINK the one in the Jeep works, it might have just been disconnected...) and no side mirrors (Honestly i dont use these anyways, I ALWAYS turn and look....but in terms of Inspections I dont think it will pass with out em...)

What would you do?

Maybe take the initial loan out for less that 4500, to where I dont have to use ALL my 1000 cash to cover what the loan doesnt, but have enough to where I can pick up a set of tires and Mirrors...

any help?!

Also can anyone tell me the intracacies of a loan, such as APR, and Fixed rates and junk like that? Lower APR better? Higher?

Who should I look at for a loan? Im pretty sure Im going to go USAA as thats what our insurance is...but im not sure if this is the best option!

Thanks for any help I can get!

[RatLabGuy]

Do you have no car right now? Or is this to be a toy?
My biias is - doing well in college is very important, moreso than a new toy. So whatever you do, don't trade off school effort for anything.

Another question - what's the story on this Jeep? Honestly it sounds like it needs alot of work - if so, for an '89 XJ then I think you can get a much better deal than $3500. I'm not sure I'd pay that much if it was ready to go (it IS 17 years old). I only got $4000 for my '90 Loredo 3 years ago, and it was loaded and in great shape.

I say, if you need a car now, ask around here and find one for $2000. If you think you'll have more time to work in 5 months (summer break?), get a loan for the full amount, and use your $1000 for misc stuff and to pay off the loan for few months until you have time for the job. You will lose more $$ in the long run in interest (accumulates on twice the principle), but it buys you time for school, and really the diff isn't that much $$. Just my 2 cents.

re: loan sources - many options. Who is your bank? Id the NC Credit union, their rates are great.
Here is another option... since you are a student, you can get a "student loan" at very low interest, much < a car loan. Take the student loan and use that to buy the car - not only will you save $$ on interest, BUT in many cases you can defer interest until you graduate (that depends on parents' income etc) - if you can, then STILL get the job to pay it off, but put the $$ into a savings account and let it accumulate, so interest works in YOUr favor, then start payin gas soon as they start charging you interest. Sometimes you can even get a savings account that'll pay more to you, than the interest rate on student loans.
Some would agruse that this is a bit of an abuse of the student loan program, but I'd argue that if you have no car, its hard to make it to college - it's almost as necessary as books.

[Macdaddy4738]

Oh no, it doesnt need alot of work at all. Just tires and mirrors. Im pretty sure the stereo was just disconnected from the back...

Its in excellent shape for an 89 (http://community.webshots.com/album/546571953ffJMbo its the red one)

paint is flawless, frame is flawless...its really nice looking, and im pretty sure I can talk him down to 2800-3000

EDIT**

I do have a car right now, but

A. Its my dads
B. Its not really what I want
C. He wont let me take it up to college!

[rbo1577186]

You typically can't get a car loan for more than 125% of the value of the vehicle. Most of the time you'll not be able to get a car loan on a car that's older than 6 years or over 100k. Try to get the loan some other way. RatLab had a good suggestion on another type of loan. If you do get a loan you've got a good idea to borrow a little extra to make sure you can drive it( Can't pay it off if it isn't running to get you to and fro to work). Don't borrow anymore than you really need to cover the mirrors, tires, and a cheap radio. You can always repay the unspent money right back.

Another thread said this jeep might have seen some salt... I'd keep looking. Get under it and look carefully where someone may have sprayed over a rusty spot on the frame. The pic of the frame looked like newer spray paint. Look for rusted out holes and cracks just in front of the rear wheels.

[SkyHiK5]

OK I'm probably in the minorrity (if not the only one with my thoughts) but I would NEVER borrow money for any vehicle, especially a toy.
While I practice a little different money principle than most I learned the hard way that the borrower is slave to the lender (straight from the GOOD BOOK) and that it sucks when you have a car payment and a busted car. If you paid cash for the same vehicle and it breaks down, who cares park it, if you want to fix it great if not it aint going to eat anything...
During colege I drove one $400 car after another
All that being said, if you are going to borrow money I would certainly look into the student loan idea...
Just my $.02 worth

[Rich]

Oh no, it doesnt need alot of work at all. Just tires and mirrors. Im pretty sure the stereo was just disconnected from the back...

Its in excellent shape for an 89 (http://community.webshots.com/album/546571953ffJMbo its the red one)

paint is flawless, frame is flawless...its really nice looking, and im pretty sure I can talk him down to 2800-3000

Dude, that thing is FAR from flawless... a can of satin black sprayed right over all the easy to see areas.. BEWARE of a vehicle with a freshly rattle canned frame and painted body.

$5 says that paint will fade to a dull red within 1 year.

It's worth 1/2 what he's asking.

[jrraw23]

Regardless of vehicle shape I would not take out a loan. I absolutly hate borrowing money for any reason, and gettin into debt is an easy thing when your in college. I don't even use a credit card, got my debit card that draws directly from my checking and when I run out of $$ then i run out and when im out im out. Debt is the gayest possible thing ever.

[Macdaddy4738]

Oh its not going to be a toy...i need a DD

[jrraw23]

I wouldn't get a jeep as a DD, one it has hardly any room to haul stuff, and two your gona end up wanting to modify it and that usually leads to a decrease in gas milage. Yea my Z71 is absolutly killing me on gas . . . . :mad:

[Macdaddy4738]

I wouldn't get a jeep as a DD, one it has hardly any room to haul stuff, and two your gona end up wanting to modify it and that usually leads to a decrease in gas milage. Yea my Z71 is absolutly killing me on gas . . . . :mad:

dont care about hauling stuff, I have no need. If I need to haul something big ive got my moms van.

All Id to is maybe a slight lift on it, if that.

ran a Carfax on it.

Seems the thing has been EVERYWHERE! Started out in New Jersey, then went over to New Hampshire,then went to Massachusetts, then to KANSAS then here to North Carolina. Carfax estimates it has 3 owners (4 most likely...)

It was in one minor accident in a Catawba county (one county over) where the driver apparently hit a parked car. Says that it was a left front impact and Minor damage was sustained!

Im worried about the fact that it was so far North for a slightly long period of time (from 91-98...) with all the salt they have up there. It was also sold at an Auto Auction so it might have been repoed for soem reason..

The fact that the Frame was painted makes me a little weary, however frame painting seems to be in the sellers nature, as most of the vehicals he had where repainted...

[jrraw23]

Dude I would just take your time and look for something else because the more and more you tell us about this jeep it keeps sounding like its not a good idea. Plus once again I would never take out a loan, but seriously look around and see if you can't find anything else.

[Macdaddy4738]

probably wont be taking a loan out, my dad is probably gonna help me.

If you can show me a STOCK jeep for 3500 grand, then I'll buy it, for now this is the best thing.

[upnover]

probably wont be taking a loan out, my dad is probably gonna help me.
If you can show me a STOCK jeep for 3500 grand, then I'll buy it, for now this is the best thing.

I don't understand this at all. time and time again someone asks for advice and help. Many have told you in this thread and the other you made, not to buy, and yet you choose to not take the advice. Good luck

[davew0670]

I've got a great jeep grand cherokee Ill sell you! $4500

http://www.nc4x4.com/forums/showthread.php?t=6962

[Macdaddy4738]

I don't understand this at all. time and time again someone asks for advice and help. Many have told you in this thread and the other you made, not to buy, and yet you choose to not take the advice. Good luck


I just dont see a single jeep going for this low...and ive got another board telling me the complete opposite of this, so im not sure who to trust.

[khokhonutt]

I just dont see a single jeep going for this low...and ive got another board telling me the complete opposite of this, so im not sure who to trust.

I personally sold a '94 fuel injected YJ, stock for $3000 not too long ago. They're out there if you look.

I also had a older gentleman come to my house with his grand-daughter who was in love with my Jeep (just as you appear to be with the one you're looking at). She was on her way to college and looking for a good vehicle to get her through school and I spent a long time time talking her out of it.

I love my Jeeps, but as many have pointed out on this thread, they may not be the best choice for a kid going to college. If you've got money, fine, have fun. But if you're on a tight budget, you're probably not making a good choice, especially given all of the potential drawbacks pointed out on this Jeep.

All of that being said, don't trust most of the crap you read on the internet. Trust your parents or better yet, trust a competent mechanic. Then make your own decision and start living with the mistakes you make. :D

[SkyHiK5]

The only thing I am going to add is slow down, they made a BUNCH of JEEPS there are plenty out there this is not the only one in the world, if you are having to convince everyone this is a good idea, it should probably tell you somthing.

Not knowing the other board you are talking about there could be several factors at play. Do they know the seller? Are they trying to help him? Is it local or in a different part of the country? Prices fluctuate greatly. Are they all idiots? etc...

I have seen better YJs for less and frequently, I know of none right now, and I can't promise you that you will be able to find one in the next few minutes. Honestly patience is a big key to finding good deals, and making good money not just on vehicles but in all transactions. You obviosuly have what I term "deal fever" right now, and that can be good or bad depending on who's perspective you have. Ultimately no one but you will live with the decision,(well in this case you and your dad :rolleyes: )But I would personally take everyone's advice and wait, and I would not even consider going into debt on this deal.

One last question for ya, how long have you been actively searching for a YJ?
Case in point, I have been known to look for a certain vehicles for YEARS until I found the right one, in that case when the deal came along I had cash handy and waiting and I got a steal! patience and available funds help, A LOT!

Either way Good Luck

[Macdaddy4738]

My dad seemed to like it, he seemed to think it was in pretty good condition as well. He knows quite alot about cars...

However, I dont like the fact that the doors are ONLY soft doors. Other than that there appeared to be no other problems. I think we may ask the guy if we can take it down to a mechanic to check it out next week...not sure yet though.

Concerning the looking for years thing. Thats nice, and Id LIKE to do that, but dont have a year. I neeed something before college starts, preferably before summer as well.

[RatLabGuy]

You have 3 months, then?

[Macdaddy4738]

You have 3 months, then?

something like that, sooner is much better though. And like I said, Im sure I can get this jeep for 2800-3000

[rbo1577186]

If it came from up north most likely it has seen some salt. - Owner may have sprayed it to make it look better to sell, or maybe covering up something. LOOK UNDER THIS THING CAREFULLY ESPECIALLY JUST IN FRONT AND BEHIND THE REAR WHEELS WHERE THE FRAMES ARCH FLATTENS OUT. 3500 is a little steep.

[rbo1577186]

A jeep is not a practical DD. Fun to drive though.

[Macdaddy4738]

do you guys think I should head out to Summerfield to check out this one?

http://www.autotrader.com/fyc/vdp.jsp?car_id=195043655&dealer_id=57373483&car_year=1988&search_type=both&make=JEEP&model=WRANGLER&distance=100&address=28601&certified=&advanced=&bkms=1138158474128&max_price=&sort_type=priceASC&min_price=&end_year=2006&start_year=1981&isp=y&lang=en&cardist=86

[paulevans76]

no. $3k for an 88 with 172k miles? what happened to getting an Isuzu, btw? you can get a hell of a trooper for $3000 :flipoff2:

[trailjeepman]

At least that one looks like original paint! The previous one, you can tell it had been painted. That paint was too bright. $3000 is way too high for either.

[Ridgerunner]

OK I'm probably in the minorrity (if not the only one with my thoughts) but I would NEVER borrow money for any vehicle, especially a toy.


No you not the one. I will never have a "car payment" again. I have 4 and they are all paid for. the only thing I might do would be to take a home equity loan to buy a new car for the wife. But as least I can then wright off the interest.

a 88 with 170k would be worth maybe 1000- 1500 if it was real nice. I paid $600 for my 96 XJ sport with 159k

[chuckwhut]

i've learned my lesson the hard way a few times by seeing a vehicle i want, then going home and dwelling on it and thinking about how cool it would be to have until i get myself to the point that no one could talk me out of it...


hold out for something. my first 2 years at ASU i didn't have a vehicle...and that was cool. i had a good excuse not to come home for crappy weddings or obscure relatives birthdays! and i never had to drive around town either. never had to pay to park. never had to take a bus to where my car was parked.

i'd listen to these guys, they are all trying to help you out, as none of them have any vested interest in that jeep or are trying to sell you one of theirs. they are just honestly trying to look out for ya.

good luck man, and if a jeep is what you really want, wait for the best one...not the one that is cheaper than the rest but you don't know why.

if you are not dead set on a jeep...you should be able to come up with a fun/affordable/dependable ride in no time. there are plenty in the for sale section right now.

[Macdaddy4738]

no. $3k for an 88 with 172k miles? what happened to getting an Isuzu, btw? you can get a hell of a trooper for $3000 :flipoff2:

still looking. In fact im going to look at 2 more this weekend :p

I'm sorry if I seemed not to take your advice guys. I generally do this, if I find something i liked, then I obsess over it, and wont listen to ANYONE. Fortunatly this time I think I will listen to some one else...

Ive found the following

1995 Isuzu Rodeo 4x4 (6-cylinder, auto, PS, PB, PW, PDL, air, tilt, cruise, AM/FM cassette/CD, alloys. $3,695)

1995 Rodeo ( A/C, Power Windows, Power Locks, Power Seats, cruise, CD Player, Automatic, green, great shape. $3500 OBO)

1991 Trooper (4X4, air, heat, stereo cassette, 130k miles. 5 speed, V6. $2400 OBO)

1987 Trooper 4x4 (4-door, 2.3L, 5-speed, PS, PB, red, tan interior, new cylinder head, brakes, tires, exhaust system. Looks and runs perfect. $2500.)

1991 Wrangler (6 cylinder, 5 speed, new soft t op and tires. $3800.)

1991 4Runner SR5 (air, PW, PDL, cruise, sunroof, AT, highway miles, lady owned. Reduced $2,300 OBO)

1994 Amigo ("looks and runs good" no price, thats all thats in the ad :( )

The question is, what would you guys reccommend in terms of..

A. Cost of insurance
B. Aftermarket Parts avalibility
C. Off-Road Capabilities (I will probably build it into a mildly capable trail rig eventually, but not right away)
D. Reliability

I know thats alot to ask, and I apologize for that.

I'll try not to be an ass this time around :p

[jrraw23]

I would go with the 4runner hands down.

[upnover]

Out of those listed and what you say you wanna do, the Wrangler or the
4rnr. Just check it out reall good. Frame, compression rust? everything possible to check out.

[rbo1577186]

4 runner!!!!!!!!!!!!!!!!!!!!!!! What's the mileage on the 4 runner? auto or manual?

[Macdaddy4738]

no idea on Miliage.

Any specific reasons you guys say 4runner?

[upnover]

Yeah, a lot of after market. Even in stock form pretty good off road, and last a long time and reliable if taken care of.

[Tuite]

I'd check out the 91 trooper and also the 4runner if it is lower milage.

[rbo1577186]

Toyota makes a durable vehicle.... If the mileage isn't excessive 200k + by all means take a look. If well maintained, 200k isn't a big deal on a toyota.

[RatLabGuy]

Another for the 4runner. Good price on a vehicle that will be an EXCELLENT college car. Very reliable and prob more comfy than any of the others ('cept maybe the newer Rodeo - but you get a Toyota instead ;-))

On this one though, just if you don't know - if it has the 3.0 V6, find out if the headgaskets have been replaced. There is a factory recall on them.
If it's the 2.4l 4 cyl (22re), see if she knows anything about the timing chain/guides. The original plastic ones tend to wear out, if replaced w/ metal-backed they go forever.

[Macdaddy4738]

im going to check the Troopers out first, as that was what I initially wanted.

If they dont anwser their phones tonight, then Im heading down to check out the 4runner sunday!

I got ahold of the guy with the Amigo (one of my ALL time favorites!) and he told me its in pretty good condition, with a hard top!

[paulevans76]

I got my 88 trooper a year or so go for $1500 with just under 150k miles, one owner, all maintenance records, rebuilt eng, etc. it needed nothing, and it would probably still be in great shape if I kept it closer to stock. for a mild wheeler they are all about even. few inches of lift and bigger tires is easy on all of them. toyota and jeep have more aftermarket, but you will probably be more comfortable in an isuzu (more room for you and your stuff, great camping rigs, etc).

it's up to you, just make sure you check them all out good before you decide.

[Macdaddy4738]

The Amigo was okay, idled really rough though, not DD worthy with out some work (alot maybe...)

no word on the Trooper sellers!

Please keep your eyes open for a YJ for me!! :D