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Would I be crazy to trade in my ‘18 GT pp1 for a ‘16 GT Premium pp1?

SoCalTim

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You will lose money offloading the 2018, and the difference moving down to the 2016 is negligible.

If re-financing at a lower rate is not available to you, then either sit tight and swallow the payments or offload the car and get a beater off Craigslist until your credit is in a stronger position.
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bluebeastsrt

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You will lose money offloading the 2018, and the difference moving down to the 2016 is negligible.

If re-financing at a lower rate is not available to you, then either sit tight and swallow the payments or offload the car and get a beater off Craigslist until your credit is in a stronger position.
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hlfbkd420

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Awwwww… Come on you guys... I lease my 2018 and put a blower on it :)
 

lacanteen

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hlfbkd420

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LOL.. In my defense, when I decided to lease I didn't know if I would keep the car. After a few months I decided I would keep it and wanted a blower so on it went. Going to refinance in the next few months.
 

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cib24

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Don't blow up the car on lease or on finance! Remember, until you make the final payment the car is not yours. It's the finance company's.
 
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Jetnoise

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TheSnowmanMafia

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Did you even read the link?
Op is is score challenged as it is...
But like I wrote....you can do as you please.
Yes, did you?

Let me quote it:
"Lenders know that multiple applications for a car loan within a short period of time indicate you are shopping for the best terms, not buying multiple cars. Scoring systems have been designed to reflect that reality.

Therefore, as long as the inquiries were all made within a certain period of time, usually 14 days but sometimes longer, they are counted as just one when calculating your score.

The practice of counting multiple auto loan inquiries as just one enables you to shop for the best rates and terms without hurting your credit scores. The same applies when shopping for a mortgage loan."

I bolded the important bits for you.

OP shouldnt even be attempting to buy a car.... But your point is still wrong.
 

tom_sprecher

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I love my '16 and prefer the hood lines over the '18+. The exhaust was too quiet, so an FRPP X-pipe and some Borla S-type AB's fixed that real quick.

Do whatever is necessary to reduce the total amount you end up paying, your monthly payment, and the interest you pay. It will get you out of debt sooner, and the difference in the value of either car 5 years from now will be negligible.

21% is insane. I was lucky and got 0% down, 0% interest for 5 years from Ford. I never pay cash as long as I am confident there is money to be made from the difference between the interest rate and the short term average return of my portfolio.
 

Jiki05

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People acting holier than thou than the OP. Yeah, he made a mistake but don't berate him for his choice. Everyone makes a mistake and don't tell anyone that not one of us has ever made a stupid one either.

Deal with the mistake, OP. Either refinancing or getting rid of it if you can't refi. We only live once so do what you want and you deal with that choice.
 

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Jetnoise

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Yes, did you?

Let me quote it:
"Lenders know that multiple applications for a car loan within a short period of time indicate you are shopping for the best terms, not buying multiple cars. Scoring systems have been designed to reflect that reality.

Therefore, as long as the inquiries were all made within a certain period of time, usually 14 days but sometimes longer, they are counted as just one when calculating your score.

The practice of counting multiple auto loan inquiries as just one enables you to shop for the best rates and terms without hurting your credit scores. The same applies when shopping for a mortgage loan."

I bolded the important bits for you.

OP shouldnt even be attempting to buy a car.... But your point is still wrong.
Yes, did you?

Let me quote it:
"Lenders know that multiple applications for a car loan within a short period of time indicate you are shopping for the best terms, not buying multiple cars. Scoring systems have been designed to reflect that reality.

Therefore, as long as the inquiries were all made within a certain period of time, usually 14 days but sometimes longer, they are counted as just one when calculating your score.

The practice of counting multiple auto loan inquiries as just one enables you to shop for the best rates and terms without hurting your credit scores. The same applies when shopping for a mortgage loan."

I bolded the important bits for you.

OP shouldnt even be attempting to buy a car.... But your point is still wrong.
why did you leave this part out?
"
How Inquiries Impact Your Credit Rating
For other types of credit, lenders may view multiple recent applications as a sign of risk, so it's best to keep inquiries to a minimum by applying only when you really need it. Although too many recent inquiries can have some negative impact on your credit rating, that impact is typically small and temporary.

While inquiries remain part of your credit report for two years, the longer ago they occurred, the less they will affect you. If your credit history is good overall, it's unlikely that your application would be declined based on inquiries alone."

I've spent just over 20 years in finance now...but wtf do I know.
So just keep on trucking
 

Shifting_Gears

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Two vehicles ago a dealer shot my applications to several different lenders and each showed on my credit report and my score took a hit. This was all done in one day. I was pissed.
 

Ecoboosted

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Two vehicles ago a dealer shot my applications to several different lenders and each showed on my credit report and my score took a hit. This was all done in one day. I was pissed.
Same happened to me 2 years ago. I told the dealer that I use my credit union for auto loans. He said they use them and would only apply to my credit union. Not only did they not use my credit union they sent it to 3 different banks. I was so pissed. After I took the car home I refinanced it thru my credit union. Lesson learned. I will wait until I secure my own financing thru my credit union even if that means the car sits there a week.
 

Kong76

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If you can't afford to buy something in cash you can't really afford it. What will happen if something break on the car or he got into an accident or the car got stolen ?

He can afford the payment but a car is not only a payment in fact when I usually calculate can I afford a car I put a number equals 2 monthly payments that is the real way to calculate if you can afford a car as this includes monthly payments, gas, maintenance etc not only the monthly payment. Also even if he can afford the payment paying 21% on a secured loan is absurd as 1/5 of his monthly payment is going to interest. As I mention earlier he probably could find a CC with less interest than 21% and this is unsecured loan my CC is at 14.5% and my credit is not great as well.

For me holding the car is the second stupid decision he mad first was to agree on 21% loan. I understand the fuck it mentality after near dead experience but we both know that even owning a Mustang GT is asking for troubles and when you are doing it on 21% is almost suicidal because even if the car didn't kill you that interest will.

Tell me where he can find a CC limit to cover the balance of his car with his credit score? You contradict your statement if "you can't afford to buy something in cash you can't really afford it" and then say " When I calculate can I afford a car I put a number equal to two monthly payments"? So you can't technically afford your cars either.
 

Shifting_Gears

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I would venture to say the majority of the population can’t “afford” their car either as well as many people in here. I think responsible use of credit/financing is what’s important when making a decision on a vehicle, especially one that doesn’t fit the economically sensible checkbox like our cars.

People have different perspectives and norms on money but at the end of the day the person responsible needs to be sound with their purchase decision. I have acquaintances that will never do any major financial transaction that’s not in cash. They don’t care about credit and don’t “need it” because they’re cash rich and that fits their lifestyle.

There’s many days I kick myself for trading my ST in on my GT when I was about two years away from it being paid off. But when I hop in, hear the exhaust and feel the power I realize why I did.

That being said, I would vomit if my car was at a 21% interest rate. I bought mine in 2018 (it’s a 2016) and due to a dealer f-up they reduced the 3.9% APR for it being CPO down to 2.9%, which was the same rate I had on my ST. For the OP’s sake, he’s realized he’s in a bad spot and is at least working to take steps to correct it.

I would suggest sticking out your purchase and refi after a year or so of solid payments. Don’t shop around now or else you’re going to hurt any credit progress you’ve made. Sounds like your in a financially OK place as far as affording the monthly payment, so get out and enjoy the damn thing.
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