EESH Posted August 3, 2007 Report Share Posted August 3, 2007 Has anyone purchased a car using their line of credit? The more I think of it, the more I see it as a smart decision compared to financing/leasing with a dealership. Say the car costs $20,000 (thinking of a city golf), you'd pay $1,500 per year (at 6%) which comes out to $125 per month... that's not a bad monthly payment! You're not making any payments on the principle at that point, but it's not that big a deal considering you don't have to pay back the principal until the end of residency. Has anyone else thought this through? Link to comment Share on other sites More sharing options...
SGMD09 Posted August 12, 2007 Report Share Posted August 12, 2007 Has anyone purchased a car using their line of credit? The more I think of it, the more I see it as a smart decision compared to financing/leasing with a dealership. Say the car costs $20,000 (thinking of a city golf), you'd pay $1,500 per year (at 6%) which comes out to $125 per month... that's not a bad monthly payment! You're not making any payments on the principle at that point, but it's not that big a deal considering you don't have to pay back the principal until the end of residency. Has anyone else thought this through? Many car companies offer excellent interest rates on financing and leasing, so buying a car entirely with your LOC isn't necessarily the best option. For example, GM is currently offering a 1.9% rate on leases up to 4 years, and 0% purchase financing up to 5 years (I just got a Chevy Cobalt on a 4 year lease). You really shouldn't calculate your cost based on the monthly payment, because the amortization is much longer, and you'd be paying a lot more in the long run. If the dealership's finance corporation doesn't offer a good interest rate, then buying it with your LOC would be better, but I think most car companies off lower-than-prime rates on most of their cars. Link to comment Share on other sites More sharing options...
NLengr Posted August 13, 2007 Report Share Posted August 13, 2007 Has anyone purchased a car using their line of credit? The more I think of it, the more I see it as a smart decision compared to financing/leasing with a dealership. Say the car costs $20,000 (thinking of a city golf), you'd pay $1,500 per year (at 6%) which comes out to $125 per month... that's not a bad monthly payment! I'd avoid a city golf if at all possible. The Mk IV golf, which became the city golf after the Mk V (aka Rabbit) was introduced, is notoriously unreliable. They tend to experience a lot of problems over the cars life, and cost a bomb to repair. On top of that the engine is of an old design, and rather underpowered for it's size. Both Honda and Toyota make top quality cars that blow the Mk IV Golf out of the water. You are much better off purchasing a new civic if you must have a full sized car. It's a whole generation ahead. If you can hold off until the new generation Corolla's come out, you'll also get a new generation car. Also, the Yaris is a nice car for a student as it burns little to no gas. Link to comment Share on other sites More sharing options...
susan Posted August 16, 2007 Report Share Posted August 16, 2007 Hello All I am just wondering how OOP student's have registered a car in the province they are studying in while there parents who are owner's of the car are residing in a different province. I have been told that I cannot have my own insurance unless the car is registered under my name, but with this my student loan would be affected. Any ideas around this? Susan Link to comment Share on other sites More sharing options...
moose Posted February 13, 2008 Report Share Posted February 13, 2008 I am actually wondering about the same thing. moose Link to comment Share on other sites More sharing options...
0nsp Posted February 14, 2008 Report Share Posted February 14, 2008 just my 2 cents: 1. I would never buy north american cars: reliability is $#!+. flame me all you want. 2. If you are buying a new car, get it from the states, as mentioned before. A lot of dealers close to the border are forbidden by their head offices to sell cross border, but if you go further south, then they really don't care. I bought a car in Florida 3 months ago, and drove it back to Edmonton with a couple of buddies. Saved a TONNE of cash, and had a graet vacation at the same time. Go to RIV.ca for details and a list of which cars you can import. Also go to APA.ca to see which manufacturers honour american spec car warranties in canada. 3. the absoloute best bang for your buck to get you from point a to b safely, realiably and in the most efficient manner possible is a toyota corrola (there are more efficient cars, but they cost more). The problem is, they are gutless, and if yuo are a driving enthusiast, don't get one. The next best is a honda civic, but everyone and their dog has one. I don't know how any of these affect OSAP, since I dont get it. Anyone wanting info on importing just PM me. I bought a wayyy more expensive car than I needed (mazdaspeed 3). (to quote ferris bueller: "if yuo have the means, i highly suggest you get one:). the way i look at it, as a preceptor once mentioned, you have to spend about 1.5 hours a day driving it, you might as well have the most fun you can afford. It really does make driving a lot more pleasant, and if you look it up, wayyy more MI's occur after driving, so don't stress yourself. I'm pleased with my purchase, and I can always pay off my LOC when I'm staff. As for insurance, see if there is some way to get under your parents. My parents have 2 other cars and a house with the same company so it is dirt cheap, and I am an under 25 male. Hope this helps. Link to comment Share on other sites More sharing options...
superchargedman Posted February 14, 2008 Report Share Posted February 14, 2008 Has anyone purchased a car using their line of credit? The more I think of it, the more I see it as a smart decision compared to financing/leasing with a dealership. Say the car costs $20,000 (thinking of a city golf), you'd pay $1,500 per year (at 6%) which comes out to $125 per month... that's not a bad monthly payment! You're not making any payments on the principle at that point, but it's not that big a deal considering you don't have to pay back the principal until the end of residency. Has anyone else thought this through? vw reliability is pretty bad ever since audi merged. my friend works at a vw dealership, and he sees some pretty bad stuff. ________ Ford landau (australia) history Link to comment Share on other sites More sharing options...
muchdutch Posted February 18, 2008 Report Share Posted February 18, 2008 Many car companies offer excellent interest rates on financing and leasing, so buying a car entirely with your LOC isn't necessarily the best option. For example, GM is currently offering a 1.9% rate on leases up to 4 years, and 0% purchase financing up to 5 years (I just got a Chevy Cobalt on a 4 year lease). You really shouldn't calculate your cost based on the monthly payment, because the amortization is much longer, and you'd be paying a lot more in the long run. If the dealership's finance corporation doesn't offer a good interest rate, then buying it with your LOC would be better, but I think most car companies off lower-than-prime rates on most of their cars. Yes, these days most car companies are offering lower, if not much lower, than prime rates. February really is the best time to buy a car as the dealers are all hurting from the January lag, and they are trying to move their previous year's cars off the lot. Right now a lot of dealers are offering just that - 0%, 1.9%, 2% financing for up to 60 months where I'm at. Link to comment Share on other sites More sharing options...
muchdutch Posted February 18, 2008 Report Share Posted February 18, 2008 Onsp - I pm'd you. Link to comment Share on other sites More sharing options...
epigal Posted February 25, 2008 Report Share Posted February 25, 2008 I hear you can get your own insurance on someone else's car... as in... My mom can buy a car and I can put insurance on it (insurance in my name but car in my mom's)... it's called insuring someone else's property, in which you have insurable interest anyone has insight on this? would this fly with OMA insurance??? Working as an insurance rep, i know that you cannot insure your mothers car. If your mom owns the car, the insurance policy is in your moms name as well. However, primary driver would be you, and you can set it up so the funds come from your bank account. Link to comment Share on other sites More sharing options...
Bets Posted July 30, 2009 Report Share Posted July 30, 2009 Darla – I sent you a pm. Link to comment Share on other sites More sharing options...
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