[gibsonrocker]

Hey everyone,

So anyway, I've been approved for my 06 STI and all is grand.... Except for the fact that I'm going to be paying a fortune to own this thing!! Being a new college graduate and having student loans to pay off, it was amazing that I was approved for the vehicle on my own in the first place (parents won't cosign). The major problem lies within the fact that my APR is going to be 13.5%.. This equates to (if I were to pay the minimum monthly payments for the 72months) $16,000 in interest ! The sad thing is that I have good credit, it's just that it's limited and the school debt isn't helping my cause.

Thankfully, I am making good money as a new graduate and I can afford this, the insurance and be able to put plenty on principle to get it paid off as soon as possible. Now, I know the STI's are great cars and everything, but they're not made out of gold! What I really need you guys to do is to start tellin me about how much you love your cars and why I'm going to love it just the same! There really is nothing that I want more than this and I need a vehicle that's more reliable anyway. How would most of you handle this situation and what would you do if you were in my place?

Nothing's really going to change my mind, but I just want to see what some older/wiser people think about this predicament. I definitely appreciate any input you have.

Thanks,
B

[wantsti118]

f..... that 13%!!!!! save your money!!!! they car isnt that nice!!!! pay your loans off instead then try and buy a house. its a great time with the market down so low!!!
just my 2cents..

[SR55_STi]

No offense. That is a terrible idea. 16,000 in interest is absolutely insane. Remember, you are accruing interest on a depreciating asset. I'd pay off the loans first. Become financially sound after working a few years -- then get your bling.

But then again...the ridiculous amounts of money I've spent on my car was also a "terrible idea."

When it comes to cars...I'm not really driven by rational thinking. So, go with your passion -- even though everyone will probably tell you it's a bad idea.

[RFFG]

I wouldn't do it.

[BillFromTR]

You can find a better terms elsewhere. Was that the dealer financed rate? If so go to a bank. That is rediculous. I'm paying like 3.9%

[Szumita]

stupid idea... espically the way the economy is now..

be smart

[gibsonrocker]

Originally Posted by BillFromTR

You can find a better terms elsewhere. Was that the dealer financed rate? If so go to a bank. That is rediculous. I'm paying like 3.9%

Well, I might be able to find a better rate somewhere else, but the biggest thing is that I would have to wait a considerable period of time to establish an even greater credit history. This would also give me time to save for a down payment. It's just such a hard decision as I am living at home with my parents for a reason (so I can get the toys while I'm still young). I know I would probably have the car paid off in 3 years, so I really wouldn't accrue that much interest.

I think my biggest thing is just going to be money management skills and everything should be doable if I put an extra 400 or so a month on principle. That way I can get it paid off as soon as possible while accruing as little interest as I can.

Gotta love the good ol' analogy of being caught in between a rock and a hard place.

[PBR600RR]

yeah, you could wait a couple years... i paid off all my debt, and bought a house before buying a new car. i waited (and dreamed of new cars) for 8 years... but you know what? it just makes it that much more satisfying when you finally get the new car. my two pennies.

[USNSTI]

Dude, shop around if you want. Do not, under any circumstances, sign off on a loan with a 13.5% interest rate. That is like commiting financial suicide.

[Hitman83]

Wait a year or two dude and you'll get a decent rate. Buying something a lot less expensive and paying it off prior to financing an expensive car will help establish credit and get you a much better interest rate.

I know this first hand. After graduating from college I got a good job and was denied for a $7500 loan. Less than 2 years later I was able to finance my 06 STI at the best rate available through Subaru (chase bank).

[stiman1]

13.5%..... don't do it, save your money and buy when you are eligible for good apr, or can put down at least 75%

[STIVendetta]

Originally Posted by gibsonrocker

Hey everyone,

So anyway, I've been approved for my 06 STI and all is grand.... Except for the fact that I'm going to be paying a fortune to own this thing!! Being a new college graduate and having student loans to pay off, it was amazing that I was approved for the vehicle on my own in the first place (parents won't cosign). The major problem lies within the fact that my APR is going to be 13.5%.. This equates to (if I were to pay the minimum monthly payments for the 72months) $16,000 in interest ! The sad thing is that I have good credit, it's just that it's limited and the school debt isn't helping my cause.

Thankfully, I am making good money as a new graduate and I can afford this, the insurance and be able to put plenty on principle to get it paid off as soon as possible. Now, I know the STI's are great cars and everything, but they're not made out of gold! What I really need you guys to do is to start tellin me about how much you love your cars and why I'm going to love it just the same! There really is nothing that I want more than this and I need a vehicle that's more reliable anyway. How would most of you handle this situation and what would you do if you were in my place?

Nothing's really going to change my mind, but I just want to see what some older/wiser people think about this predicament. I definitely appreciate any input you have.

Thanks,
B

"Do not, under any circumstances, sign off on a loan with a 13.5% interest rate. That is like commiting financial suicide." ~~~~~

^^^ ~ Oh..ya....Starting up the STi in the morning and giving her a quick wipe-down is a beautiful thing.....listening to the growl of the engine as I am driving to work and feeling the g-force going thru the gears is a wonderful thing.....just makes one smile.

[wantsti118]

think about it. thats like buying a car with a credit card. dude just hold off for a while subaru isnt going anywhere. pay those college loans first then your credit score will raise consideribly. by the way what did you major in?

[Kylipso]

gawd I was complaining about my girlfriends 5% on a scion, 13.5 is ridiculous especially now when you can see 3% at most places. Wait man, for 16k you could get a nice used car just for the interest you would pay.

[Tweeter]

There's more to life than cool cars dude. I'd get something else for a lower rate, sell it and get a STi later.