Well, I have been looking for a loan for a possible new car. This is a very new process for me.
The thought of a new car sounds great until you start to do the numbers for one. Not only the monthly payments but the insurance.
A brand new car just around $16,000 quickly went out of my budget. I also think my budget is small, but still, there is no point trying to get something that one cannot honestly afford.
Not only that but looking into interest rates are another big problem. If you have never bought a car before they automatically start you at a higher interest rate, even with great credit.
Being the curious person I am, I asked why. The answer, because it is the most sought after and most likely loan to not to be paid. It makes sense, but it hurts still.
So I've been looking at older cars, which even a 9 year old car is still WAY newer then my 25 year old beauty.
However, this started off as a very intimidating experience.
The first bank I went to, it was my normal bank, I walked in and had to wait like 30 minutes just to be seen. Then when I did get in there the lady started talking about rates anywhere from 5.95% up to 24%. The she told me the numbers that would probably apply to me. I thanked her for her time and walked out.
I was in shock, I had some information over load and was just like really?
The second bank I went to, I did so on the request of the parents. I filled out an application, send it in. The next day I received an e-mail asking for more information. I provided them with it, and then heard nothing.
After waiting two days I called to be told I did not qualify because I did not live in their service area. Alright, fine with me.
So that is when I really rolled up the sleeves and hit the trail. On one lunch break I stopped by 5 banks, was told everything from 3.99(the best I've even heard) all the way up to 13%, some start at 10% just because of the age of the car. It doesn't matter that I could be getting it a great price and am asking for less than what car is even worth, but everything was high and for very short terms.
After about bank 3 I was starting to have fun with it. Going in, sitting down, talking to someone for about 5 minutes and back out the door. No stress, no worry, all about the same story.
I was really impressed with the variety of the bank interiors. They were all different but all very nice as well.
Only one banker tried to convert me from my current bank. They were nice, and small, but at the same time, the rates were just so high it would be hard to say yes.
The quest was completed by Friday. I still walked away a bit confused and slightly annoyed, but with a low payment and a longer term, I couldn't go wrong.
Now, for a home loan this has to be WAY scarier, but for my first car loan experience, with only a few people looking down on me, it was rather okay.
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