How can I finance an old van?

[CosmickGold]

I'm seeking advice from you on how to finance a used van (for nomadic living). About $3,500.00 should do it.

I'm retired (age 70), living on $724.00/mo Social Security. I have no savings, and have give my monthly SS directly to my housemate for years, (who is much better at keeping track of expenses than I). She gives me back $100.00/mo cash monthly for little expenses that always come up.

It seems to me that once I start living in the van, repayment of the van-purchase loan should be about $100/mo, and things to improve it will be another $100/mo.  Leaving $500/mo to live on (like everyone here says it's easy to do).

I thought getting a loan wouldn't be all that hard; like, can't they legally take a monthly payment (about $100) out of my direct SS deposit each month? What could me more secure or simpler for them?

But even Lending Tree (which offers about 3% APR) doesn't do that. They turned me down because they didn't find any recent credit card history, or bank loan history, or morgage, etc.; because there simply isn't any for them to find! (Doesn't matter that they couldn't find any bad credit either.)

But it occurred to me last night that you guys know what to do, better than anyone else!

So I'm hoping for an exciting reply that will make me jump around exclaiming "Yes! Yes! Yes!" 

 

[Weight]

what advice do you get from housemate?

 

[CosmickGold]

what advice do you get from housemate?

Housemate is so kind.

She offered to let me take it from her credit cards and not worry about paying her back.  But that would be really mean of me to do so.  First of all, NOT PAY HER BACK???  I wouldn't do that to anyone.

And secondly, her cards carry about about 23% interest on borrowing.  Waaay too much. A car loan should be about 3%, I think.

Basically, I want to do this in a way that doesn't make problems for anyone.

 

[user 13531]

Have you researched crowd funding? They make loans on just about everything nowadays...

Might also consider a used sales dealership, they also have funding sources.

I have zero experience with either of these options and am not personally recommending same...

 

[Riverman]

Good luck with your van purchase.

 

[CosmickGold]

Have you researched crowd funding? They make loans on just about everything nowadays...  
Might also consider a used sales dealership, they also have funding sources.

I wonder.  Crowd funding wouldn't provide a way to repay them, I don't think; and I'm not looking for a handout.

But the used sales dealership is worth looking into.  They wouldn't have what I want, but if I found it myself on Craig's List, then got a dealership to look into it, the dealership might have a way to help me for some profit.  

Thanks....

 

[Wanderer]

Thing is, those "Buy here, Pay here" are terribly high interest.

If you can't put down $500-$1K the other dealers very well may turn you down.

Plus other than the BHPH dealers, they'll want proof of good credit history. Expect $18-30% interest also. 3% is only for the Gods who have 800+ credit rating.

 

[[email protected]]

Cosmicgold, would it be possible for your housemate to co-sign for you on a loan. That way you could get the money and begin a credit history at the same time. It appears that since she has credit cards she may have a good credit rating. Best luck on your dreams. Jeff

 

[John61CT]

It seems to me you need an emergency repairs fund probably equal to the purchase price, at least $2-3K

Dealer financing is a real ripoff, last resort only and only if you're 100% sure you won't default.

Doubt if a regular bank would finance.

Maybe take your housemate's offer, but of course cover the interest as well as paying back.

Read this for how to use miles traveled as a tool for building up your emergency repairs fund: https://vanlivingforum.com/showthread.php?pid=353330#pid353330

But in your case the first $3-400 per month would go toward paying back your lender.

Which is why you need a robust ER account to start with.

 

[mr_elijah_gardner]

Realistically it's going to be hard to get a loan for 3K that's going to cost you less than $100 per month. Most lenders that will finance a 3k old van are going to be high interest/payment. Probably better than a credit card but I can't imagine being less than $200/mo and who knows how high interest.

 

[Weight]

There is a Kia dealer down the road that finances anyone that brings a pay stub or prof of income. The used car guys with buy here pay here, raise the price of the vehicle as well as high interest. Usually they are selling junk.

 

[Every Road Leads Home]

A personal loan through a bank would be the best way to get $3500 for a reasonable interest rate. But with no credit history you most likely won't be approved. Maybe your housemate could co-sign on one for you, this would get you a much more reasonable interest rate of around 6 to 8% if she has decent credit. Unless someone you know gives you a loan personally, I don't think there is anyway to see a 3% interest rate, the only vehicles getting that are new or almost new and with very good credit.

Keep in mind a van costing $3500 is almost certainly going to need some initial and on going repairs so try and budget for those as well. An unexpected $1200 repair a few times over the first year would almost be expected.

 

[Zmann]

CASH.  Or as my ol' man used to say " cash on the barrel head."

 

[GypsyDogs]

and don't forget replacement-value Insurance... would hate for an accident to happen, and have you minus a vehicle, and still owe money.. !

 

[Goofy]

Is there any way you can check with local credit unions? I live on a disability check and I needed to buy a used car. The dealership rates where terrible. I direct deposit my check to my credit union and they financed a car I couldn't really afford any other way and let me pay it off at a decent 4.5% interest rate over four years. They took the payment the day the check hit my account so there was never any question I'd pay them back. It's worked for me.

 

[CosmickGold]

Is there any way you can check with local credit unions?  I live on a disability check and I needed to buy a used car.  The dealership rates where terrible.  I direct deposit my check to my credit union and they financed a car I couldn't really afford any other way and let me pay it off at a decent 4.5% interest rate over four years.  They took the payment the day the check hit my account so there was never any question I'd pay them back.  It's worked for me.

WOW! Goofy!

This is exactly the kind of answer I was looking for!.... a way to use "direct deposit" from Social Security as their assurance of being paid back for a low-interest auto loan.

Thank you! * Thank you! * Thank you!

Now I've got some calls to make.   

Tommy