Used car buying and loans

QuantumTurk

So I'm looking to get a used Prius (and have done my due diligence that they don't spontaneously melt at 100k+ miles) and have run into an odd problem. If I buy from a private individual, I will still currently need a small loan, on the order of $1-3k. The problem is, is that my bank (wells fargo) does not offer auto loans that small, and looking around, most companies that do seem predatory or openly high interest. Is there a small loan alternative? Also if anyone has tips for what to check when looking at a used Prius, that would also be helpful.

Veevee

Get a larger loan without an early payoff penalty and make a massive first payment?

Gun Mage

Buy something other than a Prius - please - they surround us on the roads like giant lethargic hipster rats and clog the highways inducing rage on anyone who wants to actually get somewhere on time. You would be doing humanity a service by getting a larger loan and a different kind of car - even if it is another hybrid, that's fine - but please don't feed the Prii!

Gabriel_Pitt

Loans don't work that way.

@Quantum Turk: Have you gone into a physical branch and talked with someone?

Also, I'm fairly sure that you're not buying a used Prius for $1-3k, so you're covering it with some of your own money too? In that case, get a loan for the full price of the car. Where Veevee's post does work is that you then use that money to pay a big chunk of it off right away.

That's essentially what I did, save I needed a new car sooner than I could wait for a big commission payment to come in, so I got the loan, paid it for a few months, and then finished it off all at once, once I had the money.

Donovan Puppyfucker

Gun Mage wrote: »

Buy something other than a Prius - please - they surround us on the roads like giant lethargic hipster rats and clog the highways inducing rage on anyone who wants to actually get somewhere on time. You would be doing humanity a service by getting a larger loan and a different kind of car - even if it is another hybrid, that's fine - but please don't feed the Prii!

What? Whilst I am all about fast cars, hell, my blood is approximately 34% 108 RON race gasoline, this is a particularly uninformed position to take.

Donovan Puppyfucker

Getting the smallest car loan you can find with a reasonable rate for the vehicle in question and then paying the majority of it off as quickly as possible will minimise your interest payable. Just look out for punitive early payment fees and suchlike.

EDIT: As for what to look for in a used Prius, as always, you want as low a mileage model as you can find, and an excellent service history. You will want to have the vehicle inspected by a workshop that has knowledge of hybrids before buying it, to make sure that not only is the gas engine in good condition, but also all the other systems on the car are in top condition. And that the battery pack is healthy and has lots of life left in it. I don't even want to know how much it costs for a replacement battery pack from Toyota...

Jasconius

Hmm. Interesting conundrum. My gut reaction is there's no need to rely only on Wells Fargo. Different financial entities make their bread and butter on different types of financial services, and maybe cars aren't WF's specialty so they don't bother with small potatoes

I would say look for some alternative banks and inquire.

Alternatively, putting 3k on consumer credit wouldn't be the end of the world. How long do you think it will take to pay it back?

Kakodaimonos

I doubt a private seller will accept a credit card. You might be able to do a cash advance on a card but if it's not on a promotional APR, the rates and fees will be ridiculously expensive.

Darkewolfe

As others have said, you go through a bank on a loan for the full purchase price of the car. The bank pays all of the money to the seller, then you take however much cash you'd had on hand to be part of the purchase and you immediately pay off all but 1-3k of the loan.

I don't know how much of a PITA it'll be to get your bank to finance a private sale loan, though.

Thundyrkatz

Maybe try a smaller local bank, or a credit union. Go in and actually talk to someone about your options? Wells does not want to do it because the cost of processing that loan will far exceed any profit.

Dr. Frenchenstein

if you go the "full price of the car" loan route, make sure the payments are something you can handle. paying off a big chunk doesn't renegotiate your payments, it just pays the loan off earlier. so if you get a 3 year, $15k loan, and immediately pay $12k off, your payments will still be (assuming no interest) $416.66 until the loan is paid off.

i second the credit union suggestion. i don't think loans that small are considered "car" loans and would probably be considered "personal" and get a higher interest rate. your best bet is probably the full price option, but any bank worth their salt will at least go over options with you.

BouwsT

Did a similar situation to yours, I just got a line of credit to finance the car. LOC doesn't require collateral, had no payment schedule, it was basically like a cumbersome credit card (except no card, just a check book) with a lower interest rate (I think mine is ~8-9%? Haven't used it in a while). Bought myself a VW Jetta diesel. Paid for it with the LOC, immediately paid back what I had saved up, and worked down the remainder as fast as I could.

Donovan Puppyfucker

Kakodaimonos wrote: »

I doubt a private seller will accept a credit card. You might be able to do a cash advance on a card but if it's not on a promotional APR, the rates and fees will be ridiculously expensive.

Cash advances on a credit card are ALWAYS charged at %gofuckyourself rates.

This is NEVER a good idea. You could get lower interest rates from a loan shark.

Gabriel_Pitt

Darkewolfe wrote: »

I don't know how much of a PITA it'll be to get your bank to finance a private sale loan, though.

It shouldn't be much. Mine was a private sale, and all it took was a notarized contract between me and the seller to satisfy the bank.

ceres

Gun Mage wrote: »

Buy something other than a Prius - please - they surround us on the roads like giant lethargic hipster rats and clog the highways inducing rage on anyone who wants to actually get somewhere on time. You would be doing humanity a service by getting a larger loan and a different kind of car - even if it is another hybrid, that's fine - but please don't feed the Prii!

This is completely useless and fails to address the OP in every single way. Do not do this.

QuantumTurk

Thanks for the advice all! I'm probably going with the university linked credit union. I'm new to this weird world of not just buying things outright. Related: If you or someone you know is near Atlanta and wants to be rid of a honda civic/accord /Prius or something similar lemme know!