Buying an inexpensive car from a pvt owner w/a loan

[masraum]

I can get great car loans from my credit union. The way these loans work is that I tell them the price range that I'm looking at, and how much I want to spend and they send me a blank check (literally) that says "not good for more than $xxxxxx (how much I told them I wanted to spend). When I buy the car, I pay with the check and I put the VIN on the check. I've bought 3 or 4 cars this way, and it's worked well. The first car that I bought like that was my 911. I bought it from a private seller. It was an older guy who was a bit leery of the check, but called the credit union and was satisfied and took the check. All of the other purchases have been from dealers.

Now, I'm in the market for another car (a miata), but I'm only wanting to spend $5k or so ($4-6k). I've got the cash, but don't want to spend my savings, and can get really low interest rate car loans from my credit union (2%). I know the best thing to do would be wait until I could pay cash without spending my savings, but waiting right now is not a good option.

The problem is that to get a good miata at that price range, I'll have to buy from a private seller. I don't think most private sellers would take the credit union blank check, even calling the credit union. (I probably wouldn't).

I can get a loan that's secured based on the money in my savings, but my wife doesn't want to do that (despite the fact that it's savings and shouldn't be spent anyway), that I believe would enable me to pay cash for a car.

What do you think? If I showed up to buy a $5,000 user car with a blank check from a credit union, would you take it, what would you need to do to be comfortable, what do you think?

My other 2 options through the credit union are 1 loan secured with money that's in savings (2%) and 2 signature loan that I shouldn't have a problem getting (11%)<--ouch!

[ben parrish]

find the car...negotiate a price...have the seller meet you at the credit union and give him cash instead of the check.
Done this on a few purchases and also when selling cars.

[bell]

Can you take out a personal loan with the credit union? Then pay with cash? I did this once years ago, we then re-wrote the loan using the car as the collateral, if you have your savings $$ as the collateral they probably wouldn't think twice about it, just make sure you don't get screwed over with the intrest when they rewrite it......

[masraum]

Originally Posted by ben parrish

find the car...negotiate a price...have the seller meet you at the credit union and give him cash instead of the check.
Done this on a few purchases and also when selling cars.

Navy Federal Credit Union, closest one is over 200 miles away.

Originally Posted by bell

Can you take out a personal loan with the credit union? Then pay with cash? I did this once years ago, we then re-wrote the loan using the car as the collateral, if you have your savings $$ as the collateral they probably wouldn't think twice about it, just make sure you don't get screwed over with the intrest when they rewrite it......

I can get a personal (signature) loan at 11.25% for 36mos. Loan secured with savings at 2%, car loan for 36 months 2% or 60 months at 4%. I don't think they'd let me rewrite a personal loan as a car loan.

Either way, the whole thing will be payed off in 1-1.5 years (would be sooner but we're also paying off credit cards. Everything should be gone in 1.5years, would be gone sooner, but wife isn't making income since Feb.

I think we'll get the signature loan. With the signature loan, I think they'll just put the money in my account so I can pay cash.

Also, I'll be selling my existing car, and any cash left over will go back into the loan, so the loan should pay off even faster.

[Rick Lee]

Originally Posted by masraum

Navy Federal Credit Union, closest one is over 200 miles away.

I bank at Congressional FCU in the US Capitol Bldg. They have no branches outside of the DC area, but have affiliate or "share" branches everywhere. Check with Navy FCU. I bet they do too. I found one right by my house in the local newspaper's hq bldg. They'd never heard of my bank, but when they looked it up, they said my bank was part of them and I used them for a few vehicle sales deals.

[masraum]

Rick, interesting info. I'll call and check on Tue. Thanks

[onewhippedpuppy]

Originally Posted by Rick Lee

I bank at Congressional FCU in the US Capitol Bldg. They have no branches outside of the DC area, but have affiliate or "share" branches everywhere. Check with Navy FCU. I bet they do too. I found one right by my house in the local newspaper's hq bldg. They'd never heard of my bank, but when they looked it up, they said my bank was part of them and I used them for a few vehicle sales deals.

If nothing else, another bank should be able to verify the check. I've completed several sales at the buyer's bank or an affiliate.

[Steve Carlton]

Why not give the seller a cash deposit for enough time for him to verify the blank check is real?

[kaisen]

Pay cash for the car out of your account. Go get a car loan once you have the car. Deposit the proceeds of the loan back in your account. Isn't that a simple way of doing it?

On the other hand, the interest on $5000 for 1.5 years is squat at any interest rate, so it really is a non-issue.

Masraum, would you be interested in a 1994 Miata 'R' for $3500? The R had the Torsen limited slip, Bilsteins, bigger swaybars, rollbar, spoilers, and light alloy wheels. This is a nice two owner car that has never seen salt. It's Laguna Blue (rare, 1994 only). I don't own it or have any affiliation, but keep thinking of ways I can justify buying it.

[onewhippedpuppy]

Originally Posted by kaisen

Masraum, would you be interested in a 1994 Miata 'R' for $3500? The R had the Torsen limited slip, Bilsteins, bigger swaybars, rollbar, spoilers, and light alloy wheels. This is a nice two owner car that has never seen salt. It's Laguna Blue (rare, 1994 only). I don't own it or have any affiliation, but keep thinking of ways I can justify buying it.

That's just silly cheap. I honestly can't think of a better cheap fun car than a Miata.

[masraum]

Originally Posted by kaisen

Pay cash for the car out of your account. Go get a car loan once you have the car. Deposit the proceeds of the loan back in your account. Isn't that a simple way of doing it?

On the other hand, the interest on $5000 for 1.5 years is squat at any interest rate, so it really is a non-issue.

Masraum, would you be interested in a 1994 Miata 'R' for $3500? The R had the Torsen limited slip, Bilsteins, bigger swaybars, rollbar, spoilers, and light alloy wheels. This is a nice two owner car that has never seen salt. It's Laguna Blue (rare, 1994 only). I don't own it or have any affiliation, but keep thinking of ways I can justify buying it.

If the car's in good shape, that's an insanely good deal. (except for the 1200 miles between me and Minneapolis)

[kaisen]

I have family in Houston. I wouldn't mind driving it to you

[kaisen]

1994 Mazda Miata - Laguna Blue w. R pkg.

1994 Mazda Miata - Laguna Blue w. R pkg. - $3475 (Mpls.)

THE FACTS: 1994 Miata MX5, "R" package (Torsen limited slip differential, Bilstein shocks (good), upgraded stabilizer bars, 14" alloy wheels, front & rear air dams, spoiler), 5 speed w. good clutch, roll bar, headrest speakers, stainless steel exhaust, tubular header, Air Conditioning, excellent newer top.

THE STORY: We're selling our '94 Miata MX5 with the highly desireable "R" package. We've owned the car for 3 years and purchased it from the original owner, a teacher in St. Paul who bought it off the showroom floor and commuted daily to a suburban school district. He took meticulous care of the car and put around 170,000 easy miles on it (and then bought a new one); we added another 9,000 miles. It runs like new and has a nice mild purr to the exhaust. You're welcome to have your mechanic give it a full going over. The color is the rare metallic Laguna Blue which was only available one year; it's silvery underneath and is the best color blue Miata has come up with.

CAREFULLY MAINTAINED: The maintenance has included the regularly scheduled replacement of 2 timing belts/water pumps, radiator, and a near new top that is perfect. It has AC that works great. The engine runs as smoothly as can be - there's no issues. The tires are good at 50-60% new. The original owner kept all the receipts and these will be passed on, including the original invoice and window sticker. The "R" package was an expensive pre-installed option when new and includes a Torsen limited slip differential, Bilstein shocks (good condition - all firm), larger diameter sway bar, ground effects dams below the front and rear bumpers, and spoiler; it also has a roll bar. It has never been in an accident and it has never been entered into any performance automotive event; the title is clear. Last summer we drove it out to the Black Hills of S.D. and it ran like a dream; we did 80% of the trip with the top down - really nice. Changes to our auto needs say we must put it up for sale and say goodby to "the blue car." Its been a great three years. Come and see it.

Michael - 612-722-7172 (mpls.)

[aigel]

I wouldn't take any type of check for a 6k car. That's cash territory. I would take a check at the bank directly though.

Why not buy a $3k miata for cash and still have some money left? There are decent ones out there (in terms of getting you around) for that money.

George

[masraum]

Originally Posted by aigel

I wouldn't take any type of check for a 6k car. That's cash territory. I would take a check at the bank directly though.

See, that's what I'm thinking. If I was selling a car for $4k-6k, I would want cash. My wife doesn't think that people expect that.

Why not buy a $3k miata for cash and still have some money left? There are decent ones out there (in terms of getting you around) for that money.

George

A nice $3k miata is very hard to come by around here. I guess because we have so much sunny, warm weather, they are hard to find.

[masraum]

Originally Posted by kaisen

... and put around 170,000 easy miles on it (and then bought a new one); we added another 9,000 miles.

I just don't know if I can bring myself to buy a car with 180k miles that will be a daily driver. I do believe that if it's been properly maintained, that the car could be in really good shape and ready to deliver many more trouble-free miles. Maybe if it was relatively close, and I could see it, but I don't think I'm interested in a car with that many miles.

[onewhippedpuppy]

My daily driver has 197k miles. A friend recently sold his Miata that had 190k that was a DD. Just sayin'........

[kaisen]

2010 - 1994 = 16 years
190,000 miles / 16 years = 12K miles per year = normal

Of course, around here there are dozens for sale with half that as they are summer-only toys (you'd never even consider driving one in winter)

I know what you're saying

[kaisen]

Here's more local to me for similar $$:

'95 with 117K for $3800
1995 Mazda Miata

'95 with 59K miles for $3250, but pimped
95 Mazda Miata Convertible

'97 with 67K miles for $6500
1997 Mazda Miata

Those are just in the last couple days. They start getting cheaper after the 4th of July as people's interest in summer toys drops. Those that want them already bought them.

[masraum]

Originally Posted by onewhippedpuppy

My daily driver has 197k miles. A friend recently sold his Miata that had 190k that was a DD. Just sayin'........

Yeah, and miatas can definitely take it.