Need advice - got screwed over on paperwork.

[T3hlulzkiller]

Thanks for all the feedback again guys! I promise im telling the whole story! I just checked my credit report from experian and they only put two bank inquiries through, ally and BoA. So I guess they did very limited credit shopping. Ontop of that I would wager to guess they tried "to do the right thing" by pushing for the lowest interest rate...but its still questionable. Also I understand that one should not accrue debt to build wealth.. I have the payout amount ready..I just figured having that loan (and only losing out on 1.9%) is worth building a stable credit rapport and will make it easier to get a mortgage or financing for an entrepreneurial venture later on down the road. The reason why I do not want to just pay it off is two fold, credit then lacks consistency over time for larger payments and the payoff money is steadily earning 8% versus the 1.9% it costs to borrow the car, so im looking at an 6.1% loss of ROI. Id rather come out ahead on the investments. I was looking at dealers willing to take the car as a trade and finance under me specifically and was offered around 28k. I paid 27.5 due to rebates, perhaps that is the best course of action.

[IowaGuy]

Originally Posted by T3hlulzkiller

his ratios are askew because he's the guarantor for a mid sized business, which means his credit is constantly pinged depending on when the company needs credit, a new loan, a lien on new production machines etc.

Business credit is exactly not the same as personal credit. Do a search for fico forums, they are better equipped to give advice there.

Welcome to the family!

[speedmon]

Originally Posted by T3hlulzkiller

Also I understand that one should not accrue debt to build wealth.. I have the payout amount ready..I just figured having that loan (and only losing out on 1.9%) is worth building a stable credit rapport and will make it easier to get a mortgage or financing for an entrepreneurial venture later on down the road. The reason why I do not want to just pay it off is two fold, credit then lacks consistency over time for larger payments and the payoff money is steadily earning 8% versus the 1.9% it costs to borrow the car, so im looking at an 6.1% loss of ROI. Id rather come out ahead on the investments. I was looking at dealers willing to take the car as a trade and finance under me specifically and was offered around 28k. I paid 27.5 due to rebates, perhaps that is the best course of action.

It sounds like you are "financially" competent especially with the interest rate spread....so you must have just not read or understood the impact of the papers they had you sign....understandable.

The only question that remains is where are you "steadily" earning 8%. Thats gotta be high-yield bonds....which is junk bonds which is a very smart investment. Is it a bond fund or JNK.....If its JNK I can show you how to bump that to 14%.

[T3hlulzkiller]

Originally Posted by speedmon

It sounds like you are "financially" competent especially with the interest rate spread....so you must have just not read or understood the impact of the papers they had you sign....understandable.

The only question that remains is where are you "steadily" earning 8%. Thats gotta be high-yield bonds....which is junk bonds which is a very smart investment. Is it a bond fund or JNK.....If its JNK I can show you how to bump that to 14%.

sort of like a high yield corporate bond I guess you can say. I would like ot start investing more in the traditional bond market though. Right now I'm working with local small businesses bonding them short term capital used mainly for expansion purposes. So for instance cindy lou has an icecream shop that's been getting great traffic, gaining publicity and customer retention momentum and needs an extra 15k for machinery or expansion. I'll watch from afar, find out who knows who and get connected with the owner, Cindy Lou. We'll go over financials, do a background check, find out everything I can and offer her the capital and advice on expansion and work with her to lean up her business. This usually ends up with me lending out a microloan of 5k-20k, getting 8-12% return, building a rapport with local business owners (which is infinitely useful for future endeavors) and boom everyone is happy. I have done a few of these and haven't had a loss yet thank goodness. The starting capital was raised when I was 12 and my dad let me have $1,000 and a UDMA account to trade stocks. At the time oil was rising rapidly and with some research I chose a lucky company that took off and had sold most of my shares prior to the 2008 boom. After the boom I reinvested (it can only go up when it's at rock bottom!) and again made more starting capital. Now I'm just trying to grow steadily while there are so many uncertainties in the market. If you'd like to chat or share any advice though I'm all ears! shoot me a pm anytime brother!

[sene]

Originally Posted by speedmon

I know this can get confusing when you look at this site and see new ZL1s parked in a driveway of a barely middle class home

I remember thinking the exact same thing when I saw this locally. I bought my Camaro first (base model V6) because I knew that a home is more important than a depreciating asset, I'm now working on buying my first home.

Originally Posted by speedmon

It sounds like you are "financially" competent especially with the interest rate spread....so you must have just not read or understood the impact of the papers they had you sign....understandable.

The only question that remains is where are you "steadily" earning 8%. Thats gotta be high-yield bonds....which is junk bonds which is a very smart investment. Is it a bond fund or JNK.....If its JNK I can show you how to bump that to 14%.

Mind if I PM you to ask you a couple questions about this?