7% isn't bad at all for a younger guy with no credit history. and it is good to start building a GOOD credit history. Just don't miss those payments man. That's not a road you want to go down.

Hell I started working on mine when I was 19. I'm 22 and my credit score is 710.
You just have to be smart with it. Just remember you're spending someone elses money.

Glad to hear you're getting youra good tranny. That sounds like a good warranty, and a reliable shop. Keep us posted.

 

That is alot, but I have paid that to have an engine put in a Montero before. I am in need of a new tranny myself. I have been putting it off. I think if I get a new one I am either going to have to get a loan or sell one of my projects or the boat.
[soapbox,lol] 7% IS NOT a bad loan for a first time loan even with a co-sign, expecially for that small amount. You didn't do bad on the loan. I can understand the viewpoint that credit is bad...... but good luck trying to get financing on a house without it. I don't buy new cars any more, I would rather have three good cars and a project or so than a new car and a note with full insurance. I'm 27 Have a house and a rental Duplex, couldn't have done it if I didn't have tons of credit cards and loans in college. I stayed on top, and always paid myself first. You are doing the right thing with the loan and all.[/]

IDK about the shop or the price, it does seem high, but its your truck, if you can feel good knowing that 98 dollars a month went to that tranny then good for ya. I hope it is everything it costs. Nothing worse; and I see it all the time; is to be paying a loan on something you don't have anymore or something that is broke down or busted.

 

I'm glad you guys approve. And yes, if I keep on it, it can be a very healthy situation. Maybe 3 or 4 years from now I may want to get a little car to split up the miles on the truck and save some money at the gas pumps. I'm just really happy the project is headed way, and I'm glad I'm dealing with and paying for this by myself. I'll keep you guys all posted, thanks again everyone!

 

I would have gone to a junk yard or craigslist and found a transmission, installed it myself and called it good. That would run you a few hundred bucks, and you can do it over and over again before you would ever come close to spending the $4000 your about to. Just my 2 cents.

 

Scroll up to my earlier post about Dave Ramey's website. I'm telling you the Credit Score (DEBT SCORE) is BUNK, BUNK, BUNK. If you total the truck before the note is due, it's still hanging over your head. You're going into debt to repair your truck *AND* you're paying MORE than the value of the truck to do so. That's what Dave would call a double stupid tax.

Cash works. Paying interest is stupid, and I'll argue this all day long with anyone on this board. I'm not trying to be mean, I'm trying to educate you. Think of it this way: how many millionaires got rich by repeatedly borrowing money?

 

I've never read Dave Ramsey, but I agree with everything VWandDodge said. If you can't pay cash, a loan that size is too much when compared to the value of the truck and its life expectancy. Are you making payments on the truck too, or do you own it outright? Trust me, this is not the time in your life you want to start getting into debt over things like a transmission. You need to rethink this in my opinion, I think it's a bad idea.

 

I sort of agree on the loan. I don't think I would have done it but it sounds like you have already gotten it so not a lot you can do now. Thats on one hand on the other you are right and it will help build up your credit history. I think you owe a lot for this thing when the truck isn't worth a ton more. They are right about that part of it it. Then again now you will have credit if you ever want to get another car later on down the road. Just be careful and make sure not to miss or be late at all on the payments.

Is your interest compounded yearly like most are? That will come out to $5120 if you do 7% on $4000 compounded yearly. Thats a ton of money for a transmission. I'd try to get this thing payed off as fast as I possibly could.

Of course $98 x 48 is only 4704 which isn't as bad. So how often does your interest compound? Thats still a lot of money you are paying in interest.

 

All of them I think.

This is not the worst plan in the world, fixing a vehicle that is worth over $10k. A smarter move would be to sell it to that other guy for $7k ($10k minus $3k for new transmission) and buy something you can afford to put gas and tires on. But nowadays the reality is you need to fix your vehicles and it costs $$$$. If you truck is paid off and you have no other debt to speak of, this is not the worst plan in the world.

 

IDK What kind of business entrepreneur DID NOT take out a loan to begin their business. I understand people don't make money REPEATEDLY taking out loans, but if Neon can handle his loan, is focused and feels comfortable as to WHY he did this, don't knock the kid for trying to improve several facets of his life. If it does turn out to be a mistake, then he should appreciate that it's a lesson learned while he has no family or other prior debts to account for. Either way, we all should stick to Dodge talk, not financial discussions because that stuff is too touchy to really have any say in. AKA POLITICS.

 

But there are cheaper ways to fix it then this.