College grad programs?

[wouql]

A lot of the major car companies seem to have some sort of college grad programs, for students who:

* are graduating in < 6 months
* have a job offer/offer letter
* average, good, or no credit (NOT bad credit)

The benefits seem to be:
* your payments start later
* reduced or no down payment

Has anyone here ever bought a car on one of these plans? Were they good or bad? Will they jack up the interest rates 10+% on me? I have good but new (< 1yr) credit, and a job offer for ~$60k, and I'm trying to compare using a college grad plan vs. just trying to finance it on my own.

[JLad10687]

No matter what, with your credit you will have high interest rates. If you're getting a job with a major company, I suggest looking to see if they have a credit unioun because you wont find any better rates then that. Im currently 18 and no credit, through a dealership I was looking at about 20% interest, I got approved at the credit unioun for 4.4%

The most a dealership may do for you is give you the college graduate rebate(500 bucks or so)

[wouql]

Originally Posted by JLad10687

No matter what, with your credit you will have high interest rates. If you're getting a job with a major company, I suggest looking to see if they have a credit unioun because you wont find any better rates then that. Im currently 18 and no credit, through a dealership I was looking at about 20% interest, I got approved at the credit unioun for 4.4%

The most a dealership may do for you is give you the college graduate rebate(500 bucks or so)

Thanks....but would a credit union even consider allowing you to defer payments? That's the biggest attraction of the college grad programs: they let you get the car now, but your payments don't start until you start your job. There are other perks (rebates, roadside assitance), but what I really like is the get-now/pay-later.

If a credit union would let me drive off with a car today but not pay for 3-4 months, I'd definitely do that. Like you said, I'm positive the rate I'd get from a dealership would be much much more than what I'd get from a CU.

Perhaps I could do the grad program, then refinance once the deferment period is up.

[JLad10687]

Yea, a credit unioun wouldnt let you differ the payments, but you most likely wouldnt qualify for the differed payments at the dealership anyway. You'd be much better off waiting and using your CU. lets say you get differed payments, the interest still builds up. So, 4 months differed payment and 60 months regualr payments at 20% interest on a $20,000 car would be about 400 bucks a month. The total cost of the car would be about $24,264. Through your CU, at 5%, a $20,000 car over 60 months would be about 350 a month and you'd be paying $21,000 for the car. And all these numbers will be higher due to tax, tags, and titles so you can add about an extra grand ($20 a month or $17.50 for the CU) onto those numbers. It'd be better to wait and get the car through the CU. Im not really sure about how alll those programs work but the only pro would be that you have the car now. In the long run, you'd be happier if you waited.