Another loan question from the newb!

[nyk438]

I saw an ad that a dealership was giving out saying that they were having new GT's 03, 04' going for $239/mo. This is around the price range of a car payment i can afford now and it would be new car rather than usd. My question is if I have no previous credit but a job that makes around 5-10k a year (I live at home and still in HS so all I pay for is gas, payment, insurance) would they approve me at that price or will the rape me with a HUGE intrest rate. Any help is welcome
oh and I would be putting 1 - 2k down.

Thanks guys,

Nick :beer::rockon:

 

[nyk438]

Anyone? Or is this question so dumb that I shouldn't have posted. :??:

 

[05 Roush]

Let's look at this financially. The total loan at best will be around $24,000 with all the trimmings (that includes taxes and tags minus your down). So, if you look at a 6 year loan at 0% interest (which normally you would require a high FICA, or credit, score), it would be around $333 per month. With your job and an extremely high 50% debt-to-income ratio, you could afford this payment on a 6 year loan.

I would say that if you can take home a GT for less than 20K and you have substantially high credit, the payment seems sound. What's the "true" price of the car? That might help.

 

[philip]

also be aware of the "Cheap payment advertisement" many times it is true BUT only for the first 12 months then you have to catch up. same thing with the "no payments for 1 year" by the time you make the first payment your car has depreciated so much it'll make you sick.

 

[FordSVTFan]

That price is also for the RCO (red carpet option) where you own the car but there is a balloon payment at the last month to actually own the car, or you must turn it back in.

Also if you arent 18 you will need a cosigner.

 

[Sailing2Smth]

Be careful about that "advertisement" it may be true to people that have A1 credit rating and will tell you a different story when you actually get to the dealership.