Opinions/Advice on attempting to get an Auto Loan

[Got Boost?]

I just recently turned 18 and I'm wanting to purchase a DD pretty bad. I haven't had an opportunity to establish a credit history, obviously. I'm trying to find a way to get financed for the car. I'm looking to buy something '05+ since I've heard its easier to get financed on something that's less than 5 years old. I really don't have anyone to co-sign right now since my dad doesn't want any more loans on his history and the rest of my family has trashed their credit. I'm looking to purchase from a lot since I think that would make it easier to get financed. I'm looking for something around 10K and will be willing to put up to 25% down. I have two jobs currently, one of which I have been working for 2 years now. I have had a checking account with an active history for over 2 years as well. Any ideas or advice? I really need to get into a car that can be driven comfortably everyday.

 

[thomas91169]

youll probably need a cosigner.

with the newer vehicles, due to the purchase price and your "weak" credit history, this still may not be enough.

Id look for an older vehicle, 2000-2005ish. You can buy a 99-04 GT in excellent condition for under $10k all day long, and they are very reliable as long as the previous owner didnt destroy it.

 

[Quik Z06]

Just go appy when you find a car, what's the worst that can happen? Just let them know your situation and im sure they can help you. Having a good size down payment will help, everyone needs to start somewhere.

 

[epix]

I had issue right out of college, was making good money, but had little credit history. I ended up trying our local Credit Union.. walked in and talked to them, they called me 20 minutes later saying I was approved for the amount I wanted.

Skip going to banks and try your credit union. I wasn't even a member when I went to them.

 

[snakebite6]

go to a credit union. you will get approved for a loan easily because you are a first time buyer and financing a car is the best way to start establishing credit. As long as you have a steady income you will be fine. Check dealerships too, because the economy is so bad dealerships are willing to drop the prices dramatically on cars.

 

[Common]

You pretty much have no credity history or established credit. IN this economy, it will be almost impossible without a cosigner or lubeless raping you will receive with 18% interest or something.

 

[Venomous98Cobra]

Establish credit with something like a $1k loan and repay it over a year. Helps out a lot. But that is a year to even really get started. You can also get a earlier model vehicle but I don't think a bank would let you do a late model.

If its a DD then just buy something ~00 or below. Be aware that due to your low credit rating, your interest rates will be somewhat high. Usually when you buy a late model/current vehicle your rates will be lower but you have to have a good credit rating for that. When you buy earlier models the rates go up and then on top of that, because of your credit rating, your rates will go up again. You could possibly be looking at 15%+ rates.

Then again...you could buy an Chevy Aveo Just a DD...

I screwed my credit rating when I was 18. I stopped paying on a credit card for 2 years. I had a 500 credit rating which is absolute crap. After I got all that situated, it took me nearly 7 years to reach my current 810 credit rating. I was really only able to do that because I had a lot of loans and what not going all the time. Just don't mess up on one single payment and you'll be square. Just a hint

 

[Common]

go to a credit union. you will get approved for a loan easily because you are a first time buyer and financing a car is the best way to start establishing credit. As long as you have a steady income you will be fine. Check dealerships too, because the economy is so bad dealerships are willing to drop the prices dramatically on cars.

Financing a car isnt the best way to do it, simply because you cant get a good deal without a cosigner, at which point you are building his score more than your own. There are plenty of other avenues to do this with much less liability and same reward. Small credit cards, store credit cards, cell phone in your name.....etc etc....

 

[CalcVictim]

get a credit card, use it often and pay the balance within the first month or 2


as far as the car, do not take a loan....with no credit history even if you get a loan you will get screwed on the percentage

 

[rotor_powerd]

You probably won't get financed without a cosigner. My girlfriend is trying to buy a car, a $6000 VW Cabrio with her current car as a trade in, and she can't get anything without a cosigner. Not saying you'll run into the same thing - but it's a good indication of how it's looking. She has never had a credit card, or credit of any sort.

Consider getting a credit card for a while while you're saving up a good sized down payment, and in 9-12 months, you should be able to get financed on your own with a good % down.

 

[wildmantttt]

don't get a loan and take Finacial Peace University instead!

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

"The rich rules over the poor, And the borrower becomes the lender's slave." (Proverbs 22:7)

 

[Nineonesix]

The g/f bought a brand new 08 last year, with fords new car buyer program or w/e the hell it was. Granted it was a focus, but im sure they have deals like that. She had no credit and no one co-signed for her. This was before the big crunch though. Just find out.

Btw her % is lower then mine, and I had a co-signer. Hers is like less then 8%, mines 11.9%.

 

[Got Boost?]

To be honest, I would rather get into a car that was older. I was just under the impression its more difficult to get financed for a vehicle which is over 5 years old. As far as a credit union, I have been a member at one for over 2 years now and have a pretty active account there. I applied for their "under 22" credit card yesterday and they made it seem like I wouldn't even be able to get that. So that makes me doubt my ability to get a car loan through them. If I could get any car I wanted (within my budget) it would be a 96-98 cobra, but thats a little too old - so my second choice would have been a 99-04 GT. So if I could get a loan for an older vehicle, I would actually be more happy in the end.

 

[cobraracer46]

I just recently turned 18 and I'm wanting to purchase a DD pretty bad. Any ideas or advice?

Don't start off a never ending path of being broke because you suck on the car dealer's and the bank's wangs forever by messing around with payments.:bored:

AT 18 years of age, you would be foolish to finance a car and if the shitty payments don't suck your bank account dry the the insurance payments sure as hell will.:lol1: Ask your insurance agent if he will kiss you before he ****s you.

If you need a car, save up some money and pay cash for one or buy a bicycle.

 

[Got Boost?]

Don't start off a never ending path of being broke because you suck on the car dealer's and the bank's wangs forever by messing around with payments.:bored:

AT 18 years of age, you would be foolish to finance a car and if the shitty payments don't suck your bank account dry the the insurance payments sure as hell will.:lol1: Ask your insurance agent if he will kiss you before he ****s you.

If you need a car, save up some money and pay cash for one or buy a bicycle.

You obviously are making assumptions about me lol. I already have a car which I own outright. I pay insurance on a 5.0L V8 Mustang every month. I've met with my agent and discussed the cost of adding another car. Well within my budget. I've been managing money since I've been working. Everything I do/buy is paid for by me. I have a good understanding of money management, and am well aware of what I can/cannot afford.

 

[cobraracer46]

I have a good understanding of money management, and am well aware of what I can/cannot afford.

:lol1: You slave away at two jobs and you don't think twice about pissing away your whole pay check on a dumb car so I would say that your money management skills could use a boost.:dw:

By the way, financing is what poor people use to get cars that they cannot afford.:bored: Are you getting paid peanuts at those two jobs of yours that you cant save up 7 grand in cash to by a good used car?:smmon:

 

[Got Boost?]

:lol1: You slave away at two jobs and you don't think twice about pissing away your whole pay check on a dumb car so I would say that your money management skills could use a boost.:dw:

By the way, financing is what poor people use to get cars that they cannot afford.:bored: Are you getting paid peanuts at those two jobs of yours that you cant save up 7 grand in cash to by a good used car?:smmon:

Who are you to tell me how to spend my money? The reason I work is so that I can have these nice things. I ask for advice to how to attain a car loan, and you come in here acting like an asshole. My money management skills are just as good as yours, I just prioritize what I want differently. Like I originally said, you're making assumptions.

And if you think financing is what poor people use to get what they cant afford, let me know when you pay cash for your home/new car.

 

[wildmantttt]

I agree with cobraracer46. buying a car from a car lot (expecialy on credit) is a bad idea. I have a few reasons if you will hear me out:

1. new cars lose 70% of their value in the first four years (you WILL over pay for a used car from the dealer)
2. most millionaires drive reliable used cars (one of the reasons they became millionaires)
3. Forbes 400 were asked "what is the most important key to building wealth" - 75% said staying debt free is #1 reason!!!

You say that you know how to manage your money, yet you still are looking at going into debt. debt is not managing money. it's selling yourself into slavery! Disciplining yourself to make a budget (and stick to it), have a emergency fund, savings (planing for retirement), and plan for large purchases (to Pay with Cash). These are some criteria for good finacial planning.

IMO, I would suggest looking at the Dave Ramsey website and finding a finacial peace university class. This could change your life.

One last thing, you mentioned that your relatives have bad credit and can't cosign for a loan, how do you think they got there? it's from buying stuff they did not have the money for!

"The rich rules over the poor, And the borrower becomes the lender's slave." (Proverbs 22:7)

 

[rotor_powerd]

I agree with cobraracer46. buying a car from a car lot (expecialy on credit) is a bad idea. I have a few reasons if you will hear me out:

1. new cars lose 70% of their value in the first four years (you WILL over pay for a used car from the dealer)
2. most millionaires drive reliable used cars (one of the reasons they became millionaires)
3. Forbes 400 were asked "what is the most important key to building wealth" - 75% said staying debt free is #1 reason!!!

You say that you know how to manage your money, yet you still are looking at going into debt. debt is not managing money. it's selling yourself into slavery! Disciplining yourself to make a budget (and stick to it), have a emergency fund, savings (planing for retirement), and plan for large purchases (to Pay with Cash). These are some criteria for good finacial planning.

IMO, I would suggest looking at the Dave Ramsey website and finding a finacial peace university class. This could change your life.

One last thing, you mentioned that your relatives have bad credit and can't cosign for a loan, how do you think they got there? it's from buying stuff they did not have the money for!

"The rich rules over the poor, And the borrower becomes the lender's slave." (Proverbs 22:7)

Not to rag on you, just curious - but how do you propose 90% of the population buys a house, or starts a business? These are not cheap ventures, and unless you have been saving VERY long, or are VERY prosperous, not easy purchases made in cash.

I can understand where you come from with everyday purchases, and cars, but these days, living by "Paying cash only" is nearly impossible.

I once heard a story of a man who lived with his parents until he was almost 40 years old, and paid for his first house with cash. Not that there is anything wrong with that, but do you propose everyone stays at home until they are 30, 35, 40 years old just so they don't have to finance a house?

Again, just curious. What you say is sound, and nobody with a solid head on their shoulders goes into debt willingly, but sometimes you gotta do what you gotta do.

 

[wildmantttt]

sorry, the one exception is buying a house, but there are some rules to follow (I'm not going to go into details here, but if you want more info I am willing to share). Buying a house is a privilage not a necessity. It has not been that long ago that it was common for familys to have multiple generations in the same house. It is a mind set that say's this is wrong. living at home is not wrong, debt is wrong!

With good finacial planning, proper insurance, and living withing your means there is no reason to go into debt.