ttemper Posted December 22, 2004 Report Share Posted December 22, 2004 Ok....This might be a little long, but I have a couple questions. First, I am wanting to buy a new car, somewhere in the 14-18000 range. I have about 2000 to put down. My delema is this. My dad is retired, but still works on the side, under the table. His name is on my brothers student loans, probably in the 40k range. I am almost positive he wouldnt get accepted for a loan, his retirement isnt enough for the loans he has in his name, plus a 14000 loan for a new car. I am also positive that i couldnt get a 14000 loan by myself. If somehow I do get the car in my name, the insurance would be outrageous, since i am only 20... I am not sure if this matters, but I am looking at a 98 cobra, or a late model camaro/trans am. is there any chance of me getting a new car without getting raped severely? My credit is pretty much non existant. I have 2600 in student loans in my name, and a checking/savings account. that is pretty much it. would it be wise to get a credit card, use it for a couple months to show that i can make payments on time? Should I try to go through a credit union? what would be the easiest way to get a decent credit rating that would help me? Sorry for all the questions, my parents arent helping me that much. Quote Link to comment Share on other sites More sharing options...
Sully Posted December 22, 2004 Report Share Posted December 22, 2004 Having a credit card and paying on it for just a couple months isn't going to establish enough credit. It takes a couple years to do that. The first car I financed was in June of 96, the car was a 96 Firebird Formula, brand spankin new, stickered for $26K, and I was 20 yrs old. Like you, I had absolutely no credit history. I had just started a full-time job fresh out of college making a tad over $9.00 an hour and was living at home. Was I able to finance the car on my own. Yup!! But, I put $12K down. (4k for trade in and 8k in cash) How could they not finance me? I put almost half down on the car. The car payment ended up being $285 a month and my insurance was $211 a month. (I had a couple tickets) If you were to put the 2K down on a 14K car, you would be financing 12K. I don't know what your income is and what bills you have, but that will play a HUGE part in determining if you will get financed. Let's say you finance 12K. I can't remember right now what the sales tax is, but let's say 5.75%. If you get a loan w/ 6% interest, your payment would be about $245 a month for a 60 month loan. Your driving record will obviously play a huge part on your insurance rate. With a totally clean record, if the car is over 5 years old, it shouldn't be as high as mine was. I'm guessing around $150 a month maybe a little higher. Again, just guessing. So, there are a lot of variables. If you have your sights set on a certain car, I would go and talk to a sales person. You can have them give you a rough idea as to whether or not they could finance you without having your credit pulled. Before making the purchase, assuming you would get approved, call your insurance company for a quote, give them the VIN of that car so that way you will know what the total cost of the loan and insurance are. Hope this helps. Quote Link to comment Share on other sites More sharing options...
Tractor Posted December 22, 2004 Report Share Posted December 22, 2004 I'm guessing you have a job. If you have had it for over a year then that will make a big difference to them. Evan Quote Link to comment Share on other sites More sharing options...
Guest powers Posted December 22, 2004 Report Share Posted December 22, 2004 on car loans they will lend to no score applicants as long as there is no derogatory credit. You will have a score becasue if your student loan. Getting a credit card will help. If you open it in thiry days it will be a part of your score. 12 month is considered an estabished account. YOU DO NOT NEED TO USE A CREDIT CARD FOR IT TO HELP YOU. Just have it open and paid off is the best thing for your credit. If you want to find out what your credit looks like PM me and I can let you know. Quote Link to comment Share on other sites More sharing options...
ttemper Posted December 23, 2004 Author Report Share Posted December 23, 2004 I worked at GNC for 10 months, and actually made good money there. i think i made around 9k in 10 months..working 25 hours a week. I just started my new job making 8.50 an hour, with a shit load of time and a half.... with 40+ hours a week. ive had 1 speeding ticket in the last 12 months, and 2 since ive had my license(one when i was 17, so it should be off my record by now) I am not sure if what i said earlier made any sense, or if its even true. But, my dad said that if the loan/car is in my name, i have to have my own insurance policy. I get raped now with insurance. I pay 93 dollars for liability on a 93 cavalier! imagine what it would be if i had a big v8!! I called a couple insurance companies, but they kept asking me questions...i was like what the fuck, cant you give me a basic quote.... A friend of mine said some insurance companies offer limited driver options, meaning id be insured to drive a couple thousand miles a year, which i obivously would drive it more, but how would the insurance company know?! can anyone attest to that? I am almost certain i want a 98 cobra...but I also think the trans am is very appealing. I guess i could save a thousand more... I am just tired of driving a cavalier around. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted December 23, 2004 Report Share Posted December 23, 2004 No basic quotes are not easy to attain. You just have to go thru that crap. As far as buying a new car, Car dealerships are DESPERATE to sell cars. Especiall new ones. I know that GM is shutting down at least 4 plants for the month of January because car sales are terrible. As far as gettin a used car, You might get shot down. Its weird, its easier to finance a NEW car as opposed to a used car. Good luck Quote Link to comment Share on other sites More sharing options...
Guest powers Posted December 23, 2004 Report Share Posted December 23, 2004 The problem you will run into is the type of car you want and the year. You need something newer. The newer the car the easier the financing is. This is becasue the car will be worth more longer and is easier to auction if the have to repo it. Quote Link to comment Share on other sites More sharing options...
Tractor Posted December 23, 2004 Report Share Posted December 23, 2004 So old cars = higher interest rates. Don't be suprised if the best rate you get is > 10%. I'm not a loan expert, but have paid off many loans. They are right the car dealerships will do anything they can to get you into a car. They will probably even put down that you've been at your current job for over 12 months just to get you approved. Evan Quote Link to comment Share on other sites More sharing options...
Tractor Posted December 23, 2004 Report Share Posted December 23, 2004 Oh and as for insurance. You might be suprised to find that sports cars aren't that much more expensive than a mid ranged sedan. If your buying a car you probably want your own insurance also. You will be required to have full coverage on it, but its not alot more than liability. Evan Quote Link to comment Share on other sites More sharing options...
Total Sign Posted December 23, 2004 Report Share Posted December 23, 2004 Originally posted by ttemper: I worked at GNC for 10 months, and actually made good money there. i think i made around 9k in 10 months..working 25 hours a week. I just started my new job making 8.50 an hour, with a shit load of time and a half.... with 40+ hours a week. ive had 1 speeding ticket in the last 12 months, and 2 since ive had my license(one when i was 17, so it should be off my record by now) I am not sure if what i said earlier made any sense, or if its even true. But, my dad said that if the loan/car is in my name, i have to have my own insurance policy. I get raped now with insurance. I pay 93 dollars for liability on a 93 cavalier! imagine what it would be if i had a big v8!! I called a couple insurance companies, but they kept asking me questions...i was like what the fuck, cant you give me a basic quote.... A friend of mine said some insurance companies offer limited driver options, meaning id be insured to drive a couple thousand miles a year, which i obivously would drive it more, but how would the insurance company know?! can anyone attest to that? I am almost certain i want a 98 cobra...but I also think the trans am is very appealing. I guess i could save a thousand more... I am just tired of driving a cavalier around.You could buy a 500$ beater car, will basic liability (legal minimums), then collecter insurance on your bird. But, you cannot park outside for extended period of time (Our policy considers overnight too long) and cannot park it un attended in parking lots etc. But insurance is dirt cheap. Quote Link to comment Share on other sites More sharing options...
ttemper Posted December 23, 2004 Author Report Share Posted December 23, 2004 i have a 500 beater cavalier, pay more than what i should for insurance. its in my dads name, and he hasnt had a speeding ticket in years. all of your info has helped me. ive been looking around, and found a nice GTO for 23k.. and a couple cobras. Im just not sure if id get approved for a 20k loan... Quote Link to comment Share on other sites More sharing options...
ICEMAN1647545504 Posted December 23, 2004 Report Share Posted December 23, 2004 Ok. A little summary. You are 20 years old with no credit besides the student loan. You are making $8.50 an hour, that is $1473.33 (not including 40+) in grouse monthly income and you just started your new job. Having that student loan you might have a beacon score and that score might be little high (if you are not derogatory on it) but still I don’t think that is enough credit to get the car just in your name. You have $2000.00 to put as a down payment so on a $14K loan you are looking to finance about $12K. You most likely will qualify as a first time buyer program, but that only qualifies you up to $7500.00. Now if you had a job experience for more than 2 years, in no more than 2 jobs, you might qualify up to $10k. Putting your dad as a co-signer might help, despite his loans and the debt to income ratio. Depending on the dealership and the lending companies they use and the volume of business they sent to those lending companies they might qualify you for primary financing (bigger dealerships), and your interest rate will be around 10% roughly. But for secondary financing the rate will range between 18-24% (for most secondary lenders). A larger down payment will help you a lot. I will give you some estimates on some payments you are looking to have for primary and secondary financing. Note that for secondary financing to qualify for a 60 month loan is nearly impossible with no credit. For primary financing. $14000 vehicle, $2000 down Franklin County sales tax is 6.75% 10 % interest 60 month loan $277.85 10 % interest 48 month loan $331.67 For secondary financing. 18% interest 48 months $384.14 18% interest 36 months $472.77 24% interest 48 months $426.34 24% interest 36 months $513.05 This estimate is using the latest version of Tracker Suite for Windows AND IS JUST AN ESTIMATE. You might want to get a second opinion. Just don’t have too many people pull your credit. I think that it will be a easier to get approved for a new vehicle due to their 2004 clearence. Like i said get a second oppinion. Quote Link to comment Share on other sites More sharing options...
HotCarl Posted December 28, 2004 Report Share Posted December 28, 2004 I'm also considering buying a new car within the next 2 or 3 month's, most likely a truck. I have a close friend that use to work for Ricart sale's and he gave me some tips. First, don't finance through a dealership if you don't have to. Dealership is always looking to make more money off of you in any way possibly, however a bank and/or credit union is fighting for you buisness but it's usually harder to get approved with a bank. (note: Credit union's USUALLY have lower interest rates and finance to SOME people bank's won't) And what 'centralohiosubarus' said was completely true, it's always easier to finance a brand new car than it is a used car. interest rate's will be lower on a new car as well. I'd say keep saving or buy a car for 2 grand and wait another year or two to buy a new car. do you need a brand new car now as oppose to a year and a half down the road? Quote Link to comment Share on other sites More sharing options...
Tractor Posted December 28, 2004 Report Share Posted December 28, 2004 It looks like everything has been summed up pretty good here. The result. Wait it out at your job. Maybe even apply for a credit card to hold on to for awhile. I'd cancel it before you try to get the car though. It seemed to help my wife out alot after she cancelled her cards compared to when she had them at 0 balance. Don't let dealerships run credit reports on you. I've had loans denied because of to many credit inquries. That seems stupid, but for some reason banks worry about it. Evan Quote Link to comment Share on other sites More sharing options...
Kohones Posted December 30, 2004 Report Share Posted December 30, 2004 Not all dealerships operate the same GUYS!!!!! Car sales are good by the way, I work for a dealership! It's true rates are lower for a new purchase rather than used & if you're going used you want something no older than 5 yrs because lenders don't want to finance old merchandise thats waaay depreciated & mileage needs to be below 85,000 Suggestions = with limited credit you can also have a different bonafide cmkr, doesn't have to Dad there's also college grad programs out there too Just some FYI comments for you --- Quote Link to comment Share on other sites More sharing options...
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