Financing Advice

[hexified]

Hey all.

A friend of mine has zero credit right now, since she has no credit cards or anything like that. She wants to finance a car.. well to be exact... she wants to finance or make payments to get this car:

http://www.canadatrader.com/result/detailinfo.aspx?ID=14658070&pgno=1&srt=1

Can someone give me some advice to give her (besides getting a cosigner..because she cant find one) to help her out?

[QuasarCav]

It takes time to build credit. She should start right away and wait until she has enough.

She might be able to get one of those super high interest car loans at places like roadsport and other shady car lots. I think it's something like 28%, it's either that or a co-signer.

[Pee_Sack]

Has she tried to contact hot wheels, maybe go in and have a sit down with them. Tell them she wants to get that car blah blah blah. The worst they can say is no you dont have enough credit. I would suggest maybe taking a few paystubs with her to show that she has a steady job and will be able to make the payments. But her rates are going to be SUPER high.

It took me 1 year of having a visa and always making payments on time to get credit. The way my bank see is it that it's not how much credit I have, its how good that credit is. The only credit I had was my visa and I got a $20 000 line of credit to buy my car.

[Supa Dexta]

If shes been with a bank for a while she should go in and have a sit down for a loan.. They will run thru her info and score her on it, such things as yrs with the bank, if shes in or was in school, etc.. I was in the same boat for my first loan.. Never dealt with a bank more than a debit card, but because my parents had opened my account when I was born I was with the bank forever that helped, I had graduated from college that helped, My boss gave me a great letter and I had that steady job so it all added up good.. I got mine @7% not great but no co sign and I had my money... Basically she has to shop around, same as any other service they want your business you dont want them but you need them, they know this so they will try to stick it to you as nicely as they can, but stay firm have some outlines going in and stick to them as best you can, they want your business provided it's good for them and they aren't going to get shafted by you..

:)

[hexified]

Hmmm.. thats not good news at all. Was hoping there would be a better solution for her.

Anyway for her to acquire a lease or anything like that?

[s2k_boi]

go into the bank that she's been with for awhile...
they might look at the relationship / saving patterns / employment... so as its secured to a car it might be okay....
good luck though

[QuasarCav]

I got nothing until I applied for a Crappy tire MC. It had the shittiest rate I have ever seen and hidden charges up the wazoo. I used it constantly and paid big payments every month, never keeping it too high but showing the ability to make payments over time.

After 6 month I applied for a bank VISA and recieved a way better rate and alot better service. Did the same thing with that card for a couple of years and then sat down with the bank about a car loan. Recieved a loan and bought a newer car.

It's a long process but that is the conventional way to do it. She might be able to get a loan but the price whe will pay in interest is not worth the hassle.

[Redlyne_mr2]

Another thing she can do is look for a cosigner. Even with no credit many lenders will accept her if there is a cosigner. Other options are cash down or higher interest rate deals through a subprime lender like citifinancial or wellsfargo. Amazingly it is often easier for her to get financing on the purchase of a new car. Lenders such as GMAC, Ford credit and Chrysler Finance buy very deep.