Car loan problem

[civicluva]

I've got 6 grand for downpayment on a hybrid Civic (26,000) but my credit history is only like 6 months. Stupid bank wants a co-signer which I don't have. I got my mom to co-sign but she has an outstanding loan so they aren't qualifying her. They will qualify me if I put 15,000 which obviously I don't have to just shell out.. people put that kind of money towards a friggin house not a car...

Who should I go to?

I see all these bastereds in new cars with zero down and here I am can't even qualify for a cheap ass 26,000 loan with almost 25% down. :thumbsdow

I'm obviously taking the loan because I don't have the money upfront :nut: Do they just give rich people loans? (which they don't need :bullshit: )

[BlackArcher101]

Sounds like a new car isn't for you considering your financial state. Why put yourself deep into debt because you see others driving new cars around?

[civicluva]

its not a new car it is an 04. and since I do a lot of driving a fuel efficent car is necessary. This car is going to save me a lot of money as my whole day involves driving from place to place. I can afford the payments no problem its just the bank being stupid about my credit history. I don't have any issues paying my credit cards off every month.

my financial situation is fine. you are practically saying if I can't buy a car cash I shouldn't buy one in general. :rolleyes:

I am not going to be deep in debt at all. I have 20,000 to spare, I just cannot justify fronting up my entire savings for a vehicle. I want to buy a house eventually obviously...

do you actually think I want to be a baller in an 04 Civic Hybrid :nut:

[shawtie]

you only have 6 months of credit history not enuf for a loan for the amount your asking for.....build your credit up more before you decide to go for a loan

[shawtie]

Originally posted by civicluva
I am not going to be deep in debt at all. I have 20,000 to spare, I just cannot justify fronting up my entire savings for a vehicle. I want to buy a house eventually obviously...
[/B]

What?? this makes no sence to me....

[civicluva]

Originally posted by Cheeky
you only have 6 months of credit history not enuf for a loan for the amount your asking for.....build your credit up more before you decide to go for a loan

I would like to do that but this car is mandatory. I am renting a KIA everyday. I tried buying a beater but it won't cut it. I've gone through 3 different beater cars already (in 5 months).

[civicluva]

Originally posted by Cheeky


What?? this makes no sence to me....

It means I have money, I just don't want it all to go to hell on a freaking car. I have set aside a very good amount for a vehicle which is 6,000.

[ponchoyu]

pm'd

[shawtie]

Call around, go talk to other banks

because you only have 6 months of credit history, your chances arnt that great on finding a place to loan you that money.

they arnt just going to take your word that you wont have a problem paying this loan off.

[civicluva]

Originally posted by Cheeky
Call around, go talk to other banks

because you only have 6 months of credit history, your chances arnt that great on finding a place to loan you that money.

they arnt just going to take your word that you wont have a problem paying this loan off.

Will do tomorrow morning.

I don't expect them to take my word but I am showing my responsibility by throwing down 6,000 and I've been at my job for 3 years. My credit is great, its just not lengthly enough apparently. I believe my job, downpayment and current credit outweighs (3 to 1) the stupid lack of credit. According to a few banks I have to wait 3-4 years for it to be properly built... I can't wait that long unless they want me to live with my parents until im 22. :nut:

[djayz]

why not just buy a regular civic for 12-15grand...youll save 10 grand and itll take you 5 years in gas money if you fill up every week to match 10grand

dont think that just cuz its a hybrid your gonna be saving money.

[kaput]

.

[civicluva]

Originally posted by djayz
why not just buy a regular civic for 12-15grand...youll save 10 grand and itll take you 5 years in gas money if you fill up every week to match 10grand

dont think that just cuz its a hybrid your gonna be saving money.

I thought about that but regardless, I intend on keeping the car for a good 10 years. In the near future I might even be able to pay the entire loan off...


Originally posted by kaput
If you have more cash that you want to put towards a home in the future, see if they will let you borrow against that on the condition that its invested is some sort of fund that the bank manages. Kind of like a lein on your cash. Then they have the money in case you miss your payments but if you don't then its invested and growing for your future goal. I'm not sure if thats possible, ask around.

Thanks, I will look into this. It seems like a great idea.

[350]

greg at cms. i hear that he approves anyone. i dunt have his ph#number for you tho :(

[zhulander]

Originally posted by civicluva


I thought about that but regardless, I intend on keeping the car for a good 10 years. In the near future I might even be able to pay the entire loan off...



Thanks, I will look into this. It seems like a great idea.

Also keep in mind what the cost of replacing the battery for the electric motor is going to cost. I believe's it's around $6000 with 5-6 years replacement intervals right now but they should come down in price later on.

[Si_FlyGuy]

You can go to places like Wells Fargo who give loans to people with bad or no credit.

[FiveFreshFish]

Originally posted by civicluva
and since I do a lot of driving a fuel efficent car is necessary.

Have you ever considered a VW TDI?

[The_1]

if you have 20Gs and your not going to touch it, go into the bank and lock it in GIC or something
the bank will loan you the amount that you have in there

[max_boost]

Originally posted by The_1
if you have 20Gs and your not going to touch it, go into the bank and lock it in GIC or something
the bank will loan you the amount that you have in there EXACTLY:werd:

Or if the bank will allow, dump it into a Dividend fund offered by your bank to secure the line of credit. Dividend funds have been yielding 25%+ on average over the past few years, your money can grow safely. And then go around and pick up some bottles, borrow money from family, or save up a few pay cheques to get the rest of the $6K. :D

[88CRXGUY]

When it comes to getting bank loans, its not the bank that has to approve it, its the credit breau. The breau goes with the things you have out on credit, and then they go what savings you have(what they can use against if you don't make your payments). With places that give out loans to people that have bad credit or no credit, the interest rates are through the ass. Its going to be a downfall though since that you only have 6 months worth of credit. Anywhere that you are going to go they are more than likely going to ask for a co-signer. I've had good credit for 3 years, I still needed a co-signer. Anytime that you apply for a loan it shows up on your credit history. The more and more they see your trying to get these loans they think that you are going to need the money. inturn not giving the loan your looking for. It would be a good idea to go to dealerships, possibly get a better interest rate then what the banks are offering..

[mike_papps]

88CRXGUY - Well said... well 1/2 of it...

Dude go to a dealer... get a good intrest rate... brand new car and warrenty. I used to work for wells fargo and i knwo all about this crap.. Dealers approve almost anyone with the right amount down.. if you went in there with $6k down on a cobalt or a civic or wherever im sure you'd get one... banks and creditors look at the credit bureau for information about your credit. How long you;ve had it... how well yur payments are... and how over extended you are... it also gives a beacon and a bank nav index.. beacon says how well you pay and how long you've had credit history.. bank nav index shows how close you are to bankrupcy and how likly you are to pay the loan back..as well you need to make sure your place of residence and job have been long term.. and that you have good collateral just in case you dont pay it back...

Like i said my advice is go to a dealer... tell them you have $6k... tell them you want a car.... they should be able to hook you up.. just make sure you can afford the payments...

[A790]

If you have the money in savings make sure the bank is aware of that as an asset. That should get you the loan.

[88CRXGUY]

^^Agreed...Also if you do get a bank loan its going to be a car loan, ie they are going to need the vin number to use the car for calateral. If you can even try a leasing company, leasing companys can give you lower interest rates then the banks. Some of them are more leiniant to when it comes to km's per year etc, not like a dealer is. If you go over the amount of km's that the dealer sets you pay between 5 and 10 cents per extra km. Since that you don't have access to a co-signer the dealer seems like it would be the best way for you to go at this point in time.

[Xtrema]

Why pay $26K for an 04 when you get pay $30 for an 06 with warranty?

Also, battery pack is only warranty for 7 years. Your hybrid will probably run strictly on gas in the later years after batteries fails. If you do a lot of city driving, hybrid make sense but if you do a lot of highways, any Civic will meet your needs.

And unless you burn a tank of gas a day, hybrid isn't gona save enough to make it worthwhile.