financing a car? :(

[steve224]

Here is some background. I'm 18, have no credit at all, just started a full-time job. I've been looking around for a car latley.

I've been to a few delarships that have some cars i really like ranging from 12g to 18 g. What are the odds that i could get a loan or finance one of these cars?

[Annoyingrob]

Don't bother. Buy a beater, and drive that for a few years while you're building credit. It would be silly for you to put yourself 20g in debt at your age just for a vehicle. Hell, I didn't have ANY car until I was 20.

[anyone]

Unless you've worked for over 3 months at your job you won't get a loan because you're probably still on probation.... unless you have a co-signer, then you might get financed.

Debt blows man. Avoid it if you can. Unless you have 100% job security and have the desire to work there until your car is paid off I'd suggest against going that much in debt.

[Jlude]

Originally posted by Annoyingrob
Don't bother. Buy a beater, and drive that for a few years while you're building credit. It would be silly for you to put yourself 20g in debt at your age just for a vehicle. Hell, I didn't have ANY car until I was 20.

+1
At 18.... just buy a beater... don't be concerned with your public image...

[88CRXGUY]

What the other posters are saying is correct. No bank or finance company is going to give you a loan. You need to have good credit for a few years before you apply for one. You also need to be at your job alot longer then 3 months. At your age and with no credit history you have really no chance, and even with a co-signer your chances are still slim.

If you still live at home and you have a decent job go out and spend 10 g's on a decent car(I mean save). With spending that much on a car your car insurance is going to be really high, especially on a fianced vehcile. When it comes to a financed vehcile the company you are buying it from is going to want you to have full coverage insurance. Your car insurnace is going to be as much as your car payment.

Don't put yourself in debt unless you have too. If your life is going to be effected(ie kids, work, sick parents etc) and then yea you need a dependable car. If you are just doing it to impress your friends or to get a gf then its not a good idea.

I've had good credit for the last 4 years, I also had a leased vehcile for a year and a half with a co-signer(I was 21). I have my owned finaced car now without a co-signer(I'm 24). So you got a long way ahead of you.

I hope this information helps you our on your search for a newer vehicle, happy shopping.

[jibber]

I agree with all of the above... I was 26 when I financed my first brand new car. I owned numerous beaters until I graduated University, and then I worked hard and bought a house first.

I bought the house before the prices went through the roof, and used the inherited equity when the value went up to finance a nice car. A year after that, when I had established a long line of credit, had excellent job security, did I start considering financing a brand new car. I was able to do so without a co-signer.

You might be able to finance a brand new car with a co-signer at your age, but I would recommend against it. The insurance would kill you... you'd have to get full coverage as per the agreement between you and said financial institution.

[SNAATCH]

Buy a car for 1-2g's, and get a credit card. Keep paying your credit cards full ballance and in 6 months you will have a good credit rating. Should have no problem getting a loan.

[steve224]

Would I be able to get a loan of 6 grand maybe instead of 12 g? Or is this still next to impossible.

[danno]

6g's with a co signer could happen. but by yourself it's not going to happen, get a credit card and be responsible with it for 3 months or so then try, you should be able to do it yourself.

[88CRXGUY]

We're not the bank or the credit breau. The credit breau makes the decision if they want to give you the credit or not. Based on no credit history whats so ever and having a co-signer that has credit isn't going to be good enough. It would be better for you to get a credit card and pay it off in full every month for a period of time and then do it. 3 months isn't going to do it, if I have a credit card(pay off every month) for 3 years and couldn't get one without a co-signer they aren't going to give you one.

The credit breau see's if they want to take the risk for giving yout he money. Since that you have no credit cards or anything basing that you are good with money and are going to pay it off they aren't going to do it. If you are still in school get a $500 student credit card, thats what I did to get my credit goin. If you keep on going in with a co-signer and a business you want to buy a car from keeps pulling up their credit history(co-signers) it comes up on their file everytime its check. The more and more there is a check into it shows the credit breau that you need the money and its a red flag and they aren't going to do it.

[mekeni]

yes, buy a beater first..

[BD TTT]

Import a JDM for 6-8 grand....enjoy a fast car as your first car
...

dont start your life out with debt

[anyone]

Originally posted by BD TTT
Import a JDM for 6-8 grand....enjoy a fast car as your first car...


I'd suggest against this. If you don't know the maxim: Fast, Cheap, Reliable. Pick two.

But what you can pay cash for.

[Palmiros]

I'm sort of in the same situation you are. I understand why you want a new car, and I understand you want it now. BUT be aware that IF you finance a vehicle you HAVE to get comprehensive insurance (full coverage) which, I don't know about you, but mine is killer. I'd have to pay ~$6000 for a financed/new car in INSURANCE alone, every year. (now add financing payments, gas, expenses .. cause hey... you're 18)
I changed my mind and i'm going to go with something cheaper.. ~10k, which i can pay straight out, without having to pay outrageous insurance rates on.
Best of luck.

[canuckcarguy]

Financing a car screws up your ability to do other things. If you want to buy a house/condo in the next five years, your debt servicing might be too high with a car loan on there. Or if you decide to go back to school, might be tough paying tuition, insurance, and car payments. Or if you decide to travel, you'll likely end up selling the car at a loss.

You'll have to pay collision insurance, which you don't need on a beater, which will be expensive.

Any, because of your age and weak credit history, you'll get nailed at a high interest rate - probably by one of the sub-prime lenders in the car finance business (think Mac James motors or anybody advertising in the back of the Sun). That means not only will you pay lots of interest, but you'll likely get heavily grossed on the price of the car.

Spend a couple thousand bucks now on a 4 cylinder beater, and if you maintain the car right, it likely won't depreciate much in the next year or two. Plus, if you get a couple of dents on it (more likely as a new driver), you won't be too heartbroken. And if you bank the money you'd otherwise be spending on interest and insurance (likely at least $400 per month), you'll easily have enough to buy something better in a couple of years.

[slowep3]

best way to get credit and fast would be a loan get ur parents to co sign and just gete one for like 7 grand or something thats what i did and now i lotsa credit just dont pay it off in less than 10 months