Car Loans

[HiTempguy1]

I was told today that it is virtually impossible to get a personal loan (including a car loan) if you are within the "probationary" time with a company when starting a new position.

Is there any way to get around this? I'm looking for a small loan ~$5000 so I can get myself into a decent enough car. I'm not too worried about interest rates, as I'll have the loan paid off in under a year. Any suggestions?

[ExtraSlow]

Only true if your credit is iffy.
If you have solid credit history, an unsecured LOC should be no problem.

[HiTempguy1]

Originally posted by ExtraSlow
Only true if your credit is iffy.
If you have solid credit history, an unsecured LOC should be no problem.

My credit history is quite good, I have put a lot of cash through my Visa since I was 18 while paying it off promptly. I have also had a previous car loan, as well as student loans.

The biggest hurdle would probably be that I don't really have any equity in anything (recently graduated). Not that I can't put money down or the like, but I just don't have the $XXXX in available funds to buy a decent car. If anybody is a banker/loan officer that could help me out that would be cool!

Edit-
I cannot get a co-signer, if that changes anything (which I am sure it does). I was told "done deal!" if someone would co-sign the loan for me, but that will not happen.

[barmanjay]

explore the idea of a lease

[Jim Rome99]

Why did you tell the bank that you're a new hire? Just tell the next bank that you've been working there for years.

[HiTempguy1]

Originally posted by Jim Rome99
Why did you tell the bank that you're a new hire? Just tell the next bank that you've been working there for years.

They will ask for my two most recent paystubs (last two pay periods). I don't really feel like lying to a bank either, I want to know if I qualify or not. That said, this was a credit union that I do all my banking through (Servus/Community Savings), but I may need to chat with CIBC who currently holds my credit card account.

[A790]

Try these guys: http://www.bluecoppercapital.com/auto.html

[you&me]

Originally posted by barmanjay
explore the idea of a lease

Most lease companies limit the age of the vehicle (therefore, the value) that they will finance. Also, unless he was to do a 12 month lease, he'd be liable for early termination penalties.

I'm a big proponent of leasing for company fleets and the self-employed, but in this case, it sounds like it would be the worst option for the OP.

[Coryz]

You should scrap the idea of the "car loan" alot more restrictions than a basic $5000 unsecured line of credit. Also, lower interest rates on a line of credit (unless the car loan is through a dealership)

For a recent graduate without any credit problems I don't see why they would not approve you for that...

[Tripz]

Originally posted by HiTempguy1


They will ask for my two most recent paystubs (last two pay periods). I don't really feel like lying to a bank either, I want to know if I qualify or not. That said, this was a credit union that I do all my banking through (Servus/Community Savings), but I may need to chat with CIBC who currently holds my credit card account.

Yes they will ask you for two recent paystubs as well, or two years or Notice Of Assessment (NOA). The more products you have with the bank and higher balances including savings account will likely work better in your favor. For PLC, the requirement is you have to make more than 35,000 per year before taxes (that's for CIBC, not sure if it's the same for other FI).

Loans is easier since requirement for them is about 18,000 per year before taxes. Talk to your bank and see what they can do for you.

[dezmarez]

What year of vehicle are you looking at getting?

Anything older then an 04 or 05... the vehicle itself will be useless as security, so you would basically be looking at an unsecured loan, which is more difficult to obtain then an auto loan because there is no security, so if you don't pay the bank as nothing to take.

Personal line of credit will be the hardest to get of the 3 options, as it is both unsecure, and revolving credit.

What type of work? Is it related to your schooling? Did you receive an offer letter from your employer? These are all circumstances where dealing specifically with a loan officer will help instead of a blanket answer of, "if you're on probation, you can't get a loan"

[yellowsnow]

try to find a co-signor if you're not approved for a loan (ie parents)

[UndrgroundRider]

Originally posted by Jim Rome99
Why did you tell the bank that you're a new hire? Just tell the next bank that you've been working there for years.

Because that's fraud and it's illegal.