Getting a car loan from the bank? couple questions?

[88CRX]

Heres the deal... been working at my new job as an architectural technologist for 3 months now, making alright money. So i'm done the probationary period so i'm there for a while (i hope :D )

Now if i were to try and get a car loan for oh say.... $10-$15k-$20k would i need a co-signer?

I currently live at home.... have had a cc for a year or so.... payed it off good for a while, then maxed it, now its payed off.

So would i need a co-signer or would they simply hand over the coin :dunno: :D

[max_boost]

You will most likely need a co-signor for the following reasons:

You are young and have a short credit history
Your length of time at your current job is short
You have no real assets to give the bank as collateral other than the lien to the car you will be buying
You've never been approved for a major loan before (First time is always the hardest)

The bank will approve you on a few conditions:

Co-signor required
Higher rate of interest
Insurance on the loan
Letter from your work stating how much you make, your position etc.

Example:

Loan=$20K
Interest rate=10%
Term=5 years

Monthly payment $424.94

Credit card limit=$2000

3% of $2000 is $60 which is the minimum monthly payment

Make sure you have no debt but this is how they would calculate it anyway.

So your monthly expenses would be about $500. (The bank may or may not factor in insurance, gas payments etc.)

You would most likely have to tell the bank you make at least $1500+ per month in order for them to even consider granting you the loan. Debt ratio! I believe the monthly payment can not exceed 30% of your gross monthly income but each bank operates slightly differently.

Ok that is all and have a great day!:clap: :thumbsup:

[88CRX]

Originally posted by max_boost
You will most likely need a co-signor for the following reasons:

You are young and have a short credit history
Your length of time at your current job is short
You have no real assets to give the bank as collateral other than the lien to the car you will be buying
You've never been approved for a major loan before (First time is always the hardest)

The bank will approve you on a few conditions:

Co-signor required
Higher rate of interest
Insurance on the loan
Letter from your work stating how much you make, your position etc.

Example:

Loan=$20K
Interest rate=10%
Term=5 years

Monthly payment $424.94

Credit card limit=$2000

3% of $2000 is $60 which is the minimum monthly payment

Make sure you have no debt but this is how they would calculate it anyway.

So your monthly expenses would be about $500. (The bank may or may not factor in insurance, gas payments etc.)

You would most likely have to tell the bank you make at least $1500+ per month in order for them to even consider granting you the loan. Debt ratio! I believe the monthly payment can not exceed 30% of your gross monthly income but each bank operates slightly differently.

Ok that is all and have a great day!:clap: :thumbsup:

cool thanks :D :thumbsup:

[max_boost]

http://www.finaid.org/calculators/scripts/loanpayments.cgi

Finance calculators, play around with them. Change the amount, term, interest rate and see what your monthly payment looks like.

[88CRX]

i can easily make the payment... its just getting the loan that will be the problem.

the only expenses are my car. insurance, gass, etc

and spending money.

thats all

[88CRX]

what kinda interest rates should i expect?

[max_boost]

Originally posted by 88CRX
what kinda interest rates should i expect? I would say 8%+

My first car loan years ago, they approved me at 9.41% so I told them F off. :rofl:

Honestly, unless you are set on buying a used car, whatever it is you are looking at, with a finance payment, you can get a much better car on a lease payment. Would you consider leasing a new car?

Used BMW's are at 1.9%!!
New BMW's are 3.3% and less!!!
I think Acura is at 3.8% too on some models.

It makes so much sense to buy new, interest rates are so low! And there is warranty! Ok I should stop because I'm starting to sound like a salesman

My two cents.:rofl:

[t-im]

I was just gonna say...lease rates + finance rates are dirt cheap now..why go thru bank?

[Xpnsve]

I think they would give you the loan

They throw money at people in university, and you've got a certification so it shouldn't be a problem

[Loose]

i say just go to a bank and ask. you'd be suprised at how much people are willing to lend you money:D

When I started working i went in for a line of credit with basically Zero assets, zero debt and they gave me $15k unsecured.

[Speed_Dreams]

if you buy a car thats like 3 year old or newer then they will take the car as colateral and more then likley give you the $$

[Tyler883]

If you get a co-signer then demand a letter stating that you will not need a co-signer on further loans if you meet the terms of the co-signed loan without incident. You don't want to get into a trap where they ask for a co-signer on every loan you apply for.Beleive me, if th ebank thinks that it can get a co-signer, they will continue to demand one.

[88CRX]

hey max, are my odds better if i buy new and finance through honda :dunno:

[sputnik]

If you are making decent coin move your banking over to TD (if you dont already use them) and apply for a line of credit. The nice thing about a line of credit is that you can pay it off when you want (but pay at least 3% per month) and they dont put a lien on your car (makes selling the car easier if you sell it before the loan is paid off).

When I moved from CIBC to TD, they gave me a $15,000 line of credit at %1.25+prime. When I was CIBC they wouldnt even give me a Visa with more than a $1000 limit.

[rockym20]

If you are going to buy private, just get your line of credit increased. Unless the car is only a few years old (or a luxury car like a BMW), you probably can't get a car loan for it anyways. And the interest rate probably won't be much different either.

As for buying new vs. used, it depends on what you want. If, for example, you are looking at a new Mazda 3 vs. an used Protege5, the prices people are asking around town for the Protege5 are retarded. Why not pay a few thousand more, at a much lower interest rate, with warranty? On the other hand, if you are looking at a 10 year-old BMW 3 series vs. a new one, no amount of interest is going to offset the fact that a new one is $20,000 more than a used one.

[Gspotracer]

I am an Architectural Tech and when I got my first job I got a $20,000+ Loan without a cosigner, I was only 20 at the time & they never even put a lein on my car. I guess it depends which bank you are with too.

[88CRX]

Originally posted by Gspotracer
I am an Architectural Tech and when I got my first job I got a $20,000+ Loan without a cosigner, I was only 20 at the time & they never even put a lein on my car. I guess it depends which bank you are with too.

cool! im an arch tech... just outta school and im 19 too

[Xtrema]

https://www.econsumer.equifax.ca/ca/main?link=BCLTD&lang=en

Check you credit score before applying. Because too many failed applications may actually hurt your score.

Leasing may cost more than financing and more rules to follow. Unless you have a side business that qualify for write off, or lease rate is REALLY good (like 1.9% as said above), it will always cost more to lease in the long run.

And if you can, don't get auto loans from banks. Banks are always your last choice comes to car loans as their rate tends to be not very competitive. Using line of credit is good because prime+1.25 is roughly 5-6% right now, not bad given the flexibility. But in the end, dealers are usually have the best rate because its in their interest to push the products out the door. I believe finance for the new Mazda 3 is 2.9% (given you have a good credit score, of course). You can't get any better than that.

[supaj87GTS]

I went through Royal Bank to get my loan I just asked them for a consolidation loan how this works is you tell them how much money you need from them IE: to pay off credit cards,Bills,buying car....

I did this a while back I only needed like 9000$ and my payments are pretty cheap on a variable interest rate Loan.and I have 3 years to pay it all back.

[lal]

Very Nice Info

[88CRX]

should almost be stickied or something.


anyways.... i will post up how my attempt at honda goes later this week