I am 19 years old and have plans on buying a 22k vehicle. I also have a great job so I know I can afford it plus insurance. I have had a credit card for 8 months now and made every last payment on time and paid the full amount of what I used each time. Will this be enough credit history to help get me low interest rates.
5 Responses to “Buying a Vehicle?”
Leave a Reply
November 28th, 2009 at 10:31 pm
It should be. You have to remember, you have no other credit history for them to go on, but the dealership may take that into consideration. You know your age, plus they will take into consideration your salary. You should be good to go. If you want you can pull your credit file and score, it may cost like $30, but you will be able to see what your score is.
November 28th, 2009 at 11:24 pm
One credit card for 8 months is not going to get you the best interest rates. It is probably not enough to even get you approved without a co-signer for a loan that high.
How much you can put down, in your case you can expect anywhere from about 10%-20%. How much do you make? You “thinking” you can afford the payment, is probably going to be a lot different than the bank saying you can afford the payments. Generally for a car loan the loan payment must be no more than about 15% of your Gross income. So if you make $1000(for example) your payment can not be over $150 a month.
November 28th, 2009 at 11:42 pm
Any and all credit history will play into the interest and deal you will get from a dealership.. Your best bet would be to check at any other financial institution, of lending for their best offer.. Also a good down payment will also affect your loan and interest rate..If you are a member of a credit union , at work,, or one you can join , you will find your deal will be better than a dealership.. Go to your dealer,, get his deal,, and then shop around!! You will be amazed what differences you will find.. Your job history plays a part there also.. Don’t expect the ‘deal’ of the century from any of them,,because you don’t have a long job history , or credit history.. But you’ll get your feet wet ar borrowing just by asking around.. Remember,, your money will spend anywhere.. And you know you pay your debts , the problem is they don’t !! And they want to make it worth their chance on you…Same way with insurance, being under 25, unless you can get on your parents policy ,if your still at home, You are going to, get crucified on the price of insurance especially on a fairly new car.. Give it a shot, but know all the expenses before you put your name on the dotted line.. Because once you do ,, you”ll have no choice but to pay..Cause you’ll be singing,,” I owe , I owe,, so off to work I go!!” Good Luck!! SOLOMON
November 28th, 2009 at 11:44 pm
I agree with oc1999 . You proabally can afford the car but the bank will see it diffrent. You seem to have very limited credit based on your description to step up to a 22k car. You should have a good downpayment based on little debt and good income and the bank will look at the amount of money you put down as a sign of what your ability is. In todays credit world your score should be high and some lenders loan money based just on your score. You can go to http://eloan.com and apply as they are pretty much a score lender. Good Luck
November 29th, 2009 at 12:21 am
Auto finance is what I do for a living and auto loans are based on the following factors.
1. LT (loan to value).
2. Term of loan.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income ratio.
You will not be approved for several reasons.
1. You do not have enough time in the bureaus. Auto lenders look for 3-5 years.
2. You do not have enough trade lines. Auto lenders look for at least 4 paid as agreed for 12-months.
3. You have no qualifying credit. Auto lenders look for 1 installment loan paid 12-times for at least $150.00 a month.
4. You have no like credit. No existing loan of any kind that is similar to the one you are trying to be approved for.
5. You most likely do not have enough job time. Auto lenders look for 2-years at the same job.