Im considering taking out a loan for a car, what should i know about it first?

Question

(keep in mind that im 18 years old and make about 100 dollars a week.)

Answer 1

good luck on getting that loan then.

Answer 2

If you can spend 100% of that money on gas, insurance, and repairs, then you might be able to make this work. If you have other expenses, then you need to make more money or put off this dream until later.

Presuming you decide to go ahead with it:

First go to a credit union (NOT A COMMERICAL BANK, NOT A CAR DEALER) and see what you can qualify for. I'm thinking your should aim low ($2,000 - $3,000). IF the credit union says you can't afford the loan, then YOU CANT. If you try getting it somewhere else who will say "Yes" to you, then you will get screwed. If the credit union turns you down, forget the car and find another way to get to work or you will be oh so sorry. (BTDT)

Hire a broker to find you the cheapest most reliable used car possible. Brokers are generally honest and will search auctions, private sales, and dealers. They are great at finding a car and usually work on a fixed-fee basis, which keeps them on your side. They can save you massive amounts of money and trouble and they will do all the negotiating themselves.

If your car breaks down and you can't afford to repair it, let it sit in your driveway until you have saved up enough. Do not put the reparirs on a credit card.

Finally, and this is the most important thing of all, the minute you find you cannot pay your loan payment, PUT YOUR CAR UP FOR SALE ASAP. Maybe the same broker knows a buyer you could sell it to. If you are late in payment by more than 15 days call the credit union and explain you are trying to sell the car. (Show them the advertisement, etc.) and try to work something out with them until you can complete the sale.

Better to lose a few hundred bucks by selling below market value than default on your loan which could cost you thousands when you go to buy a house later in life.

Answer 3

you can consider it but I really doubt you'll be approved.Take out a small loan then pay it back fast do this a few more times always pay it off before time,this builds credit.If you are in the market for a car and only make 100 a week what kind of car do you think you can get? even if your payment is 100 a month,your insurance,tag,gas,and any routine maintenance will be more than 300.00 a month.That doesn't even cover any repairs to the vehicle.If it breaks down your out of a ride still making payments and if you cancel the insurance[depending what state you are in] your lisence may be revoked for no insurance. just start saving for a car and build your credit then buy a car that you can enjoy and be able to by gas and my take a nice girl out !

Answer 4

To run a car in the UK (you can make comparisons wherever you are) costs about £27 - £30 ($37 - $47) PER WEEK. Then there is the possibility of damage/repairs on top of that. Think carefully before you commit yourself as you will also have the loan to repay. That should leave you with little or no money to spend......................

Answer 5

You can't afford a car that isn't going to give you troubles on 400/month. Seriously with all other expenses, oil changes, gas, maintenance, flat tires, INSURANCE, etc.. Your insurance alone being so young will be costly depending on where you live... I say wait until you have a little more money to afford it.