Getting a car loan?

Question

I drive a 1996 Pontiac Sunfire which I bought for only $500 from my boyfriend's sister. Well, to make a long story short, it's done for.

I'm a freshman right now in Community College and I declined my financial aid because I can manage to pay for school with the part-time job I have.

Now I'm looking into buying a Kia Sportage for $6995. I'm 19 and have no credit. How can I pay for school, cell phone bill, insurance and a new car?

I've thought about a loan but since I have no credit and my parents have bad credit, how will this ever happen?

Forget mass transit, I live in the country 20 minutes away from college. There is no way that could happen. Belive me I would use it if was available.

Answer 1

As long as you have enough cash for 20% down payment and earn at least $12,000 a year, you should get approved.

If not, then you should reapply for financial aid and use it to buy a car. Don't buy a Kia because it's not reliable. I'd try to find a 5-10 year old Honda or Toyota. I once purchased a 15 year old Honda with 200,000 miles and it lasted another 25,000 miles without breaking down. I sold it for almost what I paid.

You should also apply for credit cards ASAP to build credit. Or if your parents have at least 1 credit card account in good standing, have them add you as an authorized user, then you will instantly inherit their credit history (for that card only).

Answer 2

1

Answer 3

Sounds like you need another job. Besides, you can't get a loan if you don't have an income to support the payments. If you get a job, get a credit card, pay the balance each month, establish good credit --- then get a loan to buy a car.

Answer 4

Learn to love mass transit. It's cheap and great for the environment.