would i be able to get an expensive car?
2006-10-11 13:21:44 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
No credit you would have to put down at least 30%
2006-10-11 13:29:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That depends. Can you afford an expensive car? Whats your income? What bills do you have now? Any rent? Are you still living with your parents? Will you still be living with them after you turn 18 and get an expensive car? What plans do you have for after you turn 18? Your car loan will be about 6 or 7 or 8 years to pay off. Will you still be willing to make those payments, 7 years from now?
The most expensive part of car ownership is the insurance. As a young person (under 25) you will be paying full price for the full coverage for most of the life of the loan. After you turn 25 it will go down just a little. You will have the car paid off shortly there after.
How will you handle car payments and collage. Ok maybe your not planing on going to school. After a few years in the work place as uneducated slave labor you may wish you planned that a little different. I"m starting to wonder if buying an expensive car right off the bat after you turn 18 is really a good idea in the first place. What ever you chose, remember, you are stuck with the out come of that choice for a long long time.
2006-10-11 22:27:43 · answer #2 · answered by john d 3 · 0⤊ 0⤋
No. And do yourself a favor and do not do the $500 loan and repay the next month. Although this person would be correct in that would no have a credit rating it would have consequences. First of all, it would probably take about 3 months to hit you credit. Second, being that you would now have credit it will be a lower score than if you repay over a longer period of time or secured a credit card and made payments.
There are 5 major attributing factors to your credit. They are weighted as: 1. 35% is your payment history (paying bills on time) 2. 30% is your debt to credit ratio (ex credit card: $3000 bal with $10000 limit = 30% ratio) 3.15% length of history (how long you ve had a credit card/car loan open) 4. amount of credit limits (the higher the limits the more "credit worthy" you are) 5. amount of times your credit gets pulled (keep to less than 4/mo!).
2006-10-12 00:19:42 · answer #3 · answered by T 1 · 0⤊ 0⤋
I dont want to be negative but lenders look for credit history before extending loans to young people. If you are employed and have been for awhile, you have a better shot. If you have someone to co-sign, that will help also. But, you will be better off starting to establish some form of credit before getting a car loan and at least get a savings account going to show your ability to repay. If you do get a loan, I assure you it will be high interest. Try to search around now for a credit union to open your savings account with and give them the first shot when you go for the car loan. They are usually more liberal with loans than banks... and forget dealers. Those interest rates are sky high. You can probably use their financing but you'll think again when you see the interest rates of 20+%. That $300 car payment will be closer to $450 a month when you factor in the interest. I wish you luck and again not trying to be negative. Start now with a savings account so you can have a few thousand bucks to put down to show you can afford the payments. If you cannot save the money now, you won't be able to afford the car loan even if you can get it.
2006-10-11 20:34:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No you may have to have your parents co sign on you buying a car because 18 year olds have no real credit history.
2006-10-12 20:04:17 · answer #5 · answered by nabdullah2001 5 · 0⤊ 0⤋
Yes- but it well be at a crappy % rate. Try and get with a credit union, they normally have much better rates.
To build your credt with out to much temtation don,t get a credt card but take out a $500 loan and pay it all back next month. Bingo bango you have just payed off a full loan and now have credit history.
2006-10-11 20:32:25 · answer #6 · answered by ransom3838 3 · 1⤊ 0⤋
sure, if you have the cash...
that's the only way you should buy cars anyway, expensive or not.
borrowing money to buy things that go down in value is a sucker proposition...
2006-10-11 22:52:18 · answer #7 · answered by kvuo 4 · 0⤊ 0⤋
Make a purchase with no credit = buy with cash.
2006-10-11 20:29:01 · answer #8 · answered by Bill P 5 · 0⤊ 0⤋
if u have a job for 6 mo. and can show that you can make the payments(check stubs) ,yes. you wont like the rate and many will advise against it.
2006-10-12 01:05:48 · answer #9 · answered by senseofhonor 2 · 0⤊ 0⤋