i dont have good credit (score in low 500s) but i have gotten a good job that is about to pay me 33,000 a year. the problem is i just started working there for about 3 months, i tried to get a car loan but got denied several times because of my school loans which are deferred, but high around 40,000.
Now i was only going to put $1000 on the car, i wanted that toyota yaris or a chevy cobalt but got denied left right and center. also i had a couple delinquent payments cuz i lost my job and wasnt able to pay (hence the new job). i am in the process of bringing tjem up to current.
If i put 50% down on the car will my credit be able to finance the rest? The car dealer told me the more money i put down the more the bank is likely to give me the loan. Is this true? or will i be embarassed
2006-12-29 15:51:55 · 9 answers · asked by sweet_jemise 4 in Business & Finance ➔ Credit
With your score being so low - I don't think it's going to matter how much you put down, lenders are not going to want to work with you. You might be better off finding a co-signer. And remember the more you have companies check your credit - to try and give you a loan, the lower your score goes.
2006-12-29 16:07:47 · answer #1 · answered by amy23 3 · 0⤊ 0⤋
Do NOT finance the car. If you take that $1000 that you were going to put into a new car and pay yourself what the car payment would be (approx. $400) you will have in total $5000 in 10 months. You can sell your existing car (say $1500) and get something used.
After that, you continue paying yourself the $400 per month you would have another $4000 saved up.
You could get yourself a $10,500 car in just 20 months. You would be without debt and driving a great car.
Keep taking that $400 a month and invest it in mutal funds at an average growth of 12%. At the end of 6 years (the usual new car note) you would have about $32,000. If you took out $12,000 to buy another used car, you would still have $20,000 sitting in your fund earning you interest.
If you NEVER add another dollar to the car fund, you would be able to by $14,000 - $18,000 cars every 5 years from now on. The interest will pay for those cars! Those are FREE CARS!
2007-01-01 18:40:39 · answer #2 · answered by tito_smootz 2 · 0⤊ 0⤋
Sounds like you need to forget the entire financing route, and just buy a reliable used car. If you can afford 50% of a new Yaris, you can afford a decent used Toyota Corolla or Honda Civic.
Then you would own your car outright, and would only have to pay for liability insurance, taxes, and gas. Maintenance is minor if you get the right car, and if you are inbetween jobs again, you won't have to worry about making your next payment.
This doesn't specifically answer your question, but may be the answer to your car problem.
2006-12-29 16:06:12 · answer #3 · answered by Betterfication 2 · 0⤊ 0⤋
Wholly smokes. I wouldn't even look at a new car. Even if your credit was perfect you student loan debt is more than your salary. Depending on your major you should be able to clear more than 33k a year. I would keep deffering the loan by going for an MBA then buy a beater 3-5 K.
2006-12-29 15:58:27 · answer #4 · answered by 1 Wild and Crazy Guy 3 · 0⤊ 0⤋
maximum unlikely. in case you very own a house and have a competent pastime i might basically prepare for a house fairness loan applying your place as collateral for a plenty extra beneficial fee than a private loan and much extra beneficial hazard of having authorized. in case you may no longer get a house fairness Line of credit...however, i might basically placed down a 18k down fee and get a small guy or woman loan for something (you ought to have little hassle getting that regardless of spotty credit). wanting that there are continuously "spotty credit no issue" sellers...yet your activity fee for them may be astronomically and/or require you to do a extensive fee a 12 months or so down the line you will might desire to get a private loan for (and the loan is in all probability to hold an exceptionally extreme fee b/c by potential of then the vehicle, as collateral for the loan, would be well worth decrease than the fee so their hazard is larger).
2016-12-31 06:47:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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-jon
2006-12-31 20:06:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Im kind of in the same siuation.....But yes the more you put down the better. You might want to try one of those car lots that help people with bad credit.
2006-12-29 15:56:28 · answer #7 · answered by Megz 2 · 0⤊ 0⤋
This is true. There are several companies that would gladly take you with even only 25% down
2006-12-29 15:56:45 · answer #8 · answered by furryfriend4u4705 1 · 0⤊ 0⤋
Buy a used Honda and save your money!!
2006-12-30 15:17:47 · answer #9 · answered by Vegas 2 · 0⤊ 0⤋