is there anything else I need to know about financing a car if im turning 18 june 1st? Im putting down roughly 2600 $ and have a checking acct in my name, I make about 450 $ a week before taxes and will be at my job 1 year and 2 months when I plan to finance on my birthday. Is there anything else I can do to help myself? if it helps I want to get an 04' toyota camry, or at least around there i dont want to be making payments on a car thats not worth it. anything would help thanks!!
2007-02-20 07:09:54 · 9 answers · asked by jonnn 1 in Cars & Transportation ➔ Car Makes ➔ Toyota
If you're just turning 18, you probably don't have any credit established. Without any credit history, and without a credit score, you fall within a risk category for the banks. Unfortunately that usually means that you might be faced with a relatively high finance rate.
You may want to see if your local bank might overlook that circumstance. Otherwise to get the best terms you might want to have one of your parents be a co-applicant for you on the loan to qualify you for better terms.
Toyota does have a recent college graduate program for first time buyers, but unless you're graduating college in the next 6 months or have graduated in the last 24 months you would not qualify for that.
There is nothing that states that you HAVE to use the financing that the dealership offers but they may have leverage to get you better terms than your local bank. Just compare what you can get yourself to what they offer before deciding.
Worse case scenerio is you get a loan at a higher rate initially, keep it in place for 9-12 months to get your credit established and then re-finance it for lower rates that you should qualify for then.
Also keep in mind that the more downpayment you have, the less the amount that you borrow and regardless of the finance rate you get, the lower the amount of interest you will have to pay.
Hope this helps.
wnyken
2007-02-20 09:00:40 · answer #1 · answered by wnyken 3 · 0⤊ 0⤋
Just be careful the Dealer doesn't get points back in the financing.
This is when the Dealer will initially offer low financing, then you'll be told he could not get the financing at the rate he told you.
Example: Tells you your finance rate is to be 7.5% then comes back and says the bank will only give the loan at 10%. Odds are good he's getting a 2.5% kick back from the bank.
Run out of there as if your life was in mortal danger.
2007-02-20 15:28:27 · answer #2 · answered by Abel O 2 · 0⤊ 1⤋
usually, you can get the best finance deal from the bank that you have your checking acct. at. those in-house finance companies at the dealership will stick you with lots of extra finance charges. (with in house financing) you will be signing page after page of papers written in legal mumbo-jumbo that it would take a lawyer to understand. that is where they stick you.
go to you bank, tell loan officer what you want , they will approve financing. you just write the check for the car and the bank deposits the money in your account.
when you can pay for the car in this way, you can also get a better deal.
the dealership will try to get you to use their financing, and will offer you a better price if you use theirs. but they make up for the discount given you up front by screwing you over with the details.
2007-02-20 15:20:02 · answer #3 · answered by Anonymous · 0⤊ 1⤋
I'd recommend you talk to your bank about a loan before you go to the dealer. You aren't restricted to financing with a dealer and a bank might give you a better offer (e.g., lower interest rate). It wouldn't hurt to find out if you are eligible for a different loan before you haggle with the salesman....
2007-02-20 15:13:00 · answer #4 · answered by sci55 5 · 0⤊ 0⤋
I'd put away as much as possible between now and my birthday. Ideally, I'd say only buy what you can pay cash for. Believe me, you don't want to start your adult life being bogged down by debt.
2007-02-20 15:15:45 · answer #5 · answered by penhead72 5 · 1⤊ 0⤋
if you are going with toyota they are real easy to get a loan and with that much down you may get newer
2007-02-20 17:34:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
the more you put down the less your payments will be.
try your bank see what they will do for you
2007-02-20 15:12:36 · answer #7 · answered by Dr Universe 7 · 0⤊ 0⤋
have a co signer lined up incase they require one being that is your first purchase
2007-02-20 15:13:31 · answer #8 · answered by gregs111 6 · 0⤊ 0⤋
have you ever heard of identity theft....keep your personal info off the web
2007-02-20 15:12:21 · answer #9 · answered by 99Z34 2 · 0⤊ 0⤋