Will I need a co-signer for a $13,000 car if I have good credit and put $8,000 down?

Question

I have no one to co-sign for me because the only people that I've considered have bad credit. I saved up $8,000 and have good credit. Will I be able to buy a car on my own or will I still need a co-signer? Thank you.

Answer 1

NO! Even if you had bad credit by putting down such a large percentage of the money down you would not need a co-signer.
Since you will own 8k of you car. If you stopped paying, the bank by taking back(re-po) your car would not lose any money.

PS: make sure you go to a outside bank from where you are buying a car to make sure you get a fair rate on the loan.

Answer 2

With $8000 down you WILL NOT need a co signer. If anyone tells you that you do, tell them to shove it. Some advice? Do not put all that $8000 down. Tell them you can put down $2000. See what interest rate they can give you (tell them you want under 6%). If you can get under 6%, put the 2000 down and invest the other 6000 in some diversified accounts. Most have an average of 8%yeild. Keep them there for the length of the car loan. If you are careful, you can come out with a profit over the car.

If you have good credit, you should be fine. If you really want to put all of the 8 grand down, you will have no worries and will be able to demand the best interest rates. Good luck and take NO CRAP

Answer 3

You won't need a cosigner, although you may use a bit of the $8,000 in a secure account to provide reason to give you the sale, unless you are a minor. Instead of a down payment,try to work this out with a financial wizard, as there are ways to get 0% APR, the interest added to your monthly payments, and at least one thousand dollars cash discount if you are paying over $5,000 down. There are many incentives, shop around, and pay a hundred dollars or so to get someone to get you to the right places with the right advice and financial protection. You can build your credit, and get a great deal.
If the car you want is $13,000, they may be able to get it for you for $10,000 to $11,000 with all included, brand new. It sounds as if you want to invest in an economical new car. Some salespeople will help. If they are pressuring you for a cosigner with $5,000 down, then you aren't at the right dealership. Go to a different, similar dealership, with an adult, and don't show particular interest in the car you really want. You will be quoted and offered a much better deal. Good luck. Once, someone was very nice to me as I purchased my first new car on my own.

Answer 4

Just because you've never owned a car before does not mean you need a co-x. It's gonna depend on several things: credit (680 should suffice), monthly income, down payment ($2000 down on a $15,000 car is approx 13%, that's not bad), and the vehicles value (normally cant exceed 115% of trade in value, but your downpayment should solve that problem). The norm is to have a car payment not to exceed 15% of your gross mothly income. As long as all that is in line, you have a much better opportunity to have the loan just in your name. You shouldnt need to finance any longer then 48 mons on $13,000 to achieve a $400.00 dollar payment

Answer 5

Are you a minor? If so, you can not legally enter into this kind of transaction by yourself. If you are NOT a minor, then the larger the down payment the more likely they are to extend credit for the balance.. The same works in real estate, the bigger the down payment, the more likely they will give you the mortgage for the remainder. They know if you default, they already have a large portion of the worth in cash, and since they still own the property, can resell it to cover the amount of your default. They figure it like this: if you default, you lose everything you paid to date, everything. It is unlikely that you will default with a whole lot of your own money involved so it stands to reason that they will be more likely to loan you the balance. You are putting down 62%, well above the national average for real estate of 15-20%. They will jump at the chance to make money off you in interest on the balance you will owe. I suggest you only put down half and keep the balance in reserve for the proverbial rainy day. Even at half, they will jump at the chance to do the financing. Their goal is to make money off you from the interest you will be paying and the more you put down the more likely they will extend credit in spite of your credit history. Keep something back in reserve for that rainy day...

Answer 6

You shouldn't have to if your credit is in good standing you have a little over 61% of a down payment. Unless you don't and have a history of credit. I say that because my 1st car even though I had money down I still needed a co-signer because I had no credit history. You have no problems in my opinion.

Answer 7

in regards to what the Nicole chick said...it is possible you may need a cosigner....unlikely but possible....if youre monthly income is say....1300 dollars and youre paying rent ....say 800 dollars....then it is possible they could want a cosigner to ensure in a "rough" month circumstance that you can still make the payments....as far as putting all the money down....you know your financial status....so if your credit could use a boost...then put 1000 or 2000 down negotiate....you walk into a dealership and say i want to put 8gs down...then good luck trying to get them to lower the price from the start....say no till they get where you want...the more frustrated they get....the better....after 8 months or so of steady payments....then consider putting some more money down....if you dont want to invest your money then put it into a savings account....ingdirect.com...one of the best savings accounts....

Answer 8

I can't forsee any problem with you being able to purchase the vehicle on your own. Probably won't get more than 18-24 months max for financing, but you've already practically paid for it. Be sure they sell it as $13,000 "Out the Door" which includes tax, title, State DMV paperwork. Congrats on the new ride.

Answer 9

You should have no trouble. I'm assuming you do have a source of income that is sufficient to make the low payments.

Even if you never make a payment, the lienholder can repossess and re-sell the car, and still make a good profit.

Answer 10

If you have good credit I dont know why especially if when they do a credit check on you they see you've not been late on other types of payments.Also you will if your under 18.