but i was just wondering if i were to finance a $28,000 car how much would i have to prove i make at my job? and how much of a down payment i would need? im only 20 years old and dont have much established... thanks so much
2007-08-27 11:41:19 · 5 answers · asked by jennifer s 1 in Business & Finance ➔ Credit
Well, let me tell you straight off, if you are not very established...now might not be the best time to buy a brand new car. You do not want to incur a lot of debt this early in your life.
Many people tend to think that if you can make the monthly payments, then you'll be fine...Well, we may be talking an extra $400 a month....not too mention gas, insurance, registration, etc etc....
If you need a car (who doesnt these days), get one that is within your means. I like to think that I should be able to pay off my car within one year of the purchase.
If you want to get the best deal you can on an auto loan, there is an article I have on a blog that I frequent called "Tips to getting a good deal on an auto loan". The link to this article is http://www.finance-your-life.com/?p=16
There are some other articles that may be of use to you. Good luck!
Happy Monday
2007-08-27 11:49:32 · answer #1 · answered by daveguy48 2 · 0⤊ 1⤋
honestly, If I were you -I would not buy the $28k car. You will be paying at least $450 a month...that's with a good down payment and 5 yrs of financing the car- with good credit standing. This is going to sound 'bad' - but its a car...nothing more and nothing less - you will have to pay at least $40 a week or week and a half..depending on how much you drive - for gas and you're 20 with not much 'driving experience' so look towards the insurance payments to be about $800-$1000 for six months..depending on your driving experience..but they also use the type of vehicle you are driving to assess the amount of premium. Let's not mention the maintenance costs.... I know you want the car, but you even said your credit is not the best..so that means they will tack on a good annual percentage rate (in good I mean..a hefty percentage rate). I say go for a cheaper vehicle that you can afford..you don't want to be working to pay off your car..not to mention the bills you'll be racking up on credit, since you won't have any cash after the car drains your budget.
2007-08-27 15:47:49 · answer #2 · answered by someone who has been there 1 · 0⤊ 0⤋
I would check with your bank to see how much they will approve you for but I would shop around to see who has the better interest rate. You can also check with private lenders or even the company you purchase the car from should offer financing. How much you make is important but your established credit, payment history, downpayment, terms all play a role in how much you will get approved for. Your best bet is to call the dealer and ask about financing. Just be careful so you don't get screwed by a greedy salesman
2007-08-27 11:54:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on your current situation, current credit score and tradelines you have established so far. Usually they want no more of 25% of your income going towards an auto loan. If you have decent credit they can waive proof of income. check out creditboards.com and start reading in the automotive section.
2007-08-27 12:23:22 · answer #4 · answered by knowitall 2 · 0⤊ 0⤋
If you can get financing, the interest rate will be outrageous.
What you should be asking is "can I afford a $28K car?" How much do you make and what are your other bills?
2007-08-27 11:54:52 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋