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I'm 18 years old, and i never own nor used a credit card in my life. So, i'm planning to purchase a used 14,000 dollar certified car with financing. Will i be able to get finance without a credit score? If not, what other ways can i do to be able to qualify for finance?

2007-09-01 08:36:36 · 6 answers · asked by dana c 1 in Business & Finance Credit

6 answers

Auto finance is what I do for a living and it depends on a lot of things.

There are first time buyer programs out there for people like you but they have very strict guidelines.

You must be on your job 1-year, at your residence 1-year and make at least $1,500.00 a month before taxes.

If you meet all of the above and have at least $1,000.00 for a down payment then you may be able to get the loan you are talking about.

The maximum payment you will be approved for is going to be 18% of your monthly income before taxes so for this loan you would need to prove $2,000.00 a month in income to finance $13,000.00 for 60-months.

O.B.T.W. Student loans do not build credit, they help your score but lenders do not look at them as real lines of credit like car loans, personal loans and credit cards.

2007-09-01 09:03:16 · answer #1 · answered by ? 7 · 0 0

You are 18 years old, why would you want to begin your adult life by going into $14,000 worth of debt? I know, I know, EVERYBODY else is, right?

If you can afford a $200 a month car payment, you can afford a $200 car and then put $200 a month in the bank for 5 months while you drive the $200 piece of junk car into the ground. Then you can pay cash for a $1000 car that will last you two years while you save up $2,500 for your next car. (By this point, you should actually be able to save almost twice that much a month because of all the insurance money you will not be spending because you are not driving a $14,000 car...)

When you are 28, no-one (not even you) will remember what you were driving when you were 18. If you spend $300 a month instead ($200 on the car, and $100 on a mutual fund), ten years from now you'll have no loan payments, about $75,000 in cash, and a $30,000 car you got for $25,000 because you paid cash for it!

Remember, fools pay interest, smart people earn it!

2007-09-01 08:55:36 · answer #2 · answered by Anonymous · 0 1

You may be able to get financed through the dealer ship. But be prepared to pay a high intrest rate? Can you hold off a few months and build your credit a little? That would be my suggestion. You don't have to have a credit card to build your credit. Paying your utility bills on time effects it. Keeping your cell phone contract and paying that bill on time helps. You can also get a "secured credit card". What that is, is you take like, say $500 to the bank. They give you a card, and you have $500 on that card to spend, and you make monthly payments for interest. Student Loans also build credit. I suggest doing something like the secured card, because you can't rack up debt and you build your credit. Credit isn't something you can take lightly- once you mess up it's on your record and doesn't come off for quite a while. So maybe you're not in the financial spot to buy such an expensive car. I just bought a nice '01 mustang used for 6,500 last year, and it's just as nice as a two year newer one I looked at for 13,000. Shop around. You want to make sure you can afford it, because you have to take into consideration your car insurance. Because of my age, my car insurance (and you have to have full coverage if there's a loan on the car) was $250.00 a month (and I shopped around) and I have no tickets or accidents on my record. Good luck!

2007-09-01 08:49:23 · answer #3 · answered by BlackDahlia 5 · 0 0

You are going to have to buy a car for cash. To make a loan you will need steady employment 1 to 2 years with strong ability to pay back. If you decide to try - go to a credit union - they are still lending. If you buy a car from an used dealer keep in mind 2 things. They may not report your payments to the credit bureaus - not really a bad thing. You will pay much more for the car than what its really worth - no price breaks. You might get an honerous interest rate of 15 o 19%. Find a $3,000 car. Bargain, bargain, bargain. Tell them you have $1,500 cash - you never know - they may bite. ------------ I like that other answer. Those pay here buy here places usually double charge for cars. You might be able to get a nice deal by paying cash. /

2016-05-18 22:42:07 · answer #4 · answered by Anonymous · 0 0

A co-signer is the best way to go, But if that's not possible you need to have a good down payment and there also happens to be lending institutions that specialize in high risk loans. Just do a little research and seek out such a lender it is possible and if you play your cards right you will be OK. Just don't be too hasty because everyone has to start just like you.

2007-09-01 08:47:47 · answer #5 · answered by Union_Dooz 6 · 0 0

You can get a co-signer...my parents did it for me...and I NEVER missed a payment. That is a great way to establish your own credit

2007-09-01 08:43:13 · answer #6 · answered by ? 7 · 0 0

sometimes they have first time buyer programs if you meet certain criteria. otherwise you kight need a co signer. good luck

2007-09-01 08:44:58 · answer #7 · answered by Anonymous · 0 0

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