Question from a first time buyer...?

Question

Okay im 18 years old.. Later this month will be my 1 year with my licence.. i dont have a credit card yet so i dont think i have any credit line.. I wanted to look into buying a 03-04 honda i wanna spend about 12,000.. my question is how do i go about doing that, i know i might need a co signer but what if i cant get one.. is my payment going to have a way higher interest rate.. is it stupid to try to do it without a co signer? I need all the information i can get because im tired of my hoopty lol.. Will they let me trade my car in for a downpayment.. its worth at least 500.. SOMEONE HELP ME PLEASE!! oh i also make 11dollars an hour with a full time job.. i make about 1400 a month after taxes and i dont have any bills except for my current insurance.. if i show them i can make the payments does that look better for me?

Thanks in advance..
;]

Answer 1

In order to get financed, you have to show them you can make the payments. They'll look at your living expenses like rent etc if you aren't living at home. You probably haven't build up much of a credit history yet, so might have trouble getting financed without a cosigner, or have to pay pretty high interest. See if your parents will cosign for you - and if they do, be very sure to make all of your payments on time, since otherwise you'd affect not only your own credit rating but theirs also.

A dealer will probably take your current car as a tradein, and that would count toward your down payment.

Good luck. Hondas are good cars.

Answer 2

I would say bring ALOT of cash to the table. Cash only sweetens the deal and is a strong selling point from the dealer to the finance company. A co-buyer would help greatly here but only if they have good credit. I wouldnt consider anyone but a parent as your co-buyer. The dealer would really have to push me to consider you alone. The cash would help and you would need to be in a good equity position. You make decent money and would have low bills but no established credit or time on file. Even with proof of income, residence & 3 months bank statements with no nsf's on them I probably would still require the co-buyer as you have no credit whatsoever. Sorry. But give it a go the worst they can tell you is no right.