Hi, i'm 18 years old and need a loan for 5k. I already have 9k in the account for the car but I do not have the other 5k for the vehicle I purchased. I recently quit my job and I'm in the process of applying but need a car first to get to the job. I tried the bank and co-signed with my mom but the loan was denied for some reason when my mom has perfect credit. What are some other places I can go to to get a loan besides my personal bank?? Really need your help here! Thanks.
2007-10-02 08:21:15 · 5 answers · asked by GeorgeW. 2 in Business & Finance ➔ Credit
Auto finance is what I do for a living and there are so many holes in this story I don't really know where to begin.
First of all "YOU DON'T HAVE A JOB" the first thing a lender looks for is the ability to repay a loan.
Second with $9,000.00 down if your Mom had perfect credit you would be driving the car right now.
I don't know where you are trying to purchase from but try there, if they have anyone that knows what they are doing they should be able to at least get you Mom approved.
2007-10-02 08:35:45 · answer #1 · answered by ? 7 · 1⤊ 0⤋
I don't want to say no, but no. If you did manage to get someone to give you a loan (as in, an institution) you would be looking at a phenomenally high interest rate. You're best bet is going to be waiting until you have at least $1000 saved up for a down payment and getting a relative or someone who has some faith in you to co-sign on a loan. I would also steer clear of financing through the dealership you purchase said vehicle from. Traditionally, any place that has a car that you will be able to afford will be a small used car lot, and they will gouge you (especially since you're young and black on credit). On the opposite coin, larger dealerships are in hurting situations because of the economy so 1 of 2 things could happen: 1- They will also be tying you up with a higher interest rate because they are hurting for money themselves. OR (more likely) they will be more willing to work with you to make a sale if you bring someone older with you to finance. Some things to think about.
2016-05-19 15:54:17 · answer #2 · answered by ? 3 · 0⤊ 0⤋
At 18 you have few options. You and your mom should try a credit union. They usually cooperate.
Or if your mom has 5k in a savings account, she can make a loan to you by getting a secured loan from the bank on that account. You pay the interest which is just slightly higher than the interest that she gets from the bank. There is no need to have anyone's credit record checked, and the approval is usually in one day or less.
I did this when I bought my first car and I never missed a payment.
2007-10-02 08:27:36 · answer #3 · answered by Steveo 5 · 0⤊ 0⤋
They denied because you do not have a job. With out a job getting a loan is nearly imposable banks want to see money coming in to be assured they will be payed back.
If there is a Wal-Mart in the area apply there for a part time job, most stores are always looking for part time help.
In the future do not quite one job until you have a new one lined up. The bank mite also feel that a lone to you that you have no means of paying will be to much of a burden on your mother. Now that is a good bank!
2007-10-02 08:33:39 · answer #4 · answered by zipper 7 · 0⤊ 0⤋
FYI: as a rule most places won't give you a loan without evidence you can repay it ; IE having a job.
That being said, beware of scammers who offer a loan and then want an up-front processing fee. IF you have to pay to get a personal loan, you are just getting ripped off.
good luck
2007-10-02 08:24:07 · answer #5 · answered by wizjp 7 · 1⤊ 0⤋
A "buy-here-pay-here", or a dealership that has its own financing. The interest rate will be higher, but you can always refinance once you have established credit.
2007-10-02 08:26:17 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Go talk to the dealership and they will arrange a loan and a repayment plan for you. It's called "financing."
2007-10-02 08:24:38 · answer #7 · answered by gilgamesh 6 · 0⤊ 0⤋