Where can I get one? and how do I go about doing so?
I'm 17 so I'm going to need my mom to co-sign.
2007-10-08 04:05:18 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Ok, obviously its a loan for a car....
Could somone please EXPLAIN to me how an auto loan works?
2007-10-08 04:11:17 · update #1
Here is a place that will answer your question.
2007-10-08 04:26:37 · answer #1 · answered by Steveo 5 · 0⤊ 0⤋
1
2016-09-28 14:25:24 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You take out a loan for the amount you need to borrow.
There is usually a minimum Down payment - For example when I bought a car they made me put down $1,000 for an $11,000 car. So I ended up borrowing $10,000. Its not set, it depends on the lender and the borrower how much your down payment will be.
Now, they don't just give you the money - they charge what is called "interest" on the loan. This a percentage. Fair is Usually around 6%-8%, depending on the credit rating of the borrower. Your credit rating is what the history you have shown to repay loans and your financial earning power to repay a loan. At 17, you probably don;t have much credit and will need your mom to cosign as you mentioned.
A good trick on auto loans to estimate you monthly payment is figure $20 a month per every thousand financed. Example:
$5,000 financed = 5x$20 = $100 a month payment
Car dealerships can tend to take advantage of interests on loans, so I would suggest going to your moms bank with her and inquiring with them first.
2007-10-08 04:24:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
An auto loan is an Automotive Loan to buy a car. Since you already know your mom has to co-sign for you, just go to a bank with your mom, and they will run a credit check on her. If she has good credit, the loan will be approved. You need to keep up the payment on time and you will eventually build up your own good credit. Good luck!
2007-10-08 06:00:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'm confused. An auto loan is a loan for a vehicle (auto-mobile). It doesn't sound like you know what you need. Are you buying a car or do you need a loan to build up some credit?
2007-10-08 04:15:25 · answer #5 · answered by barbowork 2 · 0⤊ 0⤋
Until you are 18 and can legally sign a binding contract it will not matter if you have a co-signer.
When you are, try your local bank or credit union first, then the dealer.
2007-10-08 04:13:42 · answer #6 · answered by ? 7 · 2⤊ 0⤋
how it works? you pick out a vehicle and you sign some papers and you drive away. oh ya then you make payments until it is payed for or they reposes it for not making payments
2007-10-08 04:15:49 · answer #7 · answered by troyboy 4 · 0⤊ 0⤋
How do you know if you need one if you don't even know what it is?
2007-10-08 04:09:02 · answer #8 · answered by Jay P 7 · 1⤊ 1⤋