Am I eligible for an auto loan?

Question

I am in desperate need of a car. I am 18 years old, I currently work at McDonald's (it's the only place close enough to walk) and make $7.15 an hour, roughly $200.00 a week. I've been working since late October and I would like a car so that I can attend college and find a better job.

I was going to save up and settle for a cheap $1,000-$2,000 car until I could afford a down payment for a brand new car but instead I've decided to get a nice used car and try to apply for an auto loan from my bank (fifth-third). But, I have a feeling my situation will keep from getting the loan. =(

So, my question is, does anyone think/know if I am eligible for a loan, if not, does anyone have any ideas? Thanks.

P.S.
don't tell me to ask my bank, I will tomorrow =)

Answer 1

In your situation, you can not handle much more than a $200 a month payment. You also have to allow for insurance and gas!

You were on the right track in thinking of saving your money and buying an older car for transportation!

Good luck!

Answer 2

1

Answer 3

You might be. Depends on the bank. Do you have a local bank that you have a relationship with? I'd start there. Are you buying a car from a dealership? They normally have a financing manager that can find you financing (but see if you can find other offers first so that you can compare what they offer to what's available). Also don't take the car without them actually finding you the loan first. They sometimes think they can find you a loan, sell you the car, but then have to take it back when it wasn't the case.

Answer 4

Financial common sense, a cd by Bob McEwan, he talks about one of the worst investments you can make, buying a brand new car that depreciates before you even have it off the lot to where you couldn't sell it and make your money back, no matter what you do to it. I'd personally just find a used minivan/four door or whatever being sold by an old lady that drove it like a grandma, cheap on insurance too. around a the year 2000 or so. you should be able to find one around 4G or so., it's fine if it has 100000 miles on it, they go for a good 250000 miles +.

I beg you to find another financial institution, fifth third (I know I'm not supposto bash on here, but) rapes you on their fees.

Yes people will give you money for anything, if you sign your life away, a co-signer helps too. that's not the problem, just make sure you can afford the payments if you decide to go that way and that there is some kind of unemployment stipulation to where if you loose your job your credit doesn't go down the crapper.

P.S. Please don't ask your bank, find a credit union or anything.

Answer 5

Save a couple of thousand first, and get a used car. Your insurance will be high because you are young. Get a used car for starters, and take your mom or dad with you when you go to the dealer.

Answer 6

Whats your credit score??
how much can you afford to put down as a down payment?
how much can you afford to pay each month??

What type of car are you wanting??
Have you check on the cost of insurance??

My BF got a good car from "why pay sicker price"
http://www.whypaysticker.com/track.php?c=15411417021&mt=p&qry=whypaysticker%20price&adid=11625419
she got an awesome deal on a great car...

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Sorry I don't have an answer to your question just wanted to give you some info.

Answer 7

how is your credit? If your credit score is good you might be able to get a loan. Also do you have anyone who could cosign for the loan. This would help a lot but iff you dont and your credit is bad then your pretty much outta luck and you should go with your fist plan

Answer 8

you may need a co-signer, you need a credit rating to get credit, best way is a co-signer and always pay on time

Answer 9

ONLY WITH A CO-SIGNER.