im 18 i have a steady job, i go to school and have no monthly expenses is a 20 thou$ auto loan impossible?

Question

my parents have crap credit history since my mom went to law school so im basically on my own but its not that i cant pay it off im just wondering who would give a kid with no credit history a fat loan?

Answer 1

Beware; any loan you get will probably have a high interest rate and a long period. Your car may well die before the laon ends, which puts you deeper and deeper into the hole. That's how they get you.

I am reminded of when my brother (now 46) wanted to build up credit. He went to the Money Store (a small lender) and got a laon for $100, which he paid off right away. Then he borrowed $200 and paid it off right away. Soon he had a spotless payment record and his credit score improved. Not sure if that still works.

Answer 2

$20k is a lot to borrow for a first time buyer. As a former car salesperson I'll give you as much help as I can.

Banks look at a few things when deciding to approve you.

1. Income - Are you employed full time or part time? Do you earn at least $1300 a month (realistically more like $1500). If not then you WILL NOT get a car loan without a co-signer. Stop right here.

If you do earn enough and want to figure out a car payment then figure out your GROSS (the amount of your income BEFORE taxes are taken out) and figure out 25% of that. This is the amount of car payment the bank will PROBABLY give you.

2. Credit History - Do you have a history of credit? Making payments, being responsible with debt? If you don't then again, $20,000 is a lot to ask for without a co-signer that has more history of credit and responsibility with debt.

Most banks will give a first time buyer a loan for about $10,000.

Even though you may not have any expenses right now, banks know that you won't live at home forever and they calculate on that. That is why they won't allow you to put your entire income into a car payment (and if a dealership tells you otherwise they are LYING!).

Your best bet for a car loan is to get "pre-approved." Applying for a loan and getting the amound and interest rate in writing up-front. This way you can shop for the best car in your price range.

I know that $20k car may seem bright and shiny and new, but in all reality it is probably out of your range right now. Besides, the shininess wears off real fast and the loan payments go on, and on, and on . . .

Gettting a car loan is one of the hardest loans to get, but also one of the best ways to establish a credit history. If you want to try to get pre-approved please come onto my site and look at some of my lenders.

http://www.1-800badcredit.com.

The lenders I use are primarily for people with no credit, or bad credit. Get pre-approved, then shop within your budget.

Good luck to you!

Answer 3

Illegal immigration causes many problems that's for sure. That is an indisputable fact. Given your estimate of 20 million illegals let's proceed from there. Let's say even 1/3 of them are holding jobs. That's almost 7 million people in the workforce. Contributing to the tax base etc. That would leave 7 million job vacancies. Would our nation be able to handle that many leaving the workforce? Probably not. Would Americans step into these jobs for the pay offered? Probably not. Companies bottom line is profit. Would they raise wages to get Americans to work these jobs? Probably not. More companies would begin to outsource. Thus leaving many Americans out of jobs that now hold jobs. Our entire country would collapse and the Great Depression would look like a cakewalk. As I've said illegal immigration is wrong and needs to stop. But we also need to be realistic on deporting as you say 20 million people. Believe me...It's not going to happen for various reasons. So we must move forward and think of realistic ways to deal with the situation at hand and also insure the illegal situation is stemmed in the future. Better border security and visa systems need to be taken care of first and foremost so the situation doesn't progressively get worse. Once the flow is stopped we can then work on what to do with those already here.

Answer 4

I wanted a $20,000 car when I was 18 (26 now). But I got a cheap one and saved, Then when I was 20 I had money and decided to put down on a house. So now I started saving for the car. I saved $15,000 in the next three years but instead of buying the car I bought another house and became a landlord. Then I had great credit and bought 2 more houses within the next two years. I owe a million dollars in mortgages but have never had a car loan. If I would have bought that car 8 years ago I wouldn't have much of anything now.

Answer 5

Take the advice of all the folks telling you to get a cheaper vehicle. That high interest rate car loan will be with you for 5 or more years. You might not have any monthly expenses now but do you plan on living with your parents for those 5 years?

Start out with something you can pay cash for. Save up for a downpayment on a better car.

Answer 6

a 20k car loan will run you at least 400$ per month if you have good credit. Not sure what it will run you as an 18 year old. Also remember that you MUST keep full coverage on a car you are financing. Since you are so young expect to pay 200 to 300 per month for full coverage. 600 to 700 per month for a car is a pretty heafty expense. You know you will have that expense for the next 5 years if you get that loan and since you are 18 I am assuming your job doesnt pay that great. Also remember that if that car gets stolen, insurance will only pay you what the used value is worth minus deductable. So you could get a 20k loan, one of your jealous friends sees you driving that car and decides to steal it, you call insurance and they only give you 17k and you still have to pay off 3k on the loan only now you dont have a car.

(Remember that theives are way more likely to steal a car from an 18 year old kid than an adult because they know that 18 year olds dont knwo what to do when their car gets stolen.)

Answer 7

Someone will give you the loan. What you need to watch out for is an extremely high interest rate.

Go to a community bank in your area. Sit down and talk with an installment loan person. Find out what the going rates on for new and used autos. Have them calculate a payment (driven by interest rate, term and balance) that you can actually pay. This will help you SHOP for the car you can actually afford. Do not forget insurance and that ever expensive gas.
Good Luck to you.

Answer 8

Kiddo,when you are young you tend to go with the flow. If I were you I would get a car at a cheaper price. Remember you are still young and if you default on that loan it will affect you big time. You might need the money for something more serious such as education expense. I am not going to lie to you if you go to a dealer you will definitely get the loan but the rate will be extremely high. The main thing that you would want to think about is if you loose your job will you be able to make the payment?Even if you go to your local bank they might able to make you a decent offer assuming you have a credit history.Good luck where that is concern. Weigh you option before you make the final decision

Answer 9

Impossible: No.

Stupid: Very.

Why would you want to put all your money in something that goes down in value? You will pay very high interest with a "Rule Of 78's" type loan most likely, so that 20k loan will cost you more like 35-40k.

Dont start your life in DEBT. The debtor is slave to the lender. Just pay cash for a cheap car, and once you are rich pay CASH for a nice car.

Answer 10

why do you need a $20k car? If anything happens financially - you'll be joining the bad credit club a lot quicker, plus the insurance will be outrageous for an 18 yr old on a new car - start with a decent used car for $10k or less