Ohz

Hey, I'm shopping around for Max, new if possible. Thing is, I have no credit, I'm a first time buyer making 36k yearly and I've got 5k to put down.

My friend tells me the dealer will shut door in my face if I try to buy new because the car is too expensive for someone with no credit.

What do you guys think?

SuDZ

You might be able to find one if you have been at your job for a while and dont have BAD credit. No credit is sometimes a little easier to get going. What about taking out a passbook loan from your bank? Basicly you take a loan out for say 500.00 bucks or so (You have to have enough in your account to cover it) and then pay it back by months end and avoid the finanace charges. I knew people who did this to raise their credit a bit, it might help you too.

SuDZ

SIRI_SE

From my experience, there is 2 red flags they will see with you...
1) 1st time buyer
2) No credit

It will be difficult for you to get credit to buy a car, and if they do give it to you, your rates will probably be very high. Try to get a family member or the like to co-sign, this will help tremendously. FYI any rate above 8% is too much IMO. This isn't to discourage you, it is reality. Good luck!

2k2kev

do you have access to a credit union? Is there anyone you've made payments to, like a bank? Is there a bank you've maintained an account with over some amount of time?

Try a bank/credit union you have a relationship with. That, and having $5k to put down will show them responsibility.

mzmtg

iTrader: (11)

First off, DO NOT finance your car through the dealer. Try to arrange financing through your personal bank, or your employer's credit union, if they have one.

You can also try getting a loan online:

www.peoplefirst.com
www.eloan.com

Those are two very popular sites.

You have much more baragining power at the dealer when you already have financing arranged. Dealers like it when you can wlk in the door and cut them a check.

When we bought my Maxima in 1995, the advertised price of the car was $19,900. As soon as we told them we were going to pay cash, it dropped to $18,000.

SkoorbMax

$5k is a good downpayment, but you are going to have a tough time since you have no credit. Based on your income, which is, in my opinion, very low for somebody wanting a new maxima combined with your non-existent credit (what this really means is that your score will be low - have you done a check at equifax.com for a FICO score?) if you are able to get financing on a new max it's going to be at a very stiff interest rate.

I don't know your financial situation, but I've personally never heard of anybody making $36k/year who should be buying a car worth 2/3 that. I hate to sound like a mother, but don't be a slave to car payments. It's something you'll regret when you grow up. Trust me.

Your insurance will be sky-high most likely. Have you gotten a quote yet?

Ohz

Don't worry about being discouraging. The potentially harsh reality is exactly what I'm looking for.

I'm getting a lot of advice from a lot of different people and it seems that most of them know less about the "facts" of buying a car than what I've learned in the last few days. Therefore, I'm using these forums as a baseline for my angle/research on the subject.

Thanks for the advice.

*EDIT*

To answer some questions...

-I've been at the same job for just under 3 years.
-Only payments I've made are of the utility variety.
-I imagine I have a bit more room to work with than the average joe making 36k because I'm single with few expenses outside of $275 rent. I could double my down payment fund before spring.
-I've had an account with the same bank for 5 years.
-I want a Max because I love the car and it's one the few that fits me as I'm very tall.

ORBRIT

Get a credit report on line - that's the only way you'll know where you stand. You're in a good position as far as low monthly expenses - use that to your advantage and instead of paying a higher payment, save it for a bigger downpayment. Being at the same job for 3 years will also help you. I just got my Max in October - I own my own business but it's only been going since March. They didn't care because I've been in the same industry for 4+ years.
Do you have a cell phone? That'll show up on the credit report, and will have built some history.

To build credit, get one credit card and use it for things like gas - something you'll pay for anyways. Pay it off monthly, tally up some air miles while you're at it, and build credit at the same time.


$275 rent!!! Do you live in a cardboard box or something?!
(My mortgage is $1100 a month...)

Or another option instead of getting a new Maxima is get a 97 or 98 4th Gen and pay cash in the Spring (about $10k). Use your monthly disposable income for mods - the fact that you're on this board means you'll end up modding!!
I lasted all of 5 days before I got my first mod....


Good luck!

tampamax

Do you have a cell phone? That'll show up on the credit report, and will have built some history.




ohz....disregard the comment about having a cell phone in relation to building your credit. unless things have changed in the past week there is no truth to that comment. trust me i know this because i own a few cell stores and i am also a finacial advisor...the irony huh. just trying to save you some disappointment if you were to try to use that as one of your ploys for financing.
Good luck!
P.S. Orbrit, correct me if i'm wrong but last i time i checked it was still the case. not starting anything___just want to give the kid the right answers.

erty67

iTrader: (104)

With $5k to put down, you should be able to get some sort of financing. Even if you get a high interest rate, what you do is take the loan at that rate. Then pay on it for one year and the refinance. I had to do that to get my maxima. I started with a 14.9% rate(ouch) then i refinanced down to 8%. That was with bad credit, negative equity(i had to tack on $2k to price to get out of my truck), and $1000 down. It's amazing how I turned my credit around that way. It's been two years since i bought it and my credit kicks a$$ know. It can be done, but you will likely pay more than the average good credit joe. Good luck

Edit:

A co-signer would be your best friend for getting a good rate and I was on this .org a good year before mods came. Get the car first!

Ohz

Thanks again.

It's ridiculous how much my "plan" for buying a car has changed since I started looking. It's for the better though...I'm sure I'll end up with something I'm really happy with.

The sub 10k cash buy is really attractive right now. Though I'd probably look at Acura TL at that price point over a 4gMax.

tampa,

Do you have an opinion on building credit with loans vs CC vs building off a car purchase?

I only have to spend $275 because I have good long time friends as roomates. It'll probably stay that way until one of us decides to get hitched.

XXXL Cracker

iTrader: (3)

Three years at the same company and cash down will help. Depending on where you live, some utilities do report to the three main credit bureaus.

I would call around to some local banks and find out what there lending criteria is. You will have a better chance with a bank where they evaluate your credit worthiness in house by a real person than a lending institute that does a computer generated score.

BTW - I am 6'7" and have plenty of room in my 4th gen.

D

erty67

iTrader: (104)

how bout buying a 95-96 in the $5k range then using that monthly payment money for modding

Ohz

dlicari,

That's good to know. I'm a hair under 6'6" myself. It's the 4g styling that I'm not that hip to.

erty67,

Maybe, maybe. Honestly, I'm a bit warying of modding at this point as I don't even own a car to fool with right now. I'm sure that'll change quick as I've been reading about it all for months now.

*EDIT*

Also, I have no idea what to make of higher mileage. The 95/96 rides I've seen have anywhere from 44-150k miles. How do I weigh that? I've seen a completely neglected Honda break 200k but I've also seen my friend's Ford die numerous times pre 70k.

What could I expect from a Max pushing 100k or more?

erty67

iTrader: (104)

Well...I wouldn't compare a honda(or any jap car) to a ford, but I hear ya

maxfanfromohio

iTrader: (7)

My Max has 140k on it and I have not put a penny into it, other than normal wear and tear. buy the 4th Gen and hook it up with mods. Save your money. Buy the car with the cash and put a lien on it to build some credit. Good luck.




What could I expect from a Max pushing 100k or more? [/B][/QUOTE]