I'm looking on getting a used 4th gen. from a dealership. How easy would it be for me to get financing from the dealer. I have 2 credit cards so I have some credit history. I'm probably going to put $2000 down off of my credit card since i have 0% for the next 6 months on it.

I applied for an e-loan from eloan.com to see if I would get it but they declined me. Are there any other 20yr old students with part time jobs that have gotten a loan from the dealer?

thanks,
ken

 

Im not a 20 yr old student with a part-time job but I do know around here its hard/impossible to get financing from a bank on a car thats more than 3years old. Because of the risk. You would have to get a personal loan which requires very good credit. But if your working with a dealer they can swing things for you to sell you the car, just dont let them rip you off because of the situation.

Good luck.

 

It's easier to work with a dealership on auto loans for a used car. You can haggle on the interest rate. I believe the going interest rate for a used car loan is 4.9% and up. If you don't like the rate, you can still walk away from the deal. Don't let the dealer BS you and stuck you with a higher rate.

 

I don't think any young person should get themselves in debt by financing an used car. Especially if you have to put 2 grand down on a CC.

 

I have to agree there. Using the CC for a down isn't that good of an idea. Because now you have to pay off that $2k before 6 months, otherwise you pay some outragoues interest. And also have to pay for the car.

 

Chances are you won't have that $2k paid off, and you can start life going down the road to financial incompetence that most Americans blissfully indulge in. But then, I don't know your financial situation.

Anyway, I'd go to a credit union if I was you and try and finance that way.

 

Yes, credit unions are usually the best way. Especially if you're starting out. I have both my truck and my car loans from a credit union. You do have to watch what interest rate they try to put on you. Mine tried getting a 12.5% on my Max. Way above their usual rate.

And the best piece of advice I can give. READ EVERYTHING and understand what you're getting into.

 

Your debt to income ratio probably isnt the greatest. Also, they might want you to have a full time job. Don't worry though, i've been in your shoes before. If you can get your parents to co-sign, it wont matter how bad your credit is. Plus, once you pay it off that will be great for your next car.

If your parents resist, just tell them its their "parental duty" to help you build up your credit. Gotta know how to work 'em!

 

I got my first car loan at 17. It was through my credit union for $17000k. I was in high school with a part time job paying about $310 a month. I put some money down and my credit score + the history I had with the credit union got me the loan. Now at 21 i'm with the same credit union with a bigger loan at a lower rate. Your best bet is to try and put 20% cash down and get pre-approved through a local credit union. Also co-signing would put you in just about any car you want just as long as your parents have good credit/income.

 

OK now from the other side. As a parent with kids as old as you guys and as an accountant let me advise you:

Please do not put a down payment on your cc for the reasons already stated. It is way too easy to get in over your head trying to make your monthly payments and pay off that 2 grand over 6 months. If you could realistically do that ... then wait the 6 months, save up the money and put down the 2 grand in cash. Yes, this does mean
postponing gradification but guys that's a fact of life.

There are a lot of very young folks here driving really nice cars (Maximas) your first car may just have to be a $2,500.00 crapper that you can afford to pay off and drive for a few years until you can save up some money.

Personally, It's a long time between cars for me because I never buy until I have the cash to walk in and make a killer deal on what ever I want.

Oh yea and Pass-em in aint your parents "duty" to build up your credit rep [not a hater just telling ya like it is.]

Mr. Peabody
2003 SUPER BLACK SE AUTO
1991 BURGUNDY SE 5-SPD
1979 SUZUKI GS 850

 

Yup. Plus a 4-gen ain't worth being in debt for anyway.

 

All I have to say is that I paid in cash for my 4th gen and I am glad I did it I would much rather do that and own it completely.

Also have to consider how much more insurance you have to have while on a loan... and if some maintence comes up that drains your monthly salary it just killed your abiliity to pay off the CC... all I can say is coming from a family that has gone into bankruptcy from cc debt is that it is a crappy thing to get into and this is why I dont even have a CC just a debit card becuase I never want to be put into a money crunch or have to go through that again.

If anything learn your stuff and buy from another person becuase the dealer markup isn't great for us "kids". Look around and be a ready to take a while unless you want to pay the premium of buying from a dealer. Took me almost 6 months to find a 5 speed in semidecent condition (interior mint, exterior with some dings and scratches) and that was with relatively high mileage (120k) But please dont get yourself into cc debt at such a young age cuz it is almost impossible to get out of.

 

All I know now is that I'm never going to buy a new car. After having 5 years of auto loan with this maxima, screw that commitment. A $1000 beater gets me to work and back. I can drive it like I stole it. I can park it anywhere when I go clubbing in DC.

 

If you have a good credit (705+ on the FICO) and about 2 years of credit history, you should be ok unless you want a really expensive car.

Now, whatever you do, DO NOT USE THE CC TO OPEN THE LOAN. Can't stress that enough. Ask yor parents perhaps, but do not use the CC.

Other than that, i see nothing wrong with doing it.