thisiswhatiwastalkingabou
First Time Poster
Cash: $ 0.25
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Joined: 06 Nov 2011
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| Car loan w/ no credit? |
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Hi everyone,
I plan on purchasing a used car (recent model year) in the near future. The cost of the car will be roughly what I make per year being self employed ($25K). I plan on putting somewhat of a large amount down -- at least 30%, or around $8K. I can put more down if necessary or if it would lower my rate.
The problem is, I have absolutely no credit whatsoever. I'm in my early 20s and if I can't pay for it in cash, I don't buy it. Also, my monthly expenditures are almost nill as I still live at home with my parents and live simply.
All that being said, how likely am I to get an auto loan at all? The other thing I'm worried about is being self employed, even though I've got a steady income. Would a down payment the size I mentioned negate the need to show a bank/credit union my income docs or at least cause them to not decline me because I'm self employed?
Finally, since it will most probably be a few months before I'll be hopefully purchasing the car, would it help my chances if I were to get a credit card and use it for all of my (very few) expenditures in the meantime? I'd rather not have a CC unless it gave me a better chance of getting the loan.
Hope my post wasn't too long. Thanks!
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Sun Nov 06, 2011 4:51 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
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Location: Wisconsin
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You'll probably be able to get dealer financing, reason being they'll offer to finance; charge you absolutely outrageous and just short of criminal interest rates, and make a ton of money on the financing.
You should be able to get a pretty decent used car for what you can pay for in cash. My car is 10 years old and still costs me nothing but gas and regular maintenance to operate. And it's been paid for the entire ten years I've owned it. The Blue Book value on it is about $3500. If you could find a car like mine, you could probably still drive it for another five or ten years, depending on your miles and how well you take care of it. You can't beat that for transportation, IMO.
~Tim~
Eye Candy : Why Whimsy
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Mon Nov 07, 2011 5:37 am |
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littleroc02us
Moderator
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| Re: Car loan w/ no credit? |
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quote:
Originally posted by thisiswhatiwastalkingabou
Hi everyone,
The problem is, I have absolutely no credit whatsoever. I'm in my early 20s and if I can't pay for it in cash, I don't buy it. Also, my monthly expenditures are almost nill as I still live at home with my parents and live simply.
I confused you said in your post that if you can't pay for something in cash you don't buy it, so what happened? Also, I believe it's insane to take a loan out for a vehicle that is a years salary. Why not use the 8k to buy a vehicle in cash?
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
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Mon Nov 07, 2011 2:15 pm |
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hermans25
Member
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Simply read the policies online before apply loan you will be aware what the requirements are and what the procedure you should follow.
Bad Credit
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Fri Nov 18, 2011 7:15 am |
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iwillguide
Preferred Member
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While applying any kind of loans, it is very necessary to read the loan agreement conditions.Because if you are not understanding the conditions, you will face some financial problems.I think some car loan dealers are offering loans with reasonable interest rates.If you have a good job or study income, they will not look your credit score.So,first understand your present financial position and then deal with legit lender.
payday loan sites | real payday loans
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Thu Jan 19, 2012 3:40 pm |
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eastmn
Senior Member
Cash: $ 81.20
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Joined: 04 Apr 2010
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You might find something here useful:
The general rule of buying a new car "here" has always
been to pay no more than 87% of sticker price.... but now
days, they've got stickers on top of stickers... so check
dealer cost online (edmunds.com). The ideal thing would
be to have your financing prearranged through some credit
union; where they will be able to tell you what the car is
really worth. Might have them print a copy of the invoice to
take home to compare.
In today's market, you can probably make a steal.
The average salary in USA is 40K.
Auto Loans as low as 2.90%
https://www.lacapfcu.org/
Also compare at "bankrate.com" so that
you don't end up with any regret.
Maybe do the financing online...
Some banks will put all the interest up front:
Rule of 78 -- Watch out for this auto loan trick
http://www.bankrate.com/brm/news/auto/20010827a.asp
Also stay away from life insurance on the loan, and the
extended warranties can usually be marked down significantly.
Maybe buy it later, separately.
They may try high-pressure tactics in order to justify abusive
terms (no credit), but I'd stick to my guns, go in there well
prepared. Go in there confident that you can buy on your
terms, not theirs. Call their bluff.
...
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Fri Jan 27, 2012 2:17 am |
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