Question:
I am 19 years old. I am in USMC Reserve. I don't get paid much but I do get paid enough to make a $ 300-400 payment on the loan each month. I live with my parents. I can get a job after I get the car. I have no credit. I just recieved the credit card. I can get a cosigner. I am looking for $20000 loan for 60 months. Can I get it and where?
Answers:
Auto finance is what I do for a living and auto loans are based on the following factors;
1. LTV (loan to value).
2. Term requested.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment amount.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
At 19 you can not have much of a credit file or history. You live at home but do not have a full time job.
You will need a co-signer with good credit and a full time job, and you need to look for a much cheaper first car, say around $10,000.00 not $20,000.00.
You say you can make a $300.00 to $400.00 a month payment but what you think you can do and what the bank will let you do is two completely different things. First of all your monthly payment can not exceed 20% of your monthly income before taxes and at a lot of banks it's more like 16%.
Consider not getting something that expensive. Live life without being tied down to a huge car payment. :)
If you are a member of a credit union, they usually have the best rates/service.
If you have a co-singer you will not have a problem.on your own? Well we would really have to know how much money you make. You say you can afford 300- 400$ a month.. but is that all make, or is that what you have leftover when doing a budget?
To qualify for a 20k loan you would need pretty good credit score plus make at least 2-3k a month I would think.
I think the payment would be more than $400 and don't forget if the car is new and at your age the Insurance would be too high so I think you should consider that as well. If you have a down payment toward your car that will make you in a better bargaining situation even if your credit history is still new and even you can skip using a Co-signer if you have about $4000 down payment cause they will never let you leave with this much money without making the deal. my final advise is to get used car for $5000 or $6000 you can get a really decent car for this much money but make sure to check the car before you make the deal and your payment would be $200 or less for 48 months.
Your options may be limited if you're just starting your credit career. $20,000 is a large chunk of change that theyre trusting in you to pay back on time, as agreed. If you do qualify on your own, it'll likely be a rough interest rate.
I am not a fan of co-signing, but if your parents are willing, theyll likely qualify you for a better rate if their credit is in reasonable shape.
My son is in practically the same situation. We found the answer on www.1-800BadCredit.com -- He found just the loan he needed at a good interest. Good Luck!
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