ok, well, i went by my bank today to apply for a loan, and since commission couldn't be factored into the numbers, i didn't make enough according to the papers, so my dad tried to cosign for me...and they ran his credit. apparently there were some credit cards that were way past due and had been charged off. so i can't get it. i should be going to the toyota lot tomorrow, because the salesman told me that my chances of getting approved there would be a lot better than with the credit union. i'll update you as soon as i find out. grrr. i want my box. it's there right now. the lot paid just to have it delivered there for me.

 

Sucks man. Good luck!

 

they may approve ou but you are gonna get raped on the intrest..but hey if ya want it bad enough go for it

 

my dad's going with me and he's going to try to co-sign for me if they don't approve me.

 

Let me restate what YourNameHere was saying...

They may approve you and your dad, but considering that his credit rating was so low the credit union wouldn't approve him as a cosigner at all, you will be raped on interest.

Here's the financing page for the dealership I'm going through... Figure out how much you're going to finance, and then multiply that amount by the percentage rate for a "Zone 4" FICO, which your dad probably is if he has had multiple cards charged off. That's just a bit over $2000 (roughly) that you'll pay for INTEREST ALONE for the first year of your loan, if you finance $15000 for 60 months... More if you decide on a longer loan, or a higher dollar amount lended (options, anyone?).

Sucks, huh?

 

so, if the credit union didn't approve us, there's a good chance of still getting approved by toyota? also, i'm outting ~$1700 down, and i have a buyer lined up for my mustang already ($5000), so i'll put that in the bank and use a little bit at a time to pay extra on the payments.

 

update: i'm SOL. my dad now refuses to co-sign for me, and they already told me i can't get approved at the toyota lot. i only have 5 months work experience, and i need to find a better paying job and establish a line of credit. so, what i'm doing, since this car is well worth waiting for, is going tomorrow on my day off of work and looking for me a better paying job. (i've been wanting to get out of the company that i'm in anyways because there's to much crap going on there. *corrupt management*), then going to american eagle and getting a credit card there and using it to buy a couple of small thing like socks, wallet, stuff like that, paying it off early for a couple months, than going back up there to the toyota lot and talking to them. oh, and i have somebody looking at my car this afternoon to buy it for his son, so depending on whether or not that goes though, that's $5000 right there.

 

So sorry to hear your plight. If you get the credit card, DO not pay it off right away. Make monthly payments ON TIME. You can pay a little more than the minimum. It will work to your benefit to keep the card open and not paid off.

 

Glad to see your turning this situation into positives. Keep working hard for your goals. But remember at your age just your insurance alone will be pretty high, plus your payments.
Waiting is hard, but it may be smarter to establish credit and more importantly establish a good job/career, education for a while. There will always be new and better cars to temp you then too.

 

so, wait, you're saying it's better to not pay the full amount and drag it out a little while than to pay off the balance every month?

 

ABSOLUTELY. Make sure you are not late on any payments and always pay the minimum or more. The credit bureaus want to see steady payments.....

 

Do NOT get an american eagle credit card. That only works at american eagle stores. Get one through a company like Visa or Mastercard, with a fair interest rate. The American Eagle rate is i think 22% which is through the roof. You can get a citibank or chase student card, which will have a really high interest rate still, but will be more like 17% and will have better terms and conditions.

If you really shop around, some private banks have student cards with great benefits at a low interest rate like 9%. Don't just go get an american eagle card, and they also may not approve you. Usually a student card is the best way to start building credit, not a store card, which can have extreme terms and conditions.

 

Also, sorry for the double post, but be aware that continually applying for credit and being denied WILL hurt your credit score.

Be aware that putting $6700 down instead of $1700 may change your approval status. That reduces the amount financed by almost 1/3, meaning your payment is lower.

Still, the chances of getting a fair loan at 18 with little work experience and no credit were slim. You might be waiting awhile- it can take years to build enough credit to not get killed at the dealership.

 

Sell your car for $5000 and put that with the $1700 you already have. Any bank will finance a $14000 car with $6700 down unless your picture is on the Wanted list at the Post Office. You don't need anyone else's signature. It would make no sense to put the money in the bank if you are going to use it to make extra payments. Just make the big extra payment when you buy it.

 

I don't want to rain on anybody's parade, but there's this radical concept to think about: "I can't afford it."

When did it become obligatory for young people just starting out to have brand new cars? When money is tight, you spend it on necessities -- and paying thousands of dollars in interest is not a necessity.

I was 30 when we bought our first new car, and we thought we were living large to be driving a Datsun 210 with no air, AM radio, and power nothing. Before that we got by with used cars bought for cash, public transportation, bicycles... whatever it took so that the money we earned went towards what we planned for, not to paying huge interest charges to a bank.

Look at the bottom line. You end up paying $20k or more for a $15k car when you include the interest. Do you really have that kind of money to burn at this point in your life?

RichC

 

I personally don't understand why people finance cars at all. My xA was paid for with cash and the deal is so much cleaner that way.

My family doesn't finance cars and I don't plan to. I couldn't afford a car payment on top of my $300 a month insurance payment right now and I wouldn't want to be working that hard.

Might I ask what is so wrong with your mustang that you can't keep it for a few years until you can buy a car outright?

I wanted to say this earlier but it seemed like addressing the credit issue was more what the post was for.

 

Two outstanding points. A car and payment with no money left to do other stuff is not much fun for very long.

 

Well not everyone has mommy and daddy who are willing to fork over 16k for a car! Those of us who actully work for our own money also have other bills to pay for, and saving up 16k might take a while! So financing allows us to have the things we want!

 

Good luck! And hope you get ur xB!

 

um, embittered much?

I understand the point of financing, thank you. What I don't understand is the acceptance of huge interest rates in the blinding quest for the things we want, and the acceptance of spending our lives constantly in debt. Being in debt is not a comfortable place to be and as I am a person who doesn't enjoy having creditors, i will not understand the choice to finance something because you can't actually afford it.

Anyway, this is a moot argument. I can only see financing as something to do if you really need something to get by...not as something that is routinely done to "get what you want." That's my viewpoint and it really has nothing whatsoever to do with how my car might have been purchased, which by the way, you are wrong about.

I'm done. If you have a valid point to make, make it, but don't make personal attacks for whatever self-motivated reason you might have. you have no information about how much I work or what I make, so don't talk about it. It's really none of your business who paid for my car, how much I make, or what I might need to be paying for in my life.