Where to get an Auto Loan with No Credit on a $10,000 Car?
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I want to buy a used car, but I have no credit. I turned 18 last October and I will have a job making 0-0 a month. Where can I go to get an auto loan? I can do a down payment of 00, so then my monthly payments would only be around 0 – 0.
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TheMom said:
The dealership should be able to finance you. You don’t make very much money though, you may need to set your sites a little lower.
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0February 28th, 2010 at 12:07 pm -
michael_white2 said:
I went to Wells Fargo myself…
‘No Credit’ is a hell of a lot better than ‘Bad Credit’.What you should be concerned about is Income vs Expenditures. A finacial institution is more concerned with how much you earn and how much you’re obligated in paying for other things. If you’re living with your parents with the above income, they will take that into consideration. If you’re living on your own (without rommates or such), then you’ll be hard-pressed to convince them you’ll be able to make the payments.
With your $3,500, you’ve going a lot of talking power there, as that’s over 1/3 of the $10,000. On a 60-month loan, for $6500 is going to be a minimum payment of $108 (6500 / 60 = 108)…which does not include the interest.
I would recommend since you have $3500 already, to save up to $5000 and then negotiate with the person selling the car to get them to lower their price. If you can pay cash out right for it you won’t have to make payments, and your insurance will be lower once you have the vehical as it will be yours.
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0 0February 28th, 2010 at 12:07 pm -
Joseph Sangl said:
Take this advice – PAY CASH FOR YOUR CAR!!!
Debt is NOT your friend! Cars go down in value!
I used to have car payments, student loan payments, credit card payments, and other debt, and it was NO FUN sending all of my hard-earned money off to pay the banks a bunch of interest.
I stopped acquiring debt and 14 months later I became debt-free! I highly recommend it!
I now blog about personal finances – http://www.josephsangl.com
It will be NO FUN spending an ENTIRE YEAR OF PAY on your debt!
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0 0February 28th, 2010 at 12:07 pm -
RichDaddy said:
Try Prosper.com. People lending to people. Rates should be better than a dealer. Good luck!!
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0 0February 28th, 2010 at 12:07 pm -
pack1710 said:
You have done a great job in saving that much money. Congratulations! Now take that down payment that you have and start car shopping. 3500 will buy an 18 year old a lot of car. If you have that cash then you probably will be able to buy a car that is listed at a little above that. Then you will have a paid for car. If your only going to be making 150 to 200 dollars a week then 1 week a month will go to the car payment.
Another reason to pay for you car in cash is if you lose your job and can’t make the payment. Then you will be going crazy because you will be scared of losing your car. If you pay cash then it will be yours.
Just guessing if it is 10,000 then it is probably an 02, or an 03. That means that by the time you have it paid for then it,10000 plus 4000 in interest, will be close to about 10 years old and worth 3000 dollars. So in six years you have lost around 1100 dollars. Or about 1500 a year just thrown away.
If you were to buy that car outright and start saving that 150 a month in a year you would have 1800 dollars. In two years you would have 3600 and a car worth 2500. Actuall net worth 6100 dollars.
Borrowing on the other car you would have an 8000 dollar car and still owe 10000 in payment a -2000 net worth. In six years you would have a car worth 3000 dollars that you paid 14000 dollars for in total. -11000.
By saving you would have a car worth 1500 and saved 9000 dollars +7000 to the good.With your positive net worth you could sell you first car and put you savings with it and buy a 6000 dollar car. Plus you have money saved all the time for emergencies to repair the car.
Don’t fall victim to the conventional wisdom that newer have fewer problems and there for are a better buy. They may have a few fewer problems but by the time you get one used it is about time for the problems to start. If you have money saved to take care of the repairs and do the maintenance then those problems won’t be the end of the world.Like or Dislike:
1 0February 28th, 2010 at 12:07 pm -
Thomas V said:
You can try credit.com, E-loan, 1-800-autoyes, or HSBC Auto. They all work with people with bad credit and no credit to help them finance a car.
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0 0February 28th, 2010 at 12:07 pm
