Gonna need a car

[Capt Caveman]

Originally posted by: Insomniator
Am I really supposed to take out like a 20k loan and buy a freakin car? What kind of crazy bank would give a 22 year old a loan?

I got my first new car before I even graduated from college. I already had a job offer. Showed them it and got financing.

 

[RaistlinZ]

Buy a nice used car with cash. You can build credit on small purchases here and there. No need to go into $20k debt just to build credit.

 

[amdfansftw]

why the hell are you even thinking about getting a car for 20K. where is this figure coming from. buy a new civic or corola dx is <12K lx <18 that's for a brand new car and you can just have your dad co-sign for you. really it's not that big of deal. you won't even need a co-signer if your job shows that you make enough and you have no other debts.

 

[ebaycj]

Originally posted by: ZeroIQ

Originally posted by: ebaycj

Originally posted by: Ocguy31

Originally posted by: ZeroIQ
Don't get a car loan and don't put anyone in the position of co-signing a loan for you. Take the money you have saved and go buy a reliable car with cash. Not only are new cars being given away, but people are trying to get out of the upside down used cars. Don't put yourself in unneeded debt, especially for you age.

Wrong. Credit is a great tool if you know how to use it correctly.

Also, a good credit history is a key to life.

No sense buying a new car for $20k when he can get a year old one for $12k from some poor sap who can't afford it anymore.

Credit is important, but paying lots of interest is for fools.

Nothing about my post is wrong, OcGuy, I never said credit is bad. What I said is bad is having someone co-sign a loan and buying a new car and financing it. He would be making payments on a depreciating asset. Bad idea. I'm speaking from experience. Credit is good if used properly, you're right, but a new car is not needed. If he has money saved up he can use that and buy a good used car, then make car payments to himself for the next car purchase he wants to make.

Exactly. I just recently (last year) bought a 2004 Nissan Altima with 40k miles. Paid 100% in cash ($9200), got a really good deal. Had to put $900 in the first year (New front brake pads, new front struts, new rear shocks). The thing now literally drives and rides like it is brand new, and I am more than satisfied with it for a daily driver. Gets pretty decent gas mileage to boot.

The alternative to this would have been to take my $10,100 and put it as a down payment towards a new altima ($25000 with tax and all fees included). That would mean I would have been financing ~$15,000. Even at 0% interest for 5 years, that would have been $250 a month, EVERY MONTH for FIVE YEARS. Up the interest to 6%, which is likely the lowest a no-credit-history, lowish-income, just-out-of-college, kid is going to get without a co-signer, and you're looking at $290. Two-fifty / Three hundred bucks a month, every month, for 5 years, for a car that is 4 years and 40,000 miles newer. I say it's not worth it.

Not to mention that you can purchase extended warranties (up to 100k miles / 6 years from purchase) on used cars that have reasonable mileage and are in good condition, if reliability is one of the OP's hangups.

 

[Wreckem]

Originally posted by: FoBoT
go get some auto industry bailout money, GMAC is giving 0% loans to people with 620 FICO to save the auto jobs

All those advertised 0% loans are for 36 months. As a first time buyer he is extremely unlikely to get a 36 month loan unless he has a lot of income. Either way he will need proof of a job and income to get any loan.

Also interest rates of auto loans have gone UP not down. You need in in the 725-750 range to get 6% over 60 months. Anyone in the 600 range will get 10-13%.

I know people on this board are advocates of buying used. So thats most of the advice you'll get.

Me personally, I picked up an '09 Ford Fusion SE I4 fully loaded(sports package, moon & tune package, leather seats, etc). for little a over $18k.

 

[Cdubneeddeal]

I think people are misguided as far as car loans are concerned. Dealers are actually being more frugal when it comes to who they hand loans out to.

 

[Wreckem]

Originally posted by: Cdubneeddeal
I think people are misguided as far as car loans are concerned. Dealers are actually being more frugal when it comes to who they hand loans out to.

Yeah. Using the Auto Co's credit, they may say 0% interest(fine print reads for 36 month loans), or they'll accept anyone who has 620+. Right now the best Ford is offering is 6.9% for 60 months for those with 725-750+. The truth of the matter is, yes they will accept 620+ but at 13.5%+ on 60 month loans. 13.5% was with a 655 with Ford, and they refused to finance me on the car I wanted. They'd only finance me on a car $2000 cheaper.

The easiest way and the best way to get financing is through your credit union if you belong to one. There are good deals out there on new cars, however I would do financing with your primary bank or credit union as they will likely save you money.