My First Car Buy (credit experts chime in)

[zamm3k]

Well, I figured when I get back to Miami I'll sit down with a vendor and talk this over with him, but since the community is here to help I figured I'd run it through here first. Basically this is my first time buying a car and I'm going for a 135i sport pkg and hi fi stereo. My credit score is at 600 and I have a short credit history with probably one late payment in the last year and a half. One credit card is all I've got. My main concern is what will I have to do in order to buy a 135i (besides paying cash, DUH). I can go as far as putting down $17,000. Any experts that can help in this matter?

Thanks :biggrin:

[Chewyjr15]

you will need a cosigner, how old are you? there is no way someone will give you a loan in these times with a 600 credit score and young credit. Im 19 and have a 700 and i could not get a loan for my truck that i bought 6 moths ago i needed a cosigner. Fortunately i payed cash for the 135.

[Brandon26pdx]

How did you pay cash for a car that expensive are your age? Wow...

[Chewyjr15]

invested and took it out of the market at the right time, then me and my brother went into some property together and i manage that while going to school. I am grateful i could afford the one because one car payment is enough for me.

[zamm3k]

ok i had considered the cosigner option but I was opting for going through the whole process alone, no matter how hard or complicated it might be. I know right now is not the best time with people with young credit like me trying to get a new car, but well, someones gotta give.
btw I'm 20

[Rawhide]

You walk into a dealership with $17,000 during these times and they will fall all over themselves trying to figure something out.

Just try it and watch them kiss your a$$.

[mbrunner]

Originally Posted by Rawhide

You walk into a dealership with $17,000 during these times and they will fall all over themselves trying to figure something out.

Just try it and watch them kiss your a$$.

Even with that large down payment, he still has to finance the rest and with a 600 credit score he is going to have a HORRIBLE interest rate and still may have a hard time. I would suggest a cosigner to get the rates lower or wait it out and try to build up your credit score... Keep saving money and then you might be able to just pay for the entire car in cash.

[lib]

It will be a pain to get a loan but a cosigner will definitely help. On the plus side, if you can make ALL of your payments it should help your credit score in the long run.

As for saving a bit more and paying entirely in cash - it wound be simpler but in your case I would personally try to finance at least a little. Proving that you can reliably make a car payment will help your credit score in the long run and if you don't bring that score up you'll have trouble later in life when you want to buy your next car, your first house, etc.

It takes a long time to bring a score up, the earlier you can start (and be responsible) the better.

[AchtungF80]

Originally Posted by Rawhide

You walk into a dealership with $17,000 during these times and they will fall all over themselves trying to figure something out.

Just try it and watch them kiss your a$$.

[lamini]

get a co-signer and refinance after a year or two.
Once they see you are making the payments on time and improving your credit scores....the offers will start coming in.

Same thing happened to me in 2000 when I bought my Lexus.....My own bank said no even with a co-signer.....I went witn an online bank like E-loan which is bank of america out of Florida.

I few months later my own bank sent me a preapproved notice for more money at a better rate. Mileage on the car was still low so I transferred the loan as a new car.

[zamm3k]

ok, thanks to all for the quick replies and good advices. obviously the smartest thing to do is getting a cosigner, and so thats what i'll do!

[NihonX]

I'd suggest you try http://www.ServiceCU.org/
They are offering 4.74% APR right now. You can get a lower APR if you elect for Direct Deposit - 4.49% APR.
Best of all, you don't even need to be military to qualify for their services, but it does help if you want to qualify for an APR of just 3.74%*.

After looking through three different banks and credit unions, I almost gave up because no one wanted to finance me or I was counter-offered with something less of what I was asking for:
Capital One = Denied
Pentagon Federal Credit Unioin = Denied
USAA = C/O $9,999.

When all looked like a loss for me, I told my dealer that I was going to cancel my order, he ended up suggesting that I try their credit union - Service Credit Union.
After applying for a loan I ended up receiving an email from them. They said that I wasn't denied but they couldn't finance me 100%.

Here are my stats as when I applied for my auto loan:

Male - 21 years old
First job ever, been at my job for two years.
My first credit card was issued to me on Nov 2006.
I have three credit cards. ($145/$6500 Bal)
Credit score (at the time) was 754
First loan ever.
Never missed a payment / No late payments
No Co-signer

I was given a loan of $29,600 @ 72/mo (You can get a loan up to 84 months if you wanna stretch out your payments.. AND interest)
The remaining balance was paid out of pocket.

If you have any other questions don't be afraid to ask.
I'm not sure if I left anything out.. :biggrin:

[Brandon26pdx]

I had to have my dad cosign on my first car loan when I was 18. I kept the car for about a year and a half and have never had a problem qualifying for the lowest available rate since.

[zamm3k]

Originally Posted by NihonX

I'd suggest you try http://www.ServiceCU.org/
They are offering 4.74% APR right now. You can get a lower APR if you elect for Direct Deposit - 4.49% APR.
Best of all, you don't even need to be military to qualify for their services, but it does help if you want to qualify for an APR of just 3.74%*.

After looking through three different banks and credit unions, I almost gave up because no one wanted to finance me or I was counter-offered with something less of what I was asking for:
Capital One = Denied
Pentagon Federal Credit Unioin = Denied
USAA = C/O $9,999.

When all looked like a loss for me, I told my dealer that I was going to cancel my order, he ended up suggesting that I try their credit union - Service Credit Union.
After applying for a loan I ended up receiving an email from them. They said that I wasn't denied but they couldn't finance me 100%.

Here are my stats as when I applied for my auto loan:

Male - 21 years old
First job ever, been at my job for two years.
My first credit card was issued to me on Nov 2006.
I have three credit cards. ($145/$6500 Bal)
Credit score (at the time) was 754
First loan ever.
Never missed a payment / No late payments
No Co-signer

I was given a loan of $29,600 @ 72/mo (You can get a loan up to 84 months if you wanna stretch out your payments.. AND interest)
The remaining balance was paid out of pocket.

If you have any other questions don't be afraid to ask.
I'm not sure if I left anything out.. :biggrin:

hmmm that seems like a nice option. but just by comparing numbers i don't see a way they would loan me even half of what they loaned you. I only have one credit card and my score is at 600 with one late payment, 20 years old. I'm beginning to think cosigning won't only be the best option, but the only one.