Since you guys out of all the forums I'm on actually have people who know this stuff well, I'm back with a question. I'm looking to get a $24,000 car loan from the bank, but I'm 19 with barely any credit history. I can easily afford the $400-$500 monthly note. My mom and dad aren't in a position to take out a loan because we recently built a new restaurant, so they cannot get more money from the bank, or at least don't want to try.

My question is will the bank give me the money and if so, would the interest rate be ridiculously high or something? Thanks!

 

Interest rate will be horrible. Can your parents Co-Sign? It will help reduce the interest a bit.

 

There are a LOT of factors in this question. (1) you may think you can afford the $500 payment, but a debt to income ratio eval will show that on the credit app the lender wants you to fill out (honestly, dont fudge, when they catch it, they dont like it!) (2) how much you borrow vs the loan or lenders approved amount on the vehicle (based on auction value, term, miles, equip, ect) (3) with no credit history, most lenders wont jump thru hoops to put you in a $20k+ loan...walk b4 you run thoughts ($10k by yourself is more realistic) (4) down payment. Most like to see 20% down (more for "rougher" credit, less for better). There have also been some changes in the new FICO (Fair Isaac Credit Org) scoring-some to the comsumers advantage, some not.
I'm speaking as a loan officer (Wells Subsidiary)-PM with specifics, and I can see what you would qual for-no personal info would be needed-I'll never ask for income or SSN on a forum-and dont ever give it out!)
Hope that helps-talk to a local Credit Union-the loan officers there can give you a pretty good idea where you would fall-let us know!

 

If you don't have a credit card, get one and make small purchases on it monthly. Always pay on time and pay the full amount. This is an easy way to establish credit. However this isn't much good in the short term, it'll take a while before you build good credit.

I got my car loan through Pentagon Federal Credit Union (thanks to those who recommended this) http://www.penfed.org and had my mom co-sign. Received a loan similar to the amount you're looking for at 4.25% for 60 months. Check it out.

 

Yea definitely check out penfed. I also got a loan from them. Im a little older but still under 25, financing about the same as you and also on my own, no parents co-signing. I got the same rate 4.25% for 60 months.

 

Im 19 and just got approved for a $50,000 loan at 7.4% for the X. Ive been making payments on my truck for a year though... So if you've had anything in your name then you should be fine. Just gotta look the right places.

Just savin up for a bigger down payment now.... :-D

 

hmmm damn 4.25% would be great. I'll check it out later. Is everything done online or do I have to go to a branch location to set things up?

 

All done online, I also got my loan through them but I have been working on my credit score for a while now.

 

If you were my 19 year old child, there would be a snowball's chance in hell of you buying a ~35K car, but I would help you with University tuition.

 

Oh I'm buying a used 2006 350Z touring coupe. If I were to buy the EVO X I'd have to wait 6 more months to save some more funds.

I got my FICO score and it's 664. Hopefully I can get the loan.

 

if money isn't really an issue to you... since it seems not to be, go ahead.

however i sold my 300ZX and bought a cheap SUV to lug stuff to/from college... after i graduated last year i got a good job, kept the SUV as a beater and treated myself to an evo...

if you're getting an education at all, wait and make the right choice.