Ok, I’m 19 years old, live with my family, have an active checking and savings account. I work as a General Manager at LP Cleaning Service and make $3,500.00 per month before taxes.
Heres the trouble though, I have no credit history and no co-signer. I’m wanting to get approaved for the 2008 Mitsubishi Lancer (total loan needed $18,000).
I found this place online (www.fundingway.com) that says as long as I make $1,500 a month, im at least 18 and have not filled bankrupsy that I qualify for an auto loan. When I filled out there “Loan Calculator”, it told me I qualified for $20,000 in financing.
Should I even bother filling out the application? do you think I would be approaved?
I only have maybe $500 at most for a down-payment, which may pose a problem.
Thanks!
Be careful for some online sources they are fraud, and a $500 down payment isn’t much even if you have perfect credit.
Not knowing about this site in particular. They will probably want at least a 10% down payment, which would be 1,800 on your 18,000 car. You are making probably 2,500 a month after taxes with what appears to be no expenses. So If you only have $500(at most?) that is under 3% and even people with OK credit would have a problem having a down payment this low.
Assuming you get an interest rate of 15%(as a first time buyer it might be different) you would be paying about $420 a month for 5 years. This does not include insurance(which on that car for your age will be high). If you can’t get a cosigner you might want to think about getting a good used car. The big problem with “new” cars is as soon as you drive them off of the lot they loose a large percentage of their value. You might be in a better situation to get a 2005 or 2006 model for several thousand dollars less. Since it would be less, the down payment required would also be less and might get closer to your price range.
But if you do apply for any loans make sure they are not asking for any “Fees” up front to guarantee the loan. Any site that does is a fraud and if you send them the money you will never see any loan from them.
Well, your monthly income is approximately 2500-2800(after tax) if you make 3500 a month. The thing is, why is it that you can only put 500 down payment? Your have great income for a 19 years old. You live with parents. – perhaps you should learn how to manage your money before thinking about getting a car. No offense here but i think thats the best for you, because getting into financing an auto isn’t that fun especially you can’t manage your financial effectively.
Well, you can always try http://www.capitalone.com, I hear capital one favors bad/no credit apps and they don’t require a downpayment. Their rates are decent too.
Also, don’t forget to add in tax, title and license into the cost of the car as well, that’ll probably jump it up another $1,000 to $1,500 depending on the tax rate in your city.
Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at http://www.acreditlibrary.com/buildcredit.html
I have list a source below that has a free list of auot loan finance companies for people with bad or no credit
You CAN get a decent car loan, even with bad or no credit. I’ve done it, but you’ll have to look around. Shop around for lenders who specialize in bad credit car loans.
There are usually some nationally based car loan companies who specialize in bad and no credit car loans who advertise on the page linked below…
http://www.axalda.info/bad-credit-car-loans.html