Car loan question.

Discussion in 'Community Discussion' started by AppleLover9o, Aug 6, 2010.

  1. AppleLover9o macrumors regular

    Joined:
    Aug 2, 2009
    #1
    Anyone knowledgeable with this subject?

    I have a 4500 down and would like to get 3-4k more to get a nicer car.

    I make more than enough to easily make the payments on such a loan. BUT.. Self employed. I can prove the profit though.

    How hard is it to get qualified?

    Any hope?

    Thanks you guys!
     
  2. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #2
    It all depends on your credit rating. Self employed just compounds the fact as well. I suggest you join a credit union. Once you establish a relationshiop with them, i.e., checking account etc. It will make it easier securing a loan from them. Plus their rates are generally better then the automotive industry/banks

    First thing you need to do is pull a credit report and see what your score is. If its in the 700 range, you should be able snag a loan fairly easily. Less then that will make it more difficult and the more difficult equates to a higher interest rate (more risk for the bank = higher interest rate)
     
  3. mscriv macrumors 601

    mscriv

    Joined:
    Aug 14, 2008
    Location:
    Dallas, Texas
    #3
    +1 on the credit union option. However, if you are looking to buy a $8500 car or less and you have 50% to put down then I imagine you will have no problem getting a vehicle as long as your credit is somewhat decent. If your credit stinks then it doesn't matter how much you have to put down.
     
  4. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #4
    Well, I am 19 and have never had a credit card. But that would mean I have no credit right, or... normal? :confused:

    It's still possible though, right? :eek:
     
  5. scotty96LSC macrumors 65816

    scotty96LSC

    Joined:
    Oct 24, 2007
    Location:
    Charlotte, NC
    #5
    Yep join a credit union. Establish a good history with them.
    You can ask them where you stand and then find out how to get where you need to go.
    My credit union qualified me for a 3.2 percent car loan. But that all depends on your credit history and credit score.
    Good luck
     
  6. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #6
    How long do I have to be w/ the credit union? Was sorta hoping to get this loan rather quickly.
     
  7. chris57 macrumors member

    Joined:
    Dec 25, 2007
    #7
    A relationship with a credit union will only get you so far, just like scotty said, its all contingent on your credit score. You're not going to be able to qualify for a loan unless you have credit (or a cosigner.) At this point, if you've never had a credit card or taken out student loans, you have no credit history=no credit score. You can try asking the credit union for a loan, but its almost impossible that they'd give you one.

    Your best bet would be to get a credit card and start building your credit. I applied for a Discover Student credit card and got one with a $500 limit. I had no credit history previous to this. I use it for buying big stuff. I don't get a paper statement, everything's online. After the charge posts to the account, I immediately transfer money from my checking account to Discover and pay off the balance.
     
  8. abijnk macrumors 68040

    abijnk

    Joined:
    Oct 15, 2007
    Location:
    Los Angeles, CA
    #8
    As others have said, you need to look at your credit score. Just because you haven't used credit before doesn't mean you don't have one. Go check it out.
     
  9. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #9
    Yea, them me-he-cans may have "helped" me out.. :p

    (I live in Arizona)

    Thank you all again for the help/ words of advice! Always appreciated!
     
  10. leomac08 macrumors 68020

    leomac08

    Joined:
    Jul 12, 2009
    Location:
    Los Angeles, CA
    #10
    I heard Toyota are having a good sale 0% APR financing!:D and 0 down!
     
  11. ProwlingTiger macrumors 65816

    ProwlingTiger

    Joined:
    Jan 15, 2008
    #11
    For well-qualified customers. If OP has no credit, he won't qualify.
     
  12. abijnk macrumors 68040

    abijnk

    Joined:
    Oct 15, 2007
    Location:
    Los Angeles, CA
    #12
    Erm, ok... Racially charged and completely irrelevant. Good job? :confused:
     
  13. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #13
    Assuming he is a ghost in the system (no credit history) his credit rating is 600.

    As other have said join a credit union. The nice thing about credit unions is they are more willing to work with you and the loan manger will over ride what the computer says because they talk to you the person. Take for example my dads credit union. My brother flip his new car and totaled it. He went by the credit union to talk with them about it and said he needed to get pre approved for a new loan of about the same size. Now the computers would of kick out lot of issues and would want a higher interested rate to carry another loan of that size since both would of been out at the same time. Now since they knew that insurance check was coming they did not really even check the computer but pre approved him of a loan of about the same size same interested rate.
    I personally am a huge fan of credit unions. Credit unions first interested is to their account holders. Banks first interested is to their stock holders.
     
  14. Gregg2 macrumors 603

    Joined:
    May 22, 2008
    Location:
    Milwaukee, WI
    #14
    It goes from zero to sixty in no time flat, and there's nothing you can do about it! :eek:
     
  15. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #15
    Sorry to revive..

    But don't you think given the %50 down payment, the odd's are pretty good I could get approved?

    Look at the science.. Kid get's repo'd, we have his money and the car, sale the car, big profit. Win win/ approve?

    I can make my payments no problem though, I'm just trying to look that this through their eyes.
     
  16. mscriv macrumors 601

    mscriv

    Joined:
    Aug 14, 2008
    Location:
    Dallas, Texas
    #16
    No car company considers having to repo a car a win win. The banks lose tons of money on missed payments and repos so they want to avoid this at all cost. The only way you are going to know your chances for sure are to go to the bank, credit union, or car dealer and submit an application for a car loan. They will be able to give you a definitive answer in just a few minutes. Don't shop for a car first, find out what you qualify for, then start looking at cars. Always shop with your price in mind as opposed to finding what you really want only to find out that you can't get it or worse off make an impulse decision to overextend yourself.
     
  17. wvuwhat macrumors 65816

    wvuwhat

    Joined:
    Sep 26, 2007
    #17
    This is very true. If he is a student, I'd tell him to look into a student card. I was able to get a Chase, American Express, and Discover student card a few years back. I'm now at 700+ credit with multiple offers from those three companies to upgrade to a Platinum card, even though I don't have a job at the moment.
     
  18. bamaworks macrumors 6502

    Joined:
    Nov 9, 2007
    Location:
    Lexington, KY
    #18
    Is it possible to have someone cosign on the loan?
     
  19. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #19
    This is the best solution right there. It will help you get a loan and build your credit.

    I bought my first car when I was 21 so I didn't have much credit, so my dad co-signed and I got the loan. Sadly, a bit more than a year later, the car was totaled, but I then had built up enough credit from that loan (and other things, like proper use of a credit card) that when I bought a new one, I was able to do it with no cosigner and I got the best interest rate offered.
     
  20. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #20
    I'd rather not get a(n) cosigner, just because I don't think my parents would be game. They know I can make my payments, they just. You know. Like being parents. hah. :eek:

    Crossing fingers and toes! Wishing at 11:11. All that jazz, I'd like to make this happen rather soon.
     

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