I am a twenty year old college student, I will be 21 in June. I am looking to buy a new car in either August or September.
I applied for a loan from my bank, the banker tried for 20,000.They declined unless I were to get a co-signer. However, I am only looking for a car in 17-19k range and I will be putting 5k down. So I only need a loan for about 12-14k.
I have one year left of college, I make anywhere from 1,500-2,000 a month and all I pay for right now is rent and utilities, which is 500 a month.
I don’t want anything extraordinary, just a reliable car with a warranty so I can sleep easy at night knowing that I will be able to get to work and school with no problems. I am thinking a Mazda 3 or Honda Civic.
Do you think I can get financed through the dealer? My credit is in the 720’s, I am young, but responsible. What do you think a reasonable rate would be?
Any help would be great!
Buy a good $4,000 car and put the rest away for repair. After you get out of college and get a job upgrade to a better used car and slowly work your way up without debt. New cars depreciate in value so fast it is not wise to buy them unless you can pay cash. I write a check fr a new car and buy 3 year old cars off lease ad keep them for 5-8 years, but maybe that s why I cold retire at 58.
BHPH lots don’t care that you live with mom and all that stuff. As long as you can prove your disability checks and have the $2000 cash, they will sell you the car. If you are late on a payment, they will repo it. Most BHPH lots don’t check your credit. Problem is they do not report your payment history to credit reporting agencies, so your credit never improves. You need to work on that.
You would be better off with a less-expensive used car at this point. Don’t try to take on new car payments until you are out of school and employed full time.
No doubt that if you apply goto the dealer that you would get financed there. You’re downing 25%, has a job, and a good credit. Do it! Good luck, but you don’t need it.