im new to this being in debt thing, so i was wondering if i have my dad co-sign a loan for me to buy a car, can we just go into the bank and tell them how we want it? like can i say i want a 60 month loan for $20000 and they will just give me the money so i can buy the car 'in cash'? its a used car by the way and my dad has never paid a bill late in 30 years so im assuming his credit score is about as high as it can get. also is there anything else i need to know? i think i remember hearing that when you take out a loan to buy a car you need full coverage insurance on it is that true?
used car loan
- Thread starter Ian123
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it all depends on what ur buying and how good ur credit is and if u are putting collateral.
what are u 14?
never had a loan?
never had a loan?
actually im paying a loan now. they asked wat i was lookin to get, asked wat i would like my payments to be a month and how many years to pay it all back. they didnt give me exactly wat i asked for but they came pretty close to it. is that too difficult for u to understand or are u just the type of person who likes to be right all the time and hates wen someone says anything different than u?
i wasnt talking to u.
i just find it weird that OP has never gotten a loan..
i had one and had many friends who had them when we were 16....
that is all.
ok sorry. i take that back then
duly noted..
When he co signs for your loan, they average both of your credit scores together. Keep that in mind. Also if you cant make the payments, dont bring your dad into this and drag his score down. Most places actually make you sign for the actual car before they give you the money for it also. You cant just walk in and say you want 20k, you talk to them first, get a pre-approval for ABOUT how much you want, then if you get approved for that amount, you go sign for the car and then the bank gives you the money.
ive never believed in buying something i couldnt pay for in cash. i dont like being in debt. but i want an f-350 pretty much more than anything in the world right now and im tired of having cars with high mileage.
wtf thats bullsh*t. so basically the only way this is going to happen is if the loan is completely in his name? damn this country and all the people that live above their means. and btw i can easily afford the payments
hold on vjf my friend took out a loan for the tahoe when he first bought it and he was 17 so there was no possible way he could have had a credit score, but the payments he was making went towards his credit once he turned 18. how do you explain that? im pretty sure my credit score has nothing to do with my dad co-signing a loan. as long as he has enough money to prove he could afford the payments if i couldnt, why would the bank care about my score?
Mr. Jollypants
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Because you are the primary holder of that account. That's why they care about your score. Your score tells the company how reliable you are on making payments on time. If you have a low score, you're a bigger risk of defaulting on the loan, which is why they want a co-signer.
I can tell you right now, if you don't have any kind of credit history, and your dad co-signs, your interest rates are going to rape you. I'd suggest building your credit history up and score up before you even think about doing this.
I can tell you right now, if you don't have any kind of credit history, and your dad co-signs, your interest rates are going to rape you. I'd suggest building your credit history up and score up before you even think about doing this.
what kind of raping are we talking about here? can you give me a ballpark estimate?
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I couldn't give an estimate, I don't know, but guessing? I'd say around the 10% or even higher.
I've been told if your credit score is any lower than 650, you can almost guarantee not getting a loan.
I've been told if your credit score is any lower than 650, you can almost guarantee not getting a loan.
if your credit is low to average, you will get rapped to the tune of paying double what the sticker was. Unless you refinance. This isnt garunteed it will happen, but most likely.
Also, if you finance through a bank, full coverage will be required.
If you however buy it with a credit card, it is not. but VERY recommended
Also, if you finance through a bank, full coverage will be required.
If you however buy it with a credit card, it is not. but VERY recommended
Very true, banks are scarred as hell to give out loans for something that depreciates so quickly after its purchased. especially in this economy. Unlike a home, they cant sell a car for s**t if you default on the loan.
Except I seriously doubt this kid has a low enough card interest rate for that to be reasonable.
My suggestion is to just book the appointment and talk to your banker about this. That's what they're there for. Just be prepared to not be calling all the shots with basically no credit rating or money.
You'll find buing a new car easier than financing 20k for used....... FYI