used car loan

[thadoggma]

heh, just to remind ya, newer does NOT mean more reliable. at least not in all cases. my grandparents had a 38 dodge pickup that was out in eastern oregon when i was younger that got left outside for about 10 years before we got it, and some winters there was 10 feet of snow on the ground, and when we got the snow cleared out enough i could go turn that bastard over and it would fire first try every time. just too bad it was a rustbucket from hell, but it never gave us mechanical problems in the 15 plus years we owned it.

 

[bizoneoeh]

so you mean it would all be in his name i would just give him money for the payments? thats probably what im going to have to do. time for another 3 month long b***h-fest with my dad to get what i want with my own money. i cant wait

sure, he'll do it!

 

[NOFX]

This is why you want to try to build your credit even if you "don't like to spend money you don't have".

Getting a credit card or a loan for a car doesn't mean you're trying to buy something you can't afford or buy something you're going to default on.

I bought a $2,100 car and I even got a loan for that because it's good to build your credit. It's not like I can't pay the tiny payments each month anyway. Yeah, I'm paying for it with interest and by paying full coverage, but I prefer full coverage insurance anyway, so I'm not really that bad off for the entire thing.

Don't get your dad to buy a car up front in his name. This is only going to bring problems. If you have to do anything, get a co-signer, but do NOT have him buy a $50,000 car for you just so it's all in his name but you're paying for it. Do you want this truck more than you want a relationship with your dad?

It is funny that you mentioned you don't believe in buying things you can't afford, because as of right this moment, it appears you cannot afford this F350 without help. Yet you still want it.

As far as the newer = more reliable viewpoint being discussed, I worked for Chrysler a few years back and I've seen so many problems with new cars it's silly.

OP, you need to talk to a loan agent yourself first. Figure things out on your own for sure (instead of just people online telling you how it is). I personally think the truck you currently have, if it's as big of a pain as you say it is, was a bad decision to begin with. Research the generation and chassis of truck you want before you get it. See if there are common problems with it.

 

[Ian123]

the one i want is going to be an 05 or 06 and cost about $25000. where did you get $50k from? you all seem to think i need 'help' affording this truck. i do not need help with that at all, i just need help conquering this loan situation in an economy where it would be very difficult to get my first loan with no credit history.

 

[NOFX]

the one i want is going to be an 05 or 06 and cost about $25000. where did you get $50k from? you all seem to think i need 'help' affording this truck. i do not need help with that at all, i just need help conquering this loan situation in an economy where it would be very difficult to get my first loan with no credit history.

You or someone else said $50k earlier.

Okay, do you have $25,000?

If yes, you can afford this truck.

If no, you cannot afford this truck.

Since you need a loan and earlier you mentioned credit meant "buying stuff you can't afford", then you can't afford this truck.

Getting a vehicle with a loan means you're using credit. You have no credit. You need to use your dad's credit.

You think you can afford the payments, not the actual price of the truck. That's fine, but you're going against what your belief at least was.

 

[Ian123]

You or someone else said $50k earlier.

Okay, do you have $25,000?

If yes, you can afford this truck.

If no, you cannot afford this truck.

Since you need a loan and earlier you mentioned credit meant "buying stuff you can't afford", then you can't afford this truck.

Getting a vehicle with a loan means you're using credit. You have no credit. You need to use your dad's credit.

You think you can afford the payments, not the actual price of the truck. That's fine, but you're going against what your belief at least was.

it is against my beliefs, but everyone has to buy something on credit at some point. im not going to be able to pay for my first house in cash. i need to start building credit now, and since i need a better car, why not kill two birds with one stone? i try to avoid buying on credit as much as possible but in some cases it can be a good thing.

 

[Mr. Jollypants]

I wouldn't build my credit on a 25,000 loan. If something happens and you can't afford the payments, instead of helping your credit, you've just f**ked it.

Get a Sears credit card, put 60-80 bucks on it a month, pay it completely off every month. This will also build your credit since Sears reports to the credit bureaus.

 

[PhntmSk8r]

^ is something similar to what i need to do, my loan agent and i even discussed it when i was there last combining my truck/car into one loan.



You want reliable? Buy an import.

You wan an over priced hunk-o-junk, stick to your ford idea.

I know several people that daily drive 79-85 Toyota Trucks (carbd) 200+ miles a day, the trucks have over 300k on them and have NEVER left any of them stranded. You can pick one up for $500-$3000 and be far better off.

 

[Ian123]

I wouldn't build my credit on a 25,000 loan. If something happens and you can't afford the payments, instead of helping your credit, you've just f**ked it.

Get a Sears credit card, put 60-80 bucks on it a month, pay it completely off every month. This will also build your credit since Sears reports to the credit bureaus.

i dont have a sears where i live lol. but i see what you're trying to say

 

[Ian123]

^ is something similar to what i need to do, my loan agent and i even discussed it when i was there last combining my truck/car into one loan.



You want reliable? Buy an import.

You wan an over priced hunk-o-junk, stick to your ford idea.

I know several people that daily drive 79-85 Toyota Trucks (carbd) 200+ miles a day, the trucks have over 300k on them and have NEVER left any of them stranded. You can pick one up for $500-$3000 and be far better off.

if i was smart maybe id do that, but i would rather pay more money for something i enjoy than save money and have something that just gets me from point A to point B.

 

[Mr. Jollypants]

i dont have a sears where i live lol. but i see what you're trying to say

There are other stores that do this, Sears was just one that came to my head. Look around, see what stores report to the credit bureaus.

 

[Billy.]

actually paying off your credit card every month is not the best way to build credit. creditors like to see a continual balance carry over from month to month as long as its a small percentage of the whole credit line. but this isnt a credit card thread soo...


i dont recommend getting such a large bank loan at your age, even with your dad as a cosigner. its just too risky. defaulting on such a big loan could seriously f**k up your credit history and prevent you from getting any sort of loan or decent rate in the future. personally, i wouldnt borrow more than about $5-8k in this rollercoaster economy. not to mention usually the higher the loan amount, the higher the interest rate b/c the banks want a buffer in case you start to slip

 

[Mr. Jollypants]

actually paying off your credit card every month is not the best way to build credit. creditors like to see a continual balance carry over from month to month as long as its a small percentage of the whole credit line. but this isnt a credit card thread soo...

I've heard the complete opposite from other people. They want to see you paying it off in full each month. They also said to not use more than 10% of the credit on that card. If you keep a balance on the card, all you're doing is buying your credit with the interest.

 

[Billy.]

I've heard the complete opposite from other people. They want to see you paying it off in full each month. They also said to not use more than 10% of the credit on that card. If you keep a balance on the card, all you're doing is buying your credit with the interest.

yea 10-15% is the key. if you go over that you look more like a liability and less like an investment. i used to think paying off the card in full was best too, but apparently the logarithm that the big 3 use weighs more heavily if you can regularly pay towards your balance without paying it off completely. credit cards are revolving accounts and are considered in a "closed" or dormant state when paid in full. but if you keep a steady balance they stay "open". the longer an account is open the more it weighs on your credit score. also they are more inclined to lower your interest rate if you keep a balance on the account b/c they are making money off it which they wouldnt be doing if you keep paying it off. all of that is true, of course, so long as your payments are always on time

 

[$lick Rick]

wow......

It's simply staggering how little people know about this process.

i'd go though every asinine statement in this thread, but it'd take another 3 pages just to correct everyone.

first things first, have your credit ran to know where you're at.
If you have bad credit, it will only get better by using it. Simply putting a car in your dads name will HURT you. That's thousands of dollars that could have been spent building your credit.

secondly, figure your debt to income ratio. This is FAR MORE IMPORTANT than your credit score....

#
Step 1

Add up your total net monthly income. This includes your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus alimony payment received, if applicable. If your income varies, figure the monthly average for the past two years. Include any monies earned from rentals or any other additional income.
#
Step 2

Add up your monthly debt obligations. This includes all of your credit card bills, loan and mortgage payments. Make sure to include your monthly rent payments if you rent.
#
Step 3

Divide your total monthly debt obligations by your total monthly income. This is your total debt-to-income ratio.

This will help you figure out how much more outgo you can afford, it's also how banks decide how much monthly payment you qualify for.

Get these handled and we can move from there. Otherwise this thread has just been one big pissing in the wind festival.

Also, sears has some of the most stringent CC requirements in the industry. If you have any credit worries, dont bother applying as it will just add to your inquiries which can harm your credit.

A cell phone will not show up on your credit unless you dont pay for it. Then it will only show as a collection.

$25,000 is a f**king retarded starting point.... I understand that you want a $25,000 car... but what you want and reality dont always intermingle. You dont sound like you have the income or credit to qualify for it, so expect to get laughed at when you try. You're going to have to come back down to reality mr. money bags...... What you want isnt worth d**k, it's all about what you qualify for.
You may want caviar, but your ass is working with tuna fish credit.

30%? lmao why the hell would you pay that. so id be looking at $6000 in interest. i think ill just get it in my dads name. that is, after i get my rear axle replaced on the tahoe which is supposedly bent when i didnt get in an accident. dammit i am so screwed.

you're a dumb motherfucker.

You'd pay that because a good credit rating isnt inherited, it's bought.
If you only qualify for a %30 loan, then having other people buy your cars for you will cement you into that %30apr. If you do not build credit, then you will never qualify for anything better by yourself.
Say you did end up doing everything under your dads name to avoid a high interest rate... well, when that car is done and paid for, you've paid all of the principle, plus all of the interest, and you get no credit for it what so ever. You will still only qualify for that high interest rate and that $6000 to rebuild YOUR credit will look cheap compared to the $3,000 you'd pay to build your DADS credit

 

[bizoneoeh]

get it under your dad's name.

 

[$lick Rick]

get it under your dad's name.

you're an ass

 

[bizoneoeh]

I know