[chocolate]

Sooo i looked at my financial situation. I can not afford a car. I have 1k in the bank and that is it. Sooo unless i got a real POS then i cant really afford a car. (do not look for a car for me.) Sooo I have a plan but i need 2nd, 3rd, and 4th opinions on it and for people to tell me what is wrong with my plan.

I recently quit my job because i was tired of not doing anything at it, having to have an hour ride in and out, plus an 8 hour day. So 10 hours of "work". I know the military works long hours and everything, im cool with that because imma be doing something i like instead of sitting around. I was going to get a job within biking distance but realized there arnt any that are highering. I CAN have a job within 3 days if i want to (i would be going back to work with my mom.) Im still going to look in my area.

My plan is to get a 4k loan, have my mom co-sign on it to get a lower interest rate. That way i can get the mustang from the guy on here. Now i know nothing about loans. I figured if i get a job that pays me 8 an hour (was what i was getting paid while working with my mom) I could pay off the loan no problem since i would be living with my mom and have limited other expences. This would also get me some credit. I could get the loan, buy the car, and get a job that i can drive to and rely on my mom less.

Sooo i need help, i am not good at research so idk how to start. I need to know what kind of interest rate i would be looking at, what time frame i would have (i.e. 3 years, 4 years, or 5 year loans.), and how much i would need to make.

I have never dealt with this before and really didn't want to take a loan but i view it as a good way to start getting credit.

Sorry for the long read. Any help is welcome. I plan on calling my bank (APGFCU) in the near future but i need to know what to expect and stuff.

Thanks.

P.S. if hatch actually has something legit to say someone quote him for me.

[musclecars>foreigncrap]

since Ive done this about 5 times in the past 4 months, lets go over the basics.

First interest rate is all based on credit. If you dont have any credit, and your mothers becon score is below 650 kiss the loan goodbye because banks are assholes. Now If your mother does cosign, the bank will want to see proof that you are employed. Get the job first.

Next, go the bank and figure out what your interest would be. Your rate will be higher if you decide to drag out the loan to more months.

Honestly, since the car is only 4000, and your living with your mother, I would really really STRONGLY advise you to NOT GET INVOLVED WITH THE BANKS.

Save every dime you have and buy the car outright. And you do or do not have credit?

[Lava]

I believe that in order to get a loan you must show a couple of months of income (depending on that they tell you how much you can get in the loan).. a way to trick that is to deposit several times per month, take some money out, and deposit it again now that they count the amount that goes in into your bank accounts and it helps a lot

[chocolate]

I DO NOT have credit. Never even got a credit card. Now i would have to save up till at least the end of summer to buy the car outright and i believe he wants it sold ASAP when he gets back from basic. Now i was also thinking about working out something were i can pay him some now and pay the rest off later. But he isnt on so i cant. lol

My bank is actually really cool. Not like other banks. Higher interest on my saving account, get interest on my checking account, and i have never heard anything bad about them. I will need to build credit eventually anyway.

Sooo the longer the loan the higher the rate, if moms credit is below 650 no point in trying, the higher my moms credit rate the cheaper the rate. Correct.

[chocolate]

Originally Posted by Lava I believe that in order to get a loan you must show a couple of months of income (depending on that they tell you how much you can get in the loan).. a way to trick that is to deposit several times per month, take some money out, and deposit it again now that they count the amount that goes in into your bank accounts and it helps a lot

Money is always comeing in and out of my bank.

O and i forgot to mention I do plan on getting the job first. For two reasons. IDK when the guy will get back (should be soon or at least contact soon) and two i want to get a job within 1 or 2 weeks anyway.

[musclecars>foreigncrap]

Yeah u've got the basic idea. My bank, us bank, has done a pretty good job on stuff so far so ill give them a thumbs up, but other banks will screw u on overdraft charges and other things that are rediculous. 680 is the reall number that most of the banks give for a minimum becon score. I would suggest getting a credit card with a 300 dollar limit and start using it and paying it off. It will take a year minimum for your credit to be accepted by banks.

[chocolate]

Originally Posted by musclecars>foreigncrap Yeah u've got the basic idea. My bank, us bank, has done a pretty good job on stuff so far so ill give them a thumbs up, but other banks will screw u on overdraft charges and other things that are rediculous. 680 is the reall number that most of the banks give for a minimum becon score. I would suggest getting a credit card with a 300 dollar limit and start using it and paying it off. It will take a year minimum for your credit to be accepted by banks.

So you really, truly believe i would be better off not getting a loan.

[03SonicBoom]

Originally Posted by Lava I believe that in order to get a loan you must show a couple of months of income (depending on that they tell you how much you can get in the loan).. a way to trick that is to deposit several times per month, take some money out, and deposit it again now that they count the amount that goes in into your bank accounts and it helps a lot

No, when they ask for proof of employement you need to provide pay stubs. Just because money comes into your account does not mean it's proof of employement. You need to have actual pay stubs.

Originally Posted by chocolate So you really, truly believe i would be better off not getting a loan.

I also believe you would be better off not getting the loan. First, it's just a Mustang and there are TONS of them. They are ALWAYS for sale, so there's no rush to buy one.

Also, why would you even consider locking yourself into a loan for several years when you don't have a stable source of income. You currently have $1k and NO JOB. You claim you can get a job no problem, but I question that. If it was so easy for you to get the job, why don't you have it right now? Why didn't you get it BEFORE you quit your job? I believe there was another guy on the boards who claimed the exact same thing (I believe his name was "Fox" with some numbers). It was only a month or two before we started seeing thread where he didn't have any money or job and couldn't find one.

You need to get your priorities straight. First, JOB. Second, SAVE. Third, buy car if you have finances.

[04MachOne]

I agree with sonic. First while you are looking for a job that isn't so far away you could at least be working with your mom so you can make some money while searching. The bank will probably want to see the past 3 pay stubs. Also with the loan so little, they might make it so you have to only pay 2 or 3 years on it. I remember I was going to do a loan under 10k cause I had the rest of the cash for my car, but then the loan would have to be for at most 4 years and it made the payments quite a bit more.

Also, depending on what year, they might make you get a personal loan which is a lot more interest. At first I was looking at getting an 01 Cobra and the bank told me they don't give auto loans on cars over 7 years old and I would've had to get a personal loan. So really you need to call them before anything to figure out if this is something you can do. I know before I called my bank I had it figured out about my car payment and thought this and that, and then called the bank and had to start all over.

Another thing, my bank didn't base my interest rate off my dads credit who cosigned for me. They made one up, based on how long I've had the job I'm at, how long I've lived in this house and something else. I was figuring I'd have the best interest cause my dad has perfect credit but that wasn't the case. I still ended up like a percent or 2 higher than perfect so it wasn't too bad.

Either way, first things first, call the bank. Then go ahead and start working with your mom while you find another job.

[musclecars>foreigncrap]

Yeah idk if thats essientially called an equity loan? But the personal loan thing would probably have to be the way to go cause used cars over 4 years are never given a second look by banks.

1.Establish Income
2.Build Credit
3.Save every penny and try to buy the car outright.
4.When u get the car, mod it, and kill ricers

[v606er]

Originally Posted by musclecars>foreigncrap 1.Establish Income 3.Save every penny and try to buy the car outright.

I completely agree with this.

[ReverendDexter]

You can find plenty of running decent cars for $1k or less.

Having a crapbox is a very freeing experience. It's amazing what it's like to simply not care if someone parks too close to you and dings your car.

Find something for $500, fix the big immediate problems it has, and run it into the ground while you save up for something nicer.

[04MachOne]

Originally Posted by musclecars>foreigncrap Yeah idk if thats essientially called an equity loan? But the personal loan thing would probably have to be the way to go cause used cars over 4 years are never given a second look by banks. 1.Establish Income 2.Build Credit 3.Save every penny and try to buy the car outright. 4.When u get the car, mod it, and kill ricers

My car was 6 years old and they didn't think twice about giving me a loan. Some banks say they can't be over 10 years old, mine said 7. I don't see the need in building credit I didn't have ANY credit at all when I got my loan and my interest rate wasn't that bad. I agree with 1 and 3 though for a car that is only going to be 4-5k anyways, I'd do what I could to buy it outright. Maybe work for both your mom and find another job. With having no gas or other bs to waste money on it shouldn't be TOO long plus you won't be a slave to paying payments every month.

[musclecars>foreigncrap]

yeah i guess where you live or what bank your with u got lucky, but every bank in the columbus and miami area, us bank,bank of america,park national, citizens bank and charter one would not give me a loan on a car that was over 4 years old.

I would go even further and see if you could car pool for awhile seeing is that ur working with ur mom.

[PiggySmallz]

Originally Posted by musclecars>foreigncrap Yeah idk if thats essientially called an equity loan? But the personal loan thing would probably have to be the way to go cause used cars over 4 years are never given a second look by banks. 1.Establish Income 2.Build Credit 3.Save every penny and try to buy the car outright. 4.When u get the car, mod it, and kill ricers

an equity loan is based on collateral like a house. You are borrowing money against the value of your house and you obviously have to pay it back or you have problems. A personal loan doesn't deal with collateral, however they want to make sure you are earning income and can pay them back. if you default they can garnish up to 10% of your wages depending on a judge's ruling. Most cases though people file bankruptcy and screw the banks, hence our credit problem.

Get a job, save a lot of money. i would save a couple thousand more than the value of the car, invest it. Learn how the market works you're young, you can take the risk now. Wealthy people don't become wealthy by saving money and then blowing it all in one shot on something. They invest it and use the interest to buy what they want. They still have the principal to earn more interest on to pay for parts, labor, fuel or anything else that can come up when owning a car.

Good Luck man

[Till]

Originally Posted by ReverendDexter You can find plenty of running decent cars for $1k or less. Having a crapbox is a very freeing experience. It's amazing what it's like to simply not care if someone parks too close to you and dings your car. Find something for $500, fix the big immediate problems it has, and run it into the ground while you save up for something nicer.

+ALOT!!!!!!!!!!!!!!!

I have a 93 civic 5 speed it was ummm 1100 I think Im driving it till it dies while I save up. I love it when people park close to me Ill decide to park closer then go back into where i just was hahahahaah

[95StangMX]

Didn't read all of the posts but will say this if you get someone to cosign for you it will not build your credit. Nothing, not at all. Sorry I know this is not what you want to hear but its the truth. My best friend is a finance manager and has been for about 10 years and people always think that by getting a loan with someone cosigning for it, that it will build their credit but it doesn't. I say you try on your own. Find a car that is fairly under book value. Say book is 5000. Try to buy it for 3000, and you have 1000 so you really only have to borrow 2000, but tell the bank they are asking 5000 and you are putting up 3000 and they will most likely give you the loan as long as you have no credit and no bad credit.

these prices are just an example you can get a car for a higher price but you need to have at least 30-40% down payment for a first time finance deal.

And if you work for your mom then have her say you make more than you really do. thats what I did when I worked for my parents and got my first loan.

[PiggySmallz]

it will only not affect his credit if the co-signer signs their name first...usually who ever signs first has it appear on their credit score. Sometimes it says joint with xxxx. i'm not 100% positive though

[ReverendDexter]

Originally Posted by 95StangMX so you really only have to borrow 2000, but tell the bank they are asking 5000

No bank around here will do a loan for less than $5k.

[95StangMX]

I was just using that amount as a example. The car could be worth 9 and he is buying it for 6 and has 1 so he finances 5 but tells them he is putting up 4.....