• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Car buying question

W

weiv0004

Senior member
Okay, so I recently got my first job after college. I don't have a whole lot of loose cash right now, having just paid my way through school. I don't need to buy a car right away, but it would be convenient. So my question to those who have more experience buying vehicles: How much money would I need to have to make a down payment on a car and get it insured. I would definitely need to finance, or make payments. But I'm getting paid enough so making these payments shouldn't be a problem. I'm not looking for anything fancy, just something that can get me to work and back without falling apart or going through too much gas. Thanks!
 
That really depends a lot on your credit, and to some extent, the dealer you are buying from.

If you have no credit or bad credit, you probably will need between $500 and $1000 to make a decent down payment (depending on the price range of cars you are looking at).

You might be able to qualify for special financing offers for new college graduates, assuming you don't have any other problems credit-wise.

Probably your best bet is to visit a few reputable car lots (I would stay far away from the buy here, pay here places), tell them of your situation, and see if they have any financing offers for someone in your position. Be careful, though-- once they have you on their lot they will try to reel you in with a sale-- but you are just there to explore your options. Tell yourself beforehand that you will not commit to buying anything at all that day, no matter how nice their offer....
 
Originally posted by: weiv0004
By
I would stay far away from the buy here, pay here places
Click to expand...
does that mean avoid dealerships that offer onsite financing? Should I get a car loan through a bank instead? Thanks!
Click to expand...

By "buy here, pay here" car lots, I mean those that only focus primarily on selling cars to people with bad credit. They are counting on the fact that you will believe you have no where else to go, so they may finance you (at an exorbitant interest rate), but you'll pay a lot more for a lower quality car than you could get at your average, run-of-the-mill dealership.

Are you a part of a credit union? If so, I would look to there first to find out what financing options they have for cars.

Getting an auto loan directly from a regular bank isn't a bad idea, but they typically have higher credit standards than what a car dealer has access to.

You could also try getting a pre-approved auto loan online. I've got one through Capital One a few years ago, and the process was pretty simple. If approved, they just send you a check which you can use to pay for the car at just about any car lot/dealership as though you were using your own money. This gives you a lot of control since you won't be limited to just one car lot or dealership when trying to find the perfect car for you...
 
I'm not sure exactly how my credit is. The last I actually checked about 4 years ago when buying a cell phone it was extremely good. Since then, I've accidently been late on a couple cell phone bills, but I can't imagine it has gotten that bad. I've paid rent on time for a year paid and kept my credit card balance at zero. I'm not in a credit union, I bank through wells fargo, I should probably check out my options there.
 
Originally posted by: weiv0004
I'm not sure exactly how my credit is. The last I actually checked about 4 years ago when buying a cell phone it was extremely good. Since then, I've accidently been late on a couple cell phone bills, but I can't imagine it has gotten that bad. I've paid rent on time for a year paid and kept my credit card balance at zero. I'm not in a credit union, I bank through wells fargo, I should probably check out my options there.
Click to expand...

Unless your cell phone bills were really, really late, I doubt they had any negative impact on your credit.

Your rent payments won't have any effect (positive or negative), either.

The fact that you have a credit card and the balance is zero is overall a good thing.

It sounds as though you might not have any problems at all.

I just looked and Wells Fargo does indeed over pre-approved auto loans online... so that might be your best bet right now. You know upfront how much you can spend on a car, and you don't have to worry about a down payment at all.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top