YACT: Car loan for a used car...

Red

Diamond Member
Aug 22, 2002
3,704
0
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I'm looking to spend no more than $5,000 to get reliable transportation (mid 90s Toyota/Honda/Nissan). The loan officer at the bank told me starting January one, the oldest car I can get a loan for is 1996. He then told me my best bet would be to sell my car first and then fill out an application for the best debt ratio.

Do any of you younger people have experience getting car loans? I'm 21 and clear about $900-$1000 a month. Will $5,000 with 0 down on a mid-90s car be doing bringing home $12,000 a year? I live with parents, work 30 hours a week and have about 715 / 720ish fico.
 

RossMAN

Grand Nagus
Feb 24, 2000
78,855
355
136
How long have you lived at your residence address?

How long have you been employed at your present job?

What is your DSR (total monthly debts / gross monthly income)?

If possible can you get a co-signer?

What's the rate they are offering?

I calculated $5,000 @ 7% for 36 months = $154.39 per month in car payments, $5558.04 after 36 or total interest paid of $558.04 (assuming you do not pay it off early).
 

Regs

Lifer
Aug 9, 2002
16,665
21
81
The payments should be affordable. It's paying for full coverage on insurance that will be a pain in the ass. In NJ, full coverage is barely affordable.
 

Mill

Lifer
Oct 10, 1999
28,558
3
81
Why do you want to downgrade your vehicle and pay higher interest? Is it because your payment is too much on your current vehicle?
 

Kaieye

Platinum Member
Oct 9, 1999
2,275
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Don't take a loan for a used car. Buy a clunker and take good care of it. Save your $$$...
 

thedarkwolf

Diamond Member
Oct 13, 1999
9,015
114
106
Your clearing $1k a month what do you need the loan for? Just save up for awhile and avoid the full coverage insurance that goes with a loan.

You could always just take out a personal loan and avoid the whole has to be a 96+ model crap. Thats probably what I would do. Save up for a couple months and take out a few grand in a personal loan to build some credit and pay it off real quik.