Financing a Camaro, no credit history - Page 3 - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

StoutFiles · 01-11-2009, 06:16 PM

Let's just answer your original question as no one being honest with you is going to support you making a huge purchase eating up a full year's salary. We're not trying to put a damper on your fun, just being realilistic.

You will most likely need to co-sign. Otherwise, it'll probably take at least a year. If not, congrats and good luck.

jeffny09 · 01-11-2009, 06:17 PM

Quote:

Originally Posted by camaropete

You should research compounding interest also. Not investing today is like pissing money away. JMO of course.

right now im kinda scared to invest

besides worlds gonna end in 2012 right? lol

stovt001 · 01-11-2009, 06:17 PM

Yup, there is always time to save later. This is the one thing we'll ever splurge on. After we buy this, we can save every dime. There will be no temptation to drop all our savings again in the future on some new shiny toy. Nope. Spend now and save later is exactly the mindset that put America in the stable, prosperous, and growing economic conditions it enjoys right now.

Quote:

Originally Posted by StoutFiles

You will most likely need to co-sign. Otherwise, it'll probably take at least a year. If not, congrats and good luck.

I agree with this. I'm young myself -21. I had no credit history until I bought my Cobalt co-signing with my parents. I had one credit card, and I now have another joint card with my wife (so two cards for me total). Two years of steady payments on my co-signed Cobalt loan and paying off my two credit cards every month gives me a credit score in the mid to high 700 range. Credit scores are a measure of how reliable a debtor you are and how far you are from bankruptcy. You can't play the system "speed up the process" just by opening 5 cards as if this were some MMORPG. It is a process. Starting out with a one-time fixed term loan co-signed by responsible parties as well as a small amount of revolving credit (credit cards) managed responsibly will get you on your way to good credit history. If that goes well, you'll have access to more credit, and if you manage that well, the cycle will continue. You can't rush it and you can't cheat it. Follow the basic advice offered by a majority of personal finance professionals (CNN Money is a good starting point), be patient, persevere, and you'll get there in good shape.

paulv7260 · 01-11-2009, 06:20 PM

Quote:

Originally Posted by FFMaro

Exactly, I am just asking if anyone would have an idea as to how long it might take me to build enough credit history to make my purchase.

You should talk to a lending institution. I'm sure they have intimate knowledge of all the factors as they relate to your question and how those factors are influenced by todays economic circumstances. I did something simlar when I was your age and guess what? I realized later on that I was opening doors by presenting myself in person and asking smart questions.

Inspector 17 · 01-11-2009, 06:21 PM

Quote:

Originally Posted by jeffny09

right now im kinda scared to invest

besides worlds gonna end in 2012 right? lol

Good point. I am going to the bank tomorrow to take everything out. Might as well go out in a blaze of glory. BTW, this is maybe the best time to invest, when the market is down. Enough said. This is my last post in here.

FFMaro, go to a bank or credit union and see if they can pre-qualify you for a loan. See what kind of interest you get.

jeffny09 · 01-11-2009, 06:23 PM

Quote:

Originally Posted by stovt001

Yup, there is always time to save later. This is the one thing we'll ever splurge on. After we buy this, we can save every dime. There will be no temptation to drop all our savings again in the future on some new shiny toy. Nope. Spend now and save later is exactly the mindset that put America in the stable, prosperous, and growing economic conditions it enjoys right now.

its just a part of life i havin savings in several places but wont get me far but im not spending my yearly salary on this car ok buddy lol i make decent money so im not to worried

jeffny09 · 01-11-2009, 06:25 PM

Quote:

Originally Posted by camaropete

You should research compounding interest also. Not investing today is like pissing money away. JMO of course.

hey pete

i got a question for you

stovt001 · 01-11-2009, 06:35 PM

Another point on spending vs saving.

Camaropete is technically correct when he says to buy when the market is down. After all, we tend to buy physical good when they're on sale, but for some reason we do the opposite with stocks. The caveat is that we may or may not be at a bottom here, and there is still a number of things our economy has not worked through yet, so a certain degree of skepticism and fear is certainly healthy and warranted right now.

Now throwing your whole savings into the down-payment is an interesting debate. On one hand, while you won't be earning interest on that money it will also mean you'll incur less interest on the money you do take out in a loan. However, you should also have cash savings in case of emergency and saving and accumulating a means of living after retirement (as well as saving for a house, kid's education, etc). I plan on splitting my savings. I will save a regular amount for retirement, emergencies, house, kids' education, etc. I will also have a second savings, equal to the difference between a Camaro monthly payment and my Cobalt's monthly payment. That savings will be my down-payment. That way when I get my Camaro there will be no impact to my regular savings.

RyanSSaddict · 01-11-2009, 07:14 PM

Good luck, i'm not gonna preach. I'm 25 and I have a house and a new truck, but I still don't have great credit. Good luck!!

t3chfr3ak · 01-11-2009, 07:18 PM

With the financial situation the US is in I think you should think about real investments other than a car(which is really not an investment cause you make no money off it) I think your country's economy is really tanking right now, especially for the middle class. It's bad financial decisions like that along with greedy institutions that caused the mess you guys are in right now. If this is your first car, you are going to be paying more for insurance than you are the car. That right there is a pretty stupid decision. You can buy a decent car for eight grand and get PLPD insurance so you have low insurance payments. After all that, you still have enough to have fun with and invest. You are going too regret paying an arm and a leg just for insurance. Anyways Im not your dad and you are old enough to decide for yourself. So good luck.

StoutFiles · 01-11-2009, 07:40 PM

Quote:

I think your country's economy is really tanking right now

They only report the U.S. because it's incredibly important. Canada's economy isn't any better off...when the U.S. goes down they take the world with them.

NUCAR · 01-11-2009, 07:41 PM

Quote:

Originally Posted by FFMaro

Exactly, I am just asking if anyone would have an idea as to how long it might take me to build enough credit history to make my purchase.

Tough to say. A parent co-signing may be the best route to the lowest rate. It will depend greatly on the banks lending guidelines at the time you apply. They have been bouncing all over the place lately. A down payment will make the bank more comfortable. Starting early on a retirement plan is also a very good idea. Good luck!

jeffny09 · 01-11-2009, 07:43 PM

Quote:

Originally Posted by StoutFiles

They only report the U.S. because it's incredibly important. Canada's economy isn't any better off...when the U.S. goes down they take the world with them.

Ry4nVan · 01-11-2009, 08:25 PM

While holding my opinions back...

It took me about 2 years of starting my credit to build it up to around 649. After 5 years now my credit score is 750. I've never had a late bill, I pay off my credit cards (4ea) every month and don't own a house.

I started building my credit as soon as I turned 18 by applying for a couple credit cards and a cell phone. It's taken 5 years with very good history to build it up to 750 so far. It's still going up thankfully but that should hopefully answer your question from my own perspective.

Right now I qualify for 4.74% interest for up to a 84 month loan at my credit union. That's the lowest interest rate they offer.

Hope this helps.

01-11-2009, 06:35 PM	#36
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,810	Another point on spending vs saving. Camaropete is technically correct when he says to buy when the market is down. After all, we tend to buy physical good when they're on sale, but for some reason we do the opposite with stocks. The caveat is that we may or may not be at a bottom here, and there is still a number of things our economy has not worked through yet, so a certain degree of skepticism and fear is certainly healthy and warranted right now. Now throwing your whole savings into the down-payment is an interesting debate. On one hand, while you won't be earning interest on that money it will also mean you'll incur less interest on the money you do take out in a loan. However, you should also have cash savings in case of emergency and saving and accumulating a means of living after retirement (as well as saving for a house, kid's education, etc). I plan on splitting my savings. I will save a regular amount for retirement, emergencies, house, kids' education, etc. I will also have a second savings, equal to the difference between a Camaro monthly payment and my Cobalt's monthly payment. That savings will be my down-payment. That way when I get my Camaro there will be no impact to my regular savings. __________________ "It's kind of fun to do the impossible" - Walt Disney There's a great big beautiful tomorrow shining at the end of every day There's a great big beautiful tomorrow Just a dream away

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01-11-2009, 06:16 PM	#29
StoutFiles Drives: Black/Black 2SS/RS Join Date: Oct 2008 Location: Dayton, OH Posts: 732	Let's just answer your original question as no one being honest with you is going to support you making a huge purchase eating up a full year's salary. We're not trying to put a damper on your fun, just being realilistic. You will most likely need to co-sign. Otherwise, it'll probably take at least a year. If not, congrats and good luck.

01-11-2009, 07:14 PM	#37
RyanSSaddict oh no la migra Drives: 2010 Chevrolet Camaro 2SS Join Date: Jun 2008 Location: San Diego, CA Posts: 208	Good luck, i'm not gonna preach. I'm 25 and I have a house and a new truck, but I still don't have great credit. Good luck!!

01-11-2009, 07:18 PM	#38
t3chfr3ak Drives: mazda 6 Join Date: Jan 2009 Location: in an igloo in Canada Posts: 223	With the financial situation the US is in I think you should think about real investments other than a car(which is really not an investment cause you make no money off it) I think your country's economy is really tanking right now, especially for the middle class. It's bad financial decisions like that along with greedy institutions that caused the mess you guys are in right now. If this is your first car, you are going to be paying more for insurance than you are the car. That right there is a pretty stupid decision. You can buy a decent car for eight grand and get PLPD insurance so you have low insurance payments. After all that, you still have enough to have fun with and invest. You are going too regret paying an arm and a leg just for insurance. Anyways Im not your dad and you are old enough to decide for yourself. So good luck.

01-11-2009, 08:25 PM	#42
Ry4nVan Drives: Currently (Toyota Tacoma) Join Date: Sep 2008 Location: Phoenix, AZ Posts: 287	While holding my opinions back... It took me about 2 years of starting my credit to build it up to around 649. After 5 years now my credit score is 750. I've never had a late bill, I pay off my credit cards (4ea) every month and don't own a house. I started building my credit as soon as I turned 18 by applying for a couple credit cards and a cell phone. It's taken 5 years with very good history to build it up to 750 so far. It's still going up thankfully but that should hopefully answer your question from my own perspective. Right now I qualify for 4.74% interest for up to a 84 month loan at my credit union. That's the lowest interest rate they offer. Hope this helps.