Financing a Camaro, no credit history

[t3chfr3ak]

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.

I dont think so. Here in Edmonton, Alberta Canada There is a shortage of workers, living quality is high, housing prices are steady. The only thing thats getting hit is the retail industry. But this city is an oil based city. A majority of it anyways. Car sales have not been affected, People are still buying and life in general is good. Yes, there are minor things that have occured, but again they are minor.

[stovt001]

That's not to say this is limited to the U.S. though. I'm an Economist subscriber and it is pretty clear this is a very global recession.

[Mr_Draco]

Originally Posted by FFMaro

I am 18, work at the fire dept as a FF/EMT making $29,000 a year, I have no credit history, I was just put on as a joint card user on one of my parents credit cards. The credit card company says this will help me to start building credit history. My question is that how long will it take me with this 1 credit card to build enough credit history/ credit score to be able to qualify for a $22,000 auto loan with an $8,000 down payment? Also, what kind of APR might the camaro be offered with? I have no expenses, so I plan to pay this car off as quickly as I can.

Thanks

FFmaro, that credit card and any future credit cards make absolutely NO bearing when applying for large loans. When applying for a large loan such as the $22k for the Camaro, the banks ONLY look at the following, a) previous large loans b) how long ago it was that you got the loan and c) time it took you to pay off the loan. They do not look at credit cards that you've owned for less then 5 years UNLESS you made a large purchase with it (like a car).

I also highly recommend that you do not apply for anymore credit cards then the one you already have. It is a proven fact that all cards after the first one actually hurt you in the long run rather then help you.

As for the book "Debt Cures", trash it. It's a steaming pile of horse s*** that's not even worth letting my dog piss on. Look up some of the other books he wrote and you'll see how big of a fraud he really is. He evens tells you to commit a federal crime to get out of debt that is punishable by life in prison. You're really better off trashing that book and forgetting everything you read in it before he screws over the rest of your life.

[flaguy]

You are going to need a cosigner plain and simple. 1 year of credit history means absolutely nothing to a lendor...especially now that the economic crisis has struck.

As far as the 5 credit cards. That is pretty much the dumbest thing i've heard of this year. All 11 days of it! My score is a tad under 800 and I have never had more than 2 credit cards, both with zero balance, and I've never had a mortgage either.

[BryGo]

Originally Posted by flaguy

You are going to need a cosigner plain and simple. 1 year of credit history means absolutely nothing to a lendor...especially now that the economic crisis has struck.

As far as the 5 credit cards. That is pretty much the dumbest thing i've heard of this year. All 11 days of it! My score is a tad under 800 and I have never had more than 2 credit cards, both with zero balance, and I've never had a mortgage either.

He's mostly right. Each dealer has about 12-15 banks they work with to finance people. Because of your lack of credit, there may be one or two banks that would give you a loan, provided you do AT LEAST 20% down. You may not need a cosigner, but it's hard to say with these times. It would help if you had utility bills and other proof of a payment history. But if you were to get YOUR OWN loan, expect the interest rate to be AT LEAST 12.

I got a brand new car in the midst of our last recession; no credit history, no cosigner. Just 20% down and a 12.99% interest rate over 72 months. The times have changed since then so it's hard to say.

My personal advice to you is to heed some of these members advice and maybe hold off for a little. A lot of us members speak things based on life experiences. Many of us have been in the same position you are in now. As enthusiasts, we want to see you in a Camaro, and we want to see you succeed, professionally AND financially.

[a6pk2go]

Originally Posted by stovt001

http://money.cnn.com/2005/09/21/pf/d...ores/index.htm

key highlight:


Furthermore, every additional credit application hurts your score as lenders take it as a sign you're preparing to go shopping.

And no offense, but 18, living with your parents, limited spending history means little experience managing money. Maybe you have no problems now, but the real test begins when real life begins and you're suddenly on the hook for supporting yourself. Those empty cards look mighty tempting.

Trust me though, there is a very good reason laws were recently passed restricting the ability of credit card companies to sign college students up for tons of credit cards in exchange for free t-shirts.

See also:
http://www.ctrlaltdel-online.com/comic.php?d=20060218

I would talk to a finacial adviser at a credit union or bank and let them tell you how credit works for you and how opening up credit cards and having too much of an open credit line can work against you. It's your money and if I were you and was going to get the LS I would put as little down as possible to get the loan and set aside some. I told my daughter back when she was 17 that she needed to enjoy her youth and only wanted her working just to get the experience. But like all teenagers are and I was one of them we know/knew everything. Just a word of advise my friend, when those bills start coming in with your name on it while you are young this car is going to be a chick magnet. If you aren't careful you will be putting a baby in the back of it sooner than you would like.

Good Luck on whatever decision you come to.........but it's great that you wanted our advise because not all of us on here are as young as you are. With age and experience comes wisdom. Use your money wisely..

EDIT: I just found this on AOL http://www.walletpop.com/credit/expe...r-credit-score

[scotchsride09]

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.

About a year, honestly.

And seriously, SERIOUSLY, don't take that guy's advice from that book. Opening a bunch of new accounts will hurt more in the long run. You need multiple trade-lines for a mortgage, true, but your car will count as one of them; and making your payments on time is the most important factor of your credit history.

If you must open more than one or two credit cards, don't do them all at once; it makes you look like you're in trouble. Research each card before you get it. Keep your limits low; and never exceed 50% of your balance on each card. Shuffle balances around if you need to but keeping it under 50% is crucial. Most importantly of all; make your payments on time!!!

An easy way to build secured credit is to go to whatever bank you currently have an account at with $500 and ask them to open a secured line of credit for you with that money. That way they'll be more inclined to give you a card and it will be more stable.

[gss9909]

Hello, Little about me..I am the finance director at a dealer here in colorado and have been doing this for a long time. So please take my advise. What a bank will look for as some ahd said here is crdit history not how many cars you have. they will also look at comprable credit IE if you have never had a 22k loan before and a comprable payment they will not loan you that kind of money. Your best bet is to have a cosigner or settle for a first time buyer car.
To answer your question on how it will take you will need a min. of 2 years on file with a 2500 dollar high on one trade line. At those min. req. you would be able to finance a cobalt or aveo. You have to crawl before you walk.
Could you get a high score fast? Yes, but its what we call and the banks call a fake score meaning it does not show anything about how you handle your financing.
If you do get the loan by yourself expcet 21% that is a 1st time buyer rate. Gmac no longer has the smart beggings program that gave lower rates to 1st time buyers.
Sorry to p*ss in your cheereos. Again your best bet is get a cosigner and stop with the credit cards. Don't talk to a bank aboput how to get your score up it doesn't matter you have to build your credit and they will sell you the credit accounts anyway that thier job to open accounts they get paid for it. They don't care about your financial future, I know my wife is a personal banker her bonus depends on how many accounts she opens and she a a daily goal also.
Hope this helps.

[2010_5thgen]

i bought a house when i was 19 so it shouldnt be too hard for you to get a 20+ loan. but i also had a few credit cards. it takes at least 6 months to build any kind of credit score from scratch. some cards are even a year.

[TJ91]

Originally Posted by t3chfr3ak

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.

Im 18, i know i will be paying 615 a month until im 21, but then it cuts in half, but you know the saying, Live Your Life, thats what im going by now. I dont mean im going to blow away all my money, just going to enjoy the time i have. I just went to my friends funeral today and i learned that life is just too short. I rather struggle a bit until im 21 and then look back on life when im 60 and say to my grandson "thats was my Camaro when i was 18, had all the girls ripping their clothes off as i drove by" and then say if its was stupid while laughing, or the best purchase of my life.
If you believe you can handle the payments for this car, then by all means go ahead and purchase the car, because there arent too many cars out there that you can fall in love with like the Camaro. Would it be better to actually invest? Yes but hell if you cant enjoy life, whats the point. My parents always told me that yes saving up is good, but whats the point in saving up and buying a car when your 40, they always told me, if you have money, obviously if your not in a bad situation, then live your life.
Ive been surrounded with alot of incidents in the past 2 years that really suggests that life is really too short.
Anyways, i just like to say that Camaropete has the right idea going, Jeffny and many other members who posted on this thread, everyone is just trying to give eachother advise, some are good for others, and bad for others, but all in all everyones advice will fit someone, choose whoevers advice fits you best and go with it, you might loose money, you might make money.
Who knows but Good Luck, i hope that none of us run into financial problems or health problems, and i hope everyone can get the Camaro they desire

[Muscle Master]

Isn't GM offering 0% APR

[eggydoo]

When I was 19, i had a $35k job working part-time and going to school.
I had to get a cosigner for a $15k loan.
I had 2 Credit Cards at the time.

[justmeron]

Hey bro. do what you want. This is a once in a lifetime opportunity. Many ppl buy new cars and many are more expensive than this one. Hell you have almost half the price as a downpayment. I would do it if I were you, Life is too short. I work in a hospital and a persons life can change in a second.
As far as your question re credit. I would say it takes at least 6 months to a year to build up credit. If your parents would co-sign that would be in your best interest. Then after that first big purchase like a car as long as you keep up on your paymenst you shouldnt need a co-signer in the future.
Seems that first "big" loan is the hardest to get.
Yea I see what some ppl are trying to say, the smartest thing would be to wait a yr or two and we all can probably get some kind of discount or rebate or demo. BUt hell I have been waiting since I first saw this car in 2006 and I do not want to wait another year. Hell ppl on here were crying over a 30 day delay in production.
So yeah if ya want it go for it. Wish I were in your shoes when I was that age. I was on my own with a wife and baby, working and in college. So yeah bro. do it while ya can.

[GOLDDOG]

I currently am the President of a credit union. Our policy, along with many others, is if we see an 18 yr old purchasing a 20K+ car, we would require a co-signor. Even if you have a couple established credit cards, your credit report would lack a long-term, big ticket item. When I got my first job making 28K at 21, I purchased a mustang gt and had to get my parents to co-sign. There is nothing wrong with having them co-sign. You are still building your credit. Also, think twice about putting down all your money. Opt for a 60 month term and keep that as a safety net. If you can afford a larger payment, put extra down each month. If any of the younger members have questions about lending, do not hesitate to ask me.

PS For what its worth, personally I wish I didnt buy the Mustang. The cost, plus insurance at 21 was a killer. That money could have helped much more when it came to purchasing our house.