Car loan question………..?
Greetings! Here is a secured loan question I found when I was looking at Yahoo.
So I’m 18 and have no credit and no co signer.
I want a 2001 mustang GT which will be around 6-7k.
I make about 1k a month.
If I pay 4k cash, will they let me take out a loan for the rest?
Also is there a way I can build up my credit in the mean time to help improve my chances?
I want the mustang early May.
This secured loan question was exactly what was on my mind. The answers helped with my problem. I am glad the original poster shared.
Have a good day!
November 30th, -0001 at 12:00 am
Start by getting a secured credit card. Or a credit card from the bank whom you have a checking account with. This will get at least one item on your credit report. Pay it off each month so that you start off with good credit and don’t pay interest charges. Try to find a car with either no annual fee or a very low one.
Continue to save up as much as you can towards the car purchase. A car dealer may be able to offer you in house financing even though you don’t have credit. The high down payment will be the key.
If you do get approve make sure you make your payments. This will be a good thing to have on your credit report at such a young age.
Possibly you will find the car at a price you can afford to pay cash for it. As in if you save more money and the price of the car comes down. Then you will have the option of paying cash or doing a secured loan. With this option you will be able to use the cash you have saved as collateral for the loan. This will help with your credit and after you have paid off the loan, the car will be yours and you will get the money you used to secure the loan back.
Just keep your eye open for a good deal on the car. Think about how you want to purchase it. If you are going to have a steady job and are able to manage your money well, the cash secured loan might be a good way to go. You will build credit, then have cash and a car in the end. You will also get a very good interest rate.
I did an auto trader search and found a 2001 mustang gt with 92k miles for $4700. I’m sure you can get a better deal on Craigslist. Don’t buy a car because they offer you financing. Find the car you want at the price you want, then work the loan.
Good luck on your search and financing.
November 30th, -0001 at 12:00 am
Hi,
Generally, the minimum loan amount is $ 7,500 and lenders would want the loan amount to be at least that. $ 3,000 will be a rather small amount.
It’s very difficult for you to get auto loan without any credit or co-signer and for a very small amount.