Finance Help

[CaptainCanuck]

As of right now, I have a 1996 Sunfire GT that has 180,000 kms on it. It has a lot of problems (it was in an accident and has a cracked rear fender, the windshield wipers turn on when they want and it is near impossible to turn them off, it just went through a water pump which costed $500 to replace, the tires are bald, and the car rattles and makes noises that I can't figure out) and I want to get rid of it before it is too late.

The problem is that I don't know how I can afford a new car. Right now, I do not have a job during my schooling because I can't handle both college and a job at the same time and when I do work during my 4 months off, all of my money must be used to pay for tuition and living costs for the next year.

Does anyone know of anyway that I can get a loan from the bank that would let me pay it off as soon as I finished up College/University? Please, suggestions are greatly needed. I don't know much about banks since I am still young and have little or no experience with them.

Thanks.

[derekhonda]

School loans man. They are low interest and you dont have to start paying them off until 6 months (correct me if im wrong) after you stop school (meaning graduation or quitting). Definately do that.

[CaptainCanuck]

Oh, I have them already. But I didn't think that they would finance a vehicle...

And getting student loans in my area is very difficult as the government always gives as least as possible.

[derekhonda]

if you have school loans, try and make your car stick it out until this summer, and then work your *** off to upgrade your car.

[CaptainCanuck]

Yes but that is the problem. Im looking at buying a car that is worth 14,000 (one that has low kms and in great shape that will last) but I cant make 24,000 in 4 months (10,000 for school and 14,000 for the car). I am going to work my tail off in the summer but i dont think it will cut it. I do not want to go to my parents because they dont have a lot of money either and i want to be independent.

[derekhonda]

Originally posted by CaptainCanuck
Yes but that is the problem. Im looking at buying a car that is worth 14,000 (one that has low kms and in great shape that will last) but I cant make 24,000 in 4 months (10,000 for school and 14,000 for the car). I am going to work my tail off in the summer but i dont think it will cut it. I do not want to go to my parents because they dont have a lot of money either and i want to be independent.

DO YOU HAVE A SCHOOL LOAN OR NOT?

[PismoLocal]

10k is probably what he pays after the loan money is put towards his tuition.

[CaptainCanuck]

Yes. I get around 7000 for a student loan and that covers tuition and a little bit of residency. After that, the 10,000 that i make in the summer goes toward living expenses (clothing, food, etc.).

Sorry if i wasnt clear.

What does everyone pay on a vehicle that is around 14,000 for monthly payments?

[PismoLocal]

At your age even with perfect credit i would say around $300 per month give or take some with 1k down. General rule of thumb is $100 per month for every 5k borrowed. Thats not set in stone though it depends on your credit, co-signers, down payment, and interest rate.

[PismoLocal]

O ya and thats for a 5 year loan too.

[CaptainCanuck]

You read my mind. I was just talking to a friend who recently took out a loan of 13,500 on a car over 5 years. He pays around $250 a month. I figure that if i can sell my car right now for about 2000-2500, i should have almost the entire first year paid for. My loan will be about 15,000 so I'm looking at around $300 a month. I dont have a credit rating but my parents would co-sign (after i talk to them) and their credit rating is extremely high.

$350 a month doesnt sound too bad. All i need is a part time job that pays that and i'm set.