Auto loan with limited history?

[MX450]

Ive had credit cards since i was 18 (now 23) and I have NEVER been late and usually pay my balance off every month. So my credit history should be perfect, but limited with credit cards being the only thing I have had. My question is what are the chances of me getting a small auto loan, like 7-8k by myself? Slim to none or depends on the lender? I have a steady job, live at home (going to school) and have credit limits of around 5k at the moment.

Anyone have experience with smaller auto loans?

[Pappy]

Banks are being tight now. You probably wont have any trouble getting a loan, but fight for the best intrest rate....thats where they will hose you!

[Guy400]

Contact your bank where you do your banking and discuss your options with them. Also, get your credit report from all three credit reporting agencies and look for discrepancies that way you know your credit history/score before talking with the bank. When I was 19 I walked into a Chevy dealership and bought a LT1 Z28 with no co-signer as my first financed vehicle. Now's a good time for auto loans as interest rates are down.

im 22 with good clean credit score. Check out creditkarma.com for a real free score. I was in the same boat as you. almost to a T. They really wanted to see your paystub from work will show a good your year to date monthly avg and your credits clean you have a good chance. I got approved for 15g by my self but that was not enough for the truck i wanted. but at almost 15% apr witch is insane. You should not have a problem with a car under 10grand. If you have trouble financing try a credit union you have your best chance there . check out first financial credit union. www.firstffcu.com

[Guy400]

Oof...15%?!

Yea that was by my self with not much established credit. I got a co signer for more money and a way cheaper rate. i refused to pay 15. But for a first time buyer dont expect to see under 10 by your self. At lease from what i learn. Bought a new truck about a month ago.

[Pappy]

Thats where they hose ya...get you all fired up and sneak in the high rate. Most young folks just sign away

crap you have no idea. best was. "can you afford $xxx.xx a month". "yea i can." but at 15% your crazy. "Well its only about a extra 40-50$ a month." Yea for 6 years. People are crazy out there. Dont go buying a car alone. Its nice to have 2 sets of ears/eyes when they run there bullchit

[Pappy]

I bought my first truck at 17....trust me things are the same now as they were then...hose people as hard as you can:p I had a salesman so worked up that he was agreeing to buy my kids diapers for the first two years if i bought the car:p

[MX450]

i deff see through all the bs trust me. i bank with chase and work at bank of america, the larger banks only offer loans on new or newer cars (looking at 98 z71) so maybe a credit union would be my best bet. i dont know if anyone i know would cosign for me or not..

[Guy400]

And in nearly every case you're better off securing financing on your own than you are going through a dealer. My cousin was a Pontiac/GMC salesman for several years and my wife worked at a bank doing loans for dealerships. When you finance through a dealership they shop several banks. The dealership takes the best bank deal they can get (say it's 4%) and then add 1.5 - 2% and they pocket the difference. So not only are they profiting on the price of the vehicle they are whacking you a 2nd time on an artificially higher interest rate. I just went through this today. Talking to a dealership about a new crew cab 4x4 and they tell me they can get me 5.25% financing right now. I said, "That's great, I'm already approved at 3.59% from my bank." That ended the financing conversation in a hurry.

[derekhonda]

I'd like to know how you got an auto loan for 3.59% ! That is incredible.

I agree, hit up banks, do not plan on your "car salesman" to be looking out for the best rate for ya. Find a parent, aunt/uncle/cousin you trust and trusts you and get a co-signer. If you havn't explored what the difference is between a 6% car loan and a 9% car loan start doing your homework and calling in that favor WILL pay off. Just don't hose 'em...

[Guy400]

From my bank. You had to have Tier 1 credit to get it.

[buck440]

my friend got a $50,000 duramax and 6 years to pay it off with no credit history but only a cell phone

[trx310R#24]

Originally posted by buck440
my friend got a $50,000 duramax and 6 years to pay it off with no credit history but only a cell phone

cuz he pays his phone on time and like all bills it gos on your credit score.. hes what id do.. go to your bank try to get the loan they say no then tell them you are closing all your accounts with them...

[MX450]

Originally posted by trx310R#24
cuz he pays his phone on time and like all bills it gos on your credit score.. hes what id do.. go to your bank try to get the loan they say no then tell them you are closing all your accounts with them...

probly not gonna work.. i work at a bank and when people threaten to close their accounts i smile and say would you like cash or a cashiers check?? people at banks dont give a s*** abt closing accts.

[CJM]

I just went thru it all and lemme tell you what-it aint worth it right now.

The interest rate was super low but the bank refused to give me more than 3 year loan at 8%. Worst off the truck I wanted was sold by the time I jumped thru like 10 hoops to get the loan approved, since it was a used truck.

I said F it, fixed my one truck I have till its runnable and bought a beat up old F250 and decided it was more worth it spending 2k up front, adding in another 3-5k later and only being invested in it for 5-7k later. Sure it wont be new, but it will be mine, paid off and not full of electronic gizmos like all new cars it seems.

Even better is I have an excellent crade score (very close to perfect), pay all my bills on time, have a phone in my name, several credit cards, another loan thats paid off and STILL they wouldnt give me a loan without jumping thru hoops. When i asked why-all of the loans they gave out to people who didnt really qualify screwed them over. 2-4 years ago was the time to get a loan, where the kid who works for mcdonalds and makes 10k a year at best could get a loan for 25k with ease.

[MX450]

well im not looking at brand new, im lookin for a 90s reg cab z71

[CJM]

Originally posted by MX450
well im not looking at brand new, im lookin for a 90s reg cab z71

Used is even worse! Banks do not want to lend for used vehicles at all b/c they see no real profit if you default on the loan.

Take a personal loan, not an auto loan and refinance it when you find a better rate. OR if your parents are really nice they could take out a home equity loan and you pay them, you establish no credit this way-but you get the truck.

[derekhonda]

Originally posted by CJM
Used is even worse! Banks do not want to lend for used vehicles at all b/c they see no real profit if you default on the loan.

Take a personal loan, not an auto loan and refinance it when you find a better rate. OR if your parents are really nice they could take out a home equity loan and you pay them, you establish no credit this way-but you get the truck.

You are right, banks would rather lend on a new car than versus a used, but your/their logic is so far off I just dont even understand it. They could loan 50,000 for a brand new duramax, you get it, pay 3 payments, lose your job, turn the truck over, voila...the bank now has a $35000 truck with a 49,000 note to it.

Or, they could loan out 10 grand on a used truck, make 3 payments, turn it back over, bank has an 8000 truck with a 9000 note. Actually a little safer investment, but someone should tell the banks that.

[sunco]

just read in the paper today that peeps are getting their auto loans refinanced like your house. could save u about 250 a year or a grand on the loan. Dealers mark up the interest rate (another way for them to cash in on the sale of the car). thought that was interesting to share

[quad2xtreme]

Originally posted by derekhonda
I'd like to know how you got an auto loan for 3.59% ! That is incredible.

I agree, hit up banks, do not plan on your "car salesman" to be looking out for the best rate for ya. Find a parent, aunt/uncle/cousin you trust and trusts you and get a co-signer. If you havn't explored what the difference is between a 6% car loan and a 9% car loan start doing your homework and calling in that favor WILL pay off. Just don't hose 'em... link to NASAFCU (http://www.nasafcu.com/loanrates.aspx)

[CJM]

Originally posted by derekhonda
You are right, banks would rather lend on a new car than versus a used, but your/their logic is so far off I just dont even understand it. They could loan 50,000 for a brand new duramax, you get it, pay 3 payments, lose your job, turn the truck over, voila...the bank now has a $35000 truck with a 49,000 note to it.

Or, they could loan out 10 grand on a used truck, make 3 payments, turn it back over, bank has an 8000 truck with a 9000 note. Actually a little safer investment, but someone should tell the banks that.

I wish the logic made sense, but it doesnt.

I was approved multiple times at both used/new dealers for vehicles that I could barely afford (both new and used) but the interest rates were INSANE.

Hence why I bought a used truck for cheap and Im gonna restore it.

[mxduner]

dont be going out and applying for loans all over the place. Every time you inquire for financing it is a hit on your credit score. I may or may not be speaking from experience:D