i have no credit, but i want a loan

[iwantspeed]

here is my quick story.
went through high school never had credit card or a loan of any kind.
didnt have a job or a car.
graduated high school
grandfather gave me his e30 for free. it was a 1987 diving board bumper 325e coupe 5 speed.
i got a job at in-n-out
after owning it for a year I wanted a 1989 325is in alpineweib with black interior.

having no credit history or a credit card i would not be able to afford a different car.
took out a student credit card
I took a loan out and my dad cosigned it with me.
bought a 89 alpineweib e30
sold my other e30 paid off half the loan.
now i had small loan to pay off in 3 years.

[Massimo]

Anyone one who thinks a a loan on car is a good idea makes no sense. You are paying more for something that is loosing value.

WTF

I am 26 now and make 65k a year and still drive my 5K 318is. I could go and buy my self a E46 M3 on loan but that makes no sense.

Trust us bro if you can't pay for it in full then you shoudn't have it.

[brainspo0n]

I keep clicking on this thread thinking it's a joke

but it is a joke

but it's not a joke

my head hurts

[Kershaw]

Anyone one who thinks a a loan on car is a good idea makes no sense. You are paying more for something that is loosing value.

absolutely. i have paid for all my cars in cash, on the spot. even my rx8, $21k+.

it's going to take awhile to save up for the replacement to my rx8, porsche cayman s.... haha.

[slammin.e28]

Only car I got on loan was my M3, but I got a good dealio on it and will have it paid off in half the time the loan is for.

[kdkool]

This thread kinda reminds me of a thread on the e90 forums where this kid leased his new BMW because he could 100% could afford it. Then after some late night drunk camping trip, he lost his keys and couldn't cough up the $400 key replacement price tag. So he was stuck paying a lease payment for a car he couldn't drive because he couldn't literally open the door.

My advice to you is to wait until you have money so that you can buy the car outright. There's always a good deal out there, just be ready with money in hand.

It's a damn good feeling to not a have a car payment.

;)

[eoddom]

Trust me if I could find a buyer for my E46 M3 I'd drop that 540 a month car payment and 160 a month insurance. Although I make 1800 a week....id rather not spend 700 a month on a car when I can buy something for a few grand and put all my money into making it the way I want.

[blackhawkimpact]

$1800/week? Must be fucking nice

[TexasTerp]

Devon,

Go to Pentagon Federal Credit Union. Take $1000 and put it into an interest bearing account like a CD or IRA.

Then take out a $1000 secured loan @ 2% interest against that account. Pay back the loan at around $100/month plus interest and by the end of the year you will have quickly built credit. You'll barely spend anything out of pocket on the interest since your initial account is building interest at the same time.

[samiam3356]

Credit cards don't really help you on your credit. They help you increase your credit limit for that specific store if you pay your monthly payments on time, but that's it. You'll see little to no increase on your credit because credit cards really only go through the credit bureau when you don't pay your bills. If you want to increase your credit get a loan form your bank, a credit card, that will help you a lot.

I've had 5 store credit cards for 2-3 years, and my monthly payments were on time if not early, always. No change on my credit. I got the a $300 credit card laon from my bank and boom credit goes up. Only had the card for two months too.

Couldn't be more wrong.

Get a car title loan on the car you currently have. Pay it back over 3-5 months. Then it will show you had a car loan on your credit history ----> then you can get the car loan for the more expensive car

wut? Title max loans don't show on yourt credit unless you repo.

Devon,

Go to Pentagon Federal Credit Union. Take $1000 and put it into an interest bearing account like a CD or IRA.

Then take out a $1000 secured loan @ 2% interest against that account. Pay back the loan at around $100/month plus interest and by the end of the year you will have quickly built credit. You'll barely spend anything out of pocket on the interest since your initial account is building interest at the same time.

Great FCU!

Loans work like this with most banks. This is Wells Fargo's Case model:

C - Credit, usually 5 lines or more (this is where CC's CAN help) and an installment loan (Car, boat, house, anything that is set up on a reoccuring payment)
A - Ability, Monthly income, Debt to income, Payment to income, job time
S - Stablility, How long have you lived at your resisdence, do you rent, own, or live with parents(the worst of the three)
E - Equity, Money down, most banks value a car off NADA clean trade, so you don't reach equity until your finance amount is less than that value.

I look at 200-300 credit apps a month and probably I'm 3-5 banks number one relationship when it comes to volume of loans originated. A lot of money is made off bad to limited credit. By the banks and by the dealers. It makes sense IMO sense the risk is there as well. High risk should equal high reward to offset the bad loans.

Just a little info, not all inclusive or anything but hopefully it helps.

[FunfGan]

absolutely. i have paid for all my cars in cash, on the spot. even my rx8, $21k+.

it's going to take awhile to save up for the replacement to my rx8, porsche cayman s.... haha.

Agree with both of you. My parents both always pay in full for their cars, no matter what they are, and I've learned from them.

[kdkool]

absolutely. i have paid for all my cars in cash, on the spot. even my rx8, $21k+

I completely agree with you. Though my wife and I made an exception when we purchased her car last year. BMW was offering holiday cash of $2500 if you financed through them. At 0.9% interest for 36 month, you fare out better just dragging out the loan since the money can sit in another interest bearing account for a better rate. Plus the $2500 credit was a no brainer.

[gkobez]

Buy a cheap car. I can afford a much more expensive car but with the money I saved I can buy upgrades often and without financial burden. Also, have you considered that if you are also financing this car you must pay full coverage on the vehicle, and you being 18, I doubt your insurance rates will be cheap.

[Kershaw]

you should get full coverage on any car worth over $3000, imo.

[CrusherCurtis]

If can't pay for what I want I just don't buy. I'm not going to pay someone even more money because I already can't afford to buy something. Plus its a car so you'll upside down on it in no time. Financing a car is just plain dumb. You can pay $2000 for a old honda drive your ass to work and sit in the same traffic as someone who paid 80k for a mercedes. I may have to break my rule once when I buy a house, but at least those don't loose value (or at least before 2008 they didn't). What kind of car is it btw?