Financing Questions Please Read If you CAn help...

Minsu

Im young 21. So i wouldnt say im oblivious to finance.
Now when buying a car im guessing you can either use ur own financing (no idea what that means) or use the dealers finance.
Now i dont have credit, no credit card for me as of yet never applied for one because if you get rejected you lose credit score?
Now if i give them 8-10k down on a new z 2012 (not 2013) and say i want to finance what would they say seeing that i have no credit?
Im at a loss, i thought i had a good handle on this but after some reading i got confused big time.
I really dont wanna regret buying a Z you kno? wanna buy and drive it to the ground and then rice the **** out of it.
I made alot of post about buying the Z and ill be ready by the end of the month
so i have a month to really learn about this whole financing thing.

Help me out retired car dealers, currently working dealers, and u smart dudes.

Huckleberry

Don't bother trying to finance the vehicle by yourself. Take mom or pop to co-sign with you. That's the only way you're going to get a reasonable rate.

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Thechidz

buy my car. it's loaded and you'll get a much better deal

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I <3 my car

frost

How long have you been at your job and what kinda money you make? I financed a car at 18, but I believe I was pushing a 10% interest rate. Not cheap, and I wasn't even trying to buy a 30-40k car. Have you even considered the insurance? I have to imagine it would be a couple hundred.

PS, using your own financing is when you go to a bank yourself, get approved for a loan up to a certain amount, then go to the dealership already approved for a loan. If you have been banking with a bank for a couple years, they may be more likely to give you a better rate.

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370z OG

MJB

With no credit history your interest rate is going to be through the roof. That's if you even get approved for a loan. You'll have better luck if you co-sign with a relative, like previously mentioned.

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09 Nismo #0483 sold. Viper or C7 next time around.

Minsu

shoot, i teach tennis, i make 40 an hour 10-15 hours a week.

ZKdoggZ

Job history and the amount made at your job does play a part. Now companies like Nissan and Toyota are approving more of the younger crowd with the belief if they give the younger crowd a chance they will be customers for a long time. If you have absolutely no credit what so ever it probably will not happen on your own regardless of the 10K put down. Good luck

frost

If you hang on another 6 months or so, you should start seeing the 09s at the $20k area. I'd say put your 8-10k down on that, finance the 10-12k, build your credit. In a couple years you would be able to finance something much easier.

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370z OG

Mike

You need to wait another 6-12 months. Join a credit union. Deposit your 10000 in an account and take out a 'share secured loan' for 5-10k. that is a loan that is covered by your deposit, you need to keep the amount you owe in the account, as collateral. You will get the loan even without having credit, because you have the money in the account. Pay it back in even payments over 3-4 months. That will establish credit. Also, talk to the credit union manager about getting a credit card and use it lightly, but pay it off each month, on time.

Those two steps should get you started with a credit file, and then, you can probably get a loan through the credit union also.

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NISSAN: 75 280Z / 86 300ZX GLL /87 Sentra SE / 03 350Z / 23 Z
Porsche: 93 968 / 23 Macan GTS / 93 968

diddy535

Definitely just try to build up your credit. I did it when I was interning, I went to a credit union, opened an account and asked to get a credit card with the lowest limit possible, I think it was $500 at the time. I just put random stuff on the card and paid it off. I got my '09 at just turning 24 years old, put $7500 down plus trading in my '99 volvo v70 - sexy machine that was - and financed through Nissan. Just having a good credit rating helped, I got 2.59% which I think is decent, could be wrong though.

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Minsu

shoot so i cant even think to get one by the end of the month?
shucks..
so there is no short cut unless my parents cosign?
Shoot

Trips

You can still get it but you're going to get financially RAPED!!

and like that you'll be trying to get rid of it in 6months or a 1yr

Don't be one of those guys!

a little financial patience will go a long way.

Carry on

MacCool

You can check your credit score with Equifax, Transunion, or Experion, and you should do that so you know where you stand if you're looking to finance or lease a car.

You can try leasing, but standard lease interest rates are still going to depend on your credit score. It's not usually as bad as a bank loan, however. You'll need about 650 to get the kind of lease deals you see advertised. Most leasing companies won't even consider you if less than that, and the ones that do are going to stiff you pretty good on the interest. The only advantage to you with leasing is that you might be more likely to buy down the interest rate with a higher amount of money up front. Leases have some significant limitations if you're looking to modify the car in any significant way.

One other solution might be taking over someone else's lease, if you can find someone around the country with a lease on a Z car that wants out. Credit requirements for that tend to be lower. That might be hard to find, but there are a number of lease transfer companies on the internet. Don't expect a particularly good deal from a lease transfer company, however.

As mentioned, the easiest way by far is getting someone with a good credit rating to co-sign.

redline727

I have sold cars before and my old roommate is a Finance Manager so I have seen behind enemy lines so to speak. And Ill tell you right now if you find a car you like at the right dealership you can get approved with no credit at a decent rate especially with the amount of money you have down bc you are lowering your risk. Anytime you can put as close to 30% down as you can banks automatically feel safer buying your loan bc thats the general rule of thumb to have 0 or almost 0 negative equity. You may be a "ghost" as they say on paper but if you have solid work history and haven't moved around a lot, with your money down you are good. Especially if your finance manager is half way good at his job and has good contacts at the banks they deal with. Now for the matter of interest rates ask the dealership if they use a credit union and tell them thats what you want. Bc they cant get paid off of inflating your interest to make money. Other banks besides credit unions will buy the loan lets say for example 72 months at 4.9% interest 0, down(the bank gives multiple options to the dealer) well the dealer will tell you 6.9% and if you say great well the dealer and the F&I manager and the sales rep just made money off the bank for that extra 2% interest they got out of you. BUT they cant do that with a credit unions so you tend to get a better rate and without inflation from the dealer. I hope this helps. Worst case scenario if you get offered an interest rate your uncomfortable you can always walk away or if try a co-signer like others said. What I recommend is DONT tell them about the money down until after you get to test drive the car and your back sitting down looking at payment options. Let them run your credit with them thinking you have no cash just to see what their first pass at you is. And if your comfortable with this tell them you want to see 72 months with no money down. See what the interest they come back with, its prob not gonna be what you would want, thats ok. You will at least hear their speech on why you pulled the rate you did. Then use that against them bc they will say you working with 72 months 0 down blah blah. Be like ok is there a way to get better interest rates with a local credit union maybe at a shorter term??? At this point they will want to get that car sold just as much as you want to buy it. This is when things will start to open up. They will most likely come back with a better rate at 60 months with a credit union but the credit union will want money down. But thats ok bc you knew all along you really have it. Now you can feel safer knowing thats prob the best rate your gonna get with out a co-signer. And hey at the very least its a learning experience for you if you still dont like what the numbers are. But I say its worth the try. Hopefully you go to a pretty big dealer that deals with a lot of banks and has good banking connections. Thats the secret sauce. The better connections the finance manager has with the bank the better your chances will be. When I was not to much older then you my roommate got me financed on a 2008 STI the first year the hatch came out, I was working at Subaru at the time and just had to have one. I had 12k in negative equity from WRX bc of the negative equity I rolled in that. She got me financed for a 45k loan on a 36k car at 72 months with 5.9% interest with no money down! So believe me sh!t can get done at the right place! BTW that was the biggest mistake I ever made in my life hahaha dont eff with negative equity, always put money down or buy cash if you dont plan on keeping the car the full term of the loan.

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doink

Mike have some good pointers. Get a collateral short loan and pay it off in 6 months to show payment history while getting yourself a credit card too. I gave it 6 months because that what it takes for your credit score to recover from the hard inquires.

And as for the credit cards, the best rule of thumb is credit utilization. Never go above 20% of your maximum available credit. Above that number will affect your score negatively. 20% of 500 is 100 bucks so its not much. You can use credit cards to your advantage. Using credit cards and small loan will help boost credit score and help built credit history quick. I use 10%. Just charge little stuff every month to show you are using it, but pay it off every month to show consistant payment history and to avoid the high interest rates.

What is credit card utilization? | Credit Karma

I was in the same boat as you a year ago. I went the personal loan / credit card route before getting a car loan. Ended up with Altima though but will quickly pay it off next year. Ended up with 4.9 interest rate. I perfer to wait alittle longer to get build up more credit history to buy the z. i want a lower rate and dont feel comfortable with high monthly payments and throwing my money away to banks. So paying off a car loan in 1 yr on 4.9% is not too shabby.

I recommend signing up to these free sites.

Credit karma - good useful financial advice and pulls their score from transunion.
Credit sesame - pulls their score from equifax.