Car loan requirements (Chelsea)

**content removed, rude** it is foolish and is unlikely to happen in a financially prudent manner.

**content removed, rude**I have driven many junkers, especially when I was younger.  I have bought cars for $500, drove them for a year, and sold them for $500.  **content removed, rude**

Okay, I'm done yammering....maybe....

chelsea_b

But if I can't show income

IMO, if you don't have any income or much income coming in, then buying a car isn't a good idea. How will you pay the payments? Honestly,  if I were in your position, I'd suck it up and get a job at one of those three places you mentioned that are in walking distance to your house. Waitress at Denny's, if it's a busy Denny's then you can make some decent $$ in tips that will help you out a ton. Do that for 3 or more months, save up money for a down payment on a car then go and get one. You'll be glad you did.

Now, if I were getting any type of used or new car, I'd go with Hondas. I love them. Even used they are very reliable and last forever. I have a 2001 CR-V that is in great condition and DH is going to be getting a brand new 2 door Honda Civic which I can't wait for haha. But that is just my car opinion, I'm no expert or anything.

chelsea_b

I don't want something pricy. I'm talking a like 15 thousand dollar car.

chelsea_b

At the moment, I have no income, so I'm sure I'll have to wait til I have income for at least a few months

chelsea_b

Any idea?

Walk to work, ride a bike, save your money.  Buy a cheap beater from Craigslist.  Save money, work harder, find a better paying job, save money.  Get a second part time job, save money.  Buy a car.

I had a point in my life where I had no money and the only asset I had was my truck.  My truck got totalled and I only had Collision insurance, thus my truck became worthless.  What did I do?  I worked and scrimped and saved and bought a $1,000 beater, drove it for a year and got another car when the clutch went out.

The key to this is WORK.  It's hard but it's rewarding. 

 i am not sure how you expect to get a loan, co-signer or not, without gainful employeement? that just seems absurd.

 i have never driven a junker, but i have driven cheap cars. nothing wrong with an older, reliable car. the new car smell wears off quickly, but the payments last much longer. currently, i am driving a 14 y.o. car. looks like crap, but is as reliable as they come. plus, i have it for one purpose... getting from point A to point B. would i like to have a newer car? yep, but this one is paid for and i cant justify a car payment right now.

 
that said, there is nothing wrong with working a joe job either. been there done that too. sometimes, grown ups have to do things that they would rather not do until something better comes along.
 

NicoleS

YES you can get a car loan with working part time, school loans up the butt, limited credit, no co-signer

At one point it may have been possible for anyone to get a loan, however the sub-prime credit crisis has extended to the auto industry and lenders aren't as lenient in offering new credit now. It may still be possible, but chances are you'll be taken advantage of in interest and terms. Not worth it, IMO.

It's a catch-22 for car companies, most of whom are posting huge losses so they are offering incentives to get people to buy, but people are having a hard time getting approved... round and round it goes.

These articles have insight on various aspects of the buying process:

Automobile loan delinquencies accelerating

Credit turmoil hits auto loan industry

Five Car-Buying Tips That Take Advantage Of 'Hungry' Dealers

Least Expensive Vehicles to Own

TAOofGoldyShep

Were you working on your junkers yourself? There's a big difference between having an old car that runs well and a junker that is a money pit.

Well, let's see.  A car payment runs what, $400 a month for a not terribly expensive car?  $400 a month for a year is $4800.  And, at the end of the year, she still wouldn't own the car.  Is it your considered opinion that maintenance on a $500 car would exceed $4800???  That isn't the way you approach $500 cars.  If it breaks down, and the repairs are expensive, you throw it away and buy another one.  You could buy 10 $500 cars before the cost would exceed buying a new car.  Is it your considered opinion that it is likely she would have to buy 10 cars in a year?

probe1957

Even a bankrupt arsonist can get a car loan, if he has a job.  Your wanting a brand new car when you have no money or job is beyond snobbish, it is foolish and is unlikely to happen in a financially prudent manner.

I know you think you're too good to drive a junker.  What is it with these kids today?  This, "I want it and I want it now" attitude is immature and annoying, to me.  I have driven many junkers, especially when I was younger.  I have bought cars for $500, drove them for a year, and sold them for $500.  Of course, I never did have the attitude that I was somehow entitled to more than I could afford to buy.  Your mileage may vary.

Yep, this is how we are.  We have two "junkers" that we've had for two years and sure saved a TON more money driving them than paying $200-$300/mo for a car loan, plus the higher insurance (our insurance is only about $100/mo for both and that includes our renters).  We have saved thousands and thousands of dollars driving our older used cars, even if we factor in what we've done in repairs, just as Billy points out.  My mom always says "The best car is one that's paid off."

Now for our next car I want an Outback, but I never considered getting a NEW one, no way.  Last year I saw a used one for sale in our parking lot.  I thought it was a tenant's car and when I went back to get the phone number the car was gone and never came back.  We regret not looking into buying that Outback.

cyclefiend2000

i am not sure how you expect to get a loan, co-signer or not, without gainful employeement? that just seems absurd.

It seems absurd to me too, on the surface.  **content removed, rude/personal attack**

I didn’t own a new car till I was 33.  My first car that I drove all through college was a $2000 chevy sprint and it got where I needed to go and I didn’t have payments to worry about.  The next two cars were sort of family trades where I paid a very small amount to family in exchange for their car they wanted to get rid of.  I personally have NO SHAME in driving a used car that may not be “ideal”. Hell I drove a bright yellow geo storm for the last 5 years before I got my new car. NOT a pretty vehicle but did I care?  Not at all.

Chelsea, to be perfectly honest, you have no business looking into a $15,000 car loan if you don’t have a steady income. My payments on my $15,000 car are $350 a month.  Think about it… can you honestly afford that?  Can you absolutely guarantee that you wont miss a payment?  If not, then you need to do yourself a favor and get a used car that is affordable to you.  Wait until you’re older to own a “new car” if that is what you want.  Hell.. Billy the jerk has never even owned a new car and he is a very old man.   

Liesje

probe1957

Even a bankrupt arsonist can get a car loan, if he has a job.  Your wanting a brand new car when you have no money or job is beyond snobbish, it is foolish and is unlikely to happen in a financially prudent manner.

I know you think you're too good to drive a junker.  What is it with these kids today?  This, "I want it and I want it now" attitude is immature and annoying, to me.  I have driven many junkers, especially when I was younger.  I have bought cars for $500, drove them for a year, and sold them for $500.  Of course, I never did have the attitude that I was somehow entitled to more than I could afford to buy.  Your mileage may vary.

 

Yep, this is how we are.  We have two "junkers" that we've had for two years and sure saved a TON more money driving them than paying $200-$300/mo for a car loan, plus the higher insurance (our insurance is only about $100/mo for both and that includes our renters).  We have saved thousands and thousands of dollars driving our older used cars, even if we factor in what we've done in repairs, just as Billy points out.  My mom always says "The best car is one that's paid off."

Now for our next car I want an Outback, but I never considered getting a NEW one, no way.  Last year I saw a used one for sale in our parking lot.  I thought it was a tenant's car and when I went back to get the phone number the car was gone and never came back.  We regret not looking into buying that Outback.

Chelsea, perhaps you can compromise your 'wants' and 'needs'. My current ride is a 1999 SUV with 179,000 miles. It's worth about $3,000. It was top of the line when it was new - leather and every other option possible. So it's a nice car, but on the other hand it isn't so nice that I panic every time the dogs jump in with muddy paws or if a kid spills a drink. BTW, I bought it in 2006 with 114,000 miles and excluding gas and oil, I've put less than $500 into it - and $300 of that was tires.

^^ Yeah, that's the way to go.  LOL about muddy dogs.  We are the same way.  My friend is obsessed with cars and she gave us a set of used tires for our old Blazer and was shocked when I tossed them onto the backseat of our car.  There was already dog paw prints everywhere and bike chain grease smeared on the seat, hehe.  I've since detailed the inside of the car (myself) and my new seat protector arrives today... 

jjsmom06

Hell.. Billy the jerk has never even owned a new car and he is a very old man.   

That's not QUITE true, Shel.  Well, the old part is true, SA, but I have owned a couple of new cars.  However, at some point, I realized that buying new just NEVER makes financial sense.  NEVER.