Need A Loan /w Obstacles

[Gowdi]

Hello Zilvia,

I'm in the process of trying to get a Kouki s14. I've been looking around getting my price range and what not. I'm in the process of trying to get a 6500 loan from somewhere so I can buy one of these Koukis on here. Here's my issue though, I have no idea where to go or what to do. I drive around my moms 2010 c300 auto 4matic mercedies so my dad feels that, "You don't need a car son." He's right until I go side by side with someone who has a smirk and runs the mercedies. Aside from that, all my buddies are big into cars and well, I want to be. So, with that being said, I need a vehicle.

6500 is what I need, here are my issues tho:

-I'm a college student who's taking out student loans. (This is my first year, if that matters)

-I calculated my gross monthly income= $866.66

-I have no mortgage to pay, I live with my parents.

-I have zero bills to pay.

-I have no credit, from what my dad says, not bad credit.

Help me out please. Would love to get this going so I can prove these people wrong and be happy with a vehicle. What'll be my best bet?

[S14DB]

Go to a credit union.

[gist864]

what he said ^^^

[Gowdi]

Go to a credit union.

Is it going to lower my credit score if I apply for a loan there? My dad keeps bringing up that if I apply and see what I can get, it lowers it. If I do end up going to them, What should I say to be more accepted to receiving the loan. Thanks guys, it really means a lot.

[sidewaysil80]

Is it going to lower my credit score if I apply for a loan there? My dad keeps bringing up that if I apply and see what I can get, it lowers it. If I do end up going to them, What should I say to be more accepted to receiving the loan. Thanks guys, it really means a lot.

He is trying to dissuade you. Yes, it does technically lower your score...its a very insignificant amount. Research a lot of banks/credit unions in your area. Find out their rates (if they even cover older cars like 240's), narrow it down to a couple places that have the best rates and apply one at a time till you get it.

Inquiries will hurt if a lot are done with out an actual loan taken out. And "hurt" is relative to your credit score.

[Gowdi]

He is trying to dissuade you. Yes, it does technically lower your score...its a very insignificant amount. Research a lot of banks/credit unions in your area. Find out their rates (if they even cover older cars like 240's), narrow it down to a couple places that have the best rates and apply one at a time till you get it.

Inquiries will hurt if a lot are done with out an actual loan taken out. And "hurt" is relative to your credit score.

Perfect, exactly what I needed to hear. Thanks for your time. Dad talked me into my best bet being to get a credit card, start using it for a few months, then when I have some credit, apply. He was just being one sided about this whole situation because he wants to co-sign with me and get me going on real estate, not that I don't want to, but I want a car and I could hold off of the real estate for now. Again, thanks again guys.

[Infamax]

You'll have to get a personal loan, a 240sx is too old to qualify for a auto loan in most cases.

It's more difficult getting a personal loan because they are unsecured; meaning that there is no collateral for the loan. Whereas, a auto loan uses the car as a sort of collateral, a personal loan is only secured by your credit worthiness.

Every hard inquiry to your credit report is reflected negatively. Each time your credit is ran for a loan it's considered as a hard inquiry. Hard inquiries last about 2 years on your credit score, usually having a high amount of hard inquiries will significantly lower your credit score. Someone with an established credit history may not necessarily be affected by a single hard inquiry though.

IMO, having no credit history is worse than having a bad credit score. I would suggest going to your local credit union or a bank and opening up an account and apply for their credit card.

If you want to get a loan, you are going to need to get a co-signer. You'll also have to take into account the monthly payment for the loan, insurance for the car, fuel and maintenance; $870 a month would be cutting it close and would leave you with out much breathing room.

[Gowdi]

I would suggest going to your local credit union or a bank and opening up an account and apply for their credit card.

Exactly what I'm going to do. Thanks for your time buddy.

[FRpilot]

It is going to be tough to get an auto loan on a 15+ year old car from a bank. Most of the time, it has to be 6 or 7 years old because the value of the car is not worth it to the bank.

You might be able to get a personal loan from the bank. If all else fails, you can try to find a dealership that has a car you want and will finance you or you can just save up and wait.

EDIT. some guys beat me to it.

[tiggertsi]

try to find a good credit union. i have been with the same credit union since 1998 and will never use a bank again, ever, period, even at gun point. banks are evil.
also if there is any way that you can i would stay away from any credit card. since you have no bills and already have a car bust your ass and save as much as you can, it would be alot better than paying interest on a credit card or from a loan. tho even if you could save half to 3/4 of what you need i'd try to get a personal loan from a credit union. and finally going into debt to try to prove anyone wrong in my humble opinion is very shaky ground to be on. the best situation you can ever be in financially is debt free. if you are already there try to stay there and make your goals by saving your money. you'll be much better in the long run, tho it may also take you longer to get the things you want. but it will be so much more worth it. i say this because i have learned this lesson the hard way and am grateful that i at least learned the lesson, while others continue to drown or just scrape by; jailed and chained to their debt/credit.

by the way here are some rather amusing videos on why credit unions are better than banks, particularly if your credit union is a good one.
The Difference between Banks and Credit Unions: Part 1 http://www.youtube.com/watch?v=cawzTSVTP2M
The Difference between Banks and Credit Unions: Part 2 http://www.youtube.com/watch?v=-rEW6ff3Zao
The Difference between Banks and Credit Unions: Part 3 http://www.youtube.com/watch?v=RkQUVs-Kghg

[gbaby2089]

Question: Do you have a job? Once you get a loan, you need to be able to repay it...

[jorge1190]

The interest rates on personal loans, specially with no credit tend to be very high. Keep working and save up for the car. What happens if you stop working because of class and you can't repay it?

[zurud]

Just borrow the money from your parent.

[xoxide]

While I can understand why you want a Kouki, they are the most expensive 240 to buy for the most part...


Why not just start out with an S13, learn about the chassis, learn about modifying cars, and they are FAR cheaper. Anywhere from 5-2500 for a running stock s13.

Then you wouldnt be taking out a loan, you wouldnt be in debt, and you wouldnt have to worry about making ends meet.

[dudermagee]

Finish school, pay off your loans, get a house, then get a cool car not a 240sx.

[240Cali]

I'm gonna be the one to tell ya.. DO NOT get a loan to buy an S14.. you cannot imagine the money it requires.. the little parts that go out..tires..any S chassis will take your hole checks until its reliable.. all kinds of shit goes wrong man at one point or another and with your $200 a week that would be a horrible idea.. you want to have money to put into it when you have it..not make payments for the purchase of a 95-98 car that will still need money to be thrown at it, we've all been there man! and can't blame you for wanting this car because I remember buying my first as well.. but you need to be prepared for $$$ or you'll end up ditching it like 75% of people in here, keep driving around mom's Mercedes save up $4500 buy a reliable zenki, build it in time, good luck

[t_rempel]

Sorry to break it to you, but you can't afford a $6500 loan You're 18, making $850 a month and paying for college with loans. Just because somebody will lend you money, doesn't mean you can afford it. If that was the case, people wouldn't be up to their necks in credit card debt and car payments. Unless you want to be one of those people, you should be putting every extra dollar you have into savings to pay for school, or a car when you require one out of necessity.

You're young, and what you do with your money now can affect you for a long time. One of the smartest things you can do is avoid debt like it's a plague.

With that said, you should get a credit card with as low a limit as possible so that you can build your credit. As said earlier, no credit is just as bad, or worse, than bad credit. The easiest and safest way to build your credit is to make one or two small purchases each month on the card and pay the bill in full each month. As an added bonus, you'll be able to shop online too.

Since you have no credit, you'd pay a higher interest rate on a car/ personal loan because you will be considered high risk. Not worth it yet.

For example, a 3yr $6500 loan @ 7% will cost you $200 each month. By the time the loan is payed off, you'll have spent 725 on interest alone.

Edit: Didn't realize that this thread was just bumped today, but I hope you didn't go further into debt just to fit in or "prove these people wrong"

[Gowdi]

Haha yeah I see it, and I'm reading it. I do appreciate what you've said and I'm so glad I didn't rush into it. I'm just waiting on a decent looking s13 in my area where I'll learn to tune and work on cars all together. Would suck if I bought a nice as car, like you guys have mentioned earlier, and something gets messed up, and I'll have to watch it in my driveway. Haha but really, I do appreciate it.

[ATLspeed]

Do a personal loan. But it's not worth it with a 240sx. Save your money and BANK!! I took out a personal 10k personal loan (had a 3k loan before for school expenses, it was paid off for years so i raised another 7k) to help with moving expenses and build my 2jz.

I started with no credit before but it's getting better.

[jamg]

a personal loan for a car that should be paid for in cash is stupid.

to add, school loans, and being a student.

if you net close to 800 bucks a month, you can use that money to make yourself more.

[!Zar!]

Go with a credit Union for sure. Also keep in mind:

1) You have no credit history.

2) You will have to take a personal loan out. So interest rates are higher.

3) Since the banks can not put a lean on the car nor know how you will handle your newfound debt, they will require you to have a cosigner.


Do you have a real job?

[Driftwurks]

a personal loan for a car that should be paid for in cash is stupid.

to add, school loans, and being a student.

if you net close to 800 bucks a month, you can use that money to make yourself more.

This. Also, I would highly suggest enjoying and taking advantage of having the luxury of being able to drive a nearly new Mercedes. Save your money and put it towards paying back school loans or a down payment on a house.

[!Zar!]

The OP has no credit history.

He won't be able to buy a house without a credit score high enough.

He needs to have a credit card and a loan to build credit history.

$6500 isn't a lot of money. He could easily pay that back.

[gbaby2089]

Even with a car that could be used as collateral/have a lien on it, with zero credit history, he'd probably still need a cosigner.

[FaLKoN240]

Aim lower. Buy a car outright, not with credit, and not with interest. If you look hard enough you can find a car for under 1k that you can start off with.

Taking a loan out for a car you can't afford in the first place is a bad idea. You'll be spending a majority of your money on other responsibilities, and unable to spend it on the car as I presume you want to.

[silverarrow27]

Drop out of school and get a full time job and then buy your kouki.

[5280VertDET]

Do not go into debt for a quickly depreciating asset. Save, buy a s13 that's half the price. There are plenty of clean cars for sale on here. Save, buy, have. Debt/interest is evil! C.R.E.A.M. not D.R.E.A.M!

$6500 over 60 months (5 years) is about $150 a month. But, with no credit, and estimating a 8% interest rate you would be paying almost an additional $1200, or 8 months or payments of interest only. (13% is more likely and that's almost $3000 interest!) Also, you are have a car that is depreciating over 5 years as well, so you are paying for less (albeit all cars loans have this problem) of the initial loan amount.


Source: $8K of credit card debt from 18-25. $4k for my DET P10. Finally down to $1500.

[EvilRB]

You do realize that if you saved $500 for a year you wouldn't need a loan right?...

[Gowdi]

Drop out of school and get a full time job and then buy your kouki.

Sounds good to me! haha

[Mikester]

Listen, Kid... I totally appreciate your wants here... I had to tell my 19yr old son the same thing I'm about to tell you:

Keep the car Mom gave you & save up for something you can buy with cash if you want to drift. It's an EXPENSIVE hobby... When I say expensive, I mean $800 a month is not near enough to support it with school, auto maintenance, & whatever other things you're wanting to do in between. Jesus- Insurance alone (you have to have full coverage on a financed car) will run you $150-200 a month at your age... maybe $90-100 if you get onto Mom & dad's policy.

As far as your credit score goes... You don't NEED loans & credit cards to build credit... and don't listen to any of these fuckers trying to tell you otherwise... Most of the time, all things like personal loans & credit cards do is get kids into trouble (I was a kid once too)... The #1 BEST THING YOU CAN DO is pay your bills on time, keep regular income and don't bounce checks or overdraw your checking account(s)... Do these things and creditors will come to you offering up all kinds of deals soon enough.

Here is another tidbit: I make substantially more than you... Even so... If I were going to get into drifting, I would spend about $2-3K on a ratty SR-swapped S13 and never look back... I'd get that sexy Kouki 14 when I was a seasoned driver with better income & much less chance of hitting/breaking shit. However- driving hard = shit breaks... Fixing shit means $$$ needed...

Nothing wrong with wanting one, kid... but there is a lot of things you probably don't see coming that will inevitably come with a $6500 dorifto purchase on your income.

Regardless, best of luck to you...

Mike

[heychris]

^^^^^^Sage advice from another ol guy. I couldn't have been said it better.



Ch

Sent using XT912 M

[laurentj23]

If you have questions abt it, dont buy it. Nothing wrong with droving your mom's car. The reason why you want the car is just to feed your ego. Is it worth it? A year later after being in debt and broke and bored with the car, you will be looking back and wonder why i do not listen.

[Black R]

IMO, start tucking your income into that credit union - build up a decent amount of money there - maybe a couple thousand.

And then buy a cheap s13 wannabe missile.

You could get a loan from the credit union bc you're now a member.

And it could be secured by the cash in your account.

And you could pay it back and build a good credit history.

[fliprayzin240sx]

One thing I havent seen brought up is this, would back even give you a $6500 loan on a car that's worth $3000 in their eyes? You barely have credit to get a car loan, what makes you think they'd give you a collateral free/personal loan?

Also, $800 a month, between car payment, insurance and gas, you think you'd have any extra money to do anything else? Keep the car that your parents is letting you use, you dont have to pay for it, save your money and buy one when you got money saved up.

[Silverbullet]

My advice is the same as everyone one else who is trying to sway you from getting the loan on the S14.

I understand that this is utimately your choice and if you want a 240sx, you will get one- but I will lay this peice of information out there just so that you can see the other options available.

Although that $6.5k loan is not that much on the long run for a car, with your limited financial resources, it can be spent better elsewhere.

6.5k will pay for your living expenses for a year at a university. If you're living at home, this will pay for a large portion of your tuition.

Now, imagine you made a $6500 investment instead of debt. Lets assume there is a just a real modest 5% intrest in return, and you add just a mere $200 monthly to this investment. By the end of the 5 years you'll be in college, it will be a net worth of over $21,000 by the power of compounding interest.

Imagine that being a debt. They work the same just, just in opposite direction.




Like i said before, ultimately you will get a 240 if you want one. Keeping what i provided above in mind and still wanting a 240, a more financially smart choice would be to save up the money to buy a 240 outright, and not have to take a personal loan on one.

Good luck on your buying decision!

[sleepyS14se]

Listen, Kid... I totally appreciate your wants here... I had to tell my 19yr old son the same thing I'm about to tell you:

Keep the car Mom gave you & save up for something you can buy with cash if you want to drift. It's an EXPENSIVE hobby... When I say expensive, I mean $800 a month is not near enough to support it with school, auto maintenance, & whatever other things you're wanting to do in between. Jesus- Insurance alone (you have to have full coverage on a financed car) will run you $150-200 a month at your age... maybe $90-100 if you get onto Mom & dad's policy.

As far as your credit score goes... You don't NEED loans & credit cards to build credit... and don't listen to any of these fuckers trying to tell you otherwise... Most of the time, all things like personal loans & credit cards do is get kids into trouble (I was a kid once too)... The #1 BEST THING YOU CAN DO is pay your bills on time, keep regular income and don't bounce checks or overdraw your checking account(s)... Do these things and creditors will come to you offering up all kinds of deals soon enough.

Here is another tidbit: I make substantially more than you... Even so... If I were going to get into drifting, I would spend about $2-3K on a ratty SR-swapped S13 and never look back... I'd get that sexy Kouki 14 when I was a seasoned driver with better income & much less chance of hitting/breaking shit. However- driving hard = shit breaks... Fixing shit means $$$ needed...

Nothing wrong with wanting one, kid... but there is a lot of things you probably don't see coming that will inevitably come with a $6500 dorifto purchase on your income.

Regardless, best of luck to you...

Mike

thats a very mature way of looking at it.

you hit the nail on the head with that one mike.:bowdown:

[tqstarburst]

What do you want the car for? Are you going to build it, daily, modify or keep it stock? If you've gotten school loans and have left over save that up and buy the car. But make sure you can get a subsidized loan (government pays interest while you're in school) and you should be good... If that doesn't happen then get an unsecured personal loan ( I work for wells fargo). You can get them at various different interest rates depending where you go (8-12 %).. But I advise you to go to your local credit union, not chase, wells fargo, bank of America and so on.



You should be good, it's all on how you manage your money.

[t_rempel]

Threads like this make me wish the reputation system was still around. There's some great advice here.

[sleepyS14se]

mikester is like the senior citizen of zilvia (no offense mike)

he has all the best comments and advice.

[Moncef]

lol. You want a loan for a 240?

Most banks will not amortize a loan longer than 36 months on a car of that age, which means that even if you get lucky and get a decent interest rate, the length of the term will mean your car payments are higher.

Your monthly income isn't enough. Car note + insurance will suck up a good chunk of that, plus you're going to still be driving a stock 240, which will just make you hate life.

Get money, deal with the car later.