Car loan questions

[cjv998]

Hi everyone. So here's the situation: I finally graduated college, moved to CA, and got a good job. I want a newer car, since I can finally afford payments on one. (I'm looking at a '99-'00 Miata, which would be roughly $7-9k).

I've started to look for loans, and I filled out an online pre-qualification form on Bank of America's site, which turned me down, and said I'll get a letter with details in the mail within 30 days (I think I was turned down because I didn't realize co-applicant meant co-signer...more on that in a bit).

Thing is, I'd rather not wait that long to find out what's going on. My car failed CA smog tests (failed the EGR functional part, but passed the visual part; I don't know if it needs a new EGR valve, or if the ports are clogged with carbon build-up). I have 60-day temp tags for it, and I wanted to get a new car before those expire, so I don't have to mess with fixing the accord and paying for another smog test.

One thing I noticed, is the co-application field that was on Bank of America's form. I assume I was supposed to enter a co-signer there? (I know I'll need my dad to co-sign, since I have virtually no credit history.) I'm betting this is where I screwed up, and why I got turned down.

One more question: Should I get a loan through the bank, or are credit unions better places to go for this sort of thing? (I compared interest rates, but those were for people with excellent credit, which I don't have.)

Any other info about car loans that I may have missed is greatly appreciated as well. Thanks everyone!

[lil_dcb7]

Hi everyone. So here's the situation: I finally graduated college, moved to CA, and got a good job. I want a newer car, since I can finally afford payments on one. (I'm looking at a '99-'00 Miata, which would be roughly $7-9k).

I've started to look for loans, and I filled out an online pre-qualification form on Bank of America's site, which turned me down, and said I'll get a letter with details in the mail within 30 days (I think I was turned down because I didn't realize co-applicant meant co-signer...more on that in a bit).

Thing is, I'd rather not wait that long to find out what's going on. My car failed CA smog tests (failed the EGR functional part, but passed the visual part; I don't know if it needs a new EGR valve, or if the ports are clogged with carbon build-up). I have 60-day temp tags for it, and I wanted to get a new car before those expire, so I don't have to mess with fixing the accord and paying for another smog test.

One thing I noticed, is the co-application field that was on Bank of America's form. I assume I was supposed to enter a co-signer there? (I know I'll need my dad to co-sign, since I have virtually no credit history.) I'm betting this is where I screwed up, and why I got turned down.

One more question: Should I get a loan through the bank, or are credit unions better places to go for this sort of thing? (I compared interest rates, but those were for people with excellent credit, which I don't have.)

Any other info about car loans that I may have missed is greatly appreciated as well. Thanks everyone!

If you have NO credit history, you're not getting a loan, pretty much. YOU NEED a co-signer if you have virtually no credit(or a short credit history)

Honestly though, when you do get a co-signer, get it through a credit union. They are BEST for all kinds of loans.

[mak]

On that note; go to www.freecreditreport.com and check your credit history.. you may have more credit than you think. Ever had a cell phone in your name, or a credit card? Those file a lot of reports on your credit, monthly in some cases.

As said above, Credit Unions are great for car loans.. in some cases, they can even search inventory at local dealerships and help get you the loan you need without running around town for all of the paperwork.

-mak

[lil_dcb7]

On that note; go to www.freecreditreport.com and check your credit history.. you may have more credit than you think. Ever had a cell phone in your name, or a credit card? Those file a lot of reports on your credit, monthly in some cases.

As said above, Credit Unions are great for car loans.. in some cases, they can even search inventory at local dealerships and help get you the loan you need without running around town for all of the paperwork.

-mak

yep. Credit unions are wonderful.

He may have more credit than he thinks, but just one cell phone and credit car in his name may not be enough to establish enough credit for a 8-9K loan. I'm almost certain that he will need a cosigner.

and what ever you do bro, dont fall for that "we'll approve any body! Bad Credit, no credit ok!" shit. THE LAST thing you need with a very young credit history is to get caught up with in house dealer financing.

[new_beginnings]

CU is really the only way to go. For all your financial needs.

Trev.

[Fake Thug]

www.annualcreditreport.com is another good site to check your credit. its actually free,no catches.

[lil_dcb7]

www.annualcreditreport.com is another good site to check your credit. its actually free,no catches.

But its only once a year

[SteveB]

"we'll approve any body! Bad Credit, no credit ok!" shit. THE LAST thing you need with a very young credit history is to get caught up with in house dealer financing.

You forgot to detail why.

[judonoh]

I got a better %rate though the dealer. The banks want around 10-12%, the CU's were at 8-9%, and the dealer was 6.25%. Those "Buy Here, Pay Here" are a ripoff usually. Generally the down payment at one is the amount they have invested in it. The rest it profit.
Figure out what you can realisticly afford to spend and don't let the payment be higher than that.

[SteveB]

Those "Buy Here, Pay Here" are a ripoff usually. Generally the down payment at one is the amount they have invested in it. The rest it profit.

I haven't found that to be true. Yes, the down payment will be hefty, but only because of his credit.

[cjv998]

What are these "Buy here, pay here" places? Do you mean financing through the dealerships? If so, I was going to try and avoid using those; it seems like that's just one more negotiating chip you give the dealer.

My dad will co-sign for me, and he has good credit. I'm not sure how that affects my deposit or interest rate though.

[judonoh]

I am talking about the none chain stores. The one that have around 50 cars or less. I have dealt with quit a few of them and they all have been shady. Some would repo the car if the check was 1 day late (even the 1st time) and others will let you finance repairs but they have the shop use cheap part and up the charges. Just sharing some of the experiances I have had with them.