No Credit auto financing?
Ok, I’m 19 years old, live with my family, have an active checking and savings account. I work as a General Manager at LP Cleaning Service and make $3,500.00 per month before taxes.
Heres the trouble though, I have no credit history and no co-signer. I’m wanting to get approaved for the 2008 Mitsubishi Lancer (total loan needed $18,000).
I found this place online (www.fundingway.com) that says as long as I make $1,500 a month, im at least 18 and have not filled bankrupsy that I qualify for an auto loan. When I filled out there “loan calculator“, it told me I qualified for $20,000 in financing.
Should I even bother filling out the application? do you think I would be approaved?
I only have maybe $500 at most for a down-payment, which may pose a problem.
Thanks!
Not knowing about this site in particular. They will probably want at least a 10% down payment, which would be 1,800 on your 18,000 car. You are making probably 2,500 a month after taxes with what appears to be no expenses. So If you only have $500(at most?) that is under 3% and even people with OK credit would have a problem having a down payment this low.
Assuming you get an interest rate of 15%(as a first time buyer it might be different) you would be paying about $420 a month for 5 years. This does not include insurance(which on that car for your age will be high). If you can’t get a cosigner you might want to think about getting a good used car. The big problem with “new” cars is as soon as you drive them off of the lot they loose a large percentage of their value. You might be in a better situation to get a 2005 or 2006 model for several thousand dollars less. Since it would be less, the down payment required would also be less and might get closer to your price range.
But if you do apply for any loans make sure they are not asking for any “Fees” up front to guarantee the loan. Any site that does is a fraud and if you send them the money you will never see any loan from them.
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