How soon can i purchase a car?
so i basically have no money right now, but i really need a car asap. If i were to get a job (lets say i got one today) how long would it take to get a car that cost about $5000 used? would i need to pay the whole amount, or would i be able to take out a loan etc. would i need credit first? I really need to know, so thanks!
Answers & Comments
Verified answer
Auto finance is what I do for a living there are 10 things that go into making up a car deal weather it's a purchase or a lease and all can effect the interest rate.
1. Term of loan. Shorter the better.
2. Age of vehicle. Newer the better.
3. Miles on vehicle. Lower the better.
4. Amount to finance compared to book value. Lower the better.
5. Credit score. Higher the better.
6. Credit profile. Deeper the better.
7. Down payment. More the better.
8. Monthly income. Higher the better.
9. Time on job. Longer the better.
10. Time at residence. Longer the better.
As long as all of the above are in line with the lender guide lines and you make enough income to budget for the payment you should be approved. As you can see from the above list there are way to many things that go into making up a car deal to guess at your interest rate.
Your problems are your lack of income and the amount your looking to borrow. All major lenders have minimum income amounts that start around $1,400.00 a month and the minimum amount to finance is $7,500.00
As far as how long, lenders look for at least 12-months on the job.
Good luck.
You need to establish a credit history and have a credit score before you can get any type of loan. You also need to be 18 years old in order to sign any contract, or have a parent or guardian co-sign the contract to purchase with you. This would also apply to any possible loan you need before you've established any credit history. Your ability to repay any loan is what the lender is interested in. The worst thing you could do to ruin your credit history and score would be to default on any loan you get. Your interest rate for any future loan would be higher than normal. Just remember one thing about buying any car...the purchase price will be the cheapest part of the car. Insurance and upkeep are a huge part of vehicle ownership and putting gas in the car can really set you back! If you were to get that job today that paid fairly well, it would likely take you about a year to save up the $5,000. Here are some links that explain the best ways to build credit.
http://search.aol.com/aol/search?query=Best+ways+t...
Going by your example, as soon as you have $5000 + TT&L saved up.
Broke people don't get approved for loans.
Where i am from to get a loan i must have a job for at least 6 mounth at my last Job.