buying a car after college

[Ron_B]

Recently a friend of mine when to buy a new truck. He graduated about 2 years ago and and worked full time during school and for the last 2 years good enough money for a single person. He filled out the credit info and they told him he had a good credit score, but do to his student loans they could not approve him for the truck loan.(loans were for 4 years at a university, so quite a bit but not a crazy amount). keep in mind the final price on the truck was going to be about 25k + TT&L

i should add he makes more than enough to live on his own and pay all untilities, but doesnt currently have a car payment

Does anyone have any experience with this?

share your experiences buying a car after college

 

[black92]

My guess is his income to debt ratio is preventing him from qualifying.

 

[11GT50]

I bought an '07 GT new before I graduated and without a cosigner. I also worked two jobs and put down $5kish.

My guess is his income to debt ratio is preventing him from qualifying.

That's exactly what it sounds like.

 

[Rct851]

Income to debt fo sho

 

[10splaya22]

My credit score is about 730 due to my short credit history and just financed a Tacoma with 0 down from Penfed at 1.99% for 27k. I have some college loans but paid about 40 percent off and will pay the rest of before Nov. I found the process to be very easy and I think I got approved because I have very little expenses compared to my income.

 

[RocketSurgeon]

Graduated May 16 this year, bought my Boss on May 24. $9k down, rest at 3% for 48 but I've been making double payments so far. I had no real work history since I always sub'd construction work, but I have excellent credit and my dad put me through school so I had no debt. Brought my signed offer letter from my employer with my salary on it so no cosigner was needed.

 

[motoman991]

Why would he want to dig himself into more debt?

 

[70Maverick]

Why would he want to dig himself into more debt?

Hello, I'm the past 25 years of the world, have we met?

WTF???????

:dw: :dw: Guessing you do a lot of herbal remedies. That has been the way of the youngster for well over 2 decades now. This is not new. I would also suggest you do some reading about 2005-2008 and people borrowing far more than they could afford to repay and then blaming the banks for loaning them the money when the BANKS should have known they had no chance of getting repaid. Hilarious. It's even more funny to listen to them live arguing that it was the bank who tempted them sign the bottom of a hopeless mortgage. Not their responsibility to actually read the document.:nonono:

Hey it's not like you actually have to pay it back? It's just a loan. You aren't really spending any of YOUR money.

 

[Ron_B]

Why would he want to dig himself into more debt?

yea because you are not supposed to have more than 1 line of credit open at a time. :rollseyes

 

[Superhawk2002]

Is it a new truck (or at least an 09+)?

Several banks will not loan on older vehicles without ridiculous interest rates.

 

[lowflyn]

...I never understood college loans. Bought my Cobra Dec after graduation that May. Had no issues, then again I had no debt. Paid it off in 11 months.

 

[Fuerza]

yea because you are not supposed to have more than 1 line of credit open at a time. :rollseyes

Apparently the bank that was going to give out the loan agrees.

 

[Camaro_94]

His income to debt ratio isn't enough or they were pulling his leg about his credit score being good.

I had a loan on a car while I was in college. It wasnt a new car though.

 

[leo2hot4tv]

Even if your credit is good and you have a good income to debt ratio, if you don't have any major credit history(car, home loan, etc) a lot of places will be wary of you. This happened to me with the loan on the L. I had almost no debt, really good debt to income(good enough to buy a house later), yet no loan w/o a cosigner. I finally got someone to take the plunge though.

 

[BlackOutUT]

I would check elsewhere for a loan. When I went to buy my truck, the best ford could do was over 10% (mind you this was with a cosigner too). Ended up going through Capital one at 1.98%.

 

[starnsey]

Graduated May 16 this year, bought my Boss on May 24. $9k down, rest at 3% for 48 but I've been making double payments so far. I had no real work history since I always sub'd construction work, but I have excellent credit and my dad put me through school so I had no debt. Brought my signed offer letter from my employer with my salary on it so no cosigner was needed.

Damn you got a Boss right out of college? You in the oil industry?

 

[Drilldo]

I know this is a car forum and we are car nuts but it is crazy to take on that much debt for a vehicle.

It has been my experience throughout life that banks will approve you for far more than is wise to spend on things like houses, cars, etc. We bought a house that was about 1/4 of what they approved us for and we own the house it doesn't own us.

If your credit score is good and the bank is saying no then probably you can't afford it. Banks make their money making loans and they are foaming at the mouth to make loans so if they are saying no it is for good reason either you have bad credit or too much debt already and will have difficulty paying.

I have had plenty of vehicle loans in the past but I don't borrow money anymore and my life is so much better.

I would not spend 25k on a vehicle unless you making over 100k a year but that's just me. Hell we paid over 100k last year in taxes and neither my nor my wife's cars cost over 25k.

 

[mkb116]

I know this is a car forum and we are car nuts but it is crazy to take on that much debt for a vehicle.

It has been my experience throughout life that banks will approve you for far more than is wise to spend on things like houses, cars, etc. We bought a house that was about 1/4 of what they approved us for and we own the house it doesn't own us.

If your credit score is good and the bank is saying no then probably you can't afford it. Banks make their money making loans and they are foaming at the mouth to make loans so if they are saying no it is for good reason either you have bad credit or too much debt already and will have difficulty paying.

I have had plenty of vehicle loans in the past but I don't borrow money anymore and my life is so much better.

I would not spend 25k on a vehicle unless you making over 100k a year but that's just me. Hell we paid over 100k last year in taxes and neither my nor my wife's cars cost over 25k.

+1 I make over 100k a year and buy cars that are 5-10 years old. I have 3 nice cars, a nice street bike, a dirt bike, and I own my house. And almost no debt. Nice, but not new.

Live below your means!

 

[RocketSurgeon]

Damn you got a Boss right out of college? You in the oil industry?

Yep.

 

[13COBRA]

The dealer he went to didn't want to try very hard to get him financed.

He would've walked out with a truck if he came and talked to me.

His student loans shouldn't really go against him; the lender just needs to be aware of them as an investment in his financial future blah blah blah. He would get approved.

Not to mention as a first time buyer and a college graduate he qualifies for a tier bump. If he's interested, let me know and I can see what I can do.