Used car first time financing questions

[stangboy04]

Alright guys, I've been out of the car game for over a year after trading my SB 96 gt, and since then I've missed the car more than anything. That and not having a car now is kind of a pain in the ass. So with it being tax season, and being as I get a deposit back from my apartment, I'm looking to use it for a down payment on a used new edge gt, or a 4v car. My problem is.. No serious established credit history. I've always thought having no credit can't be as bad as having terrible credit, but seems to be the same.

Basically I'm looking for advice from fellow members who have been in this situation before, as this is a little nerve wracking for me as I've always bought my cars cash. Also hoping to get info to keep me from getting ass-punked by a dealer or bank after obtaining the vehicle or loan.

I have a small understanding of the interest rates, which is the main thing I've been looking at in my search for a car. I'm new to the car financing world so I honestly don't know where to start. All tips are appreciated guys, hopefully I'll be able to get back into another mustang! Thanks everyone!

 

[Chosyn1]

buy the car you need, not the car you want...establish your credit and finances then get exactly what you want.

 

[coposrv]

You could get a new edge GT for 6-7 k easily, same for an SN cobra or a new edge cobra for around 10. If you can't pay cash I bet someone would finance if you have 2-3 to put down.

 

[stangboy04]

Well, in my case a car isn't necessary, I take public transportation everywhere, it's just fine. I also live in a ski town in Colorado, so there's free busses around town and a county bus everywhere else. This is a want that I'm trying to Benifits from for the future. I'm just sick of buying 2500 Hondas and shit, and want to earn credit and get my dream car again.

I'm seeing new edges from anywhere from 5-9k at buy here pay here, and if I could I'd spring for a 05+ gt, as the prices are in the 10-14k range. My other options I'm considering is an 03-05 g35, they are in my price range as well, and I love the comfort of them. Basically my two choices are a newer mustang or a g35/350z.

 

[Asylum938]

Your right when you say no credit is as bad as bad credit

With that being said your best bet for a loan is going through a local credit union as they are more likely to finance older vehicles as well as knowing you personally.

However even then most banks have minimum standards you have to meet before they will consider you for a loan such as income proof of residence etc etc

Your best bet is to get a credit card even with a high interest rate which it will be and pay it off every month but use it as much as possible

If you do get approved expect a rate in the 8-10% range which on a few grand isn't much cash anyway so no big deal there

Just don't miss payments once you are established as it will affect you for up to 2 years for every missed/late pay

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[redrocket16]

Also apartments and bills in your name will help build credit as well. The credit card is a great idea as well just keep a small limit and pay it off each month. Put a good 2-3K down on a car and talk to a local credit union for a loan. Goodluck I was in this postion 3-4 years ago and did what I stated to get good credit to where I had a new car on credit now. Good luck!

 

[BlackOutUT]

If your looking for an 05+ GT, now is a great time to buy. Seems everyone is going after the 5.0s. My 06 is up for 13k and hasn't had many bites.

 

[RDJ]

Your best bet is to get a credit card even with a high interest rate which it will be and pay it off every month but use it as much as possible

Not the best way to do things. better idea is to get a secured credit card where you put money on it. less chance of getting yourself in serious trouble and a much lower interest rate.

Also apartments and bills in your name will help build credit as well. The credit card is a great idea as well just keep a small limit and pay it off each month. Put a good 2-3K down on a car and talk to a local credit union for a loan. Goodluck I was in this postion 3-4 years ago and did what I stated to get good credit to where I had a new car on credit now. Good luck!

not necessarily true. very few utilities report your payment history to the credit burerus so bills of this nature don't help your credit score. Apts don't report to the credit bureaus either unless you are substantially late in your payments or get evicted.

 

[xXGadfly09Xx]

Not the best way to do things. better idea is to get a secured credit card where you put money on it. less chance of getting yourself in serious trouble and a much lower interest rate.

not necessarily true. very few utilities report your payment history to the credit burerus so bills of this nature don't help your credit score. Apts don't report to the credit bureaus either unless you are substantially late in your payments or get evicted.

Ideally this will not come into play.

The interest on my CC is 22.74% but I have NEVER EVER paid a DIME in interest.

 

[RDJ]

Ideally this will not come into play.

The interest on my CC is 22.74% but I have NEVER EVER paid a DIME in interest.

that is fine for you. and "ideally" you are correct. but not everyone is you and some people should not tempt fate by depending on everything coming out "ideally".

a secured credit card avoids the potential of getting jacked up and having to pay that 22% interest rate because "ideally" didn't work out.

and LOL at a 22% rate on a card.

 

[AntiHeightPunk]

the problem with someone with no credit is you won't get a car with no money down and you need a car that books really well with a bank. No bank is going to give someone with bad credit a loan on a pre 2006 car. Someone with 800+ still has trouble on that old of a car.

 

[NC85]

No they don't.