Financial Question

[Cory Wolfe]

Do you think working an average of 28 hours a week at minimum wage would be enough to be able to pay off a $3-$5k loan with a clean, blank slate of credit? I'm curious about it since I'm serious about wanting to buy another car, a nice(er) one. Having never dealt with loans or such, I'm not sure what to expect.

[ocnblu]

I'd recommend a Civic, an early-90's, non-riced one (riced ones I'd be worried about because you know they've been run hard and possibly modified stupidly, compromising the car's innate reliability).

Stace, or someone else with automotive financing experience may be able to answer your question.

Or you could call your or your parents' bank to see if you could qualify. I'd do that before I go with financing from a used car dealership. They will probably ask you how long you've been working and what your wages are. It would probably be best to secure a loan first and figure out the payments before you select a car. Does that make sense? That way you'd know if you could swing it beforehand.

Edited November 24, 2007 by ocnblu

[Drew Dowdell]

You might be able to join a local credit union. There are two credit unions available just based on where I live. This one is available to anyone living in Jefferson or Clearfield counties. which means you're eligible. It's probably your best bet as far as getting approved and getting the lowest rate possible. I don't see the minimums for joining, but with my credit union they required a $50 deposit to join which was then placed in my savings account. If you get direct deposit, you can get their debit card and then have the payment deducted straight from your account twice a month or whatever payment plan you want. Credit Unions are waaaay better than banks because they are not for profit and don't gouge you with tons of fees. They also tend to be more flexible. Your loan will be decided by a real person rather than a computer.

[CMG]

Financial questions can be answered in more ways than one IMO. I don't think you are "stuck" with 28hour minimum wage jobs alone....

What about taking that job, and trying ebaying something you are knowledgable about? Or a local Craigslist, buy and sell stuff for a profit?

Try your hand at greedy entrepreneurship !

[Camino LS6]

And sell the cars you don't want to keep.

[Cory Wolfe]

You might be able to join a local credit union. There are two credit unions available just based on where I live. This one is available to anyone living in Jefferson or Clearfield counties. which means you're eligible. It's probably your best bet as far as getting approved and getting the lowest rate possible. I don't see the minimums for joining, but with my credit union they required a $50 deposit to join which was then placed in my savings account. If you get direct deposit, you can get their debit card and then have the payment deducted straight from your account twice a month or whatever payment plan you want. Credit Unions are waaaay better than banks because they are not for profit and don't gouge you with tons of fees. They also tend to be more flexible. Your loan will be decided by a real person rather than a computer.

I'll have to look into it.

Financial questions can be answered in more ways than one IMO. I don't think you are "stuck" with 28hour minimum wage jobs alone....

What about taking that job, and trying ebaying something you are knowledgable about? Or a local Craigslist, buy and sell stuff for a profit?

Try your hand at greedy entrepreneurship !

I'd like to. I have about 30 1:18 scale diecast cars I'm trying to sell. Posted a thread here, told my friends, and put a listing in a local Craigslist like place... No hits, yet. I'd try Ebay if I had a credit/debit card, which I found is required when I tried to join earlier.

And sell the cars you don't want to keep.

That, too. As I said in the other thread, I'd like to fix my Millenia up just enough to sell it at a reasonable price.

[DetroitNut90]

I don't really know much about loans (except for variable rate ones seem to be a very bad idea right now), but from this point on, any penny you make/find/receive should be put into a bank account and not touched. I always made sure I had a couple of dollars in my wallet, but I put every paycheck I earned right into my bank account for the sole purpose of using it to buy a car, or if an emergency arose. It worked well for me, seeing as how I bought my first car on Friday with that money. Just my :twocents:.

Good luck!

[Cory Wolfe]

The above is my biggest problem. I couldn't save money if my life depended on it. I spend, spend, and spend. Mostly on things that are useful, but they're not always direly needed.

Edited November 25, 2007 by blackviper8891

[Intrepidation]

Quick question, why not try taking out a smaller loan just to fix the Millenia and put new tires on it, as opposed to spending more on a new car? As I recall, it was reliable otherwise.

[crash]

You can try capital one auto finance, i got a loan from them for 16000 with a 6.25% apr I pay $290 a month for 5 years, i think its pretty good considering am only 19 i got my dad as co-signer tho.and the cool part is that if lets just say i have enough money to pay off my loan right now i could and i wouldnt have to pay financing.

[Oracle of Delphi]

I wasn't going to comment on this thread, but I feel something needs to be said that hasn't.

Don't you think you'll see the following words when you apply for a loan? "No Credit History. Application denied!"

Unless banking rules have gotten very lax, I think the above is a real possibility. It's very hard to get a loan of any kind without a Credit History. No history, no loan, no loan, no history.

It's a catch 22 that banks love to put young people through. I suggest trying to apply for an oil company's gas credit card and see if they will issue you a card, if they do, pay it off on time and never be late with a payment, just remember it will take time to establish your credit history.

[Sixty8panther]

That's a loaded question.

How are the rest of your finances? How much do you take home after taxes & how much of your income is expendable?

Do you pay rent to your parents?

[Cory Wolfe]

I wasn't going to comment on this thread, but I feel something needs to be said that hasn't.

Don't you think you'll see the following words when you apply for a loan? "No Credit History. Application denied!"

Unless banking rules have gotten very lax, I think the above is a real possibility. It's very hard to get a loan of any kind without a Credit History. No history, no loan, no loan, no history.

It's a catch 22 that banks love to put young people through. I suggest trying to apply for an oil company's gas credit card and see if they will issue you a card, if they do, pay it off on time and never be late with a payment, just remember it will take time to establish your credit history.

Of course. Everyone has to start somewhere.

That's a loaded question.

How are the rest of your finances? How much do you take home after taxes & how much of your income is expendable?

Do you pay rent to your parents?

Besides taxes, the only thing that isn't expendable is what goes towards gas, which is quite a bit when getting the gas mileage of a Hummer. That could be solved by getting a vehicle that gets triple the mileage, an easy task.

[Camino LS6]

I'd say giving the Mazda what it needs and unloading it would be a good choice. Then keep the Cutlass going as best you can for a while as you save some cash. Combine that with a loan in say, 6 months, and you should be able to get something pretty nice.

[pow]

I don't really know much about loans (except for variable rate ones seem to be a very bad idea right now), but from this point on, any penny you make/find/receive should be put into a bank account and not touched. I always made sure I had a couple of dollars in my wallet, but I put every paycheck I earned right into my bank account for the sole purpose of using it to buy a car, or if an emergency arose. It worked well for me, seeing as how I bought my first car on Friday with that money. Just my :twocents:.

Good luck!

Agreed. Citibank Ultimate Money Account. Takes 3 minutes (online), 4.5% APY, reliable, and convenient.

I was lazy for over a year, getting a miserly 1% from an old Citibank (local) savings acct until I switched.

[bobo]

Can you get your parents to cosign? Looking back, I spent way too much money when I was 18-22, buying cars and stuff. It better to save, but it's easier said than done.

[Intrepidation]

I say the Millenia is the best choice to go, but good luck with whatever you end up doing.

[staceface]

How much is minimum wage in your state? And I disagree STRONGLY with Pontiac S's advice - seriously. We can PM on this one if you like, it IS personal.

[Intrepidation]

How much is minimum wage in your state? And I disagree STRONGLY with Pontiac S's advice - seriously. We can PM on this one if you like, it IS personal.

[BatmanGTO]

Ok dealing with loans and apps on a daily basis heres the deal

1. You will most likely need a co-signer

2. If in fact you get treated as a "first-time buyer" the car has to be below 90,000 miles and has to be newer than a 2000 at this point for the ease of financing.

3. A line of credit can include credit cards or anything you were a co-signer on.

Also just let me know I can give you the heads up on all of the major (and some of the minor) banks to let you know which ones you should be trying to get signed up with to get financed. And let me know if your PA or Jersey I can help you get a car (or at least point you in the right direction.

[CaddyXLR-V]

If anyone loans money to you, you will definately need a co-signer. If not be prepared to pay very high interest rates. Banks look at things based on risk. Having no credit history can be worse than having bad credit history.

You are definately better off saving for a while, and putting a good amount down.

[Cory Wolfe]

How much is minimum wage in your state? And I disagree STRONGLY with Pontiac S's advice - seriously. We can PM on this one if you like, it IS personal.

$7.25 before deductions. Sure, sending PMs is always fun.

Ok dealing with loans and apps on a daily basis heres the deal

1. You will most likely need a co-signer

2. If in fact you get treated as a "first-time buyer" the car has to be below 90,000 miles and has to be newer than a 2000 at this point for the ease of financing.

3. A line of credit can include credit cards or anything you were a co-signer on.

Also just let me know I can give you the heads up on all of the major (and some of the minor) banks to let you know which ones you should be trying to get signed up with to get financed. And let me know if your PA or Jersey I can help you get a car (or at least point you in the right direction.

Thanks.

[Sixty8panther]

The real world fuel economy of a Hummer H1 is like 5-6 not 10-12.

You were probably just exagerating for effect, but I thought I'd

throw that out there. Also, to TRIPPLE 10 and therefore get 30MPG

real world you better get a CRX or a Tercel and not f*** with any

perf. mods. or add any junk to them.

[Cory Wolfe]

It's not hard to achieve 30 mpg in a car that can realistically get 30 mpg. I came close to getting that in my Millenia a few times and its not exactly the most fuel efficient vehicle out there. Course, I generally got 20-25, but that was more related to driving style than anything. I'm certainly not driving the Cutlass anywhere near as lead-footed as I did with my Millenia, either.