ok check this out, im 19, i have no credit. but my credit union has approved me for 30,000 dollars plus tt&l with a valid co-signer, thats cool.. so i go to find a co-signer my Aunt, My Dad, even my Girlfriend. Aunt=Denied, Dad=too many vehicles G/F= too new of credit...so i say hey my Grandpa will do it. He says he is gonna buy a new Truck so he doesn't want to screw it up for himself. Is there anything im Missing??? Do i have any other options, **** my Dad,Mom, Me maybe even my Dog will pay for this car, They just won't trust me to pay without a co-signer!!!!! Who else believes that Credit is FULL Of ****!!!!!! I need some major help???? any other options do i have before i lose my mind over a freaking Car!!!!!!!!!!!!!!!!!!!!!

 

Hi Zdawg,

First, it's only a car. It's a thing. It shouldn't be the end all, be all of your existance. There are way too many other things in your life that are a LOT more important so my first recommendation is to get your priorities straight.

Second, try to look at this from the creditors point of view. You're only 19 years old. Like it or not, that's still a kid in most folks view. Twenty years from now, you'll understand that. $30k is a LOT of money and while you might be the most responsible 19 year old in the world, "they" (the creditors) don't know that. You've got to PROVE it to them. That means establishing a "history" of manageing your finances in a responsible manner. You simply haven't lived long enough to do that yet! I totally understand your desire to own a car like the 350Z but, and I know you don't want to hear this, mayby you ought to consider setting your sights a little lower. You've got plenty of time in life and you need to establish your credit rating to the point that they won't require a co-sign.

A question comes to mind. Have you shopped around for insurance yet? I can't imagine what kind of premiums a 19 year old male is going to have to pay for a car like a 350Z!!! It wouldn't surprise me if your monthly insurance bill is at or greater than your car payment.

Good luck,
Steve R.

 

Good comments Intrepid. I agree and just wanted to add a couple of my own.

Credit agencies in this country seem to specialize in getting college age kids into debt as soon as they can. They will qualify you for way more money that you SHOULD ever borrow. Credit/Debt management is an important lesson that young adults your age aren't being taught early enough in my opinion. Something that you might consider is that if the creditor thought that you could really afford the car without any problems, then you wouldn't have to have a co-signer. I know that it's hard to be totally rational about something when you have a true passion for it, but just remember that getting into too much debt now can seriously impact your future.

My advice is to settle for something well within your price range now and use that plus good credit card management to build your credit so that in a few years you'll be able to do it right and do it comfortably.

- Scott

P.S. - NEVER NEVER NEVER use a g/f as your co-signer!

 

Oh, yeah! Good point Scott.

Girl friend = BAD idea for co-signer.

You miss one payment and SHE ownes the car, at which point, YOU become excess baggage. Think about it!

Good luck,
Steve R.

 

Relationships & money don't mix. If you break up...there's a whole bunch of crap to deal with.

 

hey guy although i am only 19 years old i do make 30,000 dollars a year which is well over what i have to make to get this loan, paying the car isn't the problem it's just getting the loan my priorities are straight... i am currently attending college as a full time student and a full time job. i think that i deserve a little for myself and this car is my way out. I really dont think you bashing my hopes is creditable and frankly we should should go back to the golden rule and that is you can't give me any useful information please refrain from this post indefinitly thanks.

 

hey Zdawg, how do you plan on paying for the car once you DO get a co-signer? I'm 25 and my monthly payment alone is 600. If I got insurance for the basic rate ( without all the deductions i use with family, home, etc) i would pay upwards of 300 bucks! That comes to a monthly fee of almost a grand. Thats rediculous for a 19 YO.

Unless you have an incredible source of income

 

Zdawg, you shouldn't take these comments as us bashing your hopes/dreams. The truth is that we have been in your shoes and we now feel obligated to guide you around making mistakes that we either made or nearly made. We who are older than you have the advantage of hindsight and can somewhat understand given your situation what the next 5 - 10 years may hold for you. We mearly want to give you things to consider because you should only make financial decisions based on logic and calculations, never emotion.

Here are just a couple things to consider:

1) 30,000 per year = approx 24K after taxes
24,000 per year = 2k per month

Like Intrepid and arteacher were saying, if car payment + insurance + gas is about $900 per month (low side estimate), that leaves you $1100 per month to live on. Food should run you at least $400 a month, so you're down to $700. With some discretionary expense you'll have $500 max left.

Assuming that you live at home and don't pay any of your own tuition or books then it seems like you can afford the car.

2) But, consider this. You're a freshman or sophmore in college. You're going to school full time and working full time. College WILL get harder, trust me. You may have to cut back on work hours. $600/month is assuming a 5 year loan. I imagine that if you're 19 now, sometime in the next 5 years, you'll want to move to somewhere that you'll pay the rent. Good luck finding a place for less than $500 a month. And, forget ever owning a house because you'll be so maxed out that you'll never save up a down payment.

3) In the next 5 years you may want to get married. Do you have any idea how much engagement rings and weddings cost? Believe me when I say that you can only give $500 a month, you're going to be paying for 5 years.

4) This may all seem like I'm talking out of my ***, but I'm not. I'm 24 now. I've been out of college for just over 2 years and I have a house, a Z, and I just finished paying off my wedding. My best friend who is the same age as me and makes almost as much money was in debt coming out of college and is still struggling with it.

It's your choice. I can't tell you what the right thing is; I can only tell you what I've learned. Don't think I'm just bashing your hopes, I wouldn't have spent so much time typing all this if I didn't care.

 

Hi Zdawg,

I'm sorry you see our posts that way. We're certainly not trying to bash your hopes. We're trying to give you some insight into what you're setting yourself up for. No one is suggesting you give up on the idea of owning a car like the 350Z. We're only suggesting that maybe you put it off a little while, like until you're out of college.

350ondubz makes some good points with the numbers. Personally, I think he's being very conservative here. I make around $50k/year and my house is paid for. Even with that, considering other "usual" life expenses (that's not accounting for the unusual ones that WILL pop up from time to time!) and things I like to do, I want my payments to be at or less than $500/month and I won't buy the car until I can get a down payment large enough to allow me to do that.

$30k sounds like a lot of money at your age but the sad fact is, in today economy, it's not that much. Here's the situation as I see it. You really "want" this car. That's understandable. Problem is, you can't qualify for the loan without a co-signer and none of your family and / or friends are willing to be a co-signer. Now, you come to this forum, asking a question and hoping that we'll justify your desire for the car so you can go back to Dad and say, "See, they think it's a good idea!", except that backfired! Please try to at least consider that, just maybe, someone, be it your family, perfect strangers (us out here in cyberland), friends, or even God above is trying to tell you something.

Fact is, all of us, from your family on down "are" giving you useful information. Just because you can't or refuse to see it that way, doesn't mean it's not. 350ondubZ said it best in the last sentence of his previous post. I quote: "Don't think I'm just bashing your hopes, I wouldn't have spent so much time typing all this if I didn't care."

You're on the right track. You're working and you're in school. That puts you "way" ahead of a lot of folks. Hang in there. The good stuff will come soon enough!

All the best!
Steve R.

 

thank you guys for all the support in this issue. It's kinda hard for me to understand what you guys are saying though but im sure i'll get through this somehow. I'm really not even gonna pay for the car myself, my Father had planned on paying this for me so i really dont have to worry about the cost nor insurance. I was just looking for some answers in order to kinda "beat the system" in a sense due to my persistent wanting of this vehicle, cost isn't the issue on this subject, it's more like just getting the ok is the issue, i've done the math, my payments are 500 car,200 insurance and gas well thats all i have to pay. I just kinda wanted to vent my problems with the public, looking for any alternate for getting approved. If there isn't one i understand but if there is i am more than happy to try it. I'm sorry about the lash out at all that oppose me, i just need for you guys to understand its not a financial obligation for me, it's just me trying to get the ok!!!!!!!!!!!!!! thanks for all the help guys, even if its something i'd rather not hear!!!! god bless

 

I was in a similar situation years & years ago. I had a good job & wanted/bought a 62 T-Bird Vert (in 1962). I was 19 or 20 and needed a co-signer which a member of my family did.

I don't think there is any way around the co-signer thing until you establish your own credit....or can pay cash.

That Bird was my favorite ever vehicle until I was recently Zzzzed!

 

IF you're going to shool full time (what, 14 semester credits or so) AND working full time (40 hours a week)...how do you even have time to breath let alone time to drive and enjoy a car. I went to undergrad and grad school, worked half time and had time for nothing.

I also would have never considered buying a Z when in college. Do you own a house or have a storage place? Too nice of car to be parking in some dorm or frat parking lot.

Good luck!

 

Come on man, college isnt what it used to be. It is a joke, FACT. I am taking 15 credits have a 40 hour per week job and have as much free time as I need as well as carry a 3.7 GPA.

I am 25, and we all know that college assignments are among the most trivial things we may ever do in our lives. Hence the reason, many of us wish we could stay in college for ever.

I say go ahead and get the car, your dad is paying for it which is great. When I have kids, I'll do the same, dont let any one give you crap for having a father that adores you! All dad's would buy Z's for their kids if they could.

If you want my advice, I would try to convince your grandpa to co-sign. I co-signed a car for my girlfriend and have notes on 2 other cars of my own, It did not affect my FICO score.

Other than that, is your mom willing to co-sign? Would they be willing to take an equity loan?

Have you tried a credit union, often times your application will be reviewed by a live person, rather than a computer.

Let me know if you want additional help, YES there are ways to beat the system, and the fact that you have figured out it is a SYSTEM means you are well on your way,
Eric

 

Yes ... well on your way to a lifetime of debt.

Holy **** Eric! What are you trying to do here? Can you even listen to yourself? That is the worst financial advice I have ever heard/read in my life.

I see that you're in Tucson, so I assume that you're attending U of A. I graduated from U of A, so I have a pretty good idea of what life is like there. I'm not sure what your major is, but I know that in my major we busted our asses to carry 15 hours and work. I only worked 25 to 30 hours a week MAX and there were weeks that I would not sleep more than 4 hours each night. Good for you if you can maintain a 3.7 GPA while working full time and going to school full time, but you are certainly an exception to the norm.

You're right about it being a system. It's called capitalism and it can work very well for the ones who really study it. It can also be devistatingly harsh for those who abuse or ignore it. I hope that you don't have to find that out the hard way, but I can't help but feel from your post that you will. Outside of work, financial planning and learning is the thing that I do the most. I can tell you that the things you are doing are not wise, even if they are possible.

Seriously, perhaps you should think about getting a financial advisor because you seem misguided. I'm not saying this to insult you, I'm dead on serious. It sounds like you are putting your money in depreciating liabilities rather than building an asset portfolio that will help grow your wealth. This is a very costly and common mistake. Have you ever read the book "Rich Dad, Poor Dad"? Maybe you should check it out. It's all about this exact subject.

Ok, I've said WAY more than my piece. This just happens to be a touchy subject for me.

Zdawg - I know that your dad is paying for the car, but my advice still is to take it slow and concentrate on building your credit responsibly. It will serve you well in the long run. I know a couple years sounds like forever now, but in a couple years you'll wonder where the time went. If you ever want responsible, conservative financial advice, PM me.

- Scott

 

i can't believe anyone would co-sign or consider asking someone to co-sign for a sports car. co-signing can lead to all kinds of trouble. ie: default, arguments, resentment. the only way i would co-sign for one of my kids is if they had a real need , such as having a job and no transportation. Three years prior to each of my children reaching driving age i told them that i would match what ever they saved to buy a car and that the insurance was on them. it had nothing to do with ability to buy my kids a car or co-sign. it had everything to do with responsibilty and self worth. each time it worked out great and they all have gone or will go to college.
i get off my soap box now.

 

Help me out if you can i just wana hear what you have to say about beating the so called system, Scott i could also use your advice on what my next steps are going to be. As for Jim, i am perhaps one of the most responsible college students out there. I do live with my parents, and the real reason im getting this car is to better my job and transfer schools. I live right by a community college but will be tranfering to University of Houston Clear lake in a few. so this is kinda somewhat as an investment. Not an investment in debt

 

How do u tell??? my grandma said she called my credit union and they said that it would effect his credit rating or something of that nature. Maybe she was lying, maybe not. explain to me how i could check this for a fact so i won't screw up anyone's credit.If not im convinced i could find a used S2000 or Subaru WRX that can tide me over till My Z or must i wait for the skyline????

BUT THE Z IS MY CAR PRIORITY

 

Getting the car to better your job and transfer schools? You're gonna have to explain that one.

A car is NEVER and investment unless you plan to sell it for more than you paid for it. You would definitely be going into debt.

Credit agencies/unions are the experts in predicting who can best pay off their debt. They want to loan you the money, but the mere fact that they require a co-signer should maybe tell you that you may not be a good overall risk - at this point in your life and your current situation.

Call Dave Ramsey (not Eric) and ask Dave what you should do. Check out www.daveramsey.com.

0.02, IMHO, etc.

WayneTN

 

Zdawg,

Wayne is right. This car is not an investment. It is strictly a liability and it will depreciate. If you mean that the car is going to get you to the school you want to attend, then it is mearly transportation. Going to school is the investment and it doesn't matter how you get there. My advice is to get there cheaply and to not be a financial drain on your family. There are times at which we all need a little help or support from family, but you really should not abuse their generosity. Even if they have the means, it is better to earn it on your own. I find that there are few things in life that are as satisfying as wanting something really bad, working really hard, and getting it on your own accord.

As far as your next steps go, I would just concentrate hard on finishing school well and try to ignore distractions like cars (easier said than done). If you have any spare time, you might want to start looking into financial planning and theory. You are at an age that if you start planting your money now and letting it grow, you will be WAY ahead of most people by the time you're a little older. Build your credit wisely with proper use of your credit cards and maybe even an auto loan that is WELL within your budget. These things will help you build a good credit history, which is important when you want to buy a home. Check out sites like the one Wayne mentioned or www.fool.com. There is a ton of info online that is right at your fingertips.

- Scott

 

ZDawg, I'll PM you off line, There are many ways to simulate the effect a purchase will have on one's credit score, this is no problem.

Scott:

Now I have heard it all, suggesting he visit www.fool.com. Never mind this is the site that held AOL, YHOO, and AMZN to the end. But it doesnt sound like you have been involved in the business long enough to know. Yeah, dont worry about their readers losing millions if not hundreds of millions based upon their recommendation to hold, until hell freezes over. No problems there, right Scott?

It sounds to me like this is where you obtained your financial "knowledge," or to be more precise, your fantasy of "a clue, have you any real world experience in what you are speaking of?

Yet, you wish to compare financial knowledge with me, again having no clue as to my situation?


Money is not something to be afraid of. If you really had read www.fool.com's website, instead of just recommending it you would not be so "scared," of money. Purchasing a 30k car, he is not even going to pay for, is not the be all and end all of his existence.

No one ever spoke of this car being an (financial) investment (he was speaking of transportation/education investment, smart guy), yet you wish to drag a subject, that is completely off topic,into the conversation to make yourself look smart, or in this case, make yourself look like a "rookie, fresh into his 401k nest egg, must be up to 6k by now, huh Scott?"

You have a bad attitude, and the rest of you that replied rudely to my post do as well. This kid asked for help. He didnt ask for advice, and he didnt ask to hear the sob stories of the 30+ age group.

We each have our own opinion's on the matter, yet it seems, that time and time again you folks would rather insult and demoralize than grant another person this, simply because you dont agree. This is a message board, not a high school community, grow up children.

Stick to the subject at hand, and lay off with the insults, or do you wish to further display your level of maturity, from what most of us have seen, it is very low, indeed.

Eric

P.S. ZDAWG Check your PM's