I plan on buying a 2004.5 enthusiast or higher and I plan on putting a $15k down payment and financing the rest. The thing is, Im a full time student with a part time job and my income is low. I live with my parents and dont have many expenses really. Im paying for the car myself...ALL of it. Will the dealer look at my low annual income as a negative? I already calculated the payments over a 36month term and it would come out to around $200 a month if I get the car for $21500. I can easily afford that, but will I have a chance at getting approved? Thanks!

O yea I have perfect credit but maybe thats b/c I only have 1 credit card

 

I doubt they will.

 

It's going to depend on your income and what percentage the payment will be of that income. Based on a $21,500 selling price, you would be putting 70% down. Much easier for a bank to take a chance on you in that situation considering if you default, your payoff is going to be less then what the car will be worth. There just isn't that much risk for the bank, so I think you have a solid chance if you are making enough to make the payments.

 

you and i are like in same situation. i believe 15k is good enough for the montly to be low but you also got to think of insurence and gas. and then later on maintance and tires. i have 5k saved extra (security $) incase i cant work anymore becuase of school.

 

Go get pre-approved at a credit union.

 

With that much down I think you will find a loan as you can show steady employment.

Worse case is your parents might have to co-sign.

 

With 15k down, you should be good in any situation.

 

Agree. The risk for the lender is minimal. You will have $15,000 equity in the car.

 

The answer to that question is "hell yes" if you:

(a) aren't paying rent
(b) aren't paying for food
(c) don't have kids
(d) don't have a wife / needy girlfriend
(e) won't get into future financial troubles due to the car...

just my opinion of course.

To the OP: Try having one of your parents co-sign the finance deal... then the finance company will have someone other than you to go after if you can't pay. But the car will still be in your name.

 

I would get my parents to co-sign if this is your first purchase. They'll offer you sky high interest rate in the area of 9-15% if you go by yourself with a part time job regardless of how much you put down. I was 24, and put 12k down and I still got 7.3% financing. (interest rates were much lower last year as the fed has been raising rates for the past year). They also wouldn't qualify me for the entire loan so I actually had to put more down than I wanted so if I could do it again I would've co-signed with my parents.

 

howcome I was not email notified that I got responses on the thread...

anyway...thanks alot each and every one of you.

From what I am reading, it seems like its better to go through a bank for the difference. I was planing on doing that if I bought the car via private party. I have thought about this wisely and came up a 15-16g down payment to be feasible in my situation. I will still have a good amount left with me for insurance (Im sure the lender will require me to have full insurance while I am still paying off the car) so everything should work out ok. Plus, it would be a great way to build my credit.

About cosigning, my parents dont want to do it. They advised me to get a rsx-s or something like that because they think the Z just is not pratical for me right now. I'll prove them otherwise. I have gone well and beyond researching how much a Z should cost (inclusive of fees if I decide to buy from a stealership) and I am also working more in my job while taking 18 credits...yikes.

Thanks guys

 

best thing to do is apply for a credit union maybe at your college, that's what I did. Rates from credit unions will beat normal bank rates by up to 4%. Do not fund from an actual bank like bank of america or wells fargo their rates start around the 8% range right now.

 

+1

That is your best bet..because if you can get approved there, you can get approved at a dealer. Credit union will also have a cheaper rate. You could use this as an advantage @ the dealer.