Im about to go shopping for a used Z at the dealerships. I have a zero credit score so wish me luck!!! Any last second advice?

 

What did you buy to hit the dealerships?

 

 

Don't buy the first z you see.

 

Even bad credit is better than no credit at all. If you don't have a cosigner prepared, line one up.

 

Lol...that's what I thought he said too

 

You could barter for a 350Z. Say wash and wax 1,700 vehicles.

 

Well heres what I got from the first dealership;

03
Blk/Blk
Touring
6MT
50K Miles
Aluminum kick plates
Brand new clutch
New brakes pads/rotors and tires
New pass window motor

I would say KBB "Good" condition. The rear hatch doesnt line up perfect. But no dents or major scratches

Clean Carfax one owner

Asking price was 25,900
I got them to 21,000 OTD
$5500 down payment an additional $3000 in 60 days (although they said that if I couldnt come up with it they would let me slide)
and payments of $380/month.

Thats with a 0 credit score and no cosigner. I have a feeling thats about as good as its gonna get for me what do you guys think? Good deal?

 

How does that work? You have two senarios here and I'm not sure how they are structuring this loan. I'm going do fill in the numbers I dont know and guess:

1) $21,000 - $5500 down = $15500. So you are financing $15500 with security payment of $3000 more? If that's the case at $15,500 on a standard 60 month note you are paying 17% APR. At the end of the term you would have paid close to $7k in interest. The $7k interest paid will come down if the $3000 is paid towards the principle upfront on the $15.5k loan.

2) $21,000 - $5500 - $3000 = $12500. Financing $12500 for 60 months term at $380/mon payment then they are charging you about 27.5% APR. They will be making almost $10k off of interest alone!!


You're better off adding your $8500 with some more savings and get a $10k cash car. At this point you are way over your head.

 

Well they never used the the term "security payment" but they did say my APR would be about 17% so Im gonna say that your option 1 would be correct. I am 100% aware that buying a car cash would be the smartest way to go about this. Im thinking of it as not only a car but an investment in my credit.

I do plan to refinance in 12 months which should bring that APR down and if things go right I'll be able to pay off the loan early. Thats an IF though.

There is a possability that I can get a cosigner. I'm just going to end up screwing myself here huh?

 

Some members have cash to pay for a 350Z, others do not. Some members can get a 7.0 percent loan, others cannot.

If driving a 350Z is a priority, do it.

 

Unfortunately having a 0 credit score shows that whatever you plan to do will not happen. Unless of course, you plan to have the car repossessed and lose your down payment and any equity built up.

You might try thinking before leaping.

 

If I was in your shoes and have the amount of free cash to spend I would buy a cash car first. Drive it around for a few years and repair your credit. Most dealerships have either a first time buyer or student program (If you are still in college) that will bump you up 1 tier higher than what your credit will get you. After you get that score up to at least 650 or so then trade the car in as equity and get a better deal on a car you really want. In your current condition you are giving away a large sum of money for nothing.

 

Uhhh...I really think what you mean is you do not have any credit score.

That is NOT same as having a zero credit score (No one has a "zero credit score".)

If you have no established credit (no credit history) but have a job and a stable emoloyment history, you should have no trouble finding a lender to finance you. You probably will pay somewhat of a premium rate, but not as much as someone with a BAD credit score.

bill

 

At 17% he's got to have a low credit score or about 18-20 years old. I came out of college at 23 without car financing history but had a good stable job. Dealership still gave me 3% at the time as a first time buyer. I understand there's a difference between no credit and bad credit but sometimes very bad credit is really worse than no credit.

 

make sure that you get a carfax on the car that you are looking to buy! you dont wanna buy a lemon Z

 

that price sounds high....03 with 50k miles 21 otd?? look at some cars on the forum..you could get a better deal or search some other dealerships...i got mine for 23,500 OTD and i got an 05 silverstone in MINT condition, clear carfax...the guy even kept records of oil changes...17,000 miles on the car when i bought it....they wanted 27k for it...if youve got time search for the best deal. as for financing, good luck getting a loan without a cosigner, i put down 7500 cash on my first car with zero credit and no bank would touch me, also, if youre planning on refinancing in 12 months 99% of the banks like to see 3 years of credit history before you are even looked at...your best bet would be with cap 1 or americredit and it'll still be up in the 12's....find someone with a 700+ credit score and find a better deal on a z...if youre going to spend that much money, find a low mileage car...that my 2 cents...

 

First off you have two problems that you need to resolve.

1) What car to buy

2) how to pay for said car

You credit score should have zero to do with how much you pay for the car so don't get to thinking that because you have no credit that you need to pay more for the car.

I am going to deal with the second question in more depth than the first.

To get the credit thing out of the way you should get preapproved for a loan through either a bank or a credit union. You can go to several places and attempt to get a preapproval. Typically these are good for 60 days. If you do this, you are not so much at the mercy of the person trying to sell you the car.

You should also have a good down payment (regardless of credit history). This will make it easier for you get a loan. If you buy a 20k car and put say 10k down there is almost no risk for whoever is loaning you money because if you default and they come get your car they can easily sell it and get their investment back.

I would pass on this car. If its got a new clutch in it at 50k it has most likely been abused. If the trunk doesn't line up right it might be wrecked even if it doesn't have an accident on its carfax.

 

I'm going to address this one line at a time: