KBurn

iTrader: (8)

I'm 18 and i'm looking for either a 05Z or an 07 base if i can find one cheap enough. Being 18 i have no credit but i have $10,000 to put down and make about $1300 a month. My parents don't want to co sign because they don't want me to lower their credit score and add to their debt already. I dont want to deal with them, but what would an average interest rate for a first time buyer be? I dont know what a "good" interest rate would be.

Im aware that a good interest rate would be 5-6% with a co signer but around what would be a decent deal from a dealership on the leftover $9,000 or so?

dudegetalife

iTrader: (2)

Is the income proveable? Lived in your house for more than 5 years?

Don't know about canada but i make roughly the same , and put about 8k down,when i bought my new mustang and then the used 350z and both rates were 10.5

zeekle

Your parents are smart not to cosign on a car.

Assuming you find your car for 22k after taxes and title with a 8% interest rate you are going to be paying nearly 380 a month for 3 years. That is not even factoring in your insurance and all the other little things.

I assume you are living at home with your parents and perhaps going to college in the future. If thats the case forgo the 350 for a while and get a beater car. There have been soo many threads on here about people getting their car all banged up at school because some idiot decided to kick the crap out of it.

If you are not going to school you really shouldn't burden yourself with a payment this large and start looking to getting out of the nest.

apartment+plain car > fancy car+parent's basement

M_parallel

I am not a finance director, but I don't think you'll get approved.

Bank guidelines for people without favorable credit history put your max payment at 16% of your proveable income. So you are tapped at a $208 payment. At a first time interest rate of 18-25% that probably buys about $6,000 amount financed. Which is why you see first time buyers in Sentras instead of 350Zs.

You need a cosigner, and should think about a much more modest, lightly depreciating used car at this stage i.e. ex-rental dodge stratus. Even if you get a cosigner and better rate, after insurance, you will not have a penny left each month.

FWIW, I had to finance a 2000 protege at 21% when I was 19 with the owner of my store personally certifying the loan. At age 21 I was able to purchase the first in a line of some pretty sick road machinery on my own (albiet with much more income), and protege is just a bad memory...

dudegetalife

iTrader: (2)

You got screwed, sorry to say no bank does higher than 18.95% in this day and age unless you have horrible credit, I work for a dealership and hang out in the finance office more than in the showroom where I am supposed to be and what I learned is that NO CREDIT is better than SHITTY Credit

Prove the income and they will let you get the car, they might ask you for full stips though

SuperBlack350z

iTrader: (59)

yup, i'm in the finance office most of the day with the finance managers as well. No credit is much better than bad credit.

To the OP, just get a 20k Z and use 10k as a down which is 50% and hopefully you worked at your job for more than a year. Should work out.

Skrilla

iTrader: (15)

AGREED 100%...first time buyers are easier to decide then bad credit, I'm a banker and supervise a team of buyers. I buy nothing but auto loans

I disagree with the "you got screwed part", this is common of first time buyers, the majority of car buyers are seasoned with bad medium or good credit, first time buyers aren't that common nor do a lot of banks have first time buyer programs, My bank has one and the rate starts at 17.95 for them and go up to 24.95 (fed max). Although you could consider ftb bad credit since they are unproven

Everything else you said is spot on-especially full stips!

KBurn

iTrader: (8)

I make $1300 a month but i basically have no expenses other than the car payment, insurance, gas, etc. I already have scholarships to more than take care of my next few years at college. The CC im going to is 3 miles from my house so ill be living at home until i complete my AA. Ive worked at my current job almost a year, and my previous job a year and 2 months so i can provide a history of steady income.

FWIW i did talk very shortly to a salesman one time who said that they approve people all the time with no credit if they put down a large down payment, and i would be putting down about 50% of the car. He couldnt tell me the average percent which was what i was wondering about.

davidv

iTrader: (2)

Not sure where you shop for auto loans in Canada. Google “auto loan Canada.”

KBurn

iTrader: (8)

Haha i live in ontario california, sorry forgot to put that. Alot of people get that mixed up.

Skrilla

iTrader: (15)

Down payment on a car is a waste.
To the OP: the z is a machine that will only depreciate, even with financing 1/2 of it. Dropping that much cash, I don't think you'll come out on top for a first time purchase

You should finance it, then after your credit is established refi for a better rate, but not for a Z because I don't think you can afford it...I'll break it down...The salesman couldn't tell you the answer for a number of reasons. It all depends on your credit and income, but at 1300 mo your expenses aren't whats killing your chances (which is your debt ratio), its your payment to income(pti). First time buyers don't exceed 15-17% pti. Even at the industry max (which 99% of people don't get because they're either smart enough not to max themselves out or don't have the credit experience) its 20%. Best case scenario is at 17% pti (221 payment) with amount to finance of $9225 (about a 7k selling price with tax, title, license and doc fees) and 15% apr (typically higher for 1st time buyers) and 60 mo term. So if you find a decent Z for 18k you'll need to drop about 10k, just to try to make it work. Negotiate would be null because they aren't earning any participation (rate is so low and usually none available on first timer) and the cash would go directly to principle(so no cash in the dealers pocket either).

long story short, if you can get the selling price to 7k after down payment you might be able to do it.

davidv

iTrader: (2)

How did the purchase work out?

davidv

iTrader: (2)

2005 SS Enthusiast MT

Congratulations.

2ndname

Save up that 10K, drive your parents car or get a beater for 1-2 years. Buy a used Z in 2 years without going into debt.

Jay'Z

iTrader: (118)

IbTl...

350Zforlife

iTrader: (4)

WTF??

davidv

iTrader: (2)

Hint: Kburn drives a 350Z.