[101jinx101]

Everyone I tell that I'm getting a brand new car in 2006 seems to just look at me and laugh... or say "good luck with that"... I mean, with a steady job, good credit, and a big down payment, it's possible for a 19 year old to get financing... right? anyone seem to get this?

 

[Rik]

The financing won't be a problem, you might need a cosigner. But insurance for a 19 year old on a sports car is gonna be ugly.

 

[Fformula88]

What's your credit history look like? If you haven't built up any credit, there is no better time than right now to get a credit history going with a credit card.

After that, the next big factor may be a down payment. With a high enough down payment, just about anyone can get financing. Essentially, you want a big enough down payment so the lending institution doesn't have to worry that you will go upside down on the loan (owe more than it is worth). That makes it safer for the lender if you were to default on the loan, since the vehicle would still be worth more than you owe. So start saving money!

Even if you don't need a cosigner, it may also be a good idea just to get a better interest rate. If it is your first auto loan, your credit score isn't great, or you don't have much history, your interest rate will be fairly high. A cosigner with good credit should help you get a better rate.

In the end, try getting a loan through your bank or credit union, as well as going through the dealer. Most dealers have deals with banks and stuff to give credit to higher risk people, but you tend to get soaked on rates. If your bank approves you, they may offer a better rate. Also don't forget, if you finance through the dealer's business office, you can try to negotiate the rate too.

 

[Slade]

Hey Jinxee,
Don't care what other people think. I mean, of course do some research on how to get your credit up so there's no question as to whether you can get your Sky. Get a no annual fee, low percentage rate Credit Card (0% if possible) and use it to pay your bills =ONLY=. Like when knowing that you have enough money to pay all bills, use the credit card, then right away pay the credit card company so you dont fall behind. I heard that GM has a good credit card for that, plus you'll get points towards GM purchases in the future (ahahhhem,.. Sky) Don't get money crazy and buy stuff you dont need. you could potentially ruin your credit and That could be badd. ask around also to find how to build your credit.
Later Jinx muh boy

 

[sky_vue]

I don't want to discourage anyone,

Specially from getting the car they want. But please remember some sensible points (mistakes that have been made in the past that I'm sure I'm not alone in having made). Getting a car with a large enough down payment is not a problem because they make money no matter what. If you owe them less than it's worth and they repo it, you will NOT see the difference given back to you.

Remember to think about what you are going to be doing 4-6 years from now. Currently there are no insentives that will be offered on the Sky (is anyone knows different please chime in ). Are you going to be ok making a 400 dollar payment in 12 months, 24 months and so on. If you see this as not beign a problem then you've probably got nothing to worry about. But then if it's not a problem, maybe you should just wait and pay cash.

You may want to work out what your payment will be (given there is no 0% interest offered on a 5 year loan, figuire it out the payment using the 3.9% offered) then put that payment into an account on or before the 10th of each month. See if you can live without that cash.

I'm assuming you've never had to make payments because you don't have a great deal of credit. I've taught financial classes on how to handle money, one of the biggest things we discourage is co-signing, this is obviously harderr on you since you are trying to get the loan. If you make someone else responsible for your payments in the event that you cannot, you run the risk of souring a good relationship, as well are ruining two peoples credit. Be careful about what you do.

Finally, if you've really done all this and have still come out on top (the plan seems like a good idea) then have at it. I certanly could speculate spending more money on a car, but with the sky/sol it doesn't seem like you have to.

Anyway, my two cents towards your twenty five thousand.

 

[MarkJD]

Buying a car

Sort of on this topic, how much should one spend on a car? I have heard that for houses one should spend about three times their anual income. I know there's tons of wiggle room, it's up to your priorities, etc. but does anyone have an objective way to figure out a nice estimate? Maybe a range since it'll be a higher % for lower incomes clearly.

I have never really lived on a budget because I've been in school my whole life. Just been spending as little as possible and living off of loans. I just graduated though and am looking for a job, but have no idea how much I'll be making when I get one. I would like a convertible and the Sky is both on the lower end of price and one of the best looking ones out there.

 

[swatthefly]

I have never really lived on a budget because I've been in school my whole life. Just been spending as little as possible and living off of loans. I just graduated though and am looking for a job, but have no idea how much I'll be making when I get one. I would like a convertible and the Sky is both on the lower end of price and one of the best looking ones out there.

its not too hard to do, but you will really want to be careful... dont want your precious sky to be repo'd

 

[sky_vue]

I have heard that for houses one should spend about three times their anual income. I know there's tons of wiggle room, it's up to your priorities, etc. but does anyone have an objective way to figure out a nice estimate?

Theres a really great formula that I've found and as you mentioned, it goes along with your income. That is, your housing and expenses should be about 1/3 (33% to 29%) of your spendable income. (After tax and what not). This sum should include everything you need to do to upkeep that home. if you make if you have 3000 dollars of spendable income a month, you do not want your housing and expenses to surpass 1000 dollars. (This does not include food). What this allows you to do is have 2000 dollars to use towards everything else and gives you a cushion on how much you can have your income fluctuate by.

What you'll need to know is, how much house can you afford. Follow this link.
Home Calculator
And be honest about it.

 

[MarkJD]

I was using housing as an example, but actually asking about cars. However, you do point to one method of calculating how expensive the car you get should be. Just figure out your disposable income per month (above usual spending and savings) and add up that amount for 2 years (if that's how long you want to pay off a car) to get the price of the car plus financing charges. Still, that is a rather vague starting point.

I just thought this an interesting topic. Incomes vary a lot in this group I bet yet we're all interested in the same car. I think that $25K is pushing my limit, but I live pretty frugally and can just wait and save more up.

 

[101jinx101]

...plus you'll get points towards GM purchases in the future (ahahhhem,.. Sky)...

Straight from www.gmcard.com:

The GM Card gives you great MasterCard® benefits along with 5% Earnings on credit card purchases, all with No Annual Fee and a competitive interest rate. For every $100 you spend, you earn $5 in Earnings toward the purchase or lease of an eligible new GM car, truck or SUV (excluding Saturn, Saab, and HUMMER H1). It's the only card you'll need to move faster toward the car, truck or SUV you've been dreaming about.

Well, I've been dreaming about the Sky, so this card won't help me ONE BIT. Plus, it's only available to the States... so basically, I'm screwed for that card.

EDIT: OK, so I went onto the canadian visa site, and apparently I CAN get a GM card, through my bank! which is a bonus... it also says "to find out more info, visit any one of your local GM dealers, or saturn dealerships" (or something to that effect) so would that mean that saturn's are eligible only in Canada?

 

[Slade]

ay Jinxee

I Don't know why they would exclude Saturn from the points lineup. Hopefully that will change, now that GM has taken Saturn under it's wing and forked over a big sum of money to Help Revive a dead or dying company. We'll even if they do exclude Saturn, it's a good card to gain your credit on anyway. I hope you get yur Sky "Mr. 114 Posts" Anyone that devoted deserves what they dream of... (ahahhhem,.. Sky)... If I can help another young ladd such as mee self slide smoothly into a hotttt Saturn Sky by raising his Credit Beacon than my work is done. :willy:

 

[brentil]

At this point there have been no indications that GM will permit Saturn purchases using GM card points. This doesn't mean they wont change it, but the current 2006 allowances are online now at gmcard.com. http://www.gmcard.com/GMCard/apply/redeem/allowances.jsp Saturn is still not on the list of cars though. However HUMMER is now. As is the Solstice.

2006 HUMMER H2 $3,500
2006 HUMMER H2 SUT $3,500
2006 HUMMER H3 $1,000
...
2006 Pontiac Solstice $1,000

However none of the other Saturn line-up have been listed yet as well. The Sky and Aura are also 2007 model cars, so they wouldn't if they were going to show up till GM added 2007 model cars.

 

[SubaDan]

No Love!!!

Most local car dealers in the Louisville, KY area are pretty arrogant. Everytime I walk in they walk right past me with their noses in the air and I am 23 making really good money. My little brother went in to a local Subaru dealer to look at the WRX and they didn't even look at him. He then went to honda and bought a brand new Accord and took it over to show Subaru his new ride. Got to love the look on their faces. I bought my last car from carmax last december and got their lowest APR. They were pretty good but the place is almost too much like walmart. I actually supprised the salesman cause it was the best score he had ever seen. The way to build up your credit is to use your credit card and then pay off all your debt at the end of every month. After a few years of it then you are good to go. You just have to be carful not to let your wants grow larger than your pocketbook. I have to use my tax return every year to pay it off.

 

[mdlestat]

Here's the best thing I ever did re: credit--

-- go to www.myfico.com and learn about the mechanics of credit, how to establish it, improve it, resuscitate it, and maintain it.

Before you begin lowering your credit score by applying for a bunch of credit cards (and yes, credit card applications DO lower your scores, as does the application for a car loan) find out where you stand-- buy the FICO Deluxe report-- it's instant, and gives you a complete history from all three major agencies-- along with about a million other cool tools and stuff.

The site is invaluable to me-- I don't care if you can get your score for free somewhere-- it won't show you **** except basic info, which you can't do much with anyway-- this site gives you TONS-- and is worth every penny.

Cheers--



PS-- If you are making enough money at nineteen years old to spend $6-800 a month or more for a car, congratulations--- I'm really impressed. (taking into account the interest rate you'll probably get, even if your parents have golden credit, and the very high insurance cost you will unavoidably have because of being in the highest insurance risk category, I think this monthly cost is reasonable for you to expect)

Don't take it personally when people don't take you seriously-- if you are in an unusually affluent household/job situation, then that's great-- but there are a million teenagers who talk about buying expensive cars, so you gotta admit that it's understandable that there is a common dismissal of such things, since 99% of kids your age can't really handle that kind of expense and people know that.

Best of luck, seriously, and make sure to check out that site-- it taught me a LOT!

 

[swatthefly]

thanks! ive been looking for a site with info like that. im still working on repairing my credit after i got screwed with a ton of medical bills a few years back. its good to have a site thats willing to guide you back.

 

[Snowy_Beast]

Straight from www.gmcard.com:

The GM Card gives you great MasterCard® benefits along with 5% Earnings on credit card purchases, all with No Annual Fee and a competitive interest rate. For every $100 you spend, you earn $5 in Earnings toward the purchase or lease of an eligible new GM car, truck or SUV (excluding Saturn, Saab, and HUMMER H1). It's the only card you'll need to move faster toward the car, truck or SUV you've been dreaming about.

Well, I've been dreaming about the Sky, so this card won't help me ONE BIT. Plus, it's only available to the States... so basically, I'm screwed for that card.

EDIT: OK, so I went onto the canadian visa site, and apparently I CAN get a GM card, through my bank! which is a bonus... it also says "to find out more info, visit any one of your local GM dealers, or saturn dealerships" (or something to that effect) so would that mean that saturn's are eligible only in Canada?

Great POST!

Has a 20 years old my-self... I'll probably get a second Credit Card!

And thanks to everyone... I wasn't sure as well if I'd pass the credit...
A 10,000$ down payment should be enough aight? Well doesn't matter since I'd kill for that bomb! And since I'm waiting for the Red Line to come out... more cash will be earned and saved!