Getting an auto loan for 1st time – super nervous

posted 3 years ago in The Lounge
Post # 3
989 posts
Busy bee

@dayl20:  Can you talk to your bank? Only reason I say that is because usually dealership finance has a lot of hidden ‘extras’. One dealer I had toyed with going through, the finance charges you account keeping fees, fees for sending you a statement, fees for paying more than the minimum (to make up for ‘lost interest’). The interest was lower through the dealership’s finance company, but all the fees on top of that meant that it didn’t make much of a difference. Your bank would have a clearer picture of what you spend and what you can afford, and my bank doesn’t penalise you for paying out the loan early. Just something to consider!

Post # 4
3756 posts
Honey bee
  • Wedding: April 2014

Have your checked your credit reports and scores yourself so you know where you’re at? It’s free to do once a year and doesn’t impact your score. I’d start there so you know where you’re at. Car dealerships are pretty quick to hand out financing so I wouldn’t worry too much. Do you know of anything credit wise that might be an issue for you other than the employment history?

Post # 6
58 posts
Worker bee

@dayl20:  You should be fine, i was approved by myself. as in no one cosigned with me, and my interest rate was the lowest possible.

if you use the dealerships people i believ you will get a discount off your car

Post # 7
846 posts
Busy bee
  • Wedding: October 2015

You should be fine. I got a car loan back in October and I only made about $1400 per month after taxes. My credit score was in the 600s. And I had one judgment on my credit report from when I was a stupid teenager. I also had school loans of about 36k. 

But despite all of this, I managed to get a car loan. I got a used 2011 Kia Forte for about $11,000. 

However, the mileage on the car was about 82,000. And I have a high interest rate of about 15%. But my monthly payment is affordable. I pay $272. 

Prior to that, I had gone to several different dealerships and no one would give me a car for cheaper than $272 per month.

I realized that with my income and my credit, I wasn’t going to get a better deal than that. So I sucked it up and bought the car.

My plan is to trade in my car after about a year to get one that has much lower mileage. I also plan on getting a much lower interest rate.

Basically, I had to accept this deal because I needed a car. I also needed to prove to the banks that I could handle a car loan. 

So I decided to put up with the high mileage and interest rate for about a year. Once the year is up, my credit will be much better. I’ll be making much more money, hopefully. And I will have had proof that I can handle a car loan.

So overall, I’m happy with how my car buying experience turned out. Oh yeah, I forgot to mention. I got this car loan completely on my own. WITHOUT a cosigner.

So if I can do it, you should be able to do it. Good luck 🙂

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