Alright, I'm thinking about buying a car from a dealership. Still have alot of options open, haven't even chosen a car yet. But I was just curious because of my age & lack of credit... I'm 19, have never had money issues but I have little to no credit. I've been told by alot of people that I'd be able to finance a car, but how expensive of a car do you think? I was talking to my girlfriend and she got a '06 Scion TC for $13,000 and she's my age with no credit but used her dad as a co-signer. So I got to thinking of my options of cars that are around $13,000 and the SRT-4 popped into my head (dont be hatin). I'm also concerned at the price of my insurance rates. I've never had an accident, but do have two speeding tickets. My current rate is $99 a month, started at $140 and has been dropping. So would it be possible for someone like me to finance a SRT-4 or another car equal or less than that? Thanks for your advice!

 

It would depend on how old you want to go. I don't know how expensive it is for SRT-4 drivers, but the tickets are going to make it pretty high. I don't have any tickets and pay $320/month on my 4year old S2k. Try credit unions for financing, they are more flexible usually.

Edit: You can probably stretch it out to a 5 year term. Also, If you have had your current job for a while, it helps alot. Are you going to use a co-signer?

 

Whats going to kill you is your insurance rate, no one wants to be paying insane insurance rates while making car payments. Since your posting on this site I'm assuming your into cars. My advice would be to buy a older car cash, pay a small insurance rate, all while learning about cars. When you get older and the insurance companies have determined that you are not an accident waiting to happen, buy a newer car.

 

remember, the older the car, the less years you can finance it for as well. Thats why your female friend could finance that brand new Tc. Often times its easier to finance a new vehicle just due to the fact you can spread it out longer. But you will pay more in interest, you will likely get upside down in the car (owe more than its worth) and end up regretting it two - three years from now.

Best advice, financially - get a cosigner if you can, and buy something cheap and old to establish history

 

Alright, I just figured it was time to invest in something... I know all about cars, been playing with them forever and have owned all kinds. Just figured since I was gonna be spending money on a car may as well get a nice one.

As far as my job I've had it for quite a while, I actually own 1/2 of it.

Dont have a co-signer since both of my parents live out of state.

 

Get pre-financed before you go look for cars and call for the price of insurance on what your looking for.Srt's are cheap ive seen some for 10k.

 

Please don't use that word in this context. Cars are not an investment.


I'd probably wait a bit, play around with numbers.

Check your insurance agency/company and enter in the car you're thinking about. Add it on (also try removing your current car) see how much it jumps. Do a lot of math, calculating possible interest rates, monthly payments, cost of living expenses, gas, and a nice down payment if you care to do that (reduce your monthly payments); see how much you have left? Hopefully you should make at least 200 a month more than what's calculated out of that. Put 150 in the bank for emergencies and 50 for you.

The 200 is just an approximate number, it really depends on each individual person and their living habits and where they live. Obviously if you like to go out a lot, have another mouth to feed, live in questionable areas, take risks that could potentially put your property or body in danger, all these can raise them if not by a little, exponentially. At that point you'll definately want to look at an older car, cheaper and more reliable = a civic or something.


But every case is different. The main things you should do NOW while you're waiting and deciding:

Save money
get a [beginners/college student] credit card and start building credit (buy small things and pay more than the minimum, in full if possible)
save money
calculate things out
save money
check your options, you don't have to/can't really get the fastest or sportiest car out there if you're making 10 bucks an hour on 25 hour workweeks
THINK HARD BEFORE YOU DO ANYTHING!!!!!


Good luck man, I'm looking to buy a new car at the end of the year too, I've got all the math sorted out, now i'm just only focusing on saving money

 

Yea, I'm not going to jump into it for sure. Just kicking around some ideas and wanted to see what you guys thought or if you had any input. I make around $9 an hour + commision & work 40hours a week. Descent paycheck, but I also have all my other bills and rent.
Rep'd everyone who helped out!

 

I doubt you could walk into a dealership and get a car at your age with out a co-signer. I tryed to get a bike, and I have very good credit, but I couldn't get it b/c i didn't have a co-signer. They told me I had to be 21 w/o a cosigner, but it was a bike so i have no idea, it could be different with a car.
When i got my car, I had $2,000 down on a $6,500 car, and they didn't ask very many questions, and i got my loan with out a cosigner....from a bank. And...my payment is only $150 a month.

 

Bikes are different, they're considered a luxury... Thanks for your input though. Maybe I should just look for a 5k car. I'd rep you but I've left too much today