Buying my first car: App for Marv from new member

[WriteDrunk]

Your Age? 19

Your Equifax 683 MyFICO
Your Experian 690 MyFICO

Your TransUnion ? 650 FAKO

How many years have you been on file with Equifax? 1+
How many years have you been on file with Experian? 1+
How many years have you been on file with Transunion 1+

YOUR PREVIOUS AUTOMOTIVE

Do you have an open auto loan? No

Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best) N/A


YOUR REVOLVING

Total number of revolving account(s) you have? 2
Total percentage utilized overall? 10%
How many of your revolving accounts are store cards? 0
How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 2

How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 0

YOUR PERSONAL INFORMATION

How long at your current residence? 1 year

Do you Rent or have a Mortgage, or Live w/Relative or Other? Rent

Your Monthly Rent or Mortgage payment? $695

How long have you held your current job? 2 years
Your total provable monthly gross income is? $1600

Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return) online paystubs

Is there additional monthly income? Yes: I am contracted by a local state senator, I receive hand-written checks, which won't be "provable" until taxes. Total income is over $2200.

YOUR DOWNPAYMENT
Please tell me your exact down payment in cash? Hoping for zero, can do $1k-2k
Does any credit repository contain any Public Record? no
If yes, please very briefly describe.

Does any credit repository contain any Collection Account(s)?
If yes, please very briefly describe.

Please rate your overall CREDITWORTHINESS on a scale of 1-10 (1=poor, 10= best) 7 (used too much on my cards when I first got them, using responsibly now)
Please rate your Installment CREDIT HISTORY on a scale of 1-10 (1=poor, 10=best) N/A

Please rate your Revolving CREDIT HISTORY on a scale of 1-10 (1=poor, 10=best) 10 (every payment has been made on time)

New or Used vehicle you are considering: Please very briefly describe. I want to buy a 2011 Chevy Malibu LS, 41K miles for $9400. The car is a steal, and has been checked by my mechanic. I recently moved, so I have yet to visit any credit unions, but I was hoping to develop a relationship with one of the locals. Is this a possible loan for a kid my age? I'm in the military and am working full time.

[BRBiz]

The biggest problem you will have is your income is below the min. Of most banks.

 

Is this car from a dealer or private seller?

[WriteDrunk]

What's typical minimum income?

This is from a private seller, a family member actually.

[BRBiz]

It varies by lender but usually around $2400..

 

So since it's private sale you will have to go though a bank or CU. I think most banks are out of the question.. So you will need to find a CU that will work with first time buyers and your lower income.

[MarvBear]

NSF credit.

 

Would consider with a qualified co-applicant.

[Labyrinthine]

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

[NewbietoFinance]

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

If he put even 1k down, that would be financing 8400, a 5 year loan @ 6% would only about $163. Even with insurance he shouldn't be at $300.. (Not saying this is the best choice, just those numbers are a bit off) even 4 years would be under $200.

[WriteDrunk]

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

I believe I misspoke. $1600 (reportable) is what I'm working with after taxes, not that it makes a massive difference. I don't have a massive amount of expenses; my rent is split three ways, I pay 1/3 of $695. I can get a co-signer, that's not a problem, I would just rather not to.

I am aware of the costs that I have to be prepared for monthly, I do know how to make a budget. I appreciate the advice.

[BRBiz]

 

 

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

I believe I misspoke. $1600 (reportable) is what I'm working with after taxes, not that it makes a massive difference. I don't have a massive amount of expenses; my rent is split three ways, I pay 1/3 of $695. I can get a co-signer, that's not a problem, I would just rather not to.

I am aware of the costs that I have to be prepared for monthly, I do know how to make a budget. I appreciate the advice.

Generally most apps ask for pre tax amounts so you want to make sure you use that amount. It make a difference. Edited July 18, 2014 by BRBiz

[Labyrinthine]

 

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

If he put even 1k down, that would be financing 8400, a 5 year loan @ 6% would only about $163. Even with insurance he shouldn't be at $300.. (Not saying this is the best choice, just those numbers are a bit off) even 4 years would be under $200.

 

And his interest rate is unlikely to be 6% given his credit profile, age and income. My calculations are indicative of a subprime interest rate and a 3-4 year loan (unlikely to go longer due to the small amount of the loan).

[Labyrinthine]

 

I am going to strongly advise against this. With $1600 in gross income you are taking home around $1350 a month. After your rent that leaves you $665 for electric, groceries, insurance, gas, car payment, medical costs, a cell phone...the list goes on and on. Even if we consider the $2200 a month (gross) that still means you're only taking home $1870 or $1175 after rent. Your car payment alone is going to be around $300. Add on insurance, gas, repair expenses, groceries, electric, medical costs, a cell phone and you are very quickly living paycheck to paycheck.

 

You should take that $1-2,000 you have and use that to buy a decent (maybe not pretty) used car until your income is higher or your expenses are lower.

I believe I misspoke. $1600 (reportable) is what I'm working with after taxes, not that it makes a massive difference. I don't have a massive amount of expenses; my rent is split three ways, I pay 1/3 of $695. I can get a co-signer, that's not a problem, I would just rather not to.

I am aware of the costs that I have to be prepared for monthly, I do know how to make a budget. I appreciate the advice.

 

I get that you are aware and your expenses are low but think about it from a bank's perspective. In their mind your situation could change tomorrow and you might be paying that rent and utilities all on your own. It is a bad risk and will be reflected in the terms (if even approved).

[WriteDrunk]

Update:

Went to my local credit union with a cosigner, put 1k down, they offered 2.79% for 60 months with the cosigner, 5.9% without the cosigner. I obviously took the lower rate.

Thanks for your advice everyone, I'm still learning here and CB is really helping; I'm doing my darnedest to be responsible with the credit I'm given.

Any tips for a first time car owner now?

[RAguy]

Update:

Went to my local credit union with a cosigner, put 1k down, they offered 2.79% for 60 months with the cosigner, 5.9% without the cosigner. I obviously took the lower rate.

Thanks for your advice everyone, I'm still learning here and CB is really helping; I'm doing my darnedest to be responsible with the credit I'm given.

Any tips for a first time car owner now?

 

Congrats! Tips depend on if youre looking for more street or track use...