Approved for and got my car, with short credit history and no cosigner

[Anonymous]

So I guess this is a thread for people like me with short credit histories, no co-signer around, and young. I looked around and am thanking up and down to the person who recommended Carvana to me. I never heard of the website, did my homework, and took the plunge. This was before Sprint caught up to me a second time around and hit my credit.

After a series of Sprint screwing up my credit, cancelling two purchases (one because it wasn't the right car and the second because of the new financing terms thanks to my hit credit report), and this amazing company calling me to honor my old pre-collection credit scores, I went ahead and finally settled for a 2015 Chevy Sonic LTZ since the Rio I was going to buy was being purchased at the time by somebody else and I liked this car more.

I am now the proud owner of said car and LOVE it! Has just at 40,000 miles, no damages whatsoever, mechanic looked it over and literally said "if we had to find something wrong, it's your front tires. Good condition but you might want to consider new ones for the winter(which I will cause MN winter is no joke). Overall the car is in fantastic shape and has no leaks or damages at all."  My financing terms are great too. I pay $227 a month, with the companys Carvana Care package added, with a 6.83% interest rate. 72mo but I plan on refinancing after a year and my credit has (hopefully) significantly increased. My insurance is a bit high since I have a lot of cards against me, only good thing being no accidents or tickets, but it's at $270mo (renters and car). Affordable though. 

All in all, I love the car, I love this company, I like my rates a LOT, and I plan on buying from them again if I ever need a newer car. I really recommend the company for people who are in similar situations: Can't get a cosigner or loan anywhere else, you're young, and/or you just have a short credit history. 

[StartingOver10]

Congrats on your vehicle.

If you are paying $270 per month for auto insurance including a renters policy, that is very high. Have you shopped your insurance? You might want to do that soon (I would). It could be a good rate if you are less than 25 y/o, I don't know. It's been a while since I have seen 25....

Insurance is one of those hidden costs that can really hit you hard. It is always a good idea to compare the costs and the coverage. Note, rental insurance is usually very, very cheap so I think the culpret here is your auto coverage. Check around.  Good luck.

[Anonymous]

@StartingOver10 I'm a 20yo guy living in Minneapolis, paying full coverage for a nice car. I knew it'll be high and this is actually the cheapest option I have available to me currently. The renters, alone, is literally $10. Other places were charging me $350+. Progressive said $450mo!

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@StartingOver10 wrote:

Congrats on your vehicle.

If you are paying $270 per month for auto insurance including a renters policy, that is very high. Have you shopped your insurance? You might want to do that soon (I would). It could be a good rate if you are less than 25 y/o, I don't know. It's been a while since I have seen 25....

Insurance is one of those hidden costs that can really hit you hard. It is always a good idea to compare the costs and the coverage. Note, rental insurance is usually very, very cheap so I think the culpret here is your auto coverage. Check around.  Good luck.

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[ejm201]

Not sure your age or how MN auto insurance is but my wife and I were paying similar rates back when we were 21/22...actually hers were pushing $300 and this was BASIC coverage( because she got into a small fender bender back in FL). Now, being 27 in MD, our auto rates are $150 for FULL coverage on two cars. $175 inc. renter's. May seem high to some but age definitely plays a huge factor and gender on top of credit scores. 

So, in other words, not bad. And some friendly advice, try to use WAZE app,its a life saver when it comes notifying you of red light cameras, speed traps and traffic jams!

[Anonymous]

Congrats!

If you want to refinance, keep an eye on the book value of your car and make sure your loan balance stays under it. Might require some extra payments, but if you plan for it you won't be stuck wanting to refinance and not being able to.

Generally you should skip the care package. I understand why you did it, though. Did it the first time I was committing to high expenses on a newer car as well.  They really just exist to make dealers $$.