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Credit score while important, is defintely not the most important factor of qualifying for a loan. Believe me, you don't want a car payment being close to 40 percent of your take home! (PErsonal experience...)
I'm assuming you're full time and at 8.50 after takes you're looking at maybe 1100 for the month. You want to finance 20K and let's just say with a cosigner you get an APR of 8%, you're looking at a $350 payment!
I agree with the other response, there are very good reliable used cars out there that can be had for what you can afford right now!
@jm00ser wrote:Credit score while important, is defintely not the most important factor of qualifying for a loan. Believe me, you don't want a car payment being close to 40 percent of your take home! (PErsonal experience...)
I'm assuming you're full time and at 8.50 after takes you're looking at maybe 1100 for the month. You want to finance 20K and let's just say with a cosigner you get an APR of 8%, you're looking at a $350 payment!
I agree with the other response, there are very good reliable used cars out there that can be had for what you can afford right now!
+1
And yes, lenders don't only take your FICO score into consideration. What they are looking for is account age and a long history of timely payments..a person with a 660 FICO and 18 years of history will get a better rate than a person with a FICO of 750 and 1 year of history...
Some financial gurus say no more than 20% of your monthly net income. I suppose there are some exceptions, like recent graduates, home owners with paid off mortgages, if one spouse earns far more than the other, etc.
Keep in mind:
Insurance... full insurance is required by law, since technically you do not "own" a car not paid off. It can also be expensive depending on where you live in the States. I recommend you go online and run a basic insurance quote for whatever car you may consider. Strangely enough I did this once, a Hyundai Elantra vs. Sonata - the Elantra's premium was $20/month more (thats $1200 over 5-years).
Maintenance and fuel cost... SUVs require more service, and everyone knows they consume more fuel.
If you can, put money aside, into a savings account for example, to see how comfortable you will be with a car loan payment. I would do this for at least 1 year.
Even with no monthly bills and no credit card debt you're still gonna need a co-signer due to not enough credit history and lack of income.
@Volpes wrote:Some financial gurus say no more than 20% of your monthly net income.
IMO 20% for a car payment is way too high.