First time car buyer?

[Anonymous]

I am looking to buy a car for the first time. I am looking to buy either a used car or a new Toyota (I'm eligible for my dad's employee discount.) I am so lost at where to even begin. I know I shouldn't go into a dealership without having some sort of pre-approval rate to bargain with, but I'm not having any luck with any CU wanting to help me out since I have not been employed a full year. Any advice is appreciated! Here's all my info:
- looking for a car under 25k
- 22 years old
- monthly income: $4,025 (roughly $2,000 leftover each month after paying all bills, groceries, gas, etc.)
- employed full-time for 9 months (graduated college in May 2014)
- limited credit history; no credit cards, mortgage, or previous auto loans
- have $19,000 in student loans; have been in repayment since December, $217 min. monthly payment, I have paid $350 on time each month
- parents will not cosign

[Anonymous]

You really need to get your credit scores, that will help determine what your options are.  Also you need tradlines other than just student loans so at some point soon do yourself a favor and get a couple of credit cards, three is considered optimal to increase your credit score and show you can manage credit.  Please tell us more about the employee discount. Does Dad work for the Toyota factory or is this a dealership employee discount?  Depending on the answer to that you can probably make a better determination of new or used.  You should get a relationship going with a credit union for sure.

[Anonymous]

My dad has a discount through his factory job. And I haven't gotten my credit score. My problem with CUs is that the ones I have contacted in this area won't even let me apt until I have been employed for 12 months. Should I just hold off until then?

[Anonymous]

@efree93 i agree with workingfor850..we need to see your scores before we can provide you some possible options. Some possible CU out there you may want to research is Penfed, DCU, Nasa...etc you can research the forum to get more info on membership..

[Anonymous]

I think if it is an option to hold off you should do so, certainly it will be much easier to get good financing if you have 12 months on the job and if you get a couple of credit cards reporting to your report.  If the Toyota discount is anything like GM's you will get a great deal on a new car and they are easier to finance generally so I would probably go new but waiting till you have 12 months and some trade lines will ensure success. 

[TRC_WA]

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@Anonymous wrote:
I am looking to buy a car for the first time. I am looking to buy either a used car or a new Toyota (I'm eligible for my dad's employee discount.) I am so lost at where to even begin. I know I shouldn't go into a dealership without having some sort of pre-approval rate to bargain with, but I'm not having any luck with any CU wanting to help me out since I have not been employed a full year. Any advice is appreciated! Here's all my info:
- looking for a car under 25k
- 22 years old
- monthly income: $4,025 (roughly $2,000 leftover each month after paying all bills, groceries, gas, etc.)
- employed full-time for 9 months (graduated college in May 2014)
- limited credit history; no credit cards, mortgage, or previous auto loans
- have $19,000 in student loans; have been in repayment since December, $217 min. monthly payment, I have paid $350 on time each month
- parents will not cosign

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That's your biggest problem.

Get some credit cards to build a profile... try again in 6 months.   By then you can have a nice down payment saved up too.

[Anonymous]

Any suggestions for some first time credit cards? I do fly frequently and could put my every month bills on a credit card (rent, cable, etc.)

[Anonymous]

Capital One is probably where most get their first card.  I know I have harped on the credit union thing but often times credit unions will approve you for a credit card as soon as you establish membership.  Best thing to do intially is go to the various credit card websites and enter your information in their preapproval areas, this allows you to find out if you are prequalified for a card without having to take a hard pull against your credit.  If you are not pre approved you stll may qualify once you apply but this is a simple and low risk strategy.  Once you get a card or two, use it each month but pay it off each month, perhaps leave 10 bucks on to carry a small balance, keep overall utilization under 20 or 30 percent and you will soon get pretty big gains in your credit score, you can literally get 70-100 points in a year which is huge. For more information post a question in the credit card section, we have folks here that are really great at advising but they are going to want your scores to guide their advice.  Perhaps consider joining creditkarma, it is free and will give you an estimated score, also most credit card companies will give you free monitoring and a estimated credit score also. Learn your score and build it and life will be much easier and cheaper.