@Dj4Money wrote:
Again some of the advice here is good, but I have a counter.
I didn't have income officially, nobody asked for verifcation and I got a new car for $15,295 (MSRP $17,295), only put down the $500 rebate at the time.
My credit file wasn't thin, it was 22 year old at the time and as the saying goes, bad credit is better than no credit.
Ford and GM have first time buyer programs, though I think min income is $1,500 gross monthly.
Since were in the middle of Spring, this is the time to try get your income up and increase your credit file and buy before it gets cold.
1) Get a second Capital One card or a State Dept Federal Credit Union card, no income verify there. You need three cards for maxinum FICO scoring.
2) Keep it under $20,000 out the door (taxes, fees, everything).
The problem with people suggesting to get a beater or better used car is you don't have money to start with. I was generating about $750 a month not too long ago (2010-2014) so I know you can easily spend half of that without even trying. If you could save $250 a month, it would take you eight months to save $2,000. It's April now, you really want to wait to Dec to buy a car?
I didn't think so.
Ways to increase your income -
Donate Plasma
I did this, it's not painful at all. I generated $300-$350 a month for two hours of my time, twice a week.
You could cut down the savings time to 4 months this route. This is unearned income, you can still list it as an additional income source.
Merchandising
Acosta, Crossmark, RMSI and others are seemingly always hiring. In most cases you'll make $500-$1,000 a month, sometimes more.
If you did all this plus your current job, that would keep you plenty busy during the summer.
Here's what I would do -
Get two more credit cards for max scoring with FICO, your score can go up 30-40-50 points in less than six months easily.
Get a Merchandising job
Find your local Plasma donation clinic, California tends to pay more so you could earn $250-$300 monthly in most states. - http://www.donatingplasma.org/
As suggested push as much as you can through your cards and PIF on two but leave the third with a small balance, as long as it's under 30% for utilization you'll be fine.
Ask for a line increase after 90 Days. Your Cap One secured card will line increase in six months but won't graduate. If you get a SDFCU card it's also secured and won't increase or upgrade to unsecured, this is fine. Your second Cap One card will be an unsecured Platinum or Quick Silver One. Ask for a line increase after your 3rd statement and your 3rd payment.
My QS1 went from $500 opening limit to $1,500 after 90 days and $2,000 total after six months.
If you can do what I did, then you could put down $3,000 ($2,000 cash and $1,000 credit card) on a new car. The truth about used cars is it likely won't break down on the side of the road, but you'll be replacing things like water pumps and timing belts if it wasn't done before you bought it.
So the question becomes, do you want to spend $2,000 up front, then another $300-$400 within six months or spend $200-$250 a month, have the balance of the remaining bumper to bumper warranty and maybe another $1,000 for a extended warranty and service plan that will cover everything.
You also might be able to lease a new car; the bank always owns the car unless you buy it at the end of the lease. Less risk involved for them. As long as your FICO scores are good, money factor (interest rate) might be higher but your payments will be more in line with your income.
Good Luck and report back.
@Anonymous all fairness, starting out in LIFE @ 22 is very different than being a 18/19 KID outta HIGH SCHOOL with a Drivers License still wet from being printed.....
