Purchasing car.

[woah_amie]

Hi everyone,

My parent's told me the good news that I can get a new car once I finish paying off my CC debt. I'm about $1400 down the drain, but I plan to pay that by the end of November. 

Now, my credit has been dinged because of a lot of hard inquiries and about two late payments. I also have a high credit usage, but have been cutting down on that.

I do have to have my parents co-sign my new vehicle, and they have perfect credit with Nissan Financial. So that's where my new car is coming from.

I'm interested in purchasing an XTerra, which runs about $26k. I plan on putting $4k down, and hoping to get a decent interest rate. 

Is it possible to get a goo APR with my parent's co-signing?

[Dustink]

Your parents will get a good APR if their income and credit properly support the loan. Legally, it will be their responsibility to repair the debt.

Do you really want to put your parents in that position? If you are having trouble with a meager $1400 credit card bill, how do you expect to repay a $26k loan? Your late payments have already demonstrated a poor inability to repay debt. Your parents are taking on a major risk here.

Why don't you just take the $4k and purchase like an '01 xterra? Then wait until you are in a position to carry the loan yourself.

I am 21 and purchased a new vehicle without a cosigner. The terms of the loan is 36 months at 0%.

Just get that debt paid down and be sure not to have any more late payments. Then get in the routine of paying in full every month any credit card account that charges interest. Those lates are going to haunt you, but as they age they will be less harmful.

[azguy13]

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@Dustink wrote:

Your parents will get a good APR if their income and credit properly support the loan. Legally, it will be their responsibility to repair the debt.

Do you really want to put your parents in that position? If you are having trouble with a meager $1400 credit card bill, how do you expect to repay a $26k loan? Your late payments have already demonstrated a poor inability to repay debt. Your parents are taking on a major risk here.

Why don't you just take the $4k and purchase like an '01 xterra? Then wait until you are in a position to carry the loan yourself.

I am 21 and purchased a new vehicle without a cosigner. The terms of the loan is 36 months at 0%.

Just get that debt paid down and be sure not to have any more late payments. Then get in the routine of paying in full every month any credit card account that charges interest. Those lates are going to haunt you, but as they age they will be less harmful.

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I agree that having issues paying a $1,400 does not look good when asking for a $26K loan. The lates on the CC are a good indiacation that you either easily forget the due date, do not have the ability to pay on time, or you just dont care to pay on time (I doubt that part). 

You mentioned that your parent's have perfect credit with Nissan. Do they have perfect credit overall or have just paid on time with Nissan? I ask this because if they have past delinquencies on an auto loan and the the lender pulls an auto-enhanced, it could hurt. 

I spoke with a dealership a few years back and they told me that a co-signer does not so much get you a better rate than it does just getting you approved for the loan. Do you really want to put your parents in the position to take the "financial fall" for you? Remember, if you make ONE late payment on the vehicle then it will report on your parents credit too and sink their scores. From personal experience, even if they offer, you do not want to change a relationship because of finances. 

If you do not want to pay cash, then I would pay off my CC, prove to yourself you can handle your finances for a year without an baddies, and then app. It will also give you a chance at a better down payment which could result in an better APR. Just because your parents have good credit does not mean you will get the APR that they would get.