First Time Buyer (Part 2)

[Anonymous]

Ok guys. A few of you might remember me. Let me catch you guys all up. A couple months ago I had a few questions about getting a loan for the first time, and now, May is right around the corner, and here is where I stand...

I'm 18 years old (turn 19 on April 21st), my credit report is reporting a year of credit history now. My EQ fico score is sitting at 677 and TU is 710. I have 3 credit cards sitting currently at 11% UTI. I'm looking to buy a dodge charger. I have no cosigner. Truthfully, I have 0 bills. Actually, I pay my phone bill, which is about $200 a month. But besides that, no other responsibilities. I go to school. I have no expectations of finding a 0% APR or anything like that, and would be satisfied with simply getting approved for the loan with anticipation of refinancing later on if I wanted to. So, any suggestions? Is it possible? I would greatly appreciate any Help in regards to my situation!

If you have any more questions, just let me know.

Message Edited by EJGPharmMD on 04-19-2009 03:37 PM

[Anonymous]

What is your income?

How long on the job?

Do you belong to a Credit Union?

Do you have a budget to determine what you can afford, including fuel, maintenance, insurance, etc?

[Anonymous]

Ahh, yes. I forgot al off that. I have currently been working at my job for a little over a year and a half. I work at CVS. I make a little over $1900 a month before taxes. Usually more than $2000 because of the way CVS calculates overtime, but I'm sure  overtime is not considered in my income. I joined a CU at the beginning of the year. I am married, so insurance should be low I'm hoping. And anything under $500 a month would be nice. Once again, I have no bills. I would like to get away without a down payment, but if I can't, I guess I wouldn't be too against it.

[Anonymous]

Well, My question is,,, Ahhhh, What kind of phone service do you have that you're shelling out $200 a month for?

That's half a car payment right there,

What model Charger are you looking at,  I've been looking at the '08 R/T with the 29P package and the base '09 R/T and  the prices for April aren't as good as they were last month, Maybe in May we'll see a better deal on the '08's.  On March 30th I priced that '08 at 24,8 OTD (MSRP was 34,5)  On April 1st he adjusted his price to 27,  which left me saying, "Dude, You could'nt sell this thing at 24, So you don't seriously think it'll go for 27?"  He just said that price increase was out of his control, Chrysler changed the program,

There's no guarrantee that Chrysler will even be around in six months to service these things should it break, So hammer the heck out of them over the depreciation being caused by their impending demise.

Other than that, Right now getting 0% from Chrysler really isn't a viable option,  Dodge is only offering 0% for 36 month's on the Charger's, and the rebates aren't very good, and they dropped employee pricing on the 08's, and you'll likely need a 10% down payment,

I would wait for better prices on these cars,  but next month things could change.

[Anonymous]

No rent, utilities, etc? 

$500 is more than 25% of your gross income.  Generally when calculating debt to income, including housing, you are looking for 41 - 53%.

I bring these points up, because you may need to buy less car or put more down in order to keep dept to income in proper proportions.

Plus, just because you have no other liabilities now does not mean you will not incur some during the auto loan.  So, you need to take a look at what purchases and additional expenses you may take on in the next 3 years. 

Do you have more income from wife (household income) that would count toward loan consideration?

Here is a link to a variety of auto loan calculators so that you can input various loan amounts and term lengths to see where you think it may be feasible for you. 

http://www.bankrate.com/calculators/index-of-auto-calculators.aspx