First Time Car Buyer

[Anonymous]

Hi Everyone!

I am looking to buy a 2012-2014 toyota corolla S.

The model I am looking at retails for over $18k.

Here are the basics:
I am 19 years old.

My annual income is $19k

I have two credit cards, 1 with a $200 limit, and the other with $750 limit

My credit score generated from credit karma is 637.

I would appreciate any help/advice on what to do with buying my first car. I am looking to buy a decently used car priced from $12-14k, but if it is possible, I would prefer a new car. I will not be cosigning with anyone because I do not have any parental support.

[RushXTC]

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@Anonymous wrote:

Hi Everyone!

I am looking to buy a 2012-2014 toyota corolla S.

The model I am looking at retails for over $18k.

Here are the basics:
I am 19 years old.

My annual income is $19k

I have two credit cards, 1 with a $200 limit, and the other with $750 limit

My credit score generated from credit karma is 637.

I would appreciate any help/advice on what to do with buying my first car. I am looking to buy a decently used car priced from $12-14k, but if it is possible, I would prefer a new car. I will not be cosigning with anyone because I do not have any parental support.

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I'd say you have a good chance of getting approved since my co-worker who has no credit at all just bought one a couple of days ago, He said every Toyota dealership was offering him 24% interest, But he kept going to different dealers until he found one that hooked him up with 13% (High, But for someone with no credit this is way better than 24%).

Payments are $557 a month, If you can't handle that kind of payment (Which at 19k a year, You probably can't) I'd wait a bit longer. especially since you'd need full coverage insurance.

How long have you had your credit cards for?

Edit:  I don't mean any disrespect by the "You probably can't" comment, Earlier this year I got myself into a huge mess with a $700/m car + $500/m insurance. I only make $2,000 a month after taxes and beginning next week, I'm only making $1,200 a month after taxes due to overtime being taken away from me. So trust me, It's a stressful thing, Don't jump the gun just because you think you "NEED" a car right now. Wait out for better opportunities.

[Anonymous]

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@RushXTC wrote:

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@Anonymous wrote:

Hi Everyone!

I am looking to buy a 2012-2014 toyota corolla S.

The model I am looking at retails for over $18k.

Here are the basics:
I am 19 years old.

My annual income is $19k

I have two credit cards, 1 with a $200 limit, and the other with $750 limit

My credit score generated from credit karma is 637.

I would appreciate any help/advice on what to do with buying my first car. I am looking to buy a decently used car priced from $12-14k, but if it is possible, I would prefer a new car. I will not be cosigning with anyone because I do not have any parental support.

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I'd say you have a good chance of getting approved since my co-worker who has no credit at all just bought one a couple of days ago, He said every Toyota dealership was offering him 24% interest, But he kept going to different dealers until he found one that hooked him up with 13% (High, But for someone with no credit this is way better than 24%).

Payments are $557 a month, If you can't handle that kind of payment (Which at 19k a year, You probably can't) I'd wait a bit longer. especially since you'd need full coverage insurance.

How long have you had your credit cards for?

Edit:  I don't mean any disrespect by the "You probably can't" comment, Earlier this year I got myself into a huge mess with a $700/m car + $500/m insurance. I only make $2,000 a month after taxes and beginning next week, I'm only making $1,200 a month after taxes due to overtime being taken away from me. So trust me, It's a stressful thing, Don't jump the gun just because you think you "NEED" a car right now. Wait out for better opportunities.

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Well, I guess the case is different since I actually do have a credit score, right?

I've had the first credit card for about 4 months, and my second one for about 2 months now.

Did your coworker put down a down payment?

Because I am planning on putting at least $3500 down.

[RushXTC]

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@Anonymous wrote:

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@RushXTC wrote:

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@Anonymous wrote:

Hi Everyone!

I am looking to buy a 2012-2014 toyota corolla S.

The model I am looking at retails for over $18k.

Here are the basics:
I am 19 years old.

My annual income is $19k

I have two credit cards, 1 with a $200 limit, and the other with $750 limit

My credit score generated from credit karma is 637.

I would appreciate any help/advice on what to do with buying my first car. I am looking to buy a decently used car priced from $12-14k, but if it is possible, I would prefer a new car. I will not be cosigning with anyone because I do not have any parental support.

---

I'd say you have a good chance of getting approved since my co-worker who has no credit at all just bought one a couple of days ago, He said every Toyota dealership was offering him 24% interest, But he kept going to different dealers until he found one that hooked him up with 13% (High, But for someone with no credit this is way better than 24%).

Payments are $557 a month, If you can't handle that kind of payment (Which at 19k a year, You probably can't) I'd wait a bit longer. especially since you'd need full coverage insurance.

How long have you had your credit cards for?

Edit:  I don't mean any disrespect by the "You probably can't" comment, Earlier this year I got myself into a huge mess with a $700/m car + $500/m insurance. I only make $2,000 a month after taxes and beginning next week, I'm only making $1,200 a month after taxes due to overtime being taken away from me. So trust me, It's a stressful thing, Don't jump the gun just because you think you "NEED" a car right now. Wait out for better opportunities.

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Well, I guess the case is different since I actually do have a credit score, right?

I've had the first credit card for about 4 months, and my second one for about 2 months now.

Did your coworker put down a down payment?

Because I am planning on putting at least $3500 down.

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He put down $2,500 and that's not much time, But it's better than none at all. Also, $3,500 down is good on that car, Should improve your odds with Toyota Financial.

You can always try this : http://www.toyotafinancial.com/consumer/tfs.portal?_nfpb=true&_pageLabel=pg_CreditApplication_unsctf

[CJIII29]

I think you is better off buying used.

[Remember0]

The income worries me a little, but it is at 1500/month. Is it gross pre-tax?

Also OP, do you have any baddies on your report? Or is the situation more you have a thin file: just those two cards (4 and two months ago) with perfect payment history?

[RushXTC]

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@Remember0 wrote:

The income worries me a little, but it is at 1500/month. Is it gross pre-tax?

Also OP, do you have any baddies on your report? Or is the situation more you have a thin file: just those two cards (4 and two months ago) with perfect payment history?

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The problem is you're calculating $18k into 12 months.. .What you seem to forget is we get paid 3 times 2-3 times in a year, So that means only those months would he be safe, The rest he's making less than 1500.

[cottoncrown]

You should check to see if you have an actual fico score, you can buy it off this site. If you only have four months history, you won't have one. You need six months history for actual fico. Wait until you have six months history and have a fico, then get pre approved from a CU and go to the dealer. With a down paent that big you will get approved with a good rate no problem. Don't try to buy before you have a fico score, even if you are approved you will get a horrible interest rate which will cost you thousands of dollars over the loan. Just wait the two months and save a bit more cash, it will work out in your favor. Good luck!

[Remember0]

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@RushXTC wrote:

The problem is you're calculating $18k into 12 months.. .What you seem to forget is we get paid 3 times 2-3 times in a year, So that means only those months would he be safe, The rest he's making less than 1500.

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I've never seen someone calculate income like that. Me (and everyone I have ever known of) always takes annual gross and divides by 12 regardless of pay intervals. That's what I'd recommend OP to do on his loan application (18k/12=1.5k).

Also I've never seen a lender balk at dividing by 12 on verification, indeed, it seems to be what they expect. Many loan apps even have a check box to make life easier for people. They ask for income and have you check if it's weekly, monthly, yearly, whatever. If they directly ask for monthly, it's entirely fine to take 18k/12 and put 1.5k...if you're worried ask the finance company if you can just divide your yearly income by 12. I'm willing to bet 10 bucks they say "what else would you do?"

[RushXTC]

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@Remember0 wrote:

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@RushXTC wrote:

The problem is you're calculating $18k into 12 months.. .What you seem to forget is we get paid 3 times 2-3 times in a year, So that means only those months would he be safe, The rest he's making less than 1500.

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I've never seen someone calculate income like that. Me (and everyone I have ever known of) always takes annual gross and divides by 12 regardless of pay intervals. That's what I'd recommend OP to do on his loan application (18k/12=1.5k).

Also I've never seen a lender balk at dividing by 12 on verification, indeed, it seems to be what they expect. Many loan apps even have a check box to make life easier for people. They ask for income and have you check if it's weekly, monthly, yearly, whatever. If they directly ask for monthly, it's entirely fine to take 18k/12 and put 1.5k...if you're worried ask the finance company if you can just divide your yearly income by 12. I'm willing to bet 10 bucks they say "what else would you do?"

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In my opinion, It's not how the bank calculates your income, It's how sure you are you can keep making the monthly payments without a problem.

It's okay if the bank THINKS you make $1,500 a month, But that doesn't mean you ARE making $1,500 a month. This isn't worth an arguement, However it's something to consider when you're calculating your expenses and how much you can spare. One month you make $1,200 the next you make $1,800, Do you saive the $600 for the whole year? Not really. That's just the way I see it.