First time buyer, what do you think?

[Anonymous]

I applied for a loan online at carloans.com

Nissan of Reno called me in about 5 minutes.  (I live in Reno NV hehe)

I am 18, new to my job, alright credit, make about 1600$ per month. This was the special financing department that called of course. I am familiar with car loans as I was there when my parents bought me a car at 16, and am very knowlegable on credit, as I am a regular here (seemed to have locked myself out of my account) ugh.

He said if I fax over everything tonight (last night) and come in this morning at 10:15 (This morning, its 6:43, im nervous to go in, in a few hours), that everything should be fine and no problem, he said we could do 0 dwn as well. 

Now I hear other people on here having hard times at 18 and what not and they have better income than me.. So what gives? Do you think it will be as painless as he describes?  I don't want to waste my time. I got an alert, he pulled my TU file, which is my thinnest file. 

[Anonymous]

The dealership pays about 25.00 for every lead generated from that website.

Bringing the potential buyer in is the biggest mandate they have.

I would say go in, but be open minded. they may, when you get in, start looking at your paperwork and then saying how you must have XXX or hey we need 1000 down to get you a better rate etc etc.

The deal is going to be ran through a secondary bank there will be high interest rates.

You say you make $1,600 a month is that before taxes or after, gross pay or net? 

Is it waste of time for you?

Well number 1 why do you need a new car if your parents bought you one 2 years ago?

Number 2 if you do get financed on a secondary (or even a primary) transaction your payment, not including insurance is going to be over 300. Add insurance at your age and you will be  at 400-450 a month- a significant portion of your current income that will be locked up for 5-6 years.

Number 3: if you are net 1600 you may be OK for financing, if you are gross 1600 you are probably not going to be financed- a year ago the minimum income to finance was 1800 for most banks now it is about 2,000 a month for a good primary bank.

Number 4- Is the car your parents bought you paid off? If you have a balance owing and need to trade it in you will probably have negative equity that will skew you rnumbers.

Number 5 - Every 1000 you are financing over 5-6years will cost you about 20.00 a month on a primary bank loan or at least 25 a month on a secondary. Do the math yourself on the car you want to buy and see where that leaves you.

I want to add:

I want an iPhone. I can afford an iPhone. I qualify for the Best Buy iPhone sale this week that gets me one for a hundred dollars. 

My current cell phone works and does what I need. My current bill is 64.00 a month.

I went in and looked at what it would cost and well I declined as I just did not want to double my current phone bill to over a hundred dollars a month.

I want an iPhone, I can afford an iPhone, I got offered a great deal on an iPhone and I declined it because I honestly could not rationalise the monthly expense especially in the current economic climate. 

Message Edited by usmc58555 on 02-28-2009 07:21 AM

[Anonymous]

They ended up wanting 800$ down at 10% APR, not too bad. I took it. 16500 Loan

I know insurance will be horrible. Anyone reccomend cheap companies?

The car I had was a pice of crap. Broke down twice, ect. Its a dodge, They are upside down in the loan. They assume responsibility for it. 

[clocktick]

Congrats!  What are you buying and what are your payments and for how long?

Message Edited by clocktick on 03-02-2009 07:01 AM

[Anonymous]

$16500 at 10% for 5 years is about a 350.00 a month payment.

You make 1600 a month which means with insurance you will have about 1100 a month or less to spend.

I hope you did not buy a "sports car" style model (V8, manual etc)-- that will kill you on insurance.

Start trying all the majors for a quote esurance, geico, the general, progressive.

If you have family that was/is in the military see if someone can sponsor you into USAA.

And remember if you are a white male under the age of 25 you have the highest insurance rate around

and you really need to be carefull one speeding ticket will at your demographic could pop up your insurance by a hundred dollars a month.

One last insurance truth, and I tell this to many people:

Going from a $250 to a $500 deductable for many insurance providers is a $20 a month payment decrease.

Fine.

Take the $500 deductable, open an online banking account with an online bank like ing, and drop the price difference into the online bank each month until you have made up the deductable difference.

in 12 month you will have made up the 250 difference in deductable and after that you just save 20.00 a month. If you get into an accident you just take the 250 from there and pay the 250 you would have had to pay if you were getting a regular 250 deductable. Over the course of a 5 year loan this practice would save you 48*20=$960

Why do I recommend an online bank? simple it is harder to get at your money for frivolous things so you will be less likely to spend it on non insurance related things.

BTW please tell me you got GAP coverage in the loan?

You are at a negative equity position with this car since you rolled your negative into this deal. In all probability understand that at no point will your car be worth more than you owe.

Message Edited by usmc58555 on 03-01-2009 10:02 AM

[Anonymous]

What are your FICO Scores if i may ask? 

[Anonymous]

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@Anonymous wrote:

I want to add:

I want an iPhone. I can afford an iPhone. I qualify for the Best Buy iPhone sale this week that gets me one for a hundred dollars. 

My current cell phone works and does what I need. My current bill is 64.00 a month.

I went in and looked at what it would cost and well I declined as I just did not want to double my current phone bill to over a hundred dollars a month.

I want an iPhone, I can afford an iPhone, I got offered a great deal on an iPhone and I declined it because I honestly could not rationalise the monthly expense especially in the current economic climate. 

Message Edited by usmc58555 on 02-28-2009 07:21 AM

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Hi I know this has nothing to do with the subject but I noticed what you added at the end.

My boyfriend and I pay $142 total a month for 2 iPhones. Normally it would be $160 a month but they give 15% off a month discounts depending on where you work. (Always ask if they have some special deals). We both have unlimited text and data, but its a family talk with shared minutes of 700 minutes (dont talk to much on our cells). But any way just wanted to share that it doesnt have to costs hundreds a month for a iphone, I figure even without our discount it would cost us $80 a piece, not too bad. Didnt get the phones at Best Buy tho, so they were pricey.