@Anonymous wrote:
Okay, so this is my situation. I'm 20, I'm a college student and I still live at home so I have no house or utility expenses. My current credit score is 675. I currently have a 2015 civic si that I'm paying 320 a month for but I'm really not a big fan of the car. I traded a 2015 mustang gt that I paid 430 a month for. I have not made any late payments on either. I'm wanting to get a Nissan 370Z but I'm wanting to do it by myself. The mustang was consigned by my father and the civic by my grandmother. I'm wanting to be independent from both and only have my name on the loan. I have 2 credit cards that I owe a total of about a thousand on and have never made a late payment on those either. My question is what are the chances of me getting approved by myself. Asking anyone to cosign is out of the question. I only make about 1200 a month but literally the only thing that comes out of that is car payment money, gas money and the occasional date money so it's not like I'm going to be late or not have the money. I'm hoping to do this in the next week but I don't want to waste my time if there's no hope.
Congratulations on being able to purchase a vehicle and get it financed. Looking at your post, I don't see where you pay for your own auto insurance. Was that an error?
I mention that because it is a big part of owning a vehicle. Since you are under 25 y/o, your auto insurance would be fairly expensive. You should work your figures with the insurance cost, even if your parents are willing to help you out now, that is temporary as eventually you will graduate and move out on your own.
A comment about trading: I don't know how long you had vehicle 1 before you traded it for vehicle 2, but it can't have been too long since both are new 2015 vehicles. You would have been in a negative position with vehicle 1 unless you had a large down payment on the original purchase. By trading you added the negative equity to vehicle 2, unless you put down a large down payment to cover the negative equity for vehicle 2. Now you are thinking of getting vehicle 3 by trading in vehicle 2 which would be adding in negative equity from both vehicle 1 and vehicle 2. Negative equity doesn't disappear, you have to pay it down. So just from a practical POV, trading at this time is not a good idea unless you have a substantial down payment. Carrying over neg equity from vehicle to vehicle is unsustainable. At some point you have to pay the piper. Better to plan your purchase without building up your negative equity position.
Please note: I am not a fan of trading at all. It is convenient for the buyer but it is very costly to you. Dealer offers much less than the vehicle value and you take the hit. Better to sell your vehicle directly and not take the large hit associated with trading.
This is the time for you to begin to think smart about your financial moves. Calculate your actual expenses for the new vehicle including full coverage insurance. Calculate what you would need to have in the way of a down payment to wipe out the negative equity if you really want this new vehicle. Do you have the funds to make a substantial down payment?
What can you do to increase your income to qualify for a loan of the size you need for the new purchase? Remember, just because you don't pay rent or other normal household expenses, it doesn't mean the dealership can ignore those expenses. You have to still qualify for the loan you seek. The lender will impute those expenses to you knowing that eventually you will be moving into your own place and will have those expenses.
This doesn't mean that the vehicle is out of reach. It means you have to plan for it - save your funds and put down enough to afford it with your current income or increase your income. Take the time to plan this purchase. Maybe you get it in a year or so rather than next week. My advice would be to stick with your current vehicle until you can actually afford to purchase the new one without trading.
