What could I get approved for?

Anonymous · ‎09-07-2009

Im looking into getting a new car since the car that im driving now is getting older and may not have much life left (Had it for almost 5 years). I was wondering what kind of rate I could get and the loan ammount. Just the other day I checked my creditscore through this site and it was a 737(transunion). I have perfect credit history other than the fact that I only have 3 and a half years or so of it and I rarely carry a blance on my cc's for too long. Im currently in my final year of college and I may have a job lined up soon for when I graduate. I know income is a big part of getting a loan and having a stable job is too. I have been working at my job since May and now I only work part-time since starting school and will work untill I finish school next year. I probably will gross around ~1500 a month or so. So with that I was just wondering what kind of loan I could get for a new car. I will mostlikely be trading in my current vehicle which I probably could get about ~1500 for and I would probably throwdown 3/4k for a down payment. Oh and I do have a decent amount of Student Loans but I probably shouldnt have a problem with them since my job prospects look good for me. In the end im just looking to have a new car before I graduate and just wanted to know what I could get.

Message Edited by ike2187 on 09-07-2009 10:40 AM

Anonymous · ‎09-07-2009

@Anonymous wrote:
Im looking into getting a new car since the car that im driving now is getting older and may not have much life left (Had it for almost 5 years). I was wondering what kind of rate I could get and the loan ammount. Just the other day I checked my creditscore through this site and it was a 737(transunion). I have perfect credit history other than the fact that I only have 3 and a half years or so of it and I rarely carry a blance on my cc's for too long. Im currently in my final year of college and I may have a job lined up soon for when I graduate. I know income is a big part of getting a loan and having a stable job is too. I have been working at my job since May and now I only work part-time since starting school and will work untill I finish school next year. I probably will gross around ~1500 a month or so. So with that I was just wondering what kind of loan I could get for a new car. I will mostlikely be trading in my current vehicle which I probably could get about ~1500 for and I would probably throwdown 3/4k for a down payment. Oh and I do have a decent amount of Student Loans but I probably shouldnt have a problem with them since my job prospects look good for me. In the end im just looking to have a new car before I graduate and just wanted to know what I could get.
Message Edited by ike2187 on 09-07-2009 10:40 AM

Not to go off topic, but just as food for part of the OP post. Most cars manufactured by reputable and reliable companies have no problem being driven for 10 years or more if properly maintained. A 4 year old car will be going out of original warranty. But, if one puts the normal monthly payment of a car into savings, then regularly maintains, tunes, lubes and cares for the vehicle, one could very easily enjoy 3 to 5 years of car note FREE living. The cost of maintenance is always less than the cost of a new vehicle. Again, this is just food for thought to consider the possible financial advantages of driving the car you have a few more years.

With that said, if you income is good you should be able to qualify for the best rates. CU's are as low as 3.99. Some manufacturers are offering 0%.

Anonymous · ‎09-07-2009

I bought the car used and had it payed off the day I got it and its a 99. Its been pretty good to me for the past years and im sure it has more time left in it. Im just looking for something new and knowing that the chances my car craps out on me is increasing. I take great care of it but I guess this is all about getting something nice and new. But what you said is true and you should get the most of out a car and I think I have for the most part. So thanks for the answer.

llecs · ‎09-07-2009

Ditto to txjohn. If I was in that situation, I would certain wait until I had at least my first check after starting a full-time job before committing to a loan. Now if I had an emergency savings built up and had the extra money in the bank to purchase the car in full, then I'd drive my current car into the ground and then consider financing something. IMO, $1500/mo isn't much to go on esp. if you might have to make SL payments in a year or so. And a degree doesn't guarantee a job. I remember leaving school during a mild recession with a number of promises and prospects, but nothing worked out. Despite sending 100+ resumes and going on interviews for about 20 of those, I didn't have any takers.

Anonymous · ‎09-07-2009

Ok so I know it wouldn't be the best thing to do if you want to be totally strict with money but it would be possible right. The 1500 (if not more depending on working fulltime during the winter) would only be for the next couple of months. So I wouldn't be living off of that and paying student loans which payments wouldn't be due until 11/10. Going by the other post I could get approved but how much?

Message Edited by ike2187 on 09-07-2009 04:54 PM

Anonymous · ‎09-07-2009

You could get approved, but if you were approved based on $1500/mo income, at best $300 pymt. That's 20% of your income per month. You also have to think about full coverage insurance since you will have a lien on the vehicle. I was in a similar situation last year. I have a 99 Cutlass. It started to give me a little trouble the closer I got to graduation. One or two of the dealerships in the area, (Chrysler I think) was offering 6 months no payments to graduates or those about to graduate. It took me about 3 months to find a job, and it was out of state.

I did end up buying a new car, but 6 months after I got the job and my car overheated one too many times on the way to work. I had a steady paycheck and was settled in my job, plus I had savings. I was totally comfortable making a car pymt and insurance payments.

Just be careful not to spend a paycheck that you don't have just yet.

I didn't trade in my old car, I would have gotten about 1500 for it anyway. I was unsure of the future of my company (automotive) so I had to have a car that was repo-able. And look what happened. I still have a job, but many others are not so lucky.

Don't go rushing out to create debt on an item that will be worth nothing (or almost nothing) at some point. Keep riding that '99 until the wheels fall off.