Young Auto buyer

[Anonymous]

Ok, for starters, I'm only 19, turn 20 next month. I just bought my equifax score and its was a 666 (yes i know). My biggest things pulling me down was of course my lack of credit history and amount of new credit. My first loan was on my 18th birthday and it was an auto loan for 7800, with a co-signer, and I have had for 2 years so i have some car credit. I then have had 4 credit cards which only 2 have a balance, and all of the balances will be payed off in the next 2 months. I want to buy a new car at the begining of next year sometime, but dont want a co-signer. The car ive been looking at is used and around 17 to 19 grand. i plan on putting down around 1500 dollars and whatever equity I make off my truck, hopefully around 2 to 3 grand. Is this even going to be possible with my lack of credit history, I mean I hope to pull my credit score up a little by then but i would like to know what any of you think and what to do in order to make it possible to buy my next car in my own name. Thanks.

[Eager2Learn]

The short answer is---maybe.  A lot of this is going to deal with your current income.  Also, expect an insurance jump (even with a perfect driving record) with the vehicle solely in your name, most states will require you to have your own insurance policy.

To get a better guess at financing, you will need to provide current income and time on job at a minimum.  To greatly improve your odds, plan on 25% down.

[Anonymous]

Thanks for the input. Im aware of the insurance, i carry my own policy and have got the exact amount for the premium. I know a lot of people, (peope my age more then anything) buy cars without having clue about insurance then realize that they cant afford insurance on it. But my current time with my employer will be around 3 years when I plan to buy the car and my income, which is not great but the best i can do until I finish college is around 21,000 not including bonuses. I am going to try my hardest to pull my fico score up to a 700 before a buy the car. Thanks for the help again, its nice to have a forum to turn to for this.

[SocalMark]

Kylan coming from a Father that has a son older then you Congrats on everything you have accomplished...What car are you looking for?

[Anonymous]

Thanks for that. I'm looking to buy a Honda Civic (Si trim). Being a huge car person i knew if i wanted to have a car it would take a lot of work and since 18 I started researching this FICO system and how it works. Over time it started to intrest me highly. Ive have learned a lot by this system over the past 2 years but the one thing i have learned is the the account history part if it cant be rushed or changed in just a few months. I really apperciate that complement, it means a lot to me to know that people are out there to talk to because all my friends 19, 20 or 21 laugh when i talk abouy credit. But ill be laughing at them in 10 years when my interest rate is 3 or 4% lower on a mortgage.

[Anonymous]

Since you have car credit established, your only issues are really going to be income. You will need to show a minimum $1800 a month plus gross to support the car loan.

Assuming your bonus checks show on your pay stubs and your average income then proves this you are great, if not....you may have a little bit of a roadblock.

[Anonymous]

ok thanks. I do believe they show up.

[Anonymous]

Dont report your bonus checks on the app as seperate income.

Just average your last XX months gross pay (including bonuses) and enter that in the blocks, as long as your income is supported by your pay stubs you are covered.

[Anonymous]

OK thanks for the help. I'll do that.

[Anonymous]

is it just me or does anyone else think paying 17-19K for a used Honda Civic is ridiculous?  In this car market, you should be able to negotiate any civic on the lot (minus a hybrid type) to that as a new cost.  My Camry didn't cost much more than that new. 

Also, remember that financing a new car is often easier and cheaper (interest rate wise) than a used car.