Should I finance a car at 19 years old?
Here’s what you have to remember.. A car loan is a financial obligation that must be met, whether you are working or not, whether you have money in the bank or not.And the cost of a car is a lot more than just a car payment. You must have insurance, and if the car is financed you must have comprehensive and damage insurance to protect the lender. You must have the license, a place to park it, gas, maintenance, etc. A “part time summer job” is not gonna cut it unless you have other assets or a family member that is willing to help finance the car. In fact, I am not sure that I would trust any car dealer that would even accept a 19 yr. old kid for a car loan, given the parameters you gave us. The dealer (or bank) is going to require another adult to co-sign the loan. In other words, if you can’t make the payments, then the bank will require the co-signer to make the payments.So you might need a car to work. So buy a cheap one that you won’t mind discarding after a year or three when you can afford to buy a better one. Learn to manage your debt early, or your debt will manage you for the rest of your life.
How can a responsible 19 year old get financing on a car?
I'm 19 years old and have been at the same job for 3 years now. I make about $600 a month and my income is steady. I need advice on how to go about getting another car. I'd like to stay in the 2-2.5k range, but I want to know how to get financing or a loan, or if it would even be possible. I don't really think I have good or bad credit, it's just pretty much non-existent at this point. I'm looking because the timing belt on my current car went caput...
Is it a bad idea for a 19 year old to finance a nice car if he plans to be abundantly wealthy?
Im not trying to be condescending, but Im going to offer you the opinion of someone who has done it firsthand. I was 19 in 1998 and bought a $32,000 Camaro SS, a lot of which was financed. (Pause for groans..) I was working in the family business at the time and had no expenses other than what I profusely bled on shit that I didn't even come close to needing. I had the nicest car in the county along with the highest car payment of anyone my age for about 6 months until there was a huge blowout in the family business and I skipped town to escape the insanity. Now I had very little real world skills and definitely couldn't get a job that paid anywhere near what I was previously making. I had this damn car that was eating me alive and was doing me no benefit status wise since I couldn't afford to drive it anywhere, even to the Burger King drive through. I couldn't sell the car. No one was buying Camaro SS's that year for some reason so I traded it off for a shitty vehicle. I still had some money to pay toward the financing of the Camaro but that was a huge weight off of my back. I have since led a much more frugal life since reading "The Millionaire Next Door" many years ago and have gotten the "hot car syndrome" out of my system. A few things I learned from this experience: 1. You can't finance "cool". You can finance "bonehead" and "douchebag", but I couldn't seem to finance "cool". 2. People aren't overly impressed with the fact that you drive a hot car. Especially not the people that matter. People are impressed by achievement. 3. An hour spent signing finance papers for anything can cause you to think about the decision for a looong time. Especially when it is eating you from the legs up. If someone gave me this advice when I was 19, I would have bought the car anyway. Be smarter than me man! The human is the only animal on earth that is capable of learning from the mistakes of others yet so many of us fail to do so.
What are the chances of new car financing for a 19-year-old girl with a solid and progressive work history since age 16 and 8k in savings?
Don't buy a new car! Jesus. Take your money and start investing it! Your car will lose value quickly.Jesus, what the heck do they teach children in school.You buy a new car, great! You wasted 30k $. Now as soon as you drive off the lot, that car is worth maybe 23k. Talk about losing money within 2 minuets.You put 10k into drip stocks/Roth Ira. When you're 50. You'll have (likely) over a million dollars in your account…..that's jut by investing the money you have NOW. Not including you going to work and adding even more to it as you work and get older.If you have 8k, save another 2 k and INVEST! That's honestly, infinitely better than buying a new car. And your friends might laugh at you and you'll feel discontent with your friends. But when you guys get older and they are broke and you're a millionaire, you can laugh at them.I'll repeat, you don't need a *new* car. No one cares about how nice your car is other than vain people, and yourself (because you're young and want something new). That's exactly the life society is forcing on you, and you're taking the bait, just so you're in DEBT and a slave. Why put yourself through that?Invest your money now. Find a stable (and good) advisor. Roth IRA/Roth 401(k), drip stocks that pay dividends. Go to school in a beater, graduate, get a good job, add even MORE to your investments, THEN finance a new car ( you deserve it, and have stable LIQUIDITY in case you need it). Your car is liquid, but you can't sell it for much profit, so it's a risky investment. Once you finance your car. School loans won't be anything, debt? What debt? Take out money from your assets (which should be in the 100k range by now, or more), and pay off your loans (not all of your money of course but big chunks).Don't be foolish, if you're 19, invest. The market will go down, yes, don't panic, because money grows 75% of the time. Your car depreciates 100% of the time.In 20 years, your investments will equal or total some 400–500k. In 20 years, your new car will be worth no more than 3k. Which sounds better? A new Toyota or whatever now? Or a Ferrari when you're in your late 40’s (and still growing in your career)? Think about it for a minuet. Don't be under pressure from peers to do what's cool, because those peers now, likely won't be around when you're 40.It's your future, do what you wish, but heed my advice. I hope you remember this comment many years down the line.
How can i get a car loan at 19 years old?
Auto finance is what I do for a living there are 10 things that go into making up a car deal weather it's a purchase or a lease and all can effect the interest rate. 1. Term of loan. Shorter the better. 2. Age of vehicle. Newer the better. 3. Miles on vehicle. Lower the better. 4. Amount to finance compared to book value. Lower the better. 5. Credit score. Higher the better. 6. Credit profile. Deeper the better. 7. Down payment. More the better. 8. Monthly income. Higher the better. 9. Time on job. Longer the better. 10. Time at residence. Longer the better. As long as all of the above are in line with the lender guide lines and you make enough income to budget for the payment you should be approved. As you can see from the above list there are way to many things that go into making up a car deal to guess at your interest rate. The payment your looking at even with good credit is between $380.00 and $475.00 a month which you don't qualify for. The maximum payment allowed is 20% of your monthly income which is only $360.00 a month. Good luck.
21 year old buying a new car.?
That depends...do you like to eat, too?
Can I get a good car loan at 19 years old?
$8000 is too much for you. You can get good used cars for $2000 and get about 50k miles or more. Try auctions and private sellers. It is worth the risk, just bring somebody with you who knows how to fix cars. Test drive the car more than thirty minutes before buying. Pick a career, go to school, and stick to the plan. You can screw up, but keep trying.
I am 22 years old and was wondering if I should lease a new car or finance a new car eventually owning it. Which is better for someone my age?
Both are good ways to own the car in the end, but it will depend on incentive programs available for both buying and leasing. If you plan on owning it in the end and are not open to another lease when your first lease is up, then finance to own for sure over leasing. Many manufacturers have 0% interest financing up to 60months. If you are a first time buyer then you might not quality without a cosigner, lease is the same criteria, you need strong credit to get the best rates.If there's no cosigner available, some manufacturers have first time buyers programs, or your local credit union might have better rates. I recommend financing for you, and there are a few pros over leasing in your case. First is you will be showing a larger amount financed on your credit report. When you lease, you are only financing a portion of the car and you will only show that portion on your credit report. Larger amounts for you means better credit history of purchasing a large dollar item. Secondly, your payments are consistent. If you do a 60 month term your payments might be $400/mo. If you lease, your payments might be $300 for 36mo, then when you finish and go to finance the rest for another 24months, you'll get some payment sticker shock. You can of course do a long term on the balance, but then you'd be paying a lot of interest and have payments for a long time. Third relates to the 2nd point. During a lease, your payment doesn't change for the term. With a finance, as you build credit, options start to open up. If your initial rate was 8.99 because you were a first time buyer, 18 months into the loan you've built credit, and you qualify for a credit union's 2.99 special. Well, you can refinance your balance to the 2.99, drastically lowering your payment.There are benefits to both. I'm currently leasing a car, but that is because the lease was dramatically better rate vs finance. And I don't plan on keeping it (Nissan leaf, EV tech is still newer). Also for premium cars it is better to lease as they lose value very quickly.