Car Loans/ Auto Financing

[Brut]

Alright well I'm looking into getting a car loan/ auto financing. I'll be moving out to Cali and I know how they are with modified car. Looking to get a newer car ( Past couple cars have been from 91 and below lol). I'm 18 and have no car purchasing history. I did the free credit report thing and my credit score is 727( I think thats pretty good ). I've been researching for a little while and so far most sites say that Capital One Auto Finance is the best way to go. I would like to apply for a loan but I don't like doing things that affect my credit. If I applied for a car loan I guess is there a good chance that I will get a loan for the car that I want? (no i'm not looking to buy a sports car or anything, I'm a father and I need to get a 4 door econo car lol >.>)

If I applied for a car loan/ auto financing through Cap 1 would there be a good chance that I would get the loan or not?

[TIGERJC]

prolly not. even if your credit score it good, you must have a good amount of credit history (history of payments on a loan(s)) to go along with that score if you want to get a car loan without a co-signer

[Paree4g63]

*Make sure you've calculated all your future costs such as insurance rates, gas mileage, utilization of the car(4door/2door), future maintenance costs, taxes and warranty issues.
*Usually you'll need at least a $1k or more for a dowpayment depending on what make/model and value of loan you're getting.
*Rich people can have bad credit also and have more debt then someone who isn't rich.
*Considering your age, you sure you wanna be in debt? In my experience, you should wait until you're beyond stable unless you and a spouse are more then qualified and have thought it out carefully.
*Capital One is very flexible with you and a co-signer. As a matter of fact, Capital One is way too flexible. They'll even let you get a loan without a co-signer for a very long time such as 30years if you actually agree with their terms. Usually they will require you to pay them a grand or two to buy their insurance as collateral in case you try to default or lose your job. They'll refund your money back after some time or so they say.
*I hear Credit Unions are the best way to go in getting a loan.
*If you can, get a loan first from a credit union instead of having the dealership finance it there. Dealerships give you a APR(annual percentage rate) to their liking, not yours.
*Buying a new car gets you a lower APR then buying a Used Car.
*If your buying a used car, check the carfax history first and make sure everythings in working order. Also check the Kelly Bluebook Values.
*Co-signing with family members is more efficient then friends due to possible conflicts in the future that could happen.
*Take your time and research into a car that you like overall and will still feel strongly about even after you've fully paid it off.
*The title of the car will not be yours until the car is paid off; most lenders require you to keep full insurance coverage on the vehicle at all times.
*Pay more then the minimum every month to aid in your credit history and future financial stability.
*For every thousand that you put down as a downpayment, it's about $20dollars off your monthly payment.
*Everytime someone checks your credit report, it lowers your FICO score somewhat.
*You're better off buying a car when you're debt-free then buying one when you have debt and still buy a car. Some dealerships have their own rules and could just give you the car just to sell you it. Example; Rick Case does things outta their own way to sell a car asap.

I hope this post solves all your questions and DIM SUM!

PEACE

[Brut]

I'm just gonna keep saving up I don't need to be in debt. I don't think I could pay insurance, rent, baby, and car payments while living in Cali. I found a guy on Zilvia that will sell me his RX7. lol >.>

[AirMax95]

Go join a credit union.......

[GIXXERDK]

Can't say how the loans are now a days but just 6 months back I bought a car. Here are my experiences.

The rates on used car loans are higher than new. I got a used car at 3% which is very good.

If you cant afford 20% of the price tag in down payment you will lose money.

Good credit score means NOTHING if you have no credit HISTORY.

You most likely wont get approved unless you co-sign or you have a good chunk for down payment.

[KPowerEP3]

Being in the industry, as much as I want to say these guys are off somewhere, most of them are spot on. I will disagree on the point that if you have a strong payment history on whatever forms of credit you do have AND a fair sized down payment, most places with a decent finance department could get you "bought" by a bank. However, a stable history ( work and residence), good payment history, and cash up front are MUSTS, as well as a strong income. If everything combines right, there is about a 60/40 chance of you getting financed on your own, But Cap One is DEFINITELY one of your better shots as far as direct lenders go. Then again, the entire credit industry so unpredictable right now, that one day an institution will finance a person, and if they had applied a day later, it would have been turned down. Typically, what I recommend to my customers is that try to AT LEAST cover any tax, tag, title and doc/dealer fees up front. If you change your mind, and decide you want to finance a vehicle (insert shameless plug) give me a call. I'll PM you my number. After that, If I don't have your car in stock, I can definitely find anything you want.

[GGPIS3]

also keep in mind that your payment can't be more than 15 percent of what you make in a month. if you find yourself a loan.. i can get you any car you want. ;) if a turbo IS or LS430 is in your budget... i have those in stock right now. otherwise, i can go to manheim and get you pretty much anything.

[One_Bad_SHO]

prolly not. even if your credit score it good, you must have a good amount of credit history (history of payments on a loan(s)) to go along with that score if you want to get a car loan without a co-signer

Not necessarily. Errybodys gotta start somewhere. He would qualify for a "first time buyer" loan which generally would have a highers interest rate.

[Random Hero]

*Make sure you've calculated all your future costs such as insurance rates, gas mileage, utilization of the car(4door/2door), future maintenance costs, taxes and warranty issues.
*Usually you'll need at least a $1k or more for a dowpayment depending on what make/model and value of loan you're getting.
*Rich people can have bad credit also and have more debt then someone who isn't rich.
*Considering your age, you sure you wanna be in debt? In my experience, you should wait until you're beyond stable unless you and a spouse are more then qualified and have thought it out carefully.
*Capital One is very flexible with you and a co-signer. As a matter of fact, Capital One is way too flexible. They'll even let you get a loan without a co-signer for a very long time such as 30years if you actually agree with their terms. Usually they will require you to pay them a grand or two to buy their insurance as collateral in case you try to default or lose your job. They'll refund your money back after some time or so they say.
*I hear Credit Unions are the best way to go in getting a loan.
*If you can, get a loan first from a credit union instead of having the dealership finance it there. Dealerships give you a APR(annual percentage rate) to their liking, not yours.
*Buying a new car gets you a lower APR then buying a Used Car.
*If your buying a used car, check the carfax history first and make sure everythings in working order. Also check the Kelly Bluebook Values.
*Co-signing with family members is more efficient then friends due to possible conflicts in the future that could happen.
*Take your time and research into a car that you like overall and will still feel strongly about even after you've fully paid it off.
*The title of the car will not be yours until the car is paid off; most lenders require you to keep full insurance coverage on the vehicle at all times.
*Pay more then the minimum every month to aid in your credit history and future financial stability.
*For every thousand that you put down as a downpayment, it's about $20dollars off your monthly payment.
*Everytime someone checks your credit report, it lowers your FICO score somewhat.
*You're better off buying a car when you're debt-free then buying one when you have debt and still buy a car. Some dealerships have their own rules and could just give you the car just to sell you it. Example; Rick Case does things outta their own way to sell a car asap.

I hope this post solves all your questions and DIM SUM!

PEACE

Probably the best post in this thread.

Forget that you've never had a car loan before or any of that garbage.

My biggest advice to you is go through a credit union and finance that way, or even try your small local bank if you have one.

These people will know your previous account history and I personally believe they will help you out a little bit more than some private car dealers, or even Capital One.

Keep saving some change and make a good first impression by putting a down payment on your first purchase.

Go talk to a loan specialist at your local branch instead of IA...I know you're just looking for opinions, but you will never have 100% certainty.

Otherwise, pay in cash :)