Getting car loan on no credit?

I want to thank many of you for shooting straight with me. After getting off of my parent's backs (only 17% of millenials can say this) and creating a budget for myself, I have quickly realized that the first few months of my move to financial freedom are not going to be easy. Rent, electricity, internet (not using cable tv), gas, health/car/dental/renter's insurance, groceries, and a few outings to the bars are going to make by ability to save money difficult, let alone financing a car. But having that sort of struggle is what motivates people to push themselves harder, and it should be a good thing for me.

 

You can do it.

Lastly, I don't know why you insist on making financial burden a generational issue. It has nothing to do with what a person is capable of doing.

 

This is exactly what is wrong with this country. Most kids of this generation have no clue and are taking advantage of by the whole credit conglomerates. Saying no more, good luck OP.

 

Generations are all different. Some make good financial decisions, and some make poor ones that result in market crashes that affect everyone. The Silent Generation - a generation that grew up in the wake of the Great Depression and enjoyed a manufacturing boom as a result of WWII, were not only better savers but had many more opportunities than working generations do today, many of those who work manufacturing jobs are seeing those jobs moves elsewhere, whether it be overseas or south of the border. I don't work in manufacturing, but I feel for those that do. While some companies are moving their labor forces to the US, many are coming from countries with more expensive labor than we have (Germany, Korea, etc), and we are simply at the mercy of the global economic landscape. Not trying to make it an "us vs. them" argument, but things won't be the same as they were in the 40s-60s.

 

Instead of debating your self implied limitations due to your birth timing, I'll say "sure."

Good luck.

 

I agree with this. Many kids growing up today have no financial literacy and it is not being taught in public schools. It is almost a scam by the banks so that they can reap higher interest rates due to lenders with poor credit history. However, we all know what happens when that situation gets out of control.

 

I'm not one of those "woe is me" liberal handout idiots. Trust me. I just accept the reality and understand the global economic landscape enough to try to seek opportunities in the correct places. I just wish I could speak Mandarin.

At this point I can begin to save for a car, and get educated on the 2.5L boxer engine.

 

Go for the 3.0 or 3.6. Those are awesome engines.

 

Well I'm looking at an '05 STi. They're really hard to find as it is. Ones that haven't been modded the piss out of even harder. Ones that haven't been beat the hell out of are impossible.

3.0/3.6 swap?

 

I had an Outback with the second version of the 3.0. EZ30R. Smooth as butter, good low end torque for that displacement and a high redline (7k). Kind of the best of all worlds. Didn't need to rev it because of the reasonable low end power but you could if you wanted to. Gas mileage wasn't great though...similar to my Tacoma.

 

Honestly, I would love to have a Tacoma double cab 5 spd 4WD TRD. I don't think they made 5 speeds for the double cabs though. If they did, I wouldn't want an STI, though it'd be nice to have something a little faster than my truck, and I'd really like to have four doors.

 

You can get a DCSB with a 6 speed stick. DCLB is 5 speed auto only. In these trucks the auto is an anomaly in that it gets better gas mileage, better acceleration, and there are fewer reported issues.

Not saying the 6 speed is unreliable. There is a guy on here nearing 400k on his and made it a good part of that way on one clutch. But it's hard to make a case for it being more reliable than the auto.

 

I haven't seen any meantime of direct deposit of your pay check. If you go the credit union route, they don't really care if you are growing your savings. They just want to see a stable amount of money going in and out of your accounts. After 6 months of checks being deposited steadily, you will be very likely to get a loan they them.

Direct deposit is an easy way to grow credit with your credit union. Once you are a member with a history, you most likely won't deal with banks or independent credit cards anyways. The credit union will have all the features you will need when it comes to borrowing Money.

 

I'd want a first gen though. I had an auto before in a first gen and hated it. So annoying when the motor was cold and wanted to stay in second gear forever before it finally clunked into third. If I got a first generation double cab I'd have to do a swap.

 

I cosigned for my son when he was 18 to buy a new truck. I knew from the beginning that I would be responsible for the loan in case he missed a payment. I made it very clear he was not to make a late payment and I have held a deposit that will make 2 payments in case he screws up and doesn't have the money. We are almost at the 3 year mark and it has gone well. I am able to log on to the loan account and make sure payments have been made.

I had to cosign a loan for my brother-in-law many years ago. It turned out fine but I was a bit mad as I was pressured into doing it by my wife. Sex won out and I signed.

 

You have an awesome opportunity at this moment to make some decisions that will set yourself up to succeed.
I know this may sound a little crazy but why not live on as little as possible, and save for a year. Base your budget on the 28,000. Anything over that gets saved. No payments, no credit cards, no worries.

My wife and l (both a part of your generation) work good jobs. We live on our smallest income and save the rest. We pay cash for everything, including a house in a year or two! We want for nothing, and we never fight about money. I have a credit rating of 0 and it has served me well.

Take this opportunity to set yourself up for a good life! One with less stress and less risk than the rest of our generation who are too busy bitching about the system to make good decisions and work hard!

Remember, the world doesn't owe you a damn thing, and that driving away from the dealership in a truck that you own outright feels really good!

 

its possible. I did it. no credit. barely got my got my job. my truck cost 25k. let me tell you the pros and the cons.

Pros.
1.Dream car. make sure its absolutely what you want if you love it get it if not don't bother
2.it will help build your credit faster
3.you will have something your proud of driving.
4.its a truck
5.its a Toyota
theres really no Pros but im trynna see from your side cause I was there 4 months ago.

Cons.
1. if you plan on buying a house in the next 5 years forget it. its a big debt lenders don't wanna add on to that.
2.if its not 1/4 of your monthly income its not worth it
3.Job security and your well being. if you loose your job are you willing to work twice as hard to get a job or 2 to make those payments.
4.cost of maintenance, insurance and DMV.
5.Interest rate is higher.
6.if you use a cosigner. and you mess up . you can really hurt someone financially really bad. are you willing to put someone in that risk and potentially damage your relationship. Credit is Everything in America without it life is hard.

From Exactly the same position as you I would highly recommend. buy a cheap 1000 dollar car. pay cheap insurance save money for a year. open up a couple CCs a jewelry account and make sure you make 100percent payments on time.
in a year you can buy a better truck better interest rate, better credit and that 1000 dollar car you can sell it for a 1000 dollars in a year it wont depreciate anything its already old just take care of it. in a year you will know if your financially stable and responsible. I shoulda read this thread 4months ago and read this same exact post. maybe I woulda taken up that advice maybe I wouldn't but don't jump into something your not ready for. and the more credit inquiries the banks make and the dealership make its gonna hurt your credit even if you don't have credit. so when they say let me try a different bank its hurting you not them. they'll make 10 inquiries which will destroy your credit and wont even tell you and they wont care. Think about it and its al up to you. your a grown ass man I assume.

 

I am actually planning my budget this way currently. Even though I will only be making the 28k/yr salary for roughly two months, I have found that I will have about $350 (after taxes) at the end of the month after paying for rent, cable, insurance, gas, etc etc. That is basically $350 to purchase groceries. So for the time being I will have to wait until I make more before I can start socking away money. But hopefully if I can get into a groove of spending only 28k a year on essentials, I will have another $12-22k at the end of the year to purchase a vehicle outright. I just applied for a credit card but I am going to use it for gasoline purchases.

I actually love the truck I have now and don't plan to sell it. It's reliability has been tough as nails. So as far as maintenance goes, the only upcoming thing I have to worry about is the timing belt and water pump. I just changed the spark plugs and wires and almost all of the fluids are still at the beginning of their interval life cycle (besides motor oil). Other than the MPGs, this truck is pretty cheap to maintain! Hopefully that will serve me well going into my own financial independency.

 

Just wanted to come back to this. I got a secured card and put only gas purchases on it. My credit score is well above the 700s now.

And I don't want an STI anymore. After looking at one craigslist post after another and seeing "body 100k miles, engine 30k miles" it became obvious to me that boxer engines are crap. Ringland and head gasket failure too common.

 

this thread gives me a question... I bought my tires on credit (car care one card). I paid it in 4 months... do I have perfect credit?