Tessai

Was hoping some of you more financially experienced folks could give me a hand.



I'd like to get another car, as I'm currently driving the FC as a daily but I'd like something a little more fuel efficient on the side. I've found a few cars that I am interested in, prices ranging from $6k to $14k. However, I'm having a little trouble getting a loan. Not that I have bad credit, I just don't have -any- credit. I've got a credit card and I pay it off fully every month. I have no trouble making payments and my bills will always come first. I will eat ramen for a week if need be, or whatever it takes, if I get in a tight spot. Never been late on any sort of payment, but of course none of this can be reflected in my credit report.



And yes, I've tried a credit union - was told the same thing "not enough credit references". I don't mind taking out long-term loans (like a 6 year loan on a $15k car) because I can always pay back more than what the monthly payment is. I'm kind of desperate for the cash at the moment, as the $14k car I'm looking at is a '95 M3... 105k miles, clean white w/ black leather...



Unfortunately, most of the cars I am interested in are private sellers. I know that I shouldn't have much trouble getting approved (at a higher interest rate) at a dealership, and I may go that route for a clean silver '01 MX-5...





Basically, any ideas to build up credit quickly?

nopistons94

going to be hard to get a car loan on a car thats older than 6 years. You can get a loan, but the intrest will be like 20% or higher on a personal loan. A M3 is a poor choice for a loan, why would you even consider a 95 to put a loan on?



Best choice for you would be to stop by a few dealerships and take a look at some basic cars, newer honda civics can be had for DIRT cheap, although its not a M3 , at least its not a 11 year old car with payments..

nopistons94

Oh, theres no way to build credit fast, sorry

Tessai

The point was to buy something that is still fun to drive... doesn't need to be the best mileage ever, just better than the 14mpg I have now. Plus, the FC is almost ready to go under the knife and I need some transportation.



Why put a loan on a 95? Why not? As if a 21 year old with little credit would be approved for a new one...



I'm also looking at Miatas, as they are fun to drive, reliable, and get good gas mileage... may just look around at the early '90s ones and just pay cash.



Another reason for wanting a loan is that with these older cars, the payments won't be too high, even if I do end up giving the bank a bunch of money in interest, it will be good credit to help me later on when I really need it.



I don't absolutely NEED another car right now, but it'd be nice and if I can build my credit while doing it, then so be it... just having trouble getting my foot in the door.

1988RedT2

**** credit. You just end up paying thousands more than the car costs in the first place. Buy a cheap Miata and save the money you would be making payments with and buy your next car with cash.

Tessai

I'm thinking I just may do that.

drftk1d

buy a crx, they get like 50mpg

banzaitoyota

Grow UP! You are buying a commuter, not everything in life is fun. A loan on any car over 10 years old is just plain STUPID! WTF makes you think that is a good idea?



If you are trying to ESTABLISH credit. Go join the Credit union and explain what you are trying to accomplish.

KoiHoshi

6 year loan on a 15k car with NO INTEREST is $208.33 a month (72 months) now if you're young (i know i am) and your credit is just starting out... i'm not sure if you still live with your parents or by yourself, if it's by yourself your credit is much better due to your rent going towards credit, if it's with your parents you may have no other choice than a higher interest rate unless you put some down on it. Probably 10-15%, in which case it may be 12% that means they make 1,800 off of you, your payments are actually going to 16800 not 15k, your monthly payments are around $233.33.... which doesn't seem like a big deal but with that extra $1800 it could be significantly less with the interest rates. My suggestion to you would be to save some money, put a down on it if you want a car that badly and look for more around 9 or 10%, my loan on my bike goes from 4.9% (and i'm 20) to 9% after 2 years, but that's because I've been under a financed loan since i was 18 starting out. Try not to get a credit card and finance a bunch of crap just to get credit, you may however, if you go grocery shopping get a credit card with like a limit of $500, use it for groceries and then pay it off IMMEDIATELY so they make NO itnerest off of you, you end up USING the same amount of money you were originally giong to use and your credit does get marked up a bit when you do that. Don't go for broke and spend money on it just for the hell of it but if it's something you are going to do, put it on the card, pay it off, credit goes up. Spending THOUSANDS in loans due to the interest rates is suicide in money that you could be SAVING, INVESTING and putting towards long term investment for something better, like stocks or in the bank to make interest for more money on your NEXT car.



Just my own $.02 and i've never been broke yet and never had a single late payment or bad interest rates.

banzaitoyota

OMG!!!!! An 11 year old M3, that is so ******* kewl, will you take me for a ride? You'll be the coolest with that, putting spinners on it. Fo Shizzle





In Case you found reality too harsh