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?

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..

Oh, theres no way to build credit fast, sorry

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.

**** 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.

I'm thinking I just may do that.

buy a crx, they get like 50mpg

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.

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.

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 https://www.nopistons.com/forums/pub...IR#>/smile.png

I'm not broke, I just don't have thousands of dollars laying around. I have a small credit card ($300 limit) that I use for groceries or whatever. Yes, I live on my own... ish. I live in a house with roommates, however I don't think our paying rent is being put onto credit reports or else why would I keep being told that I have NO credit?



I was running loan calculators assuming a 9.6% interest rate, which was the max listed, to make sure that it fit into my budget. Basically, what I would do is pay off my credit card for the next month (I pay off the entire card every month) and use the credit card bill money for my car payment.



Banzai: I am a part of a credit union, as mentioned in my first post. They are my bank. Yes, I know not everything in life has to be fun, but I'm 21... I want to have a few fun cars before I have to settle down. I figured a loan on a cheaper car would allow me to both enjoy having a car that I cannot, at this moment at least, pay cash for, while at the same time helping build up some credit.



This isn't a "would you make payments on this car?" post, I don't mind having a car that is 11 years old obviously, or else I wouldn't be driving an FC. I'd make payments on a '74 beetle if I wanted one bad enough... point being that age of a car, to me, does not matter. I'm not after a warranty, and I'm not after that "new car smell". Call it ignorant all you want, but I've never seen the point in buying a new car when I can get the same enjoyment out of one that is older and less expensive.



Edit: Evidently you were replying at the same time I was, Banzai. This isn't about having the "mad tight DTM car, yo." I've always liked M3s, and I find the older ones to look better than the newer ones. The 89-91 E30 M3s are hands down one of my favorite looking cars. The 95 in question is appealing because it looks very well cared for, and an inline 6 is better than an inline 4 anyday. And **** spinnaz... BBS all the way.



Edit#2: Incase you can't tell, I'm not taking any of the comments in the thread personally... I just like to argue sometimes. This is still GenD, afterall.

your way off on those numbers, on a $15000 car at 12% for 72 months the montly payment is about $293, which means he ends up paying just over $21,000 for that car.

Same loan at 5 years is $333 a month for a total of just under $20000



I wish I could use your calculator for buying a house, lol https://www.nopistons.com/forums/pub...IR#>/bigok.gif



the bad thing about a loan on a 10 year old M5 is when the thing needs to be fixed, and trust me it will, your monthly payments are going to be childs play compared to what the repair bill will be.

If you can even find a bank to lend you money on a 10 year old car

I'm no professional, just trying to help https://www.nopistons.com/forums/pub...IR#>/smile.png Thanks for the correction. All I know is what I have and such, I was never good at math, just the aspects of what things do and do not do, hah!

exactly what I said

Good point... I'd forgotten how much BMW parts cost.



Think I'm just going to save up some cash and pick up a 92 or so miata. Miata.net forum FAQ has something about some '90 and early 91 miatas having crankshaft problems once the mileage starts getting up there.



Thanks for the help all.

he was doing 10-15% on the lump sum, not on payments, a common mistake https://www.nopistons.com/forums/pub...IR#>/smile.png.



kevin.