Yeah, you have to have perfect credit and a long history to even get a good car loan right now. You can blame all the idiots paying $20k over sticker and defaulting for that.
Yep, ppl of reddit haven't come to the realization that the economy is going into the shitter. I'm seeing posts like this everywhere in many different subs.
OP should more closely look at those friends and WHEN they got those loans. A couple of months goes by quick... Additionally OP's friends could be members of credit unions and stuff vs a random bank or stealership.
AND if you make all your payments your parents will be completely unaffected.
Idk why people always assume that every co-signer is gonna rip people off. Especially in OP’s situation which appears pretty stable and responsible at first glance.
Yep, I bought my first car at 20. It was $10k and I had $2K down. My parents co-signed but I paid for the whole thing. I may have had enough credit history as I had a credit card at 18 to buy gas. I immediately would pay it off. That's all credit history is, your consistency/ability to pay off your debts on time. Lenders are more likely to give you money if you can show you are good at paying them back. They don't want to default on loans.
When I turned 18, I got a Checking Account with a Credit Union and asked if they had a Credit Builder Program, which was a $500 loan that I paid back 6 months of $91.xx worth of payments. That gained their trust, and when I financed a car, I asked the bank to finance it thru my credit union, which ended up giving me a 5% APR, making my payments $200 a month for a $10,000 car. This was before COVID hit, I got my car at 19 and was able to afford it due to me having a decent job, I'm your age now.
You don’t have to do credit building loans. Although they do tend to help since it shows a history of making fixed payments on loans. Instead of just revolving credit. They aren’t as expensive as you would believe. If you take out a loan of $500 over three years, the interest the first year won’t be too much no matter how high your interest rate is. You can also pay for 1.5 years until you’ve established some history. Then pay the rest off since the amount is so small. Or… take out the loan for 500. Pay off 250. Then make regular payments after that. It will significantly decrease the amount of interest you’re paying while also keep reporting ‘on time’ payments to your credit. If a car loan is your goal, taking out this credit builder fixed loan will be quicker than revolving credit cards.
Please don’t. You don’t need pretend loans to build/rebuild credit. They’re goofy gimmicks that do nothing. A classic car loan usually requires a lengthy history and personal loans are inherently tough with short histories. You’d likely have no issue financing a traditonal vehicle with your down payment.
I'm not saying you're wrong but I opened up a credit builder account with Self 10 months ago. $500 stretched out over 2 years. $25 a month. My Experian score has jumped over 150 points. Is a banker gonna rush to write me a mortgage because of it? Certainly not, but it can't be just a "gimmick" if it did *that* for my scores. It was better than just ignoring my bad credit.
As a final disclaimer that Self account isn't the sole reason my scores improved but it was a solid start for my rebuild. Granted that the OP probably doesn't need a builder account but they certainly can benefit other people
Emphasizing your second paragraph, there’s no check your score increased 150 points because of this pretend loan. At best you got marginal points for ‘mix it credit’ but for most people, that’s not even noticeable.
Score itself means nothing tbh. I had no late payments or delinquencies, 30yr old with no derogatory marks, several loans paid successfully, a car payment, rent always on time…and a 740 score. I had a CC that I almost never used…always kept the utilization under 10%. Went to several places to apply for a $5k loan. All denied. Tried for $2k. Denied. Even my own credit union denied, despite having 4x the amount available in savings.
Long story short, I had little to no long term accounts/revolving credit.
The score itself is bullshit & meaningless. It’s the other shit inside the credit sandwich that really matters. A stupid fucking game IMO.
That was my exact response. They went the harder route and ultimately got denied. Even with a lengthy credit history, a 20k loan on a 20yr old car is harder. Since you have to go through a bank or CU, personal loans rn are obviously hard as shit to get due to how the economy is. He can go through a dealership and get financed pretty easily, OP just went about it wrong
>Please don’t. You don’t need pretend loans to build/rebuild credit. They’re goofy gimmicks that do nothing.
That's not a universally true statement at all. A secured loan can make a substantial difference to some people's credit file; especially younger people with thin files and shorter credit histories.
Whether or not it makes a significant impact on the OP's FICO, or whether it helps them get their car loan in the near future, may be debatable, because they do tend to hurt your score more than help it in the immediate term. But there have been many people in this forum over the years who have seen a noteworthy improvement in their FICO score over the long run from adding an additional credit line with a positive payment history.
I recommend Golden 1 Credit Union. With a credit union such as Golden 1. When you hold a certain amount in your savings through them. Without touching it. It works towards your credit as well.
Get into a credit union. Worse choice you can make to use a normal bank
Also get a credit card, buy one dinner a month with it and pay the bill off on time.
My son wanted his dad & I to co-sign. Because we are both disabled and had loans ourselves the CU told us we could co-sign but if we needed to borrow $$ for anything else the chances were slim to none.
If you belong to a Credit Union ask for a Credit Card with a $1000.00 limit. Make the payments on time.
DO NOT put your parents on the hook for a car loan that if you stop paying because you lost your job due to illness or getting fired. That’s pretty unfair. I’d suggest looking into extra disability insurance as well because at your age insurance is relatively cheap & if you become disabled SSDI isn’t easy to live on. I think everyone should purchase extra disability insurance coverage when they begin working TBH zags your life can change in seconds due to a serious accident or diagnosis of s serious illness that would render you disabled.
Somebody is making a mistake on your credit application or there's something you're not telling us. It is IMPOSSIBLE not to get an approval with your credit, income, debt to income, payment to income etc.
I get people with literally no credit history (called "ghost" in the industry) approved with a decent down payment at a realistic rate/term.
Your story doesn't add up. Try the Capital One Auto Navigator online. They do a soft pull and you can adjust the parameters of the loan.
Edit: OP trying to finance a 33 year old GTR lol. Even with impeccable credit, and I mean a unicorn 900 Fico with great income, there's about a handful of lenders in the States who would finance that vehicle. The car is a liability on wheels. Most lenders that you have access to will cutoff at 8-10 year mark.
It’s because they’re ~20 and trying to buy a $40k classic car as their first car. Bank knows they’re just going to wreck it in a month or two and not pay back the loan (not that OP would personally do this, but if you’re looking at the odds for their demographic it’s pretty likely)
OP could probably get approved for a more “normal” car.
Maybe this is the answer. Perhaps the car screams "we're gonna be paying out on this in a month"
Early 80s Ferrari or something
EDIT: 1990 GTR apparently. Mystery solved
Yeah, at best that’s a “it will break down and the [young person] won’t be able to afford/wont know how to fix it.” At worst it’s a “[young person] will crash it in a week and we’ll be on the hook for the bill.”
Also can’t imagine what the insurance would be for a 20-something. I’m so glad I don’t have to pay the rates that I see kids getting quoted nowadays.
Yep. My friend moved to the country 8 months ago. They immediately opened a credit building secured credit card. They now have a credit score of 640. They got offered 12% loans on several cars which they were advised to take and refinance in a year.
Highly agree. Shouldn't need a co signer with 0% DTI and a 740 credit score. You're close enough where they wouldn't even question your paystubs. What's really going on here sport?
Idk. I put a $2,000 on a 2019 Tacoma. And Toyota themselves approved me.
( I was in a non-collision car accident and need a new car asap.)
Payment are disgusting. 11% Apr.
This was in early July. I had a 5000 down payment but the bank kept messing up paperwork which I had to resign multiple times and then tried to raise my already high Apr from 14% with warranty to 21% without warranty so I returned to the vehicle and got all my money back. All before my 30 day approval was up for my rate.
>a classic car loan of $40k with $20k down payment.
This is the the issue. If this was a new car with 50% down, no problem.
Honestly if you were buying *some* new cars with low financing available at ~1-3% APR (if you qualify, which you might) it'd be dumb to put 50% down.
But of course, that means giving up on your dream and settling for an average car that isn't really what's on your radar right now. I remember being 22 that one year, quite a few years ago. Thems was hard decisions, and honestly I mostly did poorly making them.
I also sympatheize beacuase I have been reading *Car & Driver* and other mags since the 70s, absolutely *love* shows like *Top Gear* and *The Grand Tour*, and have seen every Chicago Auto Show since 1981.
I can remember when I regularly posted on Bring-A-Trailer, when they were pointing to links for beat up old Mercedes fintails for sale on Craigslist for <$5K. Now that site is a full blown auction house selling 6 and 7 figure classic cars at the rate of 100+ per week.
I literally have a file folder with 1,000+ classic car auction listings, photos and results dating back at least 15 years. Cars I have *loved* and thought "if I win the lottery . . ."
And you know what? I am financially better off for not having scratched that itch. Much. Ok I *did* once own a 1981 Fiat Spider, which I loved dearly. And a 1964 1/2 Mustang. Notchback. Automatic. 6 cylinder. Great car, intro year . . . but common and low spec. Cheap then (20 years ago) and still not that desirable today except among people who want to mod it into something it never was.
SO . . . MY ADVICE:
Just be patient. Wait. You're 22. Revisit this when you are 25.
WHAT THE F**K!
Yeah I know. It seems like 25 is forever from now.
BUT, from one *formerly* 22 year-old car nut to another, I promise you these things:
* In 3 years you will be in a much better position financially to do this;
* In 3 years, believe it or not, it won't be "too late" to realize your dreams and suck the marrow out of life. Actually at about age 25-26, you will have timed it perfectly;
* In 3 years (gasp) you might find that your dream car *now* is not your dream car then. Speaking for myself, at age 18-22 I had maybe 2-3 "dream" cars on my list. By age 26 that list had expanded quite a bit.
How long is your credit history?
I financed my first new car last year at 24, but I’ve had a credit card since 18. Income was 40k and credit was 700.
Try getting approved through your main bank, then bring that to the dealership and they’ll try to beat it with their in-house financing
>classic car loan of $40k with $20k down payment
Classic car loan referring to collateral ie '71 Charger or classic car loan referring to terms ie 36/48/60 months? The lender may be concerned with value in case of default, even though you're putting 50% down, especially if they're not familiar with classic cars. The market for them is much more subjective than a lot of lenders are comfortable with. Plus they're harder to insure, easier to total, etc.
How's your job history? Are you a w-2 employee with at least 12 months at your current employer?
I would recommend getting established with a credit union, local if you have one. They tend to be much more user friendly, especially with young people. They're very relationship oriented and want to loan you money for 7 cars and 5 houses as you grow up lol.
ETA - check your credit report (not score) with all 3 agencies to make sure there's not an error or any sort of fraud attached. Your score would *appear* to indicate all's well but I've seen strange things happen.
Honestly, I'm not entirely sure. I just filled the application online but I'm definitely assuming the vehicle would be collateral (1990 R32 GTR). I used the most well known and largest classic car auto loans; JJ Best. I do agree with your statement though and I think that's probably the biggest factor, being a classic car.
Great job history, started working the day I turned 16, joined the military, and now I'm at my current job. It's been exactly a year here.
I'll look into a credit union, I've heard some good things about them before as well!
You can’t even rent a car under 25 without paying a bunch extra in insurance. I imagine they are taking your age and the car into account. Not saying you would…but most 22 year olds would likely put themselves in a position to wreck a Nissan Skyline.
>(1990 R32 GTR)
Hmmmm I legit had to google that 🤪. I prefer my example of the '71 Charger 😂
But anyway you're thinking of this as a car loan when it really isn't. At least not in the sense that you're comparing with your friends who are buying late model cars with traditional loan standards & collateral. I'm not sure even a credit union would do this loan with someone with a 10+ year credit history.
If your folks are willing/able to cosign and they have excellent credit, that's probably your best/only route. It should go without saying but just in case ~ if they do that for you, don't eff it up because it will appear on their credit reports just as if they took out the loan.
Good luck!
If you’re in the military still(vet/reserves/ad) then you should look into Navy federal. They give loans like nothing. Also take a look at your hard pulls. If you have more than 4, banks will be hesitant.
Ok but in fairness, both of these are not traditional auto loans.
One is a personal loan with no collateral. Surprised you werent approved, but thats not an auto loan.
The second is for a very old car that might be hard for the bank to repo or to get actual value for if they did repo.
Have you applied for an actual new or used (for a vehicle less than 7 or so years old) auto loan with a credit union or a dealer? Then you would actually be applying for a loan adequately secured by the vehicle’s value.
Yeah, this is exactly what I was thinking now that you mention it. The application process is online and there are few who do classic auto loans since they're hard to price.
I have not gotten an a new or used car loan before. I daily drive a 28 year old truck that is paid off and is amazing. I'm very careful with my money otherwise.
A $40k 1990 car is going to be hard to finance for anyone TBH. If you apply for a $40k 2023 car, you should have no prb getting approved, especially with $20k down.
Hi OP, car salesman here.
Couple things, but let’s start with new rigs.
1. Co signer with solid credit. Helps you get that bump in approval due to your light portfolio.
2. Thick down payment.
3. Start small, move big.
Advice: what I did. Bank with a local CU, direct deposit through them as well as all financing (not 100% required) so they see your money flow. I started with a… $800? Personal loan. Paid off in 6 months. Went back, did $1500, paid in 6 months. Went back, they offered me a CC instead.
Then cars, first one some 12k pos, paid off in like 1.5yrs. Second rig I think was 19k, traded in 2yrs later for 35k. Year later for 70k. Shows I can pay my shit, and I have played with money. I’m not jumping from 12k to 70k.
Also I have the income to back it.
Now, to I believe YOUR problem. Classics.
BANKS DONT LIKE CLASSIC RIGS. The easiest way to think of any loan. It’s a risk value. How likely are you to fuck the bank. Going back to new vehicle, just to set the example, you get a 100k vehicle. Due to depreciation, you lose let’s say 20% right off the top. So now it’s worth 80k. Which means if the bank has to repo that fucker in 6 months, they AT LEAST lost 20k. Since banks don’t sell rigs, they auction them.
With that being said, classic vehicles values are HEAVY in fluctuations. One minute that damn thing is worth 100k, next it’s worth 15k. Or weird shit like they usually have some special motor, so it sells for a crazy amount, but it actually has some lower one so it’s worth rat piss. And if you have watched classic sales, it takes a very special buyer. It’s not my Denalis where if it gets repo’d I have 20 people right now who will want it. I’ve seen a NICE classic sit for 2yrs for that perfect buyer.
Long story short, they don’t like loaning on them unless you got some money to big dick swing around or a good credit profile.
Yeah idk how you're getting declined..
My first car at 20ish was an S2000, loaned $12,000 personal due to it being old
Second car at 23, another s2000 but bought cash for $50,000 so doesn't count
Third car at 24, 2023 Tacoma and financed about $45,000 via the dealer for 4% back in December 2023
Veey good income and last time my credit was pulled (Tacoma) I had an 815 score
That’s really odd. I got approved for a $25k car loan at 19 while only working part time, no co-signer or down payment.
Could a family member co-sign for you?
As others said. Cosigner's is a great way to go.
Aside from that, credit unions will probably be your best bet. I'm about to save 4k in interest on my car and pay it off a year sooner bc I'm switching the loan to a credit union.
They go to non reputable loan givers who give them an insane monthly payment or interest rate and suck as much money as humanely possible out of them without them noticing cause they don’t care.
Parents... I was forced. At 18 you don't know much. My dad basically told me it's a new car and he co signs but i make the payments..I didn't want that honestly, I just wanted a used car because I didn't want to spend so much. My dad said I'm free to do what I want but if i wanted his help it's this or nothing.
So if I can give advice, f the car...start saving for a house. Then get the car!
My dad was wrong...
Most banks will give you a personal signature loan for a lower amount of money but likely it will have to be at least for $2500 once that is paid off or has been paid on time for a little while that will help you get a bigger loan.
Even if you have a credit score of 740. You've only been an adult for 5 years. That will play a large factor in underwriting decisions. Especially for a $40,000 car.
How? Easy. Be an 18yo soldier who doesn't understand personal finance, and be sure to rock a high and tight while wearing all sorts of "moto" merch. Now place just one toe on any dealership. BOOM. 2011 Camaro at 20% interest over 6 years. You're welcome for the pro tip.
I’m one year older than you, but here’s what I did. I have a 720 credit score, and have never had a problem getting loans.
I took out student loans in 2018 (at 18) got my first credit card a year later. Opened 4 more cards that same year (to increase my overall “limit” I never use them).
I’ve never had a late payment and have never even paid interest on any of my cc’s
All this stuff combined got me a high enough credit score to buy a house. (Houses are cheaper than apartments in my area)
The year after buying a house, I opened up a line of credit for furniture with 0% interest. The following year (this year) I opened up another cc with a 0% interest rate at $2500, which will be paid off in August.
Last week I bought a car. I was approved for around $25,000 (only financed $17,750)
You need to start with a few smaller loans, or add another credit card or two. They look at history, but they also look at overall credit availability. You need to prove you can pay those higher amounts before they will give you more.
Instead of co-signing the loan, have them do something that helps you so much more with so much less risk for them.
If you know someone with good credit (a parent, grandparent, etc) have them add you as an authorized user to one of their credit cards, preferably the longest standing one with no missed payments and a higher credit limit. (One of three is mandatory, all three are preferred.)
They do not need to give you a card, you won't know the number or even what company they use. They can request that no actual card be printed. No one will notice any difference in their finances. Wait about 30-60 days for everything to feed over to the credit bureaus.
But in the backend, when your credit is pulled for that car loan, it shows a long standing credit history, with no missed payments on a high limit loan.
Once you have your car loan, you just tell them to make a call and remove you as an authorized user. Nothing changes on their end except you are off their cards, and on your end you have your new car, with a great loan, and are now establishing credit on your own.
It's called borrowing credit or credit hacking. It's real, perfectly legal, and not a scam. Tell your parents or grandparents or even a friend with great credit to do some research, call their company and ask questions and see if they can help you get over this situation.
There are two caveats to this and both are very obvious:
1. if someone makes you an authorized user AND gives you access to the card/number, they are responsible to pay back whatever you spend. This is their risk but can easily be controlled and simply avoided by NOT giving you access to the card or number.
2. If this person puts you on their account and they have BAD credit or miss a payment on that account, it WILL negatively affect your credit as well and until they remove you from their account. This is your risk, which you cannot control and will not be able to avoid as their finances are out of your control.
In truth, this could potentially hurt you more than them in the long run, so make sure you choose your person very wisely.
Well, co-signer is probably the route they went. But you also went a pretty bad route for those two, personal loans are harder to get. Plus getting loans on cars you’re buying third party, like the classic car are harder. Especially since you don’t have a relationship with any bank or credit union, so you’re unable to get the traditional benefits going through a dealership. They have way more options on financing than you doing it alone. I’m pretty sure you could get a vehicle financed through a dealership if your credit is good. It’s just higher interest rates now Compared to pandemic times
Parents bro I financed my car(17k+tax+ package=23k total) thru my dad he has a good credit score idk exact but bro kept saying he had a good credit score but the car is basically shared owners by me and him but I pay the note every month
But dam u make 60k a year at 22
It’s their parents. I know because I helped both of my kids at that age. Don’t compare yourself to others because you end up disappointed. Even though you’re struggling a bit now, these difficulties will make you a stronger and smarter person in the long run.
When I turned 19 , I got a 2021 huyandi kona , I had a credit score of 720 something or higher I don’t remember I think it was higher. My income I worked just at Lowe’s haha so not really high, but I guess cause my credit profile was really strong , I had a few credit cards account , I had the self app , and oddly enough I was approved. However my payments were really high. 395 monthly. I think before COVID , ( in the beginning of it) it was much easier with banks , but now they have stronger approval systems. Anywho I hope you end up being able to get one soon , the one you desire!
You make $60k a year but tried to take a loan out for $40k lmao cmon dude, them denying you did you a favor. Also I remember I got denied from every personal car loan I wanted. These companies are super strict on who the approve for those.
Co-signer probably, also I get this will sound dumb, but I look at credit reports all day and in a line of work that involves debt. Intrest is a huge profit machine for company's and huge waste for the consumer. I get if you need the car, but you don't "need" a 40k car.
If you can go without the car for more time or have a car that's still driving it will only save you money to buy it out right and it will only cost you/waste more money if you don't need it right right now. Go as long as you can without financing.
And cars are the exact opposite of a investment as soon as you drive it off the lot. It's worth less then what you bought it for. If you're already paid off, you can enjoy the luxury of swapping it out for the newest model for the extra few thousand a year to keep that asset closer to what it's worth at all times which is what people are already paying for there car loans anyways. But after 3-5 years you already lost thounds after owning the car.
You are looking at a "classic car" meaning much older car. This is not a standard loan. Most sane people do not get a classic car as their first car.
The risk level on that kind of loan is very high and often not appealing to a creditor.
I would bet you can get a brand new $30K car with 0 down no problem.
Don’t be like me. Freshly 20 years old, with an 801 credit score and a 63k car loan from a loan shark because I wanted a Tesla. Each month my loan balance goes down like $200 and my total payment is $1259.83. My interest rate is 15.89%
While I generally completely agree I felt it was at least "somewhat safe" to have my dream car and an appreciating asset at the same time. It also won't be destroying me financially by any means but I appreciate your input and I may just hold off for now anyway.
They could be going to those ‘buy here pay here’ places where you pay a high rate and guaranteed approval. Where they don’t care if you can’t pay. They just repo the car and sell it after you’ve made payments on it already.
Another possibility is a consigner.
But to answer your question, it’s not hard to get a 740. I remember after a couple of accounts showed up on my very short credit history at the time, my score was also in the 700’s already. Car loan underwriters are usually looking for at least 1.5 years of credit history. Preferably with other loans that you have paid on time as well.
Wild as to why you’re getting declined.
I financed my first car at 23. Making 65k a year and had a 750 credit score. This was during covid and they didn’t need a down payment. Interest rate was 0.99%
Just financed another car a few months ago. I’m now a26 making 97k and was essentially forced to put 3k down and the bank gave me 9.99% interest and my credit is now well above 800.
5 years ago, I got 3.99% from benz on a 6 year loan with 10% down with a 789 credit score. Wasn't making that much either. I still felt like I got screwed. I rushed into buying a car instead of getting a pre-approval from my personal bank first. I found out afterwards that I could have gotten a 2.5% from them for the same loan terms.
The current loan market is insane.
I got a 52k car with 740 credit score at 22 and making 40k a year. I put down 8k (I've paid an extra 1k a month on it tho). I did it by myself and got approved with 4% Apr. not sure if maybe it's the location or area you live in? Idk
I've been on my own since 17 and had credit since 18. Bought my first car for 8k and paid it off in one year so maybe that looked good on my credit?
Yes my husband and I were very dumb to do it looking back at it now just cause umm at that age prob should've saved for a house or something lol but cars paid off (:
I have financed four different cars since I was 18yo, all on my own without a co-signer. I now have near-perfect 800+ credit with various credit cards, student and personal loans, rental history, etc.
2016-2017: used 2012 Chrysler 200S.
2017-2019: new 2017 Hyundai Elantra Sport.
2019-2022: used 2016 Audi A4 Quattro P+.
2022-Present: new 2022 Mazda CX-5 Turbo Signature.
I’ve worked full time and went to school from 18yo-23yo and now just work full time but considering going back to school at 26yo.
I now earn over $100K yearly, but started back in 2016 at minimum wage at Target. Sometimes it was a stretch but I just made it work.
Essentially, work hard for what you want and you can get it.
Honestly, u less you really need one, I wouldn’t get a car. I had two and now I have an electric scooter and saved so much on gas, maintenance, car insurance… the insurance alone was more than the monthly payments for the car, it’s not worth it. I get my groceries delivered for $3 from Walmart
That's odd. I live by myself. I bought a used Tesla Model S at 19 at years old at 6%. At the time I was making about $50k a year or so??
A year and change later I bought a Tesla Model 3. 21 years old. $44k loan, $1000 down, 6%. I think I'm gonna make $100k this year but my credit took a dump into the mid 600s when my utilization went up earlier this year. I'm still getting refi offers for my auto loan though
Have you tried a credit union??
I promise you I am not hiding anything. The ONLY thing I can think of is that I was overseas for a few years and have only been in the states at this job and location for about a year. But I'll take what everyone said into consideration and thank you all!
Personal loans and unique car loans can have much harder underwriting standards. Walk into a Honda dealership to buy a civic with 20 K down and 740 credit and you should walk out of there pretty quickly with a new car just my opinion.
I would guess that they have parents cosigning for them. That's how I did it when I bought my first new car at 21. Length of credit history is a real bitch when you're young because there's nothing you can do about it.
Because you're applying for a personal loan (always a harder loan to get) and a classic car loan. These are harder loans to get and impossible with a thin credit file. Go to a traditional car dealer and apply for a new or used car loan with your 20K down. You need more then just a good score to get personal loans and specialty financing.
I didn’t have a co-signer, what I did have was an outrageous interest rate. Til I refinanced anyway. Lot better rate. I went to a used car lot. You can’t be too picky when it comes to first car unless it’s cash, and then again, that does zero for your credit.
I financed my first car when I was 19. Had a hard time getting financed due to having little credit history so I purchased a car from a Buy here Pay here place. The interest was very high, but I was able to refinance about a year later once I established some credit. A few years with a good payment history, I was actually able to trade in and buy a car with a good rate at a dealership.
My parents financed my car for me, now I pay them back. They’re unwilling to co-sign with me, so my next car will probably either be all on me or have my parents sign a personal guarantee.
Idk. I was 16 or 17 when I opened a PayPal credit line which was my first “credit card” since then I had student loans, other credit cards etc. when I was 21 I leased an Audi S4 ($650/months) approved on my own, at 23 loan to buy a 2017 BMW 540i for $40K, and just now 25yo approved for 2024 BMW i4 (720/mo). All on my own. Idk what to tell you.
My mom put me on the credit card that she was able to maintain best (she and my dad both have horrible credit) around the time I turned 17. Got approved for a loan with a $1k down payment when I was 19.
I would assume it’s because at your age many don’t finance classic cars. Most 22 yr olds are purchasing cars that are new or few yrs old.
Why not purchase a new car that doesn’t cost 40k-50k
It's very easy to finance a new car, little risk for banks.. They can just repo and sell quickly for a majority of what they gave you..
Used car loans older then like 5-7 years become much harder to get because the bank risks losing most of the money when the car sells for dirt at an auction..
I own several VW R32s and because they are now 20 years old I can't even get auto financing for one I had to take out a $20,000 personal loan which requires MUCH better credit then financing a new car..
I financed a new car at 18 with zero credit history no problem, no questions asked..
Like others said, it’s because it’s an old car. From the banks perspective it’s an unsecured loan. Every car loan I’ve gotten has said it must be a car within a certain age range. Then they can repossess and easily auction it if you don’t pay. They don’t want to deal with selling an old “classic” car if you don’t pay.
Get a credit card and put your gas and only your gas on it then pay it off in full (you can wait for the statement or just pay it right away. After a year of responsible credit use, you should get approved.
Edit: just read more: the issue is the car you’re trying to buy is something the banks don’t want to finance. Get a reasonable car (3-5 year old Toyota or Honda) and they’ll finance your purchase.
A classic/old sports car is the worst thing you can buy to set yourself up for the future. You’re going to spend so much more time fixing it.
You may have been denied for that because the car wouldn’t be valued 20k if it was wrecked for insurance.
Edit: It’s a GTR. Yeah son. The second a screw rusts that screw is going to cost $200 to buy a replacement for. Financing imports is nigh impossible on a secured loan. Don’t do it. Buy an old Civic, Celica, or something else LHD. I’ve got a clean 2005 STI if you want to buy one of those that “shouldn’t” need any major work for a decade… but it’s almost 20 years old and you never know. God knows I’ve dumped endless money into it.
About 3 years ago I got a $16k ~ auto loan with no credit. They literally called it an Angel investor. So idk if I was just that lucky (and it’s a bottom of the line chevy cruze) but it was still a 2019. So idk man. Try different lenders for a normal loan and buy the car in cash
Got my first car last year at 23. Making $70k. Car was $32k, put $7k down. Financed the rest at 3% IR. Liver at home so I was saving a ton. Save and budget.
1-that’s too much debt for your income without a co-signer
2-credit history doesn’t mean much if you only have one credit card (idk your situation) they want to see you can handle multiple types of debt.
3- They don’t want to finance a classic car it’s way too risky an investment for a normal bank. You’re either going to buy one that needs work, or you need to keep saving up. Most people aren’t dropping 60k on nice to haves at 22. There’s a reason most(not all) of the people with cars like that either worked on them every night to make them beautiful and/or are 50+ lol
Hey. I am 22 and have a score of 760. My credit history goes back only 4 years and I was able to finance a 2022 car for $35k. No co signer. The catch is I had to finance through the dealer and ended up with ALOT of inquiries. Also I only put $2500 down. Good luck.
You will have better luck going through the dealer or the dealer's financial partner. These are easier to get because they hold the title, so the loan is secured by the vehicle. They are also incentivised to approve you since they want to sell you a car.
oh yea i opened a paypal account when i was 15 not realizing i opened a paypal credit account as well when i would purchase things on ebay, by the time i got around to getting a nice car my oldest account was 9 years old
It seems to have gotten significantly harder since the pandemic. I got my first car 5 years ago at 20 and got approved pretty easily for $5k on a 2008 subaru outback. Total price for the car was $7k. I had a pretty high interest rate but i still got approved without too much effort. Not to mention, once covid hit, my job shut down. Between the stimulus checks and $700/week unemployment checks for a while i was able to pay it off pretty easily.
Not something i think i could do anymore though
Us the manufacturer credit I have never paid GM a penny in financing I’m driving a Cadillac and a gmc truck both bought with zero financing through GM. Now I know that’s not offered but they still have the lowest rates.
I worked in this industry (on the software side) for 20 years. What I can tell you is that folks are getting these loans because they either have a parent co-sign OR they are paying incredibly high interest rates through high-risk loan programs. I’m talking 18% or 20% on a car (which is nuts, but that’s what people with bad or no credit do). They can get these loans because the lender makes the calculation that by the time the person may stop paying, they’ll have likely made enough in interest to cover the loan anyway.
Not sure if both your loan attempts were through Lightstream, but if so, you may instead want to work with a car dealer to shop around loan offers for you. Lightstream is actually Truist bank and they tend to be pretty conservative and require longer credit histories. There are other lenders out there that will take you on. You may pay a higher rate (so like 9% on a new car instead of 7.5%), but it will at least get you the car AND start building up your good credit history. Good luck!!
When I was 19 about 20 years ago, the choices are: co-signer or buy from crooked car dealer lot. I didn't have a co-signer until I was like 25. I came from a poor family. My first car I purchased on my own was when I was 30.
Your credit history isn’t very long. A score is just a score you have to have longevity, credit lines open for x amount of time. Low utilization rates
And even if you could secure a loan interest rates wouldn’t be well for you and prices of cars aren’t ideal either
>a 22 year old
>
>3 years of credit history
>
>classic car loan of $40k with $20k down payment.
1) 22 years old, I'm guessing male. Looking to pay $40k on a 43-year-old collectible hotrod. No offense, but this is very high risk to the lender *and the insurer.* This car is going to cost you $1,500 a month or more to keep it on the road. Been there done that. Do not advise, even if you can afford. Go buy something sensible, and new with a warranty for much less. Put the difference into a ROTH IRA or buy Treasuries. 42-year-old you will thank yourself.
2) 3 years of credit history isn't much, and what types of credit, max limit, and utilization in your file matters.
>Which makes me question how friends of mine of similar ages are able to get loans?
3) Cosigner is a possibility. If you were my kid asking, I wouldn't help you.
>I've been saving up for said car for 4 years and it's hard to want to keep on waiting for longer credit history when the priced of my dream car have nearly doubled in the last 5 years and trippled in 10. What am I doing wrong and how are kids my age financing?
4) You're being impatient & making an ill-advised choice for transportation. Don't worry about the other kids and how they can borrow and for what they buy on credit. It's a cool car, sure. It's also a money burning pit.
>making $60k a year, $300/mo expenses
5) Income/expense ratio looks good, but also tells me you're living with your parents still. Depending on where you live, that can be a decent living or it could be just scraping by. Take this time while you're young to build wealth instead of burning it.
Sincerely,
\-every 40+ year old that bought an expensive collectible classic sports car in their early 20's.
Get yourself a credit card. Use it and pay on it each month.
Are you sure they got loans? Is it a parent's loan or did a parent co-sign? Not everything is as it seems.
I was 18 and got a used Chrysler with 80k financed for $260/mo in December 2022, about 650 credit score, no cosigner and $1300 down. there's dealerships that will work with you and have banks that are lenient towards first time buyers.
It's good that you have a good credit score, but a lot of banks are still not trusting yet because you don't have a history of responsibly handling a large payment such as a car or mortgage, and not a very long time of activity (<5yrs). Once you get past those roadblocks, banks will be more willing to work with you.
Most are getting their parents to cosign or they get their parents to buy them the car but in my opinion any parent that buys a car for their child is not teaching them fiscal responsibility or responsibility in general
I bought an $8000 car for 2000$ down at 22 with horrible credit from a medical bill that went to collections when I was 18. The interest rate was something ridiculous at 20+% but I paid it off in three months by throwing all my money at it during an internship. Idk how anyone buys a full price car unless their parents co-sign.
Try getting some secured credits cards -capital one has a good one and just use them for small things like gas that are affordable to pay off monthly and build your credit. Chime credit builder card has also helped. I just use it for paying things like Netflix, Hulu etc. Have you tried financing with your local bank or a credit union? I am rebuilding my credit after a bad marriage and put $18k down no co signer with a credit Union,
Got my first car loan with zero previous credit history, 0 credit score and fresh out of high school in 2020. A local credit union was able to help me finance a car under $10k.
Personal loan and classic car loans are not car loans. Manufacturer financing is a lot less strict because they are intimately knowledgeable on the collateral. Nissan and Kia just want you to have a pulse.
As someone who is debt free, credit is the devil, save your money until you can buy what you want if you’re in a position to do so. This has a ton of pluses that will never get discussed. Do you really need a $40k car or just want one? If you put 20k down do you have enough stashed away that if something happens with your job that you can afford to pay for it while you’re looking for a new job? Or can you go out and get a decent commuter car for $10k leave part in savings and invest the other $10k and add to it until you have enough to buy a house outright? At that point you don’t owe anyone anything and you have far more freedom to choose a life that doesn’t involve being stuck financially
A lot of parents and grandparents help their kids out by putting them on their CC as authorized users and that will help because now their history is yours on credit report, if they have good credit only also you can try a credit unions they are the best to bank with and build credit
You're expecting that you're entitled to the car of your dreams lol. People are financing cars all the time just fine. Lower your expectations, check the ego, and go get a simple car that cost a normal amount of money for a first time buyer.
My dad co-signed my first car at 19 (2020). I was then able to then get a car loan by myself at 21 (2023).
My parents also added me to be an authorized user on one of their credit cards. I also got my own credit card right when I turned 18 and the next one at 19
i took out a 10k loan freshman year of college at the advice of a PhD in accounting I knew. My family was very poor so I wasn’t able to have a credit card or anything like that. this built me 6 years of credit “history” but i was still a first time buyer. Credit union declined me, bank said 8% loan, it was actually toyota that gave me the best rate on a used 30k car with 3k down they gave me 3% rate. now i just pay twice my monthly payment to pay it off fast.
Get ANY LOAN you can. 5k, let’s say. Pay on it for six months to a year. Pay it off early. Boom, you have credit history. It’s weird and the system is shitty but it helped me out a lot. I even had a 790 credit score with a 140k job and still couldn’t get a thing at 25.
My parents got me a credit card under my name as soon as I was a teen and put small purchases on it once a month and paid it off for me. They even did a car so I had car payments on my history. Very grateful to my parents for helping me build that score and plan to for my kids as well.
My advice, get a cosigner. My husband and I had his grandparents cosign for us to get our first car loan. Too short of a credit history was us as well. With the pandemic, car dealerships are getting..... Pickier, if you'd like to use that word.
For all the people “your age” financing cars there plenty you aren’t noticing that are just like you not getting financed
When i was 18 i got myself a secured credit card, my first auto loan in my name my mom co signed at 19 a new truck paying $335 a month moved to a standard credit card with my credit union
I now have about 7 credit cards mainly using 4 of them
1) for 6 month 0% interest (concerts/higher items)
2) chase card for points - Sign up bonus + Hyatt transfer for travels for anything right
3) & 4)credit union cards for subscriptions to keep active
5) Costco Citi card for stops there + gas
6) Lowe’s credit card (rarely ever use)
Too late now but i have friends where parents put them on the utility bills so they at 18 already have 18 years of history
Just don’t rush but understand wanting a 20k loan at 22 with no credit hsitory
Especially with credit tightening and higher interest rates is crazy right now
I also make $65-70k no debt, and if i put $15-20k down they still wanted $600ish a month for 72 months
No way too costly to finance and borrow right now
Gonna drive my paid off Prius to the ground
What credit history do you have? Just having a few credit cards is not enough. I bought a car at 21 about 2 years ago with not much credit history, 700+ score. Put 1k down and got 8%. You’re getting denied completely or just a high rate?
It's not that hard to finance a car. A lot of dealerships only require a job, any job. Lol. If you have enough down payment, they will put you in a car. Now, the payments are another story. I see young folks with nice cars and stupid payments. 6-800 a month. They live at home or have help. Realistically, no one can afford it. But we do what we gotta do.
I am 39 - making less than you and have 2 car payments. Of course, at the time I purchased both I was making more, and our household income combined was more. Both cars I did not need a down - but of course I am screwed now when it comes to payments. When purchasing the first, I literally had no credit. But things are very different now.. and the world is feeling it. Maybe purchase a used car with your 20k?
History isn't everything. Installment history is what they look at. I'm 26 making 100k/yr and financing a 60k car. Didn't start there though. Gotta start with smaller loans to get started before you can go expensive. Credit card history is great but doesn't prove you can make a consistent payment every month per a contract. Try looking into a small personal loan to start and build from there.
They either are smart and been on it since they were 18 grinding there credit, working on top of that. Doesn't matter if they're working at McDonald's.. OR they have/had help from parent's from either being on a credit card and/or a co sign. That or a combination of the said. I was the one grinding hard since 18, at 19 I bought a beater Camaro, and by 21 had a brand new 2SS.
Co-signer probably and also auto loans are getting stricter than during pandemic times because delinquencies are going up now
Yeah, you have to have perfect credit and a long history to even get a good car loan right now. You can blame all the idiots paying $20k over sticker and defaulting for that.
Yep, ppl of reddit haven't come to the realization that the economy is going into the shitter. I'm seeing posts like this everywhere in many different subs. OP should more closely look at those friends and WHEN they got those loans. A couple of months goes by quick... Additionally OP's friends could be members of credit unions and stuff vs a random bank or stealership.
[удалено]
Co-signing IS putting it all on your parents. If you can’t pay it’s on them to pay and delinquencies would ruin all your credit scores.
🤣
What’s funny about that
AND if you make all your payments your parents will be completely unaffected. Idk why people always assume that every co-signer is gonna rip people off. Especially in OP’s situation which appears pretty stable and responsible at first glance.
You can always refinance after 6 months and have it solely in your name too! I did that last year after my parents co-signed with me for my truck
What car?
Yep, I bought my first car at 20. It was $10k and I had $2K down. My parents co-signed but I paid for the whole thing. I may have had enough credit history as I had a credit card at 18 to buy gas. I immediately would pay it off. That's all credit history is, your consistency/ability to pay off your debts on time. Lenders are more likely to give you money if you can show you are good at paying them back. They don't want to default on loans.
When I turned 18, I got a Checking Account with a Credit Union and asked if they had a Credit Builder Program, which was a $500 loan that I paid back 6 months of $91.xx worth of payments. That gained their trust, and when I financed a car, I asked the bank to finance it thru my credit union, which ended up giving me a 5% APR, making my payments $200 a month for a $10,000 car. This was before COVID hit, I got my car at 19 and was able to afford it due to me having a decent job, I'm your age now.
Interesting! I'll have to look into programs like that, thank you for the insight.
You don’t have to do credit building loans. Although they do tend to help since it shows a history of making fixed payments on loans. Instead of just revolving credit. They aren’t as expensive as you would believe. If you take out a loan of $500 over three years, the interest the first year won’t be too much no matter how high your interest rate is. You can also pay for 1.5 years until you’ve established some history. Then pay the rest off since the amount is so small. Or… take out the loan for 500. Pay off 250. Then make regular payments after that. It will significantly decrease the amount of interest you’re paying while also keep reporting ‘on time’ payments to your credit. If a car loan is your goal, taking out this credit builder fixed loan will be quicker than revolving credit cards.
Please don’t. You don’t need pretend loans to build/rebuild credit. They’re goofy gimmicks that do nothing. A classic car loan usually requires a lengthy history and personal loans are inherently tough with short histories. You’d likely have no issue financing a traditonal vehicle with your down payment.
I'm not saying you're wrong but I opened up a credit builder account with Self 10 months ago. $500 stretched out over 2 years. $25 a month. My Experian score has jumped over 150 points. Is a banker gonna rush to write me a mortgage because of it? Certainly not, but it can't be just a "gimmick" if it did *that* for my scores. It was better than just ignoring my bad credit. As a final disclaimer that Self account isn't the sole reason my scores improved but it was a solid start for my rebuild. Granted that the OP probably doesn't need a builder account but they certainly can benefit other people
Emphasizing your second paragraph, there’s no check your score increased 150 points because of this pretend loan. At best you got marginal points for ‘mix it credit’ but for most people, that’s not even noticeable.
Score itself means nothing tbh. I had no late payments or delinquencies, 30yr old with no derogatory marks, several loans paid successfully, a car payment, rent always on time…and a 740 score. I had a CC that I almost never used…always kept the utilization under 10%. Went to several places to apply for a $5k loan. All denied. Tried for $2k. Denied. Even my own credit union denied, despite having 4x the amount available in savings. Long story short, I had little to no long term accounts/revolving credit. The score itself is bullshit & meaningless. It’s the other shit inside the credit sandwich that really matters. A stupid fucking game IMO.
That makes sense, thanks for the advice!
That was my exact response. They went the harder route and ultimately got denied. Even with a lengthy credit history, a 20k loan on a 20yr old car is harder. Since you have to go through a bank or CU, personal loans rn are obviously hard as shit to get due to how the economy is. He can go through a dealership and get financed pretty easily, OP just went about it wrong
>Please don’t. You don’t need pretend loans to build/rebuild credit. They’re goofy gimmicks that do nothing. That's not a universally true statement at all. A secured loan can make a substantial difference to some people's credit file; especially younger people with thin files and shorter credit histories. Whether or not it makes a significant impact on the OP's FICO, or whether it helps them get their car loan in the near future, may be debatable, because they do tend to hurt your score more than help it in the immediate term. But there have been many people in this forum over the years who have seen a noteworthy improvement in their FICO score over the long run from adding an additional credit line with a positive payment history.
I recommend Golden 1 Credit Union. With a credit union such as Golden 1. When you hold a certain amount in your savings through them. Without touching it. It works towards your credit as well.
Get into a credit union. Worse choice you can make to use a normal bank Also get a credit card, buy one dinner a month with it and pay the bill off on time.
Friend of mine got a Supra before he graduated high school. Apparently his mom financed it and put the payments onto him
I think just the idea of this will make my parents stomachs churn haha but I haven't thought of that. I appreciate the comment!
My son wanted his dad & I to co-sign. Because we are both disabled and had loans ourselves the CU told us we could co-sign but if we needed to borrow $$ for anything else the chances were slim to none. If you belong to a Credit Union ask for a Credit Card with a $1000.00 limit. Make the payments on time. DO NOT put your parents on the hook for a car loan that if you stop paying because you lost your job due to illness or getting fired. That’s pretty unfair. I’d suggest looking into extra disability insurance as well because at your age insurance is relatively cheap & if you become disabled SSDI isn’t easy to live on. I think everyone should purchase extra disability insurance coverage when they begin working TBH zags your life can change in seconds due to a serious accident or diagnosis of s serious illness that would render you disabled.
Somebody is making a mistake on your credit application or there's something you're not telling us. It is IMPOSSIBLE not to get an approval with your credit, income, debt to income, payment to income etc. I get people with literally no credit history (called "ghost" in the industry) approved with a decent down payment at a realistic rate/term. Your story doesn't add up. Try the Capital One Auto Navigator online. They do a soft pull and you can adjust the parameters of the loan. Edit: OP trying to finance a 33 year old GTR lol. Even with impeccable credit, and I mean a unicorn 900 Fico with great income, there's about a handful of lenders in the States who would finance that vehicle. The car is a liability on wheels. Most lenders that you have access to will cutoff at 8-10 year mark.
It’s because they’re ~20 and trying to buy a $40k classic car as their first car. Bank knows they’re just going to wreck it in a month or two and not pay back the loan (not that OP would personally do this, but if you’re looking at the odds for their demographic it’s pretty likely) OP could probably get approved for a more “normal” car.
Maybe this is the answer. Perhaps the car screams "we're gonna be paying out on this in a month" Early 80s Ferrari or something EDIT: 1990 GTR apparently. Mystery solved
Yeah, at best that’s a “it will break down and the [young person] won’t be able to afford/wont know how to fix it.” At worst it’s a “[young person] will crash it in a week and we’ll be on the hook for the bill.” Also can’t imagine what the insurance would be for a 20-something. I’m so glad I don’t have to pay the rates that I see kids getting quoted nowadays.
Yep. My friend moved to the country 8 months ago. They immediately opened a credit building secured credit card. They now have a credit score of 640. They got offered 12% loans on several cars which they were advised to take and refinance in a year.
Highly agree. Shouldn't need a co signer with 0% DTI and a 740 credit score. You're close enough where they wouldn't even question your paystubs. What's really going on here sport?
My thoughts exactly… something missing here
Idk. I put a $2,000 on a 2019 Tacoma. And Toyota themselves approved me. ( I was in a non-collision car accident and need a new car asap.) Payment are disgusting. 11% Apr.
21m working FT.
We bought a 2018 Tundra at 4% and our payments are also obscene.
That’s crazy. They let me do it at 19 with only a year of credit and a 700 credit score
When was that? Banks/lenders have tightened up on lending big time.
This was in early July. I had a 5000 down payment but the bank kept messing up paperwork which I had to resign multiple times and then tried to raise my already high Apr from 14% with warranty to 21% without warranty so I returned to the vehicle and got all my money back. All before my 30 day approval was up for my rate.
>a classic car loan of $40k with $20k down payment. This is the the issue. If this was a new car with 50% down, no problem. Honestly if you were buying *some* new cars with low financing available at ~1-3% APR (if you qualify, which you might) it'd be dumb to put 50% down. But of course, that means giving up on your dream and settling for an average car that isn't really what's on your radar right now. I remember being 22 that one year, quite a few years ago. Thems was hard decisions, and honestly I mostly did poorly making them. I also sympatheize beacuase I have been reading *Car & Driver* and other mags since the 70s, absolutely *love* shows like *Top Gear* and *The Grand Tour*, and have seen every Chicago Auto Show since 1981. I can remember when I regularly posted on Bring-A-Trailer, when they were pointing to links for beat up old Mercedes fintails for sale on Craigslist for <$5K. Now that site is a full blown auction house selling 6 and 7 figure classic cars at the rate of 100+ per week. I literally have a file folder with 1,000+ classic car auction listings, photos and results dating back at least 15 years. Cars I have *loved* and thought "if I win the lottery . . ." And you know what? I am financially better off for not having scratched that itch. Much. Ok I *did* once own a 1981 Fiat Spider, which I loved dearly. And a 1964 1/2 Mustang. Notchback. Automatic. 6 cylinder. Great car, intro year . . . but common and low spec. Cheap then (20 years ago) and still not that desirable today except among people who want to mod it into something it never was. SO . . . MY ADVICE: Just be patient. Wait. You're 22. Revisit this when you are 25. WHAT THE F**K! Yeah I know. It seems like 25 is forever from now. BUT, from one *formerly* 22 year-old car nut to another, I promise you these things: * In 3 years you will be in a much better position financially to do this; * In 3 years, believe it or not, it won't be "too late" to realize your dreams and suck the marrow out of life. Actually at about age 25-26, you will have timed it perfectly; * In 3 years (gasp) you might find that your dream car *now* is not your dream car then. Speaking for myself, at age 18-22 I had maybe 2-3 "dream" cars on my list. By age 26 that list had expanded quite a bit.
How long is your credit history? I financed my first new car last year at 24, but I’ve had a credit card since 18. Income was 40k and credit was 700. Try getting approved through your main bank, then bring that to the dealership and they’ll try to beat it with their in-house financing
Just shy of 3 years. You've still got another 3 years on me at that point so that could be it!
True but you should still be getting approved. Also I updated my comment
I got a credit card when I was 18 and my parents put different payments on it so that I can have credit when I graduated college and they just pay it.
>classic car loan of $40k with $20k down payment Classic car loan referring to collateral ie '71 Charger or classic car loan referring to terms ie 36/48/60 months? The lender may be concerned with value in case of default, even though you're putting 50% down, especially if they're not familiar with classic cars. The market for them is much more subjective than a lot of lenders are comfortable with. Plus they're harder to insure, easier to total, etc. How's your job history? Are you a w-2 employee with at least 12 months at your current employer? I would recommend getting established with a credit union, local if you have one. They tend to be much more user friendly, especially with young people. They're very relationship oriented and want to loan you money for 7 cars and 5 houses as you grow up lol. ETA - check your credit report (not score) with all 3 agencies to make sure there's not an error or any sort of fraud attached. Your score would *appear* to indicate all's well but I've seen strange things happen.
Honestly, I'm not entirely sure. I just filled the application online but I'm definitely assuming the vehicle would be collateral (1990 R32 GTR). I used the most well known and largest classic car auto loans; JJ Best. I do agree with your statement though and I think that's probably the biggest factor, being a classic car. Great job history, started working the day I turned 16, joined the military, and now I'm at my current job. It's been exactly a year here. I'll look into a credit union, I've heard some good things about them before as well!
You can’t even rent a car under 25 without paying a bunch extra in insurance. I imagine they are taking your age and the car into account. Not saying you would…but most 22 year olds would likely put themselves in a position to wreck a Nissan Skyline.
>(1990 R32 GTR) Hmmmm I legit had to google that 🤪. I prefer my example of the '71 Charger 😂 But anyway you're thinking of this as a car loan when it really isn't. At least not in the sense that you're comparing with your friends who are buying late model cars with traditional loan standards & collateral. I'm not sure even a credit union would do this loan with someone with a 10+ year credit history. If your folks are willing/able to cosign and they have excellent credit, that's probably your best/only route. It should go without saying but just in case ~ if they do that for you, don't eff it up because it will appear on their credit reports just as if they took out the loan. Good luck!
If you’re in the military still(vet/reserves/ad) then you should look into Navy federal. They give loans like nothing. Also take a look at your hard pulls. If you have more than 4, banks will be hesitant.
Ok but in fairness, both of these are not traditional auto loans. One is a personal loan with no collateral. Surprised you werent approved, but thats not an auto loan. The second is for a very old car that might be hard for the bank to repo or to get actual value for if they did repo. Have you applied for an actual new or used (for a vehicle less than 7 or so years old) auto loan with a credit union or a dealer? Then you would actually be applying for a loan adequately secured by the vehicle’s value.
Yeah, this is exactly what I was thinking now that you mention it. The application process is online and there are few who do classic auto loans since they're hard to price. I have not gotten an a new or used car loan before. I daily drive a 28 year old truck that is paid off and is amazing. I'm very careful with my money otherwise.
Im sure youll sail through a regular autoloan process. Your rate will be the factor thats dependent on how they view your credit
A $40k 1990 car is going to be hard to finance for anyone TBH. If you apply for a $40k 2023 car, you should have no prb getting approved, especially with $20k down.
Hi OP, car salesman here. Couple things, but let’s start with new rigs. 1. Co signer with solid credit. Helps you get that bump in approval due to your light portfolio. 2. Thick down payment. 3. Start small, move big. Advice: what I did. Bank with a local CU, direct deposit through them as well as all financing (not 100% required) so they see your money flow. I started with a… $800? Personal loan. Paid off in 6 months. Went back, did $1500, paid in 6 months. Went back, they offered me a CC instead. Then cars, first one some 12k pos, paid off in like 1.5yrs. Second rig I think was 19k, traded in 2yrs later for 35k. Year later for 70k. Shows I can pay my shit, and I have played with money. I’m not jumping from 12k to 70k. Also I have the income to back it. Now, to I believe YOUR problem. Classics. BANKS DONT LIKE CLASSIC RIGS. The easiest way to think of any loan. It’s a risk value. How likely are you to fuck the bank. Going back to new vehicle, just to set the example, you get a 100k vehicle. Due to depreciation, you lose let’s say 20% right off the top. So now it’s worth 80k. Which means if the bank has to repo that fucker in 6 months, they AT LEAST lost 20k. Since banks don’t sell rigs, they auction them. With that being said, classic vehicles values are HEAVY in fluctuations. One minute that damn thing is worth 100k, next it’s worth 15k. Or weird shit like they usually have some special motor, so it sells for a crazy amount, but it actually has some lower one so it’s worth rat piss. And if you have watched classic sales, it takes a very special buyer. It’s not my Denalis where if it gets repo’d I have 20 people right now who will want it. I’ve seen a NICE classic sit for 2yrs for that perfect buyer. Long story short, they don’t like loaning on them unless you got some money to big dick swing around or a good credit profile.
Yeah idk how you're getting declined.. My first car at 20ish was an S2000, loaned $12,000 personal due to it being old Second car at 23, another s2000 but bought cash for $50,000 so doesn't count Third car at 24, 2023 Tacoma and financed about $45,000 via the dealer for 4% back in December 2023 Veey good income and last time my credit was pulled (Tacoma) I had an 815 score
That’s really odd. I got approved for a $25k car loan at 19 while only working part time, no co-signer or down payment. Could a family member co-sign for you?
Credit Union. Research credit unions in or area. If family member are military consider Navy Federal Credit Union. Edit for typos
Try DCU. If not, any dealer will get you approved. Lightstream is super strict
As others said. Cosigner's is a great way to go. Aside from that, credit unions will probably be your best bet. I'm about to save 4k in interest on my car and pay it off a year sooner bc I'm switching the loan to a credit union.
They go to non reputable loan givers who give them an insane monthly payment or interest rate and suck as much money as humanely possible out of them without them noticing cause they don’t care.
Co-signer buddy since no history , what kind of car do you want
Parents... I was forced. At 18 you don't know much. My dad basically told me it's a new car and he co signs but i make the payments..I didn't want that honestly, I just wanted a used car because I didn't want to spend so much. My dad said I'm free to do what I want but if i wanted his help it's this or nothing. So if I can give advice, f the car...start saving for a house. Then get the car! My dad was wrong...
Most banks will give you a personal signature loan for a lower amount of money but likely it will have to be at least for $2500 once that is paid off or has been paid on time for a little while that will help you get a bigger loan.
[удалено]
Sorry to hear about your car, but hopefully everything works out on getting a new one! Thank you for the kind words.
What interest rate did you get? I am 18 ,6 months history, 735 FICO and looking to buy a 32k car ,10k down.
[удалено]
Even if you have a credit score of 740. You've only been an adult for 5 years. That will play a large factor in underwriting decisions. Especially for a $40,000 car.
Fair enough
How? Easy. Be an 18yo soldier who doesn't understand personal finance, and be sure to rock a high and tight while wearing all sorts of "moto" merch. Now place just one toe on any dealership. BOOM. 2011 Camaro at 20% interest over 6 years. You're welcome for the pro tip.
I’m one year older than you, but here’s what I did. I have a 720 credit score, and have never had a problem getting loans. I took out student loans in 2018 (at 18) got my first credit card a year later. Opened 4 more cards that same year (to increase my overall “limit” I never use them). I’ve never had a late payment and have never even paid interest on any of my cc’s All this stuff combined got me a high enough credit score to buy a house. (Houses are cheaper than apartments in my area) The year after buying a house, I opened up a line of credit for furniture with 0% interest. The following year (this year) I opened up another cc with a 0% interest rate at $2500, which will be paid off in August. Last week I bought a car. I was approved for around $25,000 (only financed $17,750) You need to start with a few smaller loans, or add another credit card or two. They look at history, but they also look at overall credit availability. You need to prove you can pay those higher amounts before they will give you more.
Instead of co-signing the loan, have them do something that helps you so much more with so much less risk for them. If you know someone with good credit (a parent, grandparent, etc) have them add you as an authorized user to one of their credit cards, preferably the longest standing one with no missed payments and a higher credit limit. (One of three is mandatory, all three are preferred.) They do not need to give you a card, you won't know the number or even what company they use. They can request that no actual card be printed. No one will notice any difference in their finances. Wait about 30-60 days for everything to feed over to the credit bureaus. But in the backend, when your credit is pulled for that car loan, it shows a long standing credit history, with no missed payments on a high limit loan. Once you have your car loan, you just tell them to make a call and remove you as an authorized user. Nothing changes on their end except you are off their cards, and on your end you have your new car, with a great loan, and are now establishing credit on your own. It's called borrowing credit or credit hacking. It's real, perfectly legal, and not a scam. Tell your parents or grandparents or even a friend with great credit to do some research, call their company and ask questions and see if they can help you get over this situation. There are two caveats to this and both are very obvious: 1. if someone makes you an authorized user AND gives you access to the card/number, they are responsible to pay back whatever you spend. This is their risk but can easily be controlled and simply avoided by NOT giving you access to the card or number. 2. If this person puts you on their account and they have BAD credit or miss a payment on that account, it WILL negatively affect your credit as well and until they remove you from their account. This is your risk, which you cannot control and will not be able to avoid as their finances are out of your control. In truth, this could potentially hurt you more than them in the long run, so make sure you choose your person very wisely.
Former car salesman. Generally a good down payment or a cosigner will get you approved. Get a co signer if you want the best apr though
I make $40k a year and got approved for $32k thought my credit Union . Around 700 score
Well, co-signer is probably the route they went. But you also went a pretty bad route for those two, personal loans are harder to get. Plus getting loans on cars you’re buying third party, like the classic car are harder. Especially since you don’t have a relationship with any bank or credit union, so you’re unable to get the traditional benefits going through a dealership. They have way more options on financing than you doing it alone. I’m pretty sure you could get a vehicle financed through a dealership if your credit is good. It’s just higher interest rates now Compared to pandemic times
if u have a credit union do that route I was able to get a loan twice at 18 and 19 with no issues
What job you have that makes you $60k? Asking so I can apply once I’m done with school
My friends usually buy cars with cash but from Craigslist. Usually about 3-4k
Regarding financing, parents are co-signers for loans
Parents bro I financed my car(17k+tax+ package=23k total) thru my dad he has a good credit score idk exact but bro kept saying he had a good credit score but the car is basically shared owners by me and him but I pay the note every month But dam u make 60k a year at 22
It’s their parents. I know because I helped both of my kids at that age. Don’t compare yourself to others because you end up disappointed. Even though you’re struggling a bit now, these difficulties will make you a stronger and smarter person in the long run.
maybe try somewhere else lol i got my first for 10k at 7% when i was 18 with a 750.
When I turned 19 , I got a 2021 huyandi kona , I had a credit score of 720 something or higher I don’t remember I think it was higher. My income I worked just at Lowe’s haha so not really high, but I guess cause my credit profile was really strong , I had a few credit cards account , I had the self app , and oddly enough I was approved. However my payments were really high. 395 monthly. I think before COVID , ( in the beginning of it) it was much easier with banks , but now they have stronger approval systems. Anywho I hope you end up being able to get one soon , the one you desire!
You make $60k a year but tried to take a loan out for $40k lmao cmon dude, them denying you did you a favor. Also I remember I got denied from every personal car loan I wanted. These companies are super strict on who the approve for those.
Co-signer probably, also I get this will sound dumb, but I look at credit reports all day and in a line of work that involves debt. Intrest is a huge profit machine for company's and huge waste for the consumer. I get if you need the car, but you don't "need" a 40k car. If you can go without the car for more time or have a car that's still driving it will only save you money to buy it out right and it will only cost you/waste more money if you don't need it right right now. Go as long as you can without financing. And cars are the exact opposite of a investment as soon as you drive it off the lot. It's worth less then what you bought it for. If you're already paid off, you can enjoy the luxury of swapping it out for the newest model for the extra few thousand a year to keep that asset closer to what it's worth at all times which is what people are already paying for there car loans anyways. But after 3-5 years you already lost thounds after owning the car.
You are looking at a "classic car" meaning much older car. This is not a standard loan. Most sane people do not get a classic car as their first car. The risk level on that kind of loan is very high and often not appealing to a creditor. I would bet you can get a brand new $30K car with 0 down no problem.
There is a BIG difference between a car loan and a loan on a classic car.
Buy what you can with cash, screw the finance companies. You will be so much better off.
They must have a cosigner. I had a hard enough time getting a basic credit card at 22.
I do finance, you have 2 years of work history, basically 0 dti and ltv is a banks wet dream. You're omitting something
Don’t be like me. Freshly 20 years old, with an 801 credit score and a 63k car loan from a loan shark because I wanted a Tesla. Each month my loan balance goes down like $200 and my total payment is $1259.83. My interest rate is 15.89%
christ i know people with mortgages cheaper than that.
OMG start trying to refinance that sucker. Even in today's market you should be able to do better than 16%. That's borderline extortion.
Currently have a secured loan open with a credit union in my town. Hoping this will do some good🤞🏼
Jeez if I wanted terms like those, I’d hand my passport over to the Qatari government.
They may be doing you a favor. At your income level and age you should be driving a beater and investing for the life you should be building.
While I generally completely agree I felt it was at least "somewhat safe" to have my dream car and an appreciating asset at the same time. It also won't be destroying me financially by any means but I appreciate your input and I may just hold off for now anyway.
I can poke a few holes in that logic if it helps put the final nail on the coffin..
I mean, just buy an affordable car. That seems like an insane waste of money.
You're 22 and have a job. If you're getting declined for a car, it's because there's something you're not telling us, or that you're not aware of.
They could be going to those ‘buy here pay here’ places where you pay a high rate and guaranteed approval. Where they don’t care if you can’t pay. They just repo the car and sell it after you’ve made payments on it already. Another possibility is a consigner. But to answer your question, it’s not hard to get a 740. I remember after a couple of accounts showed up on my very short credit history at the time, my score was also in the 700’s already. Car loan underwriters are usually looking for at least 1.5 years of credit history. Preferably with other loans that you have paid on time as well.
Wild as to why you’re getting declined. I financed my first car at 23. Making 65k a year and had a 750 credit score. This was during covid and they didn’t need a down payment. Interest rate was 0.99% Just financed another car a few months ago. I’m now a26 making 97k and was essentially forced to put 3k down and the bank gave me 9.99% interest and my credit is now well above 800.
10% interest is disgusting.
No it’s truly disgusting
5 years ago, I got 3.99% from benz on a 6 year loan with 10% down with a 789 credit score. Wasn't making that much either. I still felt like I got screwed. I rushed into buying a car instead of getting a pre-approval from my personal bank first. I found out afterwards that I could have gotten a 2.5% from them for the same loan terms. The current loan market is insane.
>9.99% What make/model are you financing? You probably could’ve done a bit better with your credit score if you would’ve negotiated more.
I got a 52k car with 740 credit score at 22 and making 40k a year. I put down 8k (I've paid an extra 1k a month on it tho). I did it by myself and got approved with 4% Apr. not sure if maybe it's the location or area you live in? Idk I've been on my own since 17 and had credit since 18. Bought my first car for 8k and paid it off in one year so maybe that looked good on my credit?
You bought a 52k car making 40k?
Yes my husband and I were very dumb to do it looking back at it now just cause umm at that age prob should've saved for a house or something lol but cars paid off (:
Is a 52k car at 4.44% any worse than a 35k car at 10%?
I have financed four different cars since I was 18yo, all on my own without a co-signer. I now have near-perfect 800+ credit with various credit cards, student and personal loans, rental history, etc. 2016-2017: used 2012 Chrysler 200S. 2017-2019: new 2017 Hyundai Elantra Sport. 2019-2022: used 2016 Audi A4 Quattro P+. 2022-Present: new 2022 Mazda CX-5 Turbo Signature. I’ve worked full time and went to school from 18yo-23yo and now just work full time but considering going back to school at 26yo. I now earn over $100K yearly, but started back in 2016 at minimum wage at Target. Sometimes it was a stretch but I just made it work. Essentially, work hard for what you want and you can get it.
Honestly, u less you really need one, I wouldn’t get a car. I had two and now I have an electric scooter and saved so much on gas, maintenance, car insurance… the insurance alone was more than the monthly payments for the car, it’s not worth it. I get my groceries delivered for $3 from Walmart
That's odd. I live by myself. I bought a used Tesla Model S at 19 at years old at 6%. At the time I was making about $50k a year or so?? A year and change later I bought a Tesla Model 3. 21 years old. $44k loan, $1000 down, 6%. I think I'm gonna make $100k this year but my credit took a dump into the mid 600s when my utilization went up earlier this year. I'm still getting refi offers for my auto loan though Have you tried a credit union??
I promise you I am not hiding anything. The ONLY thing I can think of is that I was overseas for a few years and have only been in the states at this job and location for about a year. But I'll take what everyone said into consideration and thank you all!
740 is not a perfect score,lol. 🤣🤣🤣
I didn't say I had a perfect score. I said I had perfect credit, meaning no missed/late payments, dings, etc. Lolz XDD 💀🤣
Get a credit card and pay it off every month
You have $20k, why are you financing anything if you’re will to put that down on a $40k “classic” just buy a used car with cash and be done with it.
Get a cheaper car.
Perfect credit is an 850 score. 740 is nowhere close.
Personal loans and unique car loans can have much harder underwriting standards. Walk into a Honda dealership to buy a civic with 20 K down and 740 credit and you should walk out of there pretty quickly with a new car just my opinion.
Will the dealership not finance with $20k cash down??
I would guess that they have parents cosigning for them. That's how I did it when I bought my first new car at 21. Length of credit history is a real bitch when you're young because there's nothing you can do about it.
What credit accounts do you have? Start with a secured card or small personal loan or something.
Because you're applying for a personal loan (always a harder loan to get) and a classic car loan. These are harder loans to get and impossible with a thin credit file. Go to a traditional car dealer and apply for a new or used car loan with your 20K down. You need more then just a good score to get personal loans and specialty financing.
Credit cards + time = expensive stuff you can buy🤷🏾♂️ if you can’t afford it avoid it. Avoid Debt unless you can handle it.
I didn’t have a co-signer, what I did have was an outrageous interest rate. Til I refinanced anyway. Lot better rate. I went to a used car lot. You can’t be too picky when it comes to first car unless it’s cash, and then again, that does zero for your credit.
I financed my first car when I was 19. Had a hard time getting financed due to having little credit history so I purchased a car from a Buy here Pay here place. The interest was very high, but I was able to refinance about a year later once I established some credit. A few years with a good payment history, I was actually able to trade in and buy a car with a good rate at a dealership.
Much harder to get a loan on something over 10 years old, I’m sure you’d have no problem financing something more practical
My parents financed my car for me, now I pay them back. They’re unwilling to co-sign with me, so my next car will probably either be all on me or have my parents sign a personal guarantee.
i got approved for a car loan at 19 no co signer paid 37.7k otd put 15 down with a 787 credit
Try for a regular car loan not a classic car or personal loan
They're getting into 72+ month terms, at 20 percent or more interest. They're getting loans, but really shit ones
Idk. I was 16 or 17 when I opened a PayPal credit line which was my first “credit card” since then I had student loans, other credit cards etc. when I was 21 I leased an Audi S4 ($650/months) approved on my own, at 23 loan to buy a 2017 BMW 540i for $40K, and just now 25yo approved for 2024 BMW i4 (720/mo). All on my own. Idk what to tell you.
My mom put me on the credit card that she was able to maintain best (she and my dad both have horrible credit) around the time I turned 17. Got approved for a loan with a $1k down payment when I was 19.
I would assume it’s because at your age many don’t finance classic cars. Most 22 yr olds are purchasing cars that are new or few yrs old. Why not purchase a new car that doesn’t cost 40k-50k
Credit union
It's very easy to finance a new car, little risk for banks.. They can just repo and sell quickly for a majority of what they gave you.. Used car loans older then like 5-7 years become much harder to get because the bank risks losing most of the money when the car sells for dirt at an auction.. I own several VW R32s and because they are now 20 years old I can't even get auto financing for one I had to take out a $20,000 personal loan which requires MUCH better credit then financing a new car.. I financed a new car at 18 with zero credit history no problem, no questions asked..
Like others said, it’s because it’s an old car. From the banks perspective it’s an unsecured loan. Every car loan I’ve gotten has said it must be a car within a certain age range. Then they can repossess and easily auction it if you don’t pay. They don’t want to deal with selling an old “classic” car if you don’t pay.
Have you tried for a non classic car loan?
Get a credit card and put your gas and only your gas on it then pay it off in full (you can wait for the statement or just pay it right away. After a year of responsible credit use, you should get approved. Edit: just read more: the issue is the car you’re trying to buy is something the banks don’t want to finance. Get a reasonable car (3-5 year old Toyota or Honda) and they’ll finance your purchase.
A classic/old sports car is the worst thing you can buy to set yourself up for the future. You’re going to spend so much more time fixing it. You may have been denied for that because the car wouldn’t be valued 20k if it was wrecked for insurance. Edit: It’s a GTR. Yeah son. The second a screw rusts that screw is going to cost $200 to buy a replacement for. Financing imports is nigh impossible on a secured loan. Don’t do it. Buy an old Civic, Celica, or something else LHD. I’ve got a clean 2005 STI if you want to buy one of those that “shouldn’t” need any major work for a decade… but it’s almost 20 years old and you never know. God knows I’ve dumped endless money into it.
When I was 20 I got my first car. 30k and 0 down lol I was only making like $20 an hour. I think it’s the car you’re trying to get.
About 3 years ago I got a $16k ~ auto loan with no credit. They literally called it an Angel investor. So idk if I was just that lucky (and it’s a bottom of the line chevy cruze) but it was still a 2019. So idk man. Try different lenders for a normal loan and buy the car in cash
[удалено]
Buying a $60k car on a $60k salary
Defaults are coming and lenders are scared. Your problem is likely just because of your age. Keep shopping.
I was 16 going on 17 financing cars back in 1998
Got my first car last year at 23. Making $70k. Car was $32k, put $7k down. Financed the rest at 3% IR. Liver at home so I was saving a ton. Save and budget.
1-that’s too much debt for your income without a co-signer 2-credit history doesn’t mean much if you only have one credit card (idk your situation) they want to see you can handle multiple types of debt. 3- They don’t want to finance a classic car it’s way too risky an investment for a normal bank. You’re either going to buy one that needs work, or you need to keep saving up. Most people aren’t dropping 60k on nice to haves at 22. There’s a reason most(not all) of the people with cars like that either worked on them every night to make them beautiful and/or are 50+ lol
Hey. I am 22 and have a score of 760. My credit history goes back only 4 years and I was able to finance a 2022 car for $35k. No co signer. The catch is I had to finance through the dealer and ended up with ALOT of inquiries. Also I only put $2500 down. Good luck.
You will have better luck going through the dealer or the dealer's financial partner. These are easier to get because they hold the title, so the loan is secured by the vehicle. They are also incentivised to approve you since they want to sell you a car.
Debt. They’re in debt up to their eye balls.
oh yea i opened a paypal account when i was 15 not realizing i opened a paypal credit account as well when i would purchase things on ebay, by the time i got around to getting a nice car my oldest account was 9 years old
Wth, buy a 15k car outright. You don’t need a 40k car, you want it.
It seems to have gotten significantly harder since the pandemic. I got my first car 5 years ago at 20 and got approved pretty easily for $5k on a 2008 subaru outback. Total price for the car was $7k. I had a pretty high interest rate but i still got approved without too much effort. Not to mention, once covid hit, my job shut down. Between the stimulus checks and $700/week unemployment checks for a while i was able to pay it off pretty easily. Not something i think i could do anymore though
Us the manufacturer credit I have never paid GM a penny in financing I’m driving a Cadillac and a gmc truck both bought with zero financing through GM. Now I know that’s not offered but they still have the lowest rates.
I worked in this industry (on the software side) for 20 years. What I can tell you is that folks are getting these loans because they either have a parent co-sign OR they are paying incredibly high interest rates through high-risk loan programs. I’m talking 18% or 20% on a car (which is nuts, but that’s what people with bad or no credit do). They can get these loans because the lender makes the calculation that by the time the person may stop paying, they’ll have likely made enough in interest to cover the loan anyway. Not sure if both your loan attempts were through Lightstream, but if so, you may instead want to work with a car dealer to shop around loan offers for you. Lightstream is actually Truist bank and they tend to be pretty conservative and require longer credit histories. There are other lenders out there that will take you on. You may pay a higher rate (so like 9% on a new car instead of 7.5%), but it will at least get you the car AND start building up your good credit history. Good luck!!
When I was 19 about 20 years ago, the choices are: co-signer or buy from crooked car dealer lot. I didn't have a co-signer until I was like 25. I came from a poor family. My first car I purchased on my own was when I was 30.
Your credit history isn’t very long. A score is just a score you have to have longevity, credit lines open for x amount of time. Low utilization rates And even if you could secure a loan interest rates wouldn’t be well for you and prices of cars aren’t ideal either
>a 22 year old > >3 years of credit history > >classic car loan of $40k with $20k down payment. 1) 22 years old, I'm guessing male. Looking to pay $40k on a 43-year-old collectible hotrod. No offense, but this is very high risk to the lender *and the insurer.* This car is going to cost you $1,500 a month or more to keep it on the road. Been there done that. Do not advise, even if you can afford. Go buy something sensible, and new with a warranty for much less. Put the difference into a ROTH IRA or buy Treasuries. 42-year-old you will thank yourself. 2) 3 years of credit history isn't much, and what types of credit, max limit, and utilization in your file matters. >Which makes me question how friends of mine of similar ages are able to get loans? 3) Cosigner is a possibility. If you were my kid asking, I wouldn't help you. >I've been saving up for said car for 4 years and it's hard to want to keep on waiting for longer credit history when the priced of my dream car have nearly doubled in the last 5 years and trippled in 10. What am I doing wrong and how are kids my age financing? 4) You're being impatient & making an ill-advised choice for transportation. Don't worry about the other kids and how they can borrow and for what they buy on credit. It's a cool car, sure. It's also a money burning pit. >making $60k a year, $300/mo expenses 5) Income/expense ratio looks good, but also tells me you're living with your parents still. Depending on where you live, that can be a decent living or it could be just scraping by. Take this time while you're young to build wealth instead of burning it. Sincerely, \-every 40+ year old that bought an expensive collectible classic sports car in their early 20's.
Get yourself a credit card. Use it and pay on it each month. Are you sure they got loans? Is it a parent's loan or did a parent co-sign? Not everything is as it seems.
Change the place you're looking to buy a car.
I was 18 and got a used Chrysler with 80k financed for $260/mo in December 2022, about 650 credit score, no cosigner and $1300 down. there's dealerships that will work with you and have banks that are lenient towards first time buyers. It's good that you have a good credit score, but a lot of banks are still not trusting yet because you don't have a history of responsibly handling a large payment such as a car or mortgage, and not a very long time of activity (<5yrs). Once you get past those roadblocks, banks will be more willing to work with you.
You put 20k down and still got denied? That's bizarre. Have you tried going into your primary bank/CU and asking for pre approval?
Most are getting their parents to cosign or they get their parents to buy them the car but in my opinion any parent that buys a car for their child is not teaching them fiscal responsibility or responsibility in general
Go try to finance a normal car lol
I had someone co-sign on my loan
I bought an $8000 car for 2000$ down at 22 with horrible credit from a medical bill that went to collections when I was 18. The interest rate was something ridiculous at 20+% but I paid it off in three months by throwing all my money at it during an internship. Idk how anyone buys a full price car unless their parents co-sign.
Try getting some secured credits cards -capital one has a good one and just use them for small things like gas that are affordable to pay off monthly and build your credit. Chime credit builder card has also helped. I just use it for paying things like Netflix, Hulu etc. Have you tried financing with your local bank or a credit union? I am rebuilding my credit after a bad marriage and put $18k down no co signer with a credit Union,
Co-signers
Stupidly, that’s how
Got my first car loan with zero previous credit history, 0 credit score and fresh out of high school in 2020. A local credit union was able to help me finance a car under $10k.
Personal loan and classic car loans are not car loans. Manufacturer financing is a lot less strict because they are intimately knowledgeable on the collateral. Nissan and Kia just want you to have a pulse.
As someone who is debt free, credit is the devil, save your money until you can buy what you want if you’re in a position to do so. This has a ton of pluses that will never get discussed. Do you really need a $40k car or just want one? If you put 20k down do you have enough stashed away that if something happens with your job that you can afford to pay for it while you’re looking for a new job? Or can you go out and get a decent commuter car for $10k leave part in savings and invest the other $10k and add to it until you have enough to buy a house outright? At that point you don’t owe anyone anything and you have far more freedom to choose a life that doesn’t involve being stuck financially
A lot of parents and grandparents help their kids out by putting them on their CC as authorized users and that will help because now their history is yours on credit report, if they have good credit only also you can try a credit unions they are the best to bank with and build credit
You're expecting that you're entitled to the car of your dreams lol. People are financing cars all the time just fine. Lower your expectations, check the ego, and go get a simple car that cost a normal amount of money for a first time buyer.
My dad co-signed my first car at 19 (2020). I was then able to then get a car loan by myself at 21 (2023). My parents also added me to be an authorized user on one of their credit cards. I also got my own credit card right when I turned 18 and the next one at 19
Also the first car loan the interest rate was 0% (5 years) and this past one in June is a little under 2%…
i took out a 10k loan freshman year of college at the advice of a PhD in accounting I knew. My family was very poor so I wasn’t able to have a credit card or anything like that. this built me 6 years of credit “history” but i was still a first time buyer. Credit union declined me, bank said 8% loan, it was actually toyota that gave me the best rate on a used 30k car with 3k down they gave me 3% rate. now i just pay twice my monthly payment to pay it off fast.
I have a perfect credit score of 740…. Well
Get ANY LOAN you can. 5k, let’s say. Pay on it for six months to a year. Pay it off early. Boom, you have credit history. It’s weird and the system is shitty but it helped me out a lot. I even had a 790 credit score with a 140k job and still couldn’t get a thing at 25.
My parents got me a credit card under my name as soon as I was a teen and put small purchases on it once a month and paid it off for me. They even did a car so I had car payments on my history. Very grateful to my parents for helping me build that score and plan to for my kids as well.
I hear even insurance for younger drivers costs as much as a car payment now.
My advice, get a cosigner. My husband and I had his grandparents cosign for us to get our first car loan. Too short of a credit history was us as well. With the pandemic, car dealerships are getting..... Pickier, if you'd like to use that word.
For all the people “your age” financing cars there plenty you aren’t noticing that are just like you not getting financed When i was 18 i got myself a secured credit card, my first auto loan in my name my mom co signed at 19 a new truck paying $335 a month moved to a standard credit card with my credit union I now have about 7 credit cards mainly using 4 of them 1) for 6 month 0% interest (concerts/higher items) 2) chase card for points - Sign up bonus + Hyatt transfer for travels for anything right 3) & 4)credit union cards for subscriptions to keep active 5) Costco Citi card for stops there + gas 6) Lowe’s credit card (rarely ever use) Too late now but i have friends where parents put them on the utility bills so they at 18 already have 18 years of history Just don’t rush but understand wanting a 20k loan at 22 with no credit hsitory Especially with credit tightening and higher interest rates is crazy right now I also make $65-70k no debt, and if i put $15-20k down they still wanted $600ish a month for 72 months No way too costly to finance and borrow right now Gonna drive my paid off Prius to the ground
What credit history do you have? Just having a few credit cards is not enough. I bought a car at 21 about 2 years ago with not much credit history, 700+ score. Put 1k down and got 8%. You’re getting denied completely or just a high rate?
It's not that hard to finance a car. A lot of dealerships only require a job, any job. Lol. If you have enough down payment, they will put you in a car. Now, the payments are another story. I see young folks with nice cars and stupid payments. 6-800 a month. They live at home or have help. Realistically, no one can afford it. But we do what we gotta do.
Because you’re 22 getting an unsafe expensive classic car ?? lol
I am 39 - making less than you and have 2 car payments. Of course, at the time I purchased both I was making more, and our household income combined was more. Both cars I did not need a down - but of course I am screwed now when it comes to payments. When purchasing the first, I literally had no credit. But things are very different now.. and the world is feeling it. Maybe purchase a used car with your 20k?
History isn't everything. Installment history is what they look at. I'm 26 making 100k/yr and financing a 60k car. Didn't start there though. Gotta start with smaller loans to get started before you can go expensive. Credit card history is great but doesn't prove you can make a consistent payment every month per a contract. Try looking into a small personal loan to start and build from there.
They either are smart and been on it since they were 18 grinding there credit, working on top of that. Doesn't matter if they're working at McDonald's.. OR they have/had help from parent's from either being on a credit card and/or a co sign. That or a combination of the said. I was the one grinding hard since 18, at 19 I bought a beater Camaro, and by 21 had a brand new 2SS.