Where is the best place to go to get a car loan?
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I'm 20 years old, live in southern California, I have only had a credit history for less then a year and I have never been late, I knwo Equifax doesnt even give me a credit score, cause of the "thin file". I make $1000/month (after taxes), plus some under the table babysitting money. I go to school but only part-time. I pay $200+/month in bills, and I'm living at home for now, but I want to move after september.
Where is the best place to go to get a car loan?The better car loans are usually from the dealership since they can offer low rates then through credit unions and then banks. Since you don't have much credit history, your rate will probably be higher than most. The most you can hope to get is about 20% of your gross income applying towards the monthly payment. Since you state you make $1000 net I am going to assume you're making about $1500 gross so 20% of that is $300 so you can afford a car that you can make $300 a month payments on (which includes taxes and finance charges). The car you could get (new) would be around $15,000. Keep in mind if you get a used car, it would be harder to get a loan the older the car (depreciation). If you're planning to move out get the car before you move. Most creditors will assume some rent even if you live rent free with your parents. That's why they say you can only afford 20% of your gross payments. They also consider recurring bills and debts so depending on the lender, your $200/month in bills may affect the amount you're able to borrow. Since you don't report your baby-sitting income for taxes you won't be able to include that as income for your loan application (usually).
If you want to get the rate down and possibly increase the amount of money you can borrow (for a bigger or better car) consider having your parents co-sign. If you want to do it on your own then do as above and limit yourself on the car you get.
Where is the best place to go to get a car loan?You should look for providers online first. This way you can complete your application at home and attach all the required documents. Try my profile under debt and go to car loans. There is a lot of information there.
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