What should I expect with my first used car loan?
Saturday, September 3rd, 2011 at
10:17
Question by Jaden P: What should I expect with my first used car loan?
(this is my sisters yahoo account) I am a 16 year old boy about to take out a 1500$ loan for my first used car. If my dad co signs the loan, about how much would my interest rate be? By the way, my dad has excellent credit.
I allready have 2 grand, i just need 1,500 more. I can't get a job without a car either... so saving up for cash isn't really going to work.
Best answer:
Answer by hatchetryda
ask your dad!
Know better? Leave your own answer in the comments!
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US $200.00
Sorry to bust your bubble, but you can’t sign a loan. It’s illegal for a bank to issue a loan to you until you are 18. That is when your credit score and report start. Good luck getting your first car!
Be Smart, Save your money until you can pay cash for the car.
A $ 1,500.00 car will cost you more in fuel, repairs and insurance in the first year you own it than the car costs you to purchase. Think soundly and not emotionally about the idea of auto ownership for a while, while you save for it.
Based on the question you haven’t thought this out very well.
Good luck.
It escapes me as to why you can’t get a job without a car…many people do have jobs without cars.
$ 3.500.00 in this economy should get you a reasonable mid-90’s car with low miles…so a loan for $ 1,500.00 is reasonable with $ 2,000.00 down…but whoo loans money to a 16 year old with no prior credit history, with no job and without being of majority and able to sign a legal contract…probably the only person would be your dad. SO, I suspect that you can expect from your first car loan is to owe your dad for a contract between the two of you. Set up the contract with a fair amount of interest to him and a consistant payment date with an accounting sheet to track you payments, whether they are on time or not and whether late payment penalites have had to be charged. This would be about as real world as you can set up for a 16 year old. You can learn a lot from this exercise…how to use credit and not abouse it. Good luck to you and may your education regarding the use of credit help you throughout your life.
You really will not know until you shop around. I agree with above try to save enough and pay for it with out a loan. You will end up paying a lot of money for that used car. If you get a job you should be able to save that fairly quickly.
Expect to pay slightly more interest rate for a used car verses new.
Frankly they may not want to give you a used car lone on such a small amount. When you get a secured loan on a car they hold the title. They don’t don’t want to mess with that, so they more than likely will just give you a line of credit loan. This will not even consider the loan as a car loan, just a loan.
When a bank loans $ 20,000 or $ 30,000 they make more money and they just don’t want to “hold paper” on a peice of junk old car (no offense).
If Dad will co sign they should loan the money to you as a line of credit.
Have you priced insurance, license and state car tax plus emission check and maintence……… Sorry to bust you bubble.
This is a hard time to get a loan but if you and Dad have good credit and you or he are members of the credit union or bank it will be straight forward. I suggest not getting a loan and saving to buy it cash.