I need a car loan, but I am a college student with limited income, please advise me.?
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The most important thing I would say is do your research. I just purchased a car and I did so after 2 months of research. You have to look at your needs, your plans as far as long term (how long do you intend to keep the car? your answer will determine what kind of car and how new) You also want to look at what you are willing to pay and can afford to pay a month. You must factor in insurance costs as well as gas. Your premium will be higher the more you owe on the car.
Finally based on how much you are willing to spend, you need to figure out what fits in your price range, don't shut out good used cars as possibilities. Especially if there are a couple of years of warranty left. There is a website that has a calculator that lets you know what you afford. As a matter of fact most bank website have a similar calculator. You may want to do that. contact your bank and see what your interest rate would be based on your credit rating. With that you can figure out what you are able to afford based on what you want to spend a month. With an income so low it's not to say you can't afford a car, you just have to look at the big picture. Try lendingtree.com to apply for a car loan as they will give your app. information to various bank who will give you competing offers. Once you get a loan, you can try to get a better interest rate from the dealer and ask them to earn your business by giving you a lower rate.
The best piece of advice I can give you is to know what you want before you go to a dealership because otherwise you may end up with more than you can afford or a lemon. Don't rush yourself into buying a car as that may lead to regrettable decisions.
Good luck and so sorry for the long winded answer.
I don't mean to be smug, but what's wrong with biking or walking? I did. 6 Miles each way.
If your income is $600 per month what are your estimates for a car payment, full coverage insurance, fuel and maintenance?
If you have $8000 cash, I would recommend a nice used car for that amount until you graduate and start making some income.
Have you priced car insurance? Full coverage alone will take a pretty good chunk of your income.
Quit over reaching what you are able to do. Getting a car loan for the amount you would want on your income is a recipe for disaster. Find a decent used car you can afford to get with cash, and wait until you are out of school and have a full time job before rushing off the go into debt on a new car.
This is home loans, but it applies to vehicle loans also:
Poor Credit, Debt-to-Income Ratio Still Leading Reasons for Denial
Poor or insufficient credit remained the most frequently cited reason for denying a loan application, according to Inside Regulatory Strategies’ analysis of the most recent Home Mortgage Disclosure Act data. Home lending data for last year showed that lack of credit history accounted for 26.2 percent of loan rejections reported by lenders.
From what you have said, buying a car right now, and in your circumstances, could put you in a real financial hole. I say wait.
Work hard, get a car when you can afford it. If you can't make the payments, they'll be harassing you constantly. It's too much of a risk.
Why don"t you approach a private lender?I got my loan from a certain agency here in AnswersRoom.com,
Why don"t you try there?
You can contact them with their email,richards_loan_agency@yah...
Hello,
I am Mrs Lilian I am a legit lender from ITALY who gives out loans to those who are interested in getting a loan at low interest rate. I give out both business loans and personal loans.
For those that are applying for a business loan, that maximum amount that I offer is 7,000,000.00 USD. For those that are interested in getting a personal loan, the maximum is 1,000,000.00 USD.
You need to let me know the amount that you need as a loan and your choice of mind if the loan is personal or for business purpose, so that I can send you the application details and start processing the loan for you. Contact me via: lin_lender@yahoo.com
Best Regards
Mrs Lilian Ricardo
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