How long till credit is good enough to get an auto loan and how long can an auto loan be?

Question

How long do I have to have credit history before it's good enough to buy a nice car? I could get me dad too consign too but his credit isn't bad at all, hadn't missed a payment in 20 years but it's his credit depth that shows up. Cause house flooded and took a SBA loan to fix so that's that. Me I'm a college student have decent income like 1500-2000 at least a month and was looking at a used 2013 BMW 335i. Around $30,000 and I wanted to know just how to get it. Save the criticism and buy something else talk please. And what dictates how long I can get for the auto loan. I would like to do 84 months so I can get that payment around 300 a month. Give me advice how to make it happen don't shut me down and say something else. Thanks in advance. Also it looks like the car is in Indiana. Not far cause I'm in Chicago but what difference does that add??

Answer 1

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Answer 2

Your math is way, way, way off. This deal won't happen. Your income is too low. Doesn't matter if you have a cosigner. YOU, the primary borrower must qualify for the loan on your own merits. The cosigner is just the back up plan if you default. A cosigner is not a primary borrower. A $30k (plus about $5k in sales taxes and registration fees) will make this a $35,000 car loan. At 3.9% for 84 months (that's 7 years) will cost you $475/mo just to park it in your driveway. You haven't even budgeted for full coverage insurance (about $200/mo) and gas (about another $200/mo). Even if you got a 0% loan (impossible on a used car), it will still cost you $357/mo for 84 months.



What dictates how long you can get a car loan? The age of the car. I don't see this going for more than 5 years.



Lenders want the borrower to invest some of their own money into this car. They won't finance 100% of the sales price; they will finance the loan value of the car. You will have to come up with the difference.



Another problem. This car is in Indiana. NEVER buy a car long distance unless you are willing to spend the time and money to go and look at the car and check the documents to ensure the seller is the owner. Have a mechanic go over the car. I don't know which version of the 335i this is (4dr, 2dr, convertible), but for the 2dr Coupe, $24k is an average value.

Answer 3

The longest car loan I've seen is 72 months, and that's for a new car, not a used car. How to make it happen is to save up so you have a significant down payment for the car to improve your chances of getting the loan at all. You don't say what kind of credit file you currently have, or where your score currently is, but those things matter. Do you have a credit card (or multiple credit cards)? Do you have any other lines of credit at all? If you don't have credit accounts currently open then you will have a thin file and will have a much harder time getting approved. So if you don't currently have a credit card, look at getting a secured card with a small limit and paying it off in full every month. Do this for at least six months, then look at applying for a real credit card with a reputable lender. Use a small fraction of your total limit each month and pay it off in full every month. Continue saving for a down payment on the car.



Oh, and with the car being in Indiana and you being in Chicago, you may get hit with extra taxes on the purchase of the vehicle, because you'll pay tax in Indiana and then again in Illinois to get the plates for it. Illinois is very unfriendly to drivers buying cars in other states. So if you really want to do that, you might be better off to go through a company like CarMax, because even if the car is in Indiana or Wisconsin, they can transfer it to an Illinois location without a fee to you. Of course, by the time you're financially prepared to buy that car you'll have to search again for specific cars since the one you've currently seen won't be available any longer.

Answer 4

You aren't going to be approved for a loan on a car that costs more than you make in a year. And by the way, how to you figure that an 84 month loan payment on 30K would be around $300 a month? That wouldn't even come close to paying the 30,000, let alone 7 years of interest.

Answer 5

Why not just save up enough money to buy a car? Why use credit, since that will mean you end up paying more?

Answer 6

Are you always such a trainwreck?

You know you can't afford it, but have justified it by having a car underwater for 6 years makes it ok.