So scion tried to screw me today (SoCal)

[DAEMANO]

Exactly, don't go back there AT ALL. Tons of cars in So Cal so don't be in a hurry.

You can use Cars.com's search to locate cars in your area (don't forget to change the search sort to "Lowest Price First").

http://www.cars.com/for-sale/new/sci...ion&sf2Dir=ASC

[GMU-BRZ]

What kind of credit cards are you applying to that you keep getting rejected? When I was 18 with no job I was getting credit card offers thrown at me. Citicard gave me a free Dominos pizza for signing up for one of their cards my first week of college. Since then, 6 years later, I've spent tens, maybe hundreds of thousands of dollars using that card. I have paid them a grand total of $5 in interest because I always pay my balance off in full ever month. I've also earned rewards points on the money I've spent worth hundreds of dollars. In essence they've paid me to use their card.

Point being, that's what you need to be doing to build credit. And at 19, trust me here, there are tons of things you need to be paying for before you ever dream about a $25k car. Have a fiancé? How much of the wedding are you paying for? You're self-employed, are you putting any money away for retirement? Spent a little time researching the time-value of money and you'll see that having a retirement investment account from 19-25 and contributing every month will exponentially increase your lifetime earnings. You have an apartment, great. Do you have longterm plans to buy a house? Kids in the future? Either you or the fiancé paying for college?

I know I'm lecturing. But I'm doing it because a 19 year old who is getting married too early and can't even get a loan without a consigner has no business spending this kind of money on a car, even if you can afford it.

[Frstorm]

Car- they are not tring to rip you off like the status says which is what most are telling you. 19 year old guy without stable job, in ten years your business will become stable but photographer isn't stable at all. My wife does this on the side whenever she wants a grand to blow.my point is banks aren't lending like thy did 5 years ago. I'm one of the few that had credit over 800 but my wife credit is no credit. With just her being on with me, near perfect or to me perfect, credit it bump it up 1.5 percent. But we realized pay alittle now save a lot later. I would take that offer if I was you make sure no penalty to pay off early then 6 months refi if you really want the car.

[Wyllliam]

I'm going off topic here my appolgies.

But why do you need to "build credit" to get a decent loan?
What i understand from this discussion is the more loans you have going and pay off on time the better your credit is. is this correct?

If so , Isn't this how the financial crisis started in the first place?

In Belgium you just go to the dealer or bank show your income of the last 3 months to show you have a stable income and of you go.
The APR is the same for everybody, but the total amount you can loan depends on your income,
To me this seems more fair and more financialy safe for everybody.

[tennisfreak]

Originally Posted by Wyllliam

I'm going off topic here my appolgies.

But why do you need to "build credit" to get a decent loan?
What i understand from this discussion is the more loans you have going and pay off on time the better your credit is. is this correct?

If so , Isn't this how the financial crisis started in the first place?

In Belgium you just go to the dealer or bank show your income of the last 3 months to show you have a stable income and of you go.
The APR is the same for everybody, but the total amount you can loan depends on your income,
To me this seems more fair and more financialy safe for everybody.

You need to build credit to show a lender that you are a trustworthy and responsible lendee.
If you have no credit history how do they know that you will pay the money back they lend you?
If there is no credit history then the lender takes a higher risk of losing their money, therefore they want a higher return on investment.

The entire reason there was a financial crisis (in the housing market more than anything) in America was because lenders were lending money to people who could not afford the loans they were taking and/or were never intending to pay the money back to begin with.

There needs to be tight requirements on who can get a loan. There was a time when luxury cars were typically driven by people who could actually afford them. Nowadays you see everyone and their dog driving luxury cars.

[Braces]

Originally Posted by Wyllliam

I'm going off topic here my appolgies.

But why do you need to "build credit" to get a decent loan?
What i understand from this discussion is the more loans you have going and pay off on time the better your credit is. is this correct?

If so , Isn't this how the financial crisis started in the first place?

In Belgium you just go to the dealer or bank show your income of the last 3 months to show you have a stable income and of you go.
The APR is the same for everybody, but the total amount you can loan depends on your income,
To me this seems more fair and more financialy safe for everybody.

No. Having available credit that is paid off is economically good. The reason for the financial crisis? The big financial institutions were securitizing the mortgage loans. Bundling them and selling them off as securities. As a young person ... it is important to carefully build up your credit history.

[bestwheelbase]

Originally Posted by thill

That is exactly what it is. If the OP is rolling tax and dealer add-ons into the final price the interest alone at 14.9% on a $28-30K car is going to be like $14K....

Not only are they not trying to screw him over, they are doing something nice by showing him the ramifications of signing for such a high interest rate.

OP should give them a pat on the back. And then buy whatever he wants because none of us should tell him how to live his life.

[Wyllliam]

Originally Posted by tennisfreak

You need to build credit to show a lender that you are a trustworthy and responsible lendee.
If you have no credit history how do they know that you will pay the money back they lend you?
If there is no credit history then the lender takes a higher risk of losing their money, therefore they want a higher return on investment.

The entire reason there was a financial crisis (in the housing market more than anything) in America was because lenders were lending money to people who could not afford the loans they were taking and/or were never intending to pay the money back to begin with.

There needs to be tight requirements on who can get a loan. There was a time when luxury cars were typically driven by people who could actually afford them. Nowadays you see everyone and their dog driving luxury cars.

Originally Posted by Braces

No. Having available credit that is paid off is economically good. The reason for the financial crisis? The big financial institutions were securitizing the mortgage loans. Bundling them and selling them off as securities. As a young person ... it is important to carefully build up your credit history.

Thanks for the explenation, it is a bit more clear to me now.
It still seems a strange system to me but then again i'm used to the Belgium system.

[frs_abq]

This is actually a pretty typical interest rate for someone who has no credit. I had no credit at the time I bought my very first car and TMCC wouldnt offer me a dime on a new car. I got a cosigner (whom btw just claimed bankrupcy 6 months prior) and boom! Instant credit. APR was 14.99% which was bad but was better than nothing. A year later I traded in that car at Toyota and got an APR of 3.4% from TMCC. No credit truly is worse than bad credit. I say take what you can get and refinance if you can at a later date. Its really the only thing you can do if you want a new car and have no credit. (That or find a cosigner with better credit than the one you are using)

[thill]

Something that may help as well. If you use this car for your business being self employed, you can write-off the business usage portion of the car (you will need to be able to prove it was used for business and how much was business mileage/use vs personal:
http://www.irs.gov/taxtopics/tc510.html

Should add up and save you some money, and if you have an accountant, talk to them about your options.

[strat61caster]

Originally Posted by Wyllliam

To me this seems more fair and more financialy safe for everybody.

Yeah that's the big difference right there. America isn't designed to be fair and nobody is willing to change that.

"Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."
~John Steinbeck

[_______]

Honestly the monthly doesn't seem too absurd for a $25k car based on your interest rate. I don't think you are really getting ripped off but a better deal can be had for sure. Get quotes from other dealers or search for private loans. It seems like you want the car right now but patience is the key to getting the best deal. Based on my experience I never finance through dealers. Go through some options and secure a private loan if you can. Or you could just get a BRZ if you don't mind a Subaru from Clint in Colorado, nobody can beat his deals (wish I had known about him before buying my BRZ)

[PSORngr]

You really need to build up your credit as has already been said. Also, as others have said, look at a loan through a bank or credit union.

Look at your insurance rates before you buy the car too.

[thill]

Originally Posted by _______

Honestly the monthly doesn't seem too absurd for a $25k car based on your interest rate. I don't think you are really getting ripped off but a better deal can be had for sure. Get quotes from other dealers or search for private loans. It seems like you want the car right now but patience is the key to getting the best deal. Based on my experience I never finance through dealers. Go through some options and secure a private loan if you can. Or you could just get a BRZ if you don't mind a Subaru from Clint in Colorado, nobody can beat his deals (wish I had known about him before buying my BRZ)

Most dealers are very competitive on loans. I walked in with a note from B0fA for 1.9% interest rate and the dealer matched it with no pre-payoff penalty.

No questions asked.