This is something I have considered, my fiancé actually owns a retail business that was handed down from her father. But unfournately she has ZERO credit as well so that Is a no go. Another unfortunate problem is that I am a foster child so I don't have parents to consign for my either. So consigner are in short and money in abundance(my fiancé also makes around 60k a year) but it's a bunch of buaracy crap. I'm gonna hit the local credit union and see what they can do for me. But chance are I will be outright refused because of my job.

You didn't know what total cost of financing is, and you're asking for financial advice from a forum. Be understanding if people don't assume you're a genius.




I work with financing at a dealership, and all I can say is, every bureau is different, every person is different, every situation is different. All this speculation is just that, speculation.

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

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.

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.

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.

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.

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. :D

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.

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)

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.

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)

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.

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.

Same boat as OP, I had no credit as well, my father offered to co-sign and he has good credit. Save up, get a credit card and use it instead of a debit card (or cash) and try again in a couple months, check your own credit and make sure there aren't any errors.

I first realized I was boned when ATT wanted a $500 deposit per line for a cell phone plan. It sucks because I know I'm just sending money off to the 'rich get richer' plan but I should be able to own a house and whatnot if I play the game.

:sigh:

Edit: There should be no penalties for paying off early, that way you won't be paying the whole $10k extra, interest isn't applied instantly, it builds up over time.

Lol in canada that's pretty normal after financing. You guys don't even wanna know what I paid for my limited, but I'm 20, wanted the car, understood I was paying to much but it was my only option cause I wanted it, impulse buys are great, do I regret it? No! Should have waited? For sure. It's your life, do what you want, and yea I dunno what op is trying to get out of this thread, maybe a dealer will read this, realize how responsible he is, and give him 0%! Pfft.

It seems you have yet to finish doing your research if you don't understand "total cost of ownership", including all finance charges as well as opportunity cost of money... this is where we're all making assumptions about you, because you're not understanding the fundamentals of what a loan includes.

Example: $500k house, you finance $350k of it at 4% APR. You'll pay more than $250k in interest over a 30 year mortgage, making the total cost of ownership in excess of $750k. Do you walk away and not buy the house because it's not worth it?

Car ownership is the same. What you pay is very much directly related to your APR and length of loan, so I don't understand why you're remotely surprised by a total loan amount of $43-46K when your APR is sky high.

I am not doubting your intelligence, I am doubting your current pool of knowledge and how you are applying it to your financial situation with regards to your decision to buy a FRS.



-alex

yolo:bellyroll:

ask them where the next closest dealer is.

By the way:

You should always be negotiating based on "Out the door" price of the car, if you are buying it within the state you're registering the car.

What the dealer gave you (Total price of car) is usually a line on the finance document that shows how much you will pay for the car at the end of the loan period. While the salesperson may be stupid for not explaining that to you, it's also just as bad that you don't understand this piece of information being presented to you.

Total price will always vary based on principal (OTD price), APR, and loan period. The more I re-read your first post, the more this seems like a case of you not understanding what you were presented with.

-alex

You need to build credit. Better to start doing it now so that down the road you'll be good to go. You're 19 so if you take advantage now you will be in a very good position eventually

I love this car. But it's not worth $45k. Not sure how much better a deal you'd be able to get. Probably the same situation on any other new car too

Why don't you buy a cheap car and build your own credit for like 3 years first. I'm only 24 and my fiance has a 740 credit score, shes 21, and i have 739. Be responsible and don't get this car yet.

No worries. Just saying in general, whoever is in your situation, just needs to research it (whether they have or haven't) and make what they think is the best decision.

I had to go through 4 years of paying off a car completely, while a co-signer got all the credit...which is BS (and wanting you to avoid this). Main reason I had to buy my first new car later, was to establish credit.

Back to your original question...just keep shopping and you're sure to find a much better overall package of financing and price of the car.

Not me. I'm always happy to see a good deal on a low mileage used car.


If you were my son, my advice would be to buy used for now, even if you do feel that you can afford the FR-S. Insurance on this car is going to be high for a single male under 25. Plus it requires premium gas, so plan on your gas allowance going up.



If you don't have 2 - 3 month's expenses in savings, as well as setting aside at least 10% of your income towards retirement, then that should be your priority over a new car, no matter how sexy it is.



I didn't buy my first new car until I was 45 years old, not because I couldn't, but just because it was never financially smart to do so. You can get a really nice, one or two year old vehicle that is almost like new, and let someone else take that huge new car depreciation.



Once you're more established, there will always be another new model coming out every year, I promise.

...I put 0 down, I had no credit, cosigner with average credit, employed less than a year and walked out of the dealer with 3.39% interest and MSRP for the car. Financed 100% of it including taxes, etc. 7 year, 100k warranty, all those goodies too. My payments are $579.24/month for 60 months. All financed through Toyota Financial Services. In and out in 2 hours. Bought it when I was 20.

Luck of the draw? I don't know but Christ, you can do a hell of a lot better.

Just do it, OP. Nothing like learning a lesson the hard way.

Your numbers are correct, but they are still asking about $5-6000 extra for the car before any APR is added. A 2013 AT w/TRD exhaust shouldn't cost more than $28000 after TT&L because the 14's are out.

His APR should be applied to that number minus whatever down payment, in his example $10k. That leaves $18000 financed @ $428 a month.

Why are they asking over $30k for a 2013 AT w/TRD? This guy needs to make a cash offer to find the price of the car first(+TT&L) then have the APR applied to that. That's how you always do it, price of car first, then calculate the TT&L yourself. The T&L is always going to be around $90-150 total, anything higher is padded, any other tack-ons are bullshit.

Yeah, I thought it was a 10 Series.. Looking at his post again, this is a 2013 AT with just TRD exhaust.. I would not pay more than $26K for that right now with the 14's out. No way that should be more than $28.5K OTD...

With $10K down his payment should be in the $450 range, even with a crazy high 14% APR....

The first question you should ask is how much is the car. You are buying a car not a monthly payment. You are free to buy what you want, when you want if someone will loan you the money. The dealer wants to sell the car however the finance company must have some concern about the risk involved to require that much interest.

I bought two new cars the same day earlier this year. A $30K Mini and my BRZ. In both cases the dealers started with how much do you want to spend per month and my answer was $0. After getting a confused look, I told them I wanted to pay once in $100 bills and I was willing to pay $XX,XXX for the car. We agreed on a price then I went to the finance guy to discuss what options were available for financing.

You have read the wide range of opinions and as a business owner, you certainly understand the risks involved. Please do not fall back on the "No one will give me a break" story. Hard work is the only thing that will get you ahead and there is a time and place for everything. Only you can decide if now is the right time and if any particular dealer is the right place.

I'm 22. I just graduated college. I went into the dealership with a great credit score (~720) and qualified for their lowest APR rate.

No questions asked, no cosigner. I put $1500 on the car (basically paid the taxes on it) and financed for 3.2%.

I pay $459 over 5 years. At 3.2% apr I pay a grand total of $28.5k for a $25k car.


Did they report your credit score to you? I think the 'stable job' thing may be holding you back as well. As a wedding photographer, it's not necessarily the same thing as working for a company and getting a monthly/bimonthly paycheck. That's what people want to look for. Not the idea that you could go without work for a few weeks, gaining no income. Steady income is key.


That being said, I would highly, highly recommend against buying a car for that price. If you're going to end up paying close to $50k for this car, you're throwing money in the garbage my friend. By the time this car is 5 years old, you've invested close to $50k in it, and it's going to be worth close to $15k

I suggest looking into building your credit (both short term and long term) before investing. Otherwise, get a cosigner like one of your folks that will guarantee you.

I can't say I'd recommend to anyone buying a NEW car for more than 5% APR

Still, I pay $450 over 5 years and put $1500 down.

Thats $8500 difference on a $25000 car. Big difference.

My question is how much are you willing to pay per month? You know you only pay interest on what you owe. If you financed with them today at that rate and paid the car off in a year then you would only pay interest for one year vs. 5 or 7. Sure the apr sucks but if you stayed disciplined and paid as much as you could every month until it's paid off you would save a ton of money. You could also consider refinancing within a year or two at a lower rate.

Also multiple credit checks in a month for an auto loan won't hurt. It's just an indication that you are in the market. Just don't do it a bunch of times month to month.

Sorry, but I'm going to be that guy because no one has pointed it out yet and you keep saying it...

The word is "co-sign" or "cosign," not "consign." Consigning is, for example, if you were to take an old cuckoo clock to an antique store and ask them to sell it for you, with them keeping a portion of the profit once it sells and sending the rest along to you.

I'm just going to throw this out there. Instead of trying to be a dictator like a few certain people try to be on here, I'm just going to give you friendly advice. I have made mistakes in my life, and I try to help people from making the same mistakes. I wish I would have listened to my parents about money, because it took me a long time and hardships to figure it out myself.

Unlike everyone telling you to get a credit card and build credit, I'm going to tell you the exact opposite. I know you really want this car but don't jump into it like a lot of the users on here have. The best thing for you to do is just save up for it. Pay in cash, and it's YOURS. No one can take it away from you (legally).

It does seem like you have your priorities in order. (Sorry Alex, but your post was a little rude.) Just keep up the good work and make the smart move. In the end it's your decision, just make a good one that will help you and your future family. 72 months is a long time to make payments on something.

Very sound advice.

thill ..... I find your little video clip "distracting" ..... :happyanim:

http://www.runemasterstudios.com/gra...mages/love.gif

humfrz

Why not? It's obvious OP is getting the shaft, so let's see the shaft:

2013 MSRP $26355 (AT)
I added :
fog lights
rear bumper applique
rear spoiler
floor mats
BeSpoke audio
TRD exhaust

New MSRP of $29347. Adding TTL in California and that figure will be around $32500 or $33000...

So my numbers aren't off at all. OP never mentioned any options, and the fact that Scion charges $1100 for a TRD exhaust is one of the many ways he's getting ripped off. For $1100 I'd rather buy something much more exotic.

In any case, the numbers are correct.

-alex

Priorities in life, yes he has it in order.. but (financial) priorities with respect to this car purchase and where he is in life money-wise, this is about as bad of a purchase as you can get.

It's obvious OP has all the money stuff taken care of. What I don't understand is how he can have a $60k job (assuming ~$35-40k take home after 1099 taxes) and even consider buying a car with financing with such horrible APR being offered. I have no idea what his credit score is, but when I first shopped for my car I was offered a max 4.59% APR with a then-credit rating of ~720. I ended up getting something a lot lower than that just by getting lenders to compete.

In any case, 14.99% may be okay for a normal credit card, but it sure as hell ain't okay for something that is tied to collateral. The best bet is to save $20k+ and finance the remaining amount, and build credit with as little principal as possible.

Oh, and get your "out the door" price as low as you can go. The mere fact that we're talking about a $33k Scion FRS makes my fully-loaded BRZ look cheap.

-alex