Quote:
Originally Posted by thill
OP, don't take this personal, but lenders have lifetime's worth of data available to them based on factors such as loan amount, age, occupation, etc. The reason your finding it hard to get a low interest rate loan is due to your age and occupation (self employed). $60K seems like a ton, but you are also in California which has high taxes, and a high cost of living. Being self employed and 19, you are high risk. You may not feel that way, but that is how the system works, and lenders have the date to back it up.
Simply put, paying 10-15% interest on a car that cost $30K or so is a horrible decision. I don't car how bad you want the car, cars are one of the worst investment out there and depreciate considerably the minute you drive off the lot. Compounding that with $10-15K in interest payments is just, well for lack of a better term, irresponsible.
If you are not able to secure a loan that has a 1-4% or lower interest rate, you are simply going to have to either save up more cash, or come up with another plan. Or pay the bank a ton of money in interest and hope nothing bad happens.
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That's what I'm thinking, that's why I walked away from the deal. I know it was a terrible deal and that was the reason for this thread I'm the first place.
And I totally understand about the high risk profession as well, that is why I've been turned down for so many credit cards. It's always one of many reasons like "you haven't been working long enough, you don't have a stable income, we don't have a way prove you will make money consistly" and I know it's just the banks way of protecting itself and it makes sense.
I'm not buying this car with anything over a 4% and I never said that I would. I'm smart enough to know not to do that. It's just frustrating when you have the money but just no one willing to give you a break.
If the loan doesn't work out I will just save up and buy the car outright but even then I don't want to do that because I would like I build credit by financing the car.
I've read up a ton on building credit, everything from secured credit cards, to auto loans, to unsecured credit cards, even ridiculously sketchy In store credit cards. it's just that I am in a weird place that makes it incredibly hard to get a break.