Will I qualify for financing a FRS

[N1rve]

Originally Posted by Freshhprince

Hey man thanks for this reply, it's nice to get some feedback like this. Currently I am a student at UBC taking engineering(going for masters degree) and my tuition is completely free(both parents work there and their benefits include free tuition for a certain amount of credits). I'm definitely not neglecting my school work in any way, hence, my limited income. I wanna keep a good balance between a social life, school, and of course work. I just feel like this decision is fair for me. I have no money tied elsewhere and although my term is 72 months, I firmly believe I can pay it off before I graduate. People say it's financially a bad move and I understand that, but they don't understand what type of situation I'm in.
My main goal in all of this is to establish good credit(paying of something I want) so that in 5 years or so I can finance a car on my own. While it's not guaranteed that I will "immediately" find a job in my field, I can assure my debt from school will be very minimal, and this debt I'm putting myself in will be gone.

If you're about to graduate, you qualify for the college grad program. You'll get 1.9% interest and 750 dollars off the car. You automatically go into the tier 1+ credit range.

[Kuros]

Yes.

Should you?

No. Very stupid.


Very. very.

[Chen]

I say listen to everybody to what they are saying. Avoid the car payment and purchase a used car.

[akahenry]

Props to you man!

[ericmpena]

You'll get into the car. They'll make it happen so that they can make 10% interest off of you. Big dealerships love working with first time car buyers.
You'll eventually understand the importance of actually affording the vehicle once it's too late and you're already committed. I made that mistake once, but I guess it's something you gotta learn for yourself.
Good luck!

EDIT: Oh yeah...the time I learned my life lesson I was making about $1,300 a month also with a $370 car payment. It looked so easy on paper...but yeah...you'll learn.

[Dadhawk]

Originally Posted by CoupedUpSubie

You should really plan for your future instead of satisfying that need to have a nice new car to show up to college in. If your school is like mine was then parking is tight and door dings happen, bumpers get hit, people drag their bumper down the side of your car, people urinate on cars, get in the passenger seat drunk. Take that 7k and buy a decent car that wont make you cringe completely if someone dings your door. I did it on a car I bought for $800 and put another $1200 worth of parts into over 5 years of ownership.

This is definitely good advice, and I have two cars with evidence. Two kids in college, two cars that look like they have been in a war zone. Parking spaces are too narrow, kids in a hurry, car soon looks like a golf ball.

Also, @Freshhprince as others have said, you will get financed one way or the other, car dealers make it work. My father-in-law is a 40 year car sales guy, I hear the stories all the time about folks with 400 credit scores getting loans at credit card rates.

If you have a cosigner its a no brainer because they don't even look at your credit at that point, they expect you not to pay and the "cosigner" is really the primary on the loan for all practical purposes.

I know i'm doing this but as others have said, none of this makes it a smart thing to do. From a strict balance sheet prospective you don't have $25K in the bank. All you have is a failure to admit you have debt. The second you buy the car on a loan, you have spent the $25K, you just haven't admitted it to yourself.

[slicktop]

My credit score is above a 700, I put a down payment of 20k on it, and I have zero other debt. I was approved for 3.13% for around 8k.

[Burrcold]

Originally Posted by N1rve

If you're about to graduate, you qualify for the college grad program. You'll get 1.9% interest and 750 dollars off the car. You automatically go into the tier 1+ credit range.

Doesn't work like that in Canada (although most dealers offer $500-1000 in grad rebate).

[BlueDubbinTDI]

I wouldn't. I'd go find a Miata or RX8 in the 10k range. Pay 5k down and finance the other 5k. That way you can build credit without getting raped...

[Tcoat]

Well it certainly appears that the Op's situation changes as the thread goes on so that every argument against suddenly has a counterpoint!

Had $7000 cash then suddenly another $25000
Was making $1300 a month then $1000 then $1300 again
Doesn't buy anything EVER but keeps a job for the discount on cloths
Has two jobs but could make the same from just one
Parents paying for school Has a student loan. OH WAIT it is "free"

Got the feeling we are being played at this point!

OP if you REALY just wanted to know if you would be approved CALL THE BLOODY BANK don't post here! Half the time on here we can't all agree how much air to put in tires much less something so individual as to how a bank will deal with somebody!!!!!!!!

[AznBRZer]

I know what the OP should do! He should tell his parents to buy the car and then co-sign for THEM instead of the other way around. #Balla4Lyfe

[Dake]

I will say you're one step ahead thinking about these things at your age. With that in mind, the best advice is to finance something inexpensive and less than four years old for two or three years and pay it off if credit building is really something you're looking into. The twins will be around and available in three years' time and you'll have a better idea of what the future holds.

The flip side is go all out. You have 25k in the bank plus your 7k down payment? Buy the car outright, pay yourself a monthly car payment w/ interest for the next six years. The interest will be better than what any savings account offers and by the time you graduate in five years you will be even and at the end of the sixth year you will have another five-six thousand in the bank.

Or a combo of the two. Finance for one year - that gives you some credit building, but then pay yourself back for the remaining five. You won't see as much extra at the end, but the result will be the same.

Since you are confident and comfortable in expecting your folks to help out should anything crazy happen - consider making the loan to yourself..

[campy]

When I bought mine, I walked in with cash and they still practically begged me to finance. So yes, they'll let you finance it but be ready for some pretty high rates.

Have you considered other cars? Maybe even a used FRS? Now that we're towards the end of summer, dealers want the sports cars off their lots to make room for the 4x4s. You can probably get a good price on a used one.

[Turbo95eg6]

Originally Posted by Freshhprince

I'm pretty set on my doing this.

Of course you will, you show the stubbornness of every typical teenager who was never taught the value of patience and money management (allowances and trust funds as income don't count).

Originally Posted by Tcoat

Well it certainly appears that the Op's situation changes as the thread goes on so that every argument against suddenly has a counterpoint!

Had $7000 cash then suddenly another $25000
Was making $1300 a month then $1000 then $1300 again
Doesn't buy anything EVER but keeps a job for the discount on cloths
Has two jobs but could make the same from just one
Parents paying for school Has a student loan. OH WAIT it is "free"

Got the feeling we are being played at this point!

OP if you REALY just wanted to know if you would be approved CALL THE BLOODY BANK don't post here! Half the time on here we can't all agree how much air to put in tires much less something so individual as to how a bank will deal with somebody!!!!!!!!

lol I've noticed that too, at this point I think he just wants to be on notice of how easily he's been given everything he's wanted in his life.