Will I qualify for financing a FRS

[Freshhprince]

Just a general question, not looking for a "definitive" answer just wanna see if anyone else might have been in a similar position and can probably tell me what to expect when I apply for a loan.

I'm 19 years old currently residing in B.C. Canada and am planning to make my first purchase for a FRS through financing either at a dealership or a bank.

I have 2 jobs, 1 that pays 250-300/month been there for a year, and another that pays 800-1000/month been there for a 1-2months. I have student loans that I "don't" have to pay until I graduate (5 years later), approx. around 13k. Other than that I have absolutely no debts. Have no credit.

My payments would look around something like

$33,516(full value after taxes and other fees without deducting downpayment)
72 months term
2.99% (not sure if i will be approved for that rate tho)
$185 bi weekly (7k down)

Now I realize with no established credit it'd be hard for me to get approved, but I do indeed plan to put a downpayment of (20%+) and have a trusted co-signer with good credit(decent, not bad, not "great"). In addition I plan on paying Insurance up front so my monthly commitments will be strictly for the car. (1000income-370carloan=630 for other expenses every month) Do you guys think there's a chance I might get approved

[themajesticone]

Originally Posted by Freshhprince

Just a general question, not looking for a "definitive" answer just wanna see if anyone else might have been in a similar position and can probably tell me what to expect when I apply for a loan.

I'm 19 years old currently residing in B.C. Canada and am planning to make my first purchase for a FRS through financing either at a dealership or a bank.

I have 2 jobs, 1 that pays 250-300/month been there for a year, and another that pays 800-1000/month been there for a 1-2months. I have student loans that I "don't" have to pay until I graduate (5 years later), approx. around 13k. Other than that I have absolutely no debts. Have no credit.

My payments would look around something like

$33,516(full value after taxes and other fees without deducting downpayment)
72 months term
2.99% (not sure if i will be approved for that rate tho)
$185 bi weekly (7k down)

Now I realize with no established credit it'd be hard for me to get approved, but I do indeed plan to put a downpayment of (20%+) and have a trusted co-signer with good credit(decent, not bad, not "great"). Do you guys think there's a chance I might get approved

In California, I met a girl who got a 2013 FRS. She had no credit and no credit score. She was approved, but her interest was a whopping 20% on top of her loan of around $29,000 (car + tax + dmv registration) meaning she is paying $5,800 extra over the course of 5 years. She also has no down payment. $580/month just for car payment. Add insurance to the mix. Now if you did have an established credit score, that 20% could turn into 2.5%, 4% maybe 6%. WAY better than 20% or more. It ultimately depends on what the bank or the dealership's bank is willing to do but expect to pay a lot more with zero credit score.

You are making $1,050/month

33,516 - 7000 = 26516
26,516 * .2 = 5,300
puts you back at 31,816 / 72 months

$441 / month you owe to the lender

1050 - 441 = $609

You are left with $609 per month for Car Insurance, Health insurance, cell phone, Gas, Food, Entertainment. Seems like a very poor choice to get this car as you cannot afford it. Rough numbers perhaps.

I would not toss away the $7,000 you saved up for btw. That is also very silly.

[ericmpena]

Originally Posted by Freshhprince

Just a general question, not looking for a "definitive" answer just wanna see if anyone else might have been in a similar position and can probably tell me what to expect when I apply for a loan.

I'm 19 years old currently residing in B.C. Canada and am planning to make my first purchase for a FRS through financing either at a dealership or a bank.

I have 2 jobs, 1 that pays 250-300/month been there for a year, and another that pays 800-1000/month been there for a 1-2months. I have student loans that I "don't" have to pay until I graduate (5 years later), approx. around 13k. Other than that I have absolutely no debts. Have no credit.

My payments would look around something like

$33,516(full value after taxes and other fees without deducting downpayment)
72 months term
2.99% (not sure if i will be approved for that rate tho)
$185 bi weekly (7k down)

Now I realize with no established credit it'd be hard for me to get approved, but I do indeed plan to put a downpayment of (20%+) and have a trusted co-signer with good credit(decent, not bad, not "great"). Do you guys think there's a chance I might get approved

With a co-signer and 20% down then I think they'll finance you. Just try to get the lowest interest possible. Also, just because you can afford the car doesn't mean it's smart to commit to it. Keep in mind insurance, gas, possible mods, maintenance, and then your own personal finances....after you calculate all of that, take a look at how much that leaves you in your pocket each month. It's no fun owning a nice car but not having any money to the it anywhere.

Good luck!

[ericmpena]

And yes, they will find a way to finance you...but you'll be getting screwed in the long run. Be careful about interest rate.

[Tcoat]

Don't know prices in BC but here in Ontario:
Premium gas - $1.45 to $1.50 a liter
Insurance - Some young guy correct me but in the neighbourhood of $200 a month?
Oil - Almost $8.00 a liter for the grade of synthetic you need plus $10.00 for filter even if you do yourself
Tires - Oh say, $80 each when you wear the out and double that for snows if you plan to drive in winter (Know Vancouver doesn't get much snow but don't want it wrapped around a pole)


Just saying, BUYING the car and USING the car are two different scenarios when it comes to cost.


U.S. Guys/Gals .... YES our premium gas cost around $6.00 a gallon! That is not a typo.

[Freshhprince]

Originally Posted by themajesticone

In California, I met a girl who got a 2013 FRS. She had no credit and no credit score. She was approved, but her interest was a whopping 20% on top of her loan of around $29,000 (car + tax + dmv registration) meaning she is paying $5,800 extra over the course of 5 years. She also has no down payment. $580/month just for car payment. Add insurance to the mix. Now if you did have an established credit score, that 20% could turn into 2.5%, 4% maybe 6%. WAY better than 20% or more. It ultimately depends on what the bank or the dealership's bank is willing to do but expect to pay a lot more with zero credit score.

You are making $1,050/month

33,516 - 7000 = 26516
26,516 * .2 = 5,300
puts you back at 31,816 / 72 months

$441 / month you owe to the lender

1050 - 441 = $609

You are left with $609 per month for Car Insurance, Health insurance, cell phone, Gas, Food, Entertainment. Seems like a very poor choice to get this car as you cannot afford it. Rough numbers perhaps, but so is your idea to get this car.

I would not toss away the $7,000 you saved up for btw. That is also very silly.

Thanks for the reply. I'm still sort of dependant of my parents so Health Insurance nor is a cellphone bill isn't among my monthly obligations(they pay for it). I just want to go through this contract for a way to prove to myself that I can be responsible enough to enter a big commitment while building credit. And like I said, I will be paying for insurance up front, in addition, I usually don't spend any money on food outside of home so I can expect to have 500 per month for entertainment and gas alone(maybe 100/month for gas based from experience with cars that was bought for me). As for the 7k that's really just there in an attempt to lower interest rate and chance of approval for financing.

I definitely understand the financial situation I'm putting myself in, I also have enough in savings in my bank account to act as a safety net if ever something were to happen, approx. 25k. And it also helps that my parents are financially well off and don't mind supporting me if I need any help.

[D88]

No way! Owning this car is going to eat up a huge chunk of your income. At 19 you don't want to be spending that much of your money on a car (or any time for that matter). If you had more saved for a down payment or were pulling more in per month I say "ya, why not?" but at your income..."pass"

[Freshhprince]

Originally Posted by D88

No way! Owning this car is going to eat up a huge chunk of your income. At 19 you don't want to be spending that much of your money on a car (or any time for that matter). If you had more saved for a down payment or were pulling more in per month I say "ya, why not?" but at your income..."pass"

Like I said to a prior poster, I understand the financial situation I'm in and i'm positive I can afford this car. I have a huge safety of 25k after my 7k downpayment in my bank to support this decision. I just don't want to use all of it towards a new car, which is why I'm deciding to finance. LOL i understand you guys are just pointing out that "financially" based on my income alone, it's a dumb move. However in addition to a 25k safety net in my savings, I still get weekly allowances from my parents, I'm 100% confident i can afford this. All that I'm asking is would I be approved for financing, given my current situation, and possessing a co-signer + a 20% downpayment on the car, plus paid up front insurance.

[AznBRZer]

Originally Posted by Freshhprince

I just want to go through this contract for a way to prove to myself that I can be responsible enough to enter a big commitment while building credit.

What are you really proving beyond having parents that will bail you out if you ask them to?

Serious talk: why spend any of "your own money" if your folks are going to front you the cash, regardless of how you want to word it to make it sounds like you're paying for it through your own hard earned labor, since they're already giving you an allowance? Just have them pay for the damn car and leave it under your name since that's what they're kinda doing anyways. You get to save your bank and build your credit at the same time. Why make things more complicated than they need to be.

[rs999]

Originally Posted by Freshhprince

I have 2 jobs

Do you guys think there's a chance I might get approved

NO

Work on getting one job that pays well enough to afford the FR-S.

Read this: https://quicken.intuit.com/support/h.../INF16169.html

[cjd]

Originally Posted by Freshhprince

Like I said to a prior poster, I understand the financial situation I'm in and i'm positive I can afford this car. I have a huge safety of 25k after my 7k downpayment in my bank to support this decision. I just don't want to use all of it towards a new car, which is why I'm deciding to finance. LOL i understand you guys are just pointing out that "financially" based on my income alone, it's a dumb move. However in addition to a 25k safety net in my savings, I still get weekly allowances from my parents, I'm 100% confident i can afford this. All that I'm asking is would I be approved for financing, given my current situation, and possessing a co-signer + a 20% downpayment on the car, plus paid up front insurance.

So let's fast forward to year 6, when you graduate (if I'm reading your 5 year comment correctly.) You have a year to go on your loan, and I assume you now have student loans to repay. And you get to pay to live. If you're a loner and your parents are kind, maybe you get free rent and all for that time but... I don't know how hard it will be to find work when you're done.

You can not afford the car. That payment is approaching the range acceptable for something like a house (percent of your income.) You can afford the payments, at the moment, yes. It's a very risky gamble though, which could leave you completely stuck.

You're not being 100% irresponsible, having some cash stored away and all, but you really want to avoid putting that into a car. It's a huge gamble - it's not one I can recommend, and I hear others saying the same.

Personally, I won't buy a car on terms that exceed the manufacturer's warranty. I don't want to owe on something that may randomly cost me a bundle in repairs.

If you want an FR-S, perhaps one on the used market would save you a bundle, lower the risk to reasonable, and get you the car you want...

C

[CoupedUpSubie]

I dealt with low income while being in college, ended up with way more debt then you say you will. I drove a cheap car all through college and had no extra money. I would recommend to talk to the dealer and bank and find out actual interest rates. Get insurance quotes, figure out how many kilometers you will typically drive( then add half again that number) to find out your monthly fuel bill. Add all those numbers up and see how much you have left. Keep that safety net as large as possible. Another thing to consider is job demand for the career you have chosen and average pay, once you finish school it may be hard to find a job. One reason I chose my specific career path was the outcome as far as job flexability and very nice pay. I have friends who chose other careers and either don't have a job in that field or are making next to nothing. Plan for the future, what you want right now may not be the best for you 3 or 4 years down the road.

[illicitstylz]

Originally Posted by Freshhprince

Like I said to a prior poster, I understand the financial situation I'm in and i'm positive I can afford this car. I have a huge safety of 25k after my 7k downpayment in my bank to support this decision. I just don't want to use all of it towards a new car, which is why I'm deciding to finance. LOL i understand you guys are just pointing out that "financially" based on my income alone, it's a dumb move. However in addition to a 25k safety net in my savings, I still get weekly allowances from my parents, I'm 100% confident i can afford this. All that I'm asking is would I be approved for financing, given my current situation, and possessing a co-signer + a 20% downpayment on the car, plus paid up front insurance.

LOL. classic vancouver. spend what you can afford based on what you make, quit sucking on your mom's teats.

$1300/month income, is that gross or net income?

[Burrcold]

Originally Posted by Freshhprince

Like I said to a prior poster, I understand the financial situation I'm in and i'm positive I can afford this car. I have a huge safety of 25k after my 7k downpayment in my bank to support this decision. I just don't want to use all of it towards a new car, which is why I'm deciding to finance. LOL i understand you guys are just pointing out that "financially" based on my income alone, it's a dumb move. However in addition to a 25k safety net in my savings, I still get weekly allowances from my parents, I'm 100% confident i can afford this. All that I'm asking is would I be approved for financing, given my current situation, and possessing a co-signer + a 20% downpayment on the car, plus paid up front insurance.

lol holy f*ck