My credit score is poor but I am working hard to bring it up. Since I am just out of University, my salary is around $40000. I have $5000 saved for a downpayment. Do you think I will qualify for an auto loan?
2 Comments Already
April 13th, 2010 @3:45 am
if your buying a new 30000 car they’ll take it. just go in there tell them you just got out of school working on paying your debt down and show them 5000 dollars and they’ll get right on the paperwork. rember they get paid commision so they make money to take your money
Maybe. But I’ve got a better idea:
Since you’re planning on putting $5000 down and $400/mo for 5 years for a new car, try this instead:
1) Buy a used car for $4000-$5000.
2) Take the $400/mo you were planning to give to the dealer, and in 2-3 years, you can then buy the same 2008 car for cash, and then save yourself 2-3 years of car payments.
3) Take the second 2-3 years of car payments, and put them in a mutual fund (even if you lose money in the stock market, this was money that was going to be the 4th and 5th year’s car payments, so you’ll still be ahead.)
4) Let that mutual fund grow for 30 years.