Someone Care to explain how Financing a car through a Bank works?

[luckyluchiano]

So I plan to go to the bank monday with moms to see in depth how this think will work. I know it is harder to get a loan or what ever through the bank but wejust want to go and see. I didnt plan on getting a car till like Feb-March because I`m waiting on all my refund money from grants and stuff so I can put a downpayment, but my mom wants us to go to the bank to try and apply for financing now, so being that I have no real money to make a down payment on the car I find,I assume the bank would just be giving me money to get a car say I do get approved? And if I get this money now and put 2k down for example on my payments inFeb that would lower my monthly payments by alot being that it would be like me not taking out as much as I am initially correct? Sorry if this sounds ODelementary

 

[retrofighterusaw]

Damn kid you on financial aid and you want to finance? Just buy a used car on craigslist. One payment. it'll be hard to make payments. trust.

 

[superantigen]

Are you getting a brand new vehicle, or a used one? And if so, what's your price range?


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[luckyluchiano]

Originally Posted by RetroFighterUSAW

Damn kid you on financial aid and you want to finance? Just buy a used car on craigslist. One payment. it'll be hard to make payments. trust.

?? I dont take loans out for school, its all Grants and Scholarships. I was looking in the 6-10k range, I would be able to place a few bulk payments throughoutthe life of my financing. I need a new car cause my current one is on its last leg.

 

[louchi]

Basically u would be getting a car loan, depending on your credit or your cosigners credit u would get a different interest rate (how much u have to pay backannually) the point of it is, is that the bank loans u the money and u buy the car. Instead of you paying a car note, you are just paying off the loan andBuilding your credit and credit with the bank.

 

[18key]

Check and compare interest rates between banks. You dont want to get stuck paying an extra 8-900 dollars more than you have to.

 

[luckyluchiano]

Originally Posted by Louchi

Basically u would be getting a car loan, depending on your credit or your cosigners credit u would get a different interest rate (how much u have to pay back annually) the point of it is, is that the bank loans u the money and u buy the car. Instead of you paying a car note, you are just paying off the loan and Building your credit and credit with the bank.

Cool cool, pretty much My mom has GREAT Credit and will be co signing me, but she does not make much money, and I`m a student with a part time job, so Idon't know if that would be basis for me getting denied or what.

 

[louchi]

U probly wont get denied if she got good credit. dont mater how much u really have as long as u have some form of cashflow to support a longterm/short termloan. depends on your banking history and if u got a job then u should be strait. and shopping around for best interest rates is a must.

 

[luckyluchiano]

We were going to look at BoA, I dont drive much but I didnt want to get a crappy car, I pretty much want something that will hold me down till I graduate, andstart my career and all that. I didnt want aHigh note though, The bank determines the length of the loan too correct?

 

[louchi]

Originally Posted by LuckyLuchiano

We were going to look at BoA, I dont drive much but I didnt want to get a crappy car, I pretty much want something that will hold me down till I graduate, and start my career and all that. I didnt want aHigh note though, The bank determines the length of the loan too correct?

when u apply for the loan u state how much, and how long u are looking to pay it off. its all up to u, then they caculate the payments and rate

 

[luckyluchiano]

Originally Posted by Louchi

Originally Posted by LuckyLuchiano

We were going to look at BoA, I dont drive much but I didnt want to get a crappy car, I pretty much want something that will hold me down till I graduate, and start my career and all that. I didnt want aHigh note though, The bank determines the length of the loan too correct?

when u apply for the loan u state how much, and how long u are looking to pay it off. its all up to u, then they caculate the payments and rate

ohh ok cool! As for my banking history I always pay what ever payments I need to pay for a credit card on time, and the only time I've ever overdrafted wasa mistake. So I hope I should be good.

 

[louchi]

Originally Posted by LuckyLuchiano

Originally Posted by Louchi

Originally Posted by LuckyLuchiano

We were going to look at BoA, I dont drive much but I didnt want to get a crappy car, I pretty much want something that will hold me down till I graduate, and start my career and all that. I didnt want aHigh note though, The bank determines the length of the loan too correct?

when u apply for the loan u state how much, and how long u are looking to pay it off. its all up to u, then they caculate the payments and rate

ohh ok cool! As for my banking history I always pay what ever payments I need to pay for a credit card on time, and the only time I've ever overdrafted was a mistake. So I hope I should be good.

u should be strait g. especially wit good co-signer.

 

[ca5perrr]

if ur mom has good credit u should get a low interest rate and a good amount of money,
i would say anything under 8% is good, anything over that you're paying alot,
i have pretty good credit, got a used car paid it off, now i got a brand new car and i think my interest is at liek 4.8%
the higher the interest the more ur paying for getting the money lent to you,
the longer u get the loan for the less your payments are but at the same time the more interest you're raising, so ur paying less at the moment for moretime, u get it?
im not sure how it works with a cosigner n how that build ur credit, so i cant help with that, i hope this does u some good,
remember that when u get a car u gotta pay for insurance too, ur age and driving records comes into play with that too, just throwing it out there.

 

[luckyluchiano]

Originally Posted by ca5perrr

if ur mom has good credit u should get a low interest rate and a good amount of money,
i would say anything under 8% is good, anything over that you're paying alot,
i have pretty good credit, got a used car paid it off, now i got a brand new car and i think my interest is at liek 4.8%
the higher the interest the more ur paying for getting the money lent to you,
the longer u get the loan for the less your payments are but at the same time the more interest you're raising, so ur paying less at the moment for more time, u get it?
im not sure how it works with a cosigner n how that build ur credit, so i cant help with that, i hope this does u some good,
remember that when u get a car u gotta pay for insurance too, ur age and driving records comes into play with that too, just throwing it out there.

I`m under my fathers insurance if that makes sense. Pretty much I would be paying a monthly note but there will be a few times during the year I would makebulk payments, like paying 500-1k torwards it instead of lets say 150-250 or what ever my note may be.

 

[ca5perrr]

ohhh ok well ya thats not much to worry about, the other thing is look around for diff banks, and credit unions,
do u already have a car picked out? priv seller or dealer? if its a dealer sometimes there credit unions could give u a lower rate, or they could offer u othercredit unions that could help,
what im trying to say is, pick a car first then see what ur options r for financing, cuz depending on the car u could get a diff rate

 

[luckyluchiano]

I've found some rides on AutoTrader. thing is if I were to go to a dealer now I wouldnt have any money for my down payment

 

[ca5perrr]

ive gotten both my cars with no down payments,
it just adds to ur loan, but good luck with it, and dont rush to get a car, find one in good condition, good price and make sure u get the carfacts or w/e itscalled to make sure the car is not a lemon or has been in a wreck, and everythings legit on it

 

[antbanks81]

You sign with your name as long as have some credit history and verifiable income. I got $14,500 back in '01 for a '97 Buick Riviera with 23k miles. Myloan was with BankOne/Chase where I also had banking history.

 

[dathbgboy]

It'd be better to find a decent one on craigslist or something and fix it up for the time being OP, just sayin. My girl is jungling car payments,insurance, and half the other bills and it aint easy.

But everything everyone has said pretty much sums it up.

 

[ooiron manoo]

Originally Posted by RetroFighterUSAW

Damn kid you on financial aid and you want to finance? Just buy a used car on craigslist. One payment. it'll be hard to make payments. trust.

You can't be serious.

I got FinAid in College, I financed a car since I needed transportation, I also had a job when I was in school. It wasn't hard to make payments.

You will ask the bank for an amount, and the bank will approve/decline or offer an amount for which they can finance you. They will also give you an APR,since your mom is co-signing and has good credit, it will be lower.

I suggest looking into a credit union since most offer lower APR's than commercial banks.

Get something that is resonable monthly, that you can afford. Anywhere from 48-60 months.

 

[luckyluchiano]

Also for instance, my original plan was to get a car in spring because I was going to be able to put down 2k, but since I`m home mom just wants to go ahead andcheck with the bank to see what happens, so I have nothing to put down, I know with buying a car theres taxes and title fees and such, so for instance say the3Car I`m looking at is 8k, would I take out 9k, or do I show the bank what I`m looking at and they finance everything?