Overhaulin'

What do you need to get a first time car loan WITH a cosigner?

Hi! I am wanting to buy my first car. I'm 18 years old and the car I want is about $15,000. I just got a job (I have had other jobs before but not for the past 2 months) but I don't start for another 3 weeks. I will be earning about $600 a month. I have NO other bills to pay, and my parents will be giving me the money for insurance and HALF of the car payment, so paying it will be no problem. I need to apply for a loan, and I WILL have a cosigner with excellent credit (my dad). I know it varies from place to place, but in general, will I need to have worked at my job for a certain amount of time before I can get a loan? Also, can I put down what my parents give me as additional income when applying for loans? THANKS so much!

Public Comments

1. As long as you have a cosigner with excellent credit, your set.
2. If your parent trusts you, the cheapest way is to have the car and the car loan under their name. The insurance will be cheaper this way too. But this will not built your credit. The 2nd best way is to have them co-sign the loan, this way you wont have to wait long. If you choose to wait, then some bank might give you the loan after you have work for a while. Good luck, and drive safe
3. Most car dealerships have a first time buyer program. Which you can only get with a new car. if the dealer is able to get you into the first time buyer plan most banks will require up to a 1/3 of the vehicle as down payment. if your dad has good credit you might not need a lot of down payment and can get you a good rate. you will need to prove your income so even if you say your parents give you money. you will printed statements to prove to the banks of the extra income if they ask for them. if you haven't had the same job for at least six months then you will probably need your dad to cosign.
4. I'd say that normally if your dad's credit is EXCELLENT then it shouldn't be a problem. 1. Make sure you are on the loan because it is the first step in building your credit. Next time you won't need a cosigner! 2. Make sure you pay it on time and in full. Late pays look very bad on your credit report. 3. Technically your dad will have to apply for the loan, with you as the secondary signer. They will not put you at the top of the loan with no credit, no pay yet, and pay that will be that little. It's okay though, it will have the same affect on your credit report, and you will still have the car you want. 4. Good luck and drive careful! also - the first time buyers program won't work for you because of your pay and situation. I think this will be better for you though with your dad co-signing.
5. Talk to the dealership or the bank giving you the loan. I just bought a car in July after graduation, but before my post-college job started. They just trusted me on what my new income would be. You could also get something from your job stating what your income will be if they want some proof of it. I would not put down your parents money as income. It's not income in the standard definition. I'm not sure of the laws and such, but better safe than sorry.