Hello, I'm wanting to put my order for a 2007 SS/SC in this week, and I got a question on my moms credit etc...

Currently, I'm 17 years old, own a online business, and work at albertsons produce, I make a total income of about $1200/Month. However, I have no credit. On the other hand, I have no one else who can co-sign for me besides my mom, and my mom went threw a divorce with my dad and got stuck with tonsssss of bills which ended up leading to terrible credit on her part. She gets a steady income of alomoney of about $1700 and is about to get a job as well. I myself would have enough money to make the payments easily, however I'm not sure if she will qualify to cosign, as this is my first car. If not, I really don't know what I can do but what do you guys think on this issue?

Thanks!

 

honestly? i would hold off on getting a new car that you're going to be paying for for 5 years if you're not sure that you can make the payments... depending on what car you get, how your insurance is, etc it is very expensive... if you get approved, you will have a very high loan since you don't have credit and you're mother's is crappy... also, you probably won't be able to get a loan for more than 4 or 5 years, which will jack up your payments a lot... but, i would go, check it out, see what you can do...


if you want this to work, what i would do is calculate your monthley income vs. your fixed monthley expenses... figure out if it makes sense to buy a new car based on the incomes you get... also factor in what would happen if your business doesn't make money anymore.... all things to think about...

 

Well to be honest man good luck with that!! I make twice as much a month as you do and i wasnt sure if i was gonna get it but i guess it all depends. They might not let your mom co-sign because of the divorce and all the other stuff that goes along with it. I dont think your age will have anything to do with it (but you will pay through the roof for insurance i am thinkin) but you never know. I just ordered a 2007 SS S/C but i am 29 and its my first car (i travelled and went to school since i was 18 and never needed a car but have had my liscence for 12 years) If i were you i would avoid getting a car like the SS S/C for your first car and get more driving experience under your belt with a used car or just a base cobalt (you might have better luck with the financiing on a base model) But i wish you luck in gettin your car cause know how great the SS s/c is.

 

I have worked loans at financial institutions before.... My advice is save some money & buy a used car. At your age a financial institution is not going to give you a loan, if your only cosigner has iffy credit the application is going to be denied. To build your own credit I recommend saving money (on deposit at a financial institution) and taking out a share or savings secure loan at a later date. Most financial institutions do not deny a loan on funds that you have on deposit. With those types of loans start off small & grow. It builds your credit & gives you a good reputation at the financial institution. I honestly do recommend that you hold off on a new car though. If you have any additional questions feel free to ask I will do my best to answer them.

 

See the thing is I'm pretty set on this car, I've wanted it for over a year now. I will be under my dads name on the insurance, therefor I will be paying $150/Month Insurance (And I pay half of that) - Which would be $75... The payments for the car would be around$350-450/Month - and me and my mom will be paying it together so I will be fine on the payments, what I'm wondering is whats the best way I can go to actually get the car? Do you think she'd get qualified for a finance? If not, what is the next best thing I can do that will actually work?

Thanks!

 

dad can't help with loan because...? Also, the more you have to put down the better change you may actually become approved but still would be stuck with a high interest rate. I agree with others you should start with a used car and get a loan thru a credit union. Who knows.. after a year and you start building you could be approved

 

Loan approval is based upon ones Beacon score & their debt to income ratio, for the most part. It appears from your first post that your Mom is not currently working. The financial institution is going to also look at that. Also with loan approval they sometimes look at how long one has been employeed. Your internet income, a financial will likely want to see proof of that. You have to be 18 (last 2 institutions I gave loans at) to be on a loan. Credit cards can damage someones credit quickly & very bad. Once your Beacon score goes down, it takes a while to get it back up. The interest rate you pay on the loan will also be affected by the Beacon score. If you are approved but you get an interest rate of say 13-15% your notes & the final cost of the car are going to be rediculous.

 

we've already told you that the best thing is to not get a new car at this stage of the game... and the other guy was right... you're 17, your mother has shitty credit, and they will also ask you your income on the credit app.... both of your incomes are very low, less than 26,000 between the 2 of you... i wouldn't get your hopes up because it's not likely going to get approved... now let's do some math... if you get approved for a 4 year loan, your payments will be around 500/month.. 5 year loan will be about 400/month... insurance, gas... now you have to figure the highest possible scenario... 500/month.... 75/month for insurance, which by the way is very very low for a 17 year old in a supercharged car... so now,

500 - car
75?? - insurance
2-400 - gas

so you're talking about possibly 975/month just to drive your car... and that's if your insurance is only 75/month... so, you're 1200 a month income turns into about 2-300 left after your car... what other expenses do you have? what happens if you can't make a payment for a month? what if you lose your job?

 

Like sneaky said... Look into a credit union. Credit Unions typically have lower interest rates on loans & pay higher interest rates on depository accounts. Their accounts are also typically free ( like no service charge checking & lower ATM fees).

 

now let's factor in the info from the above guy that knows what he's talking about...


at 15%, if your car is 23,000 23,000 x 1.15 = 26450 \ 48 = 551/month

22,000 = 527/ month

that's for a 4 year loan... take the same #'s and use a 5 year loan (which probably won't happen) and you're looking at a MINIMUM car payment of about 450/month... 350-450 a month for you is not a realistic monthley payment..

 

A client I was attempting to help this week has a 27,000 Ford Ranger. It cost him that due to the fact he paid an interest rate of nearly 20%. It was a used truck. He admitted it was his first auto purchase, he had no credit, & he really regrets his purchase now. He has decided to go back to school. I am helping him with his IRA withdrawals so he can go to school using that money. (IRA early withdrawals are not penalized if you are using the money to continue education) That is another thing to look at, your education... Are you planning on attending college. There are many unexpected expenses that occur with education costs.

 

bro, we're only telling you this to help you out by the way... the choice is up to you, and your'e gonnna do what you want to... but, a lot of us have made the mistakes already, and you can learn from that and not make the same ones... because it will not end up pretty... get a used car, build your credit, then you can get the same car without worrying, and at a much lower price...

 

i would suggest going to a credit union and searching for a used cobalt or cobalt ss

 

I've already figured out the monthly payments on the car with 10% interest (with my downpayment) and it was around $390/Month - My mom is going to shoot me $300 per month to cover most of that, I will be paying about $90+$75/Month for the car. My mom lives with one of my relatives, and doesn't have many costs at all. I'm pretty set on this car, as I've wanted it for over a year, and I've done so much research on it. I don't really see getting a used one, because unless it's thoroughly inspected, I have no clue how it was used/abused. The money I don't think would be an issue at all, I'm just trying to find the best way to do it (that I would be able to do) that I would have the highest chance of getting accepted for. Honestly, I'm not really looking for a "Should I get the car or not" answer - I'm looking for more of a "whats the best way to get the car" kinda answer (don't take offence to this) because I'm just trying to get the answer I'm looking for.

Thanks!

 

ok, let me say it nice and easy... the best way to get the car is to WAIT... sorry dude, that's the sad fact of it... you go in to the dealer, a "punk ass 17 year old", (not my words, but that's how they look at you) and want a brand new ss/sc... so they ask how your credit is... you say, "i don't have any." so they ask your co-signer how her credit is... she says "it's horrible." ok, so they ask her about her income. she says "Well, i'm not working right now but i get alimoney." Your mother lives with relatives, so she doesn't even have a house or anything to draw against. That being said: They say, "Ok, see ya later."

it's way too big a risk for a bank to take, and probably won't happen. don't get your hopes up.

 

Well it wouldn't hurt to try, I'm gonna try to get my dad to do it, but he kinda thinks it's "too much car" for me, and he thinks the car is a piece of **** because it has such bad revies and a bad history... hes a doctor with excellent credit, so I could easily do it through him I just kinda find a way to persuade him into it

Thanks

 

may work with your father... they will still probably give you a very high interest rate, and you'll need a large deposit... who is he getting these reviews from? the reviews that i've read are all very good... the reviews that are bad are the one's that are written by biased import enthusiasts that get paid to bash american cars...

 

and what does he mean a bad history?? it's been out what, 2 years?? what about it's history is bad...

 

Well, I have about $6,000 I'll be putting down... hes got outstanding credit so I'm sure the interest would be quite low with him. I don't know, most of the reviews I've read have been pretty shitty, I know it's a good car though.

 

try to talk to him about it... there's people here that have problems with their cobalts, but most of them are from mods... and other things are covered under warranty if something happens... but many of us have had teh car awhile, and don't have any problems at all...

 

With so much down, and buying it used your payments should be about what you say, however, 150$/month in insurance? Full coverage? I am 21, with 2 speeding tickets, not wreckless, and I drive the LS. My insurance is 300 a month, which is more than my car payment itself. I just don't see you getting insurance at 150 a month on this car. When I bought my first car, a 99 zx2 my insurance was 150 a month for full coverage when I was 18 with no dents on the driving record. Where are you getting your insurance, and if your listed on the title for the car, you will have to be listed as the primary driver.

 

I would be the secondary driver, and he would be the primary. We would do what we needed to do to get that done, because otherwise, my insurance would be $413/Month.

 

LOL I dont know what reviews you have been reading...but these are by far a shitty car..

 

Just wait man..you dont want your dad on anything you own that sucks..

 

I have to agree that you should hold off on the new Cobalt and go with a used one. As for use and abuse, find a dealer/seller you would trust. Most of them look over the cars traded in and would only put something on the lot that isn't a liability for them (who wants a Lemon Law history or a bad BBB complaint -- people look that up, I mean if you're giving a dealer tens of thousands of dollars you better be getting a quailty product). Most times the used cars are just off lease and are in pretty good shape, although the Cobalt may not have been out long enough to have just come off lease.

Regardless, save your money now. From what people are writing, the '08s are supposed to be pretty sick, and who knows what they'll be like a few years after that -- but by that point you'll have money to go and get it and have something of value to trade in. And your insurance will be lower.

But it's just my two cents. I know what it's like to have your heart set on something but if you can try and step out of the situation and really look at it.