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Discussion Starter · #1 ·
he straight up told the dealer he wanted an STi but the guy was being kinda stupid...said that he didnt let kids drive STi's. My brother is 19, makes 2k a month with no other expenses and has 10k in cash ready to put down. :rolleyes: Anyway, he let my bro take out a WRX. It was a smooth ride and he liked it, but a stock WRX that you cant really beat on doesnt make for a mind blowing "I gotta have it" test drive, you know? So on the way home from the dealer, he kept saying "Im getting an STi." My question is...he's 19, has no credit, doesnt make that much by most standards, and can only put down about 1/3 of the price...do you think they will finance him?
 

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I think they would if he put half down. Think from their POV, some kid gives them 15K and cant make payments...so they repo it and sell it for 28. If I were a bank, i'd do it.

I looked into financing an R1, if I gave them half I was in the green. Of course that was only 8K, but still.
 

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Have him check with his bank or credit union (where he's keeping his 10k). With that type of balance, he should be able to get financing without problems.
 

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I work in finance & I wouldn't make him a loan on an STI (or any other new car) without a cosigner. Putting the $$ down will definately help his situation, but without someone else with good established credit willing to back him up, about the best he's going to get is a small 1-2k starter loan. Just my .02
 

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Kinda off topic....but anyone else noticing these wierd hyperlinks that are appearing in our posts? Like those above...the word credit (which is not a hyperlink in my post now...but I bet it turns to one when I post). Is this soimething new with the site? Personally, I don't like my posts being associated with advertising that I did not solicite. Just curious.

PS...at 19 with only 2K/mo in income. I don't know...what ever floats your boat, but credit will be tough without an established record. 10K down will go a long ways towards helping though.
 

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I sell cars for a living and 10k will buy some credit point blank.
The bank looks at how long you have on a job down payment and your vested intrest in the loan. Make sure you get a great deal on the car and a good intrest rate .plz bring mom or dad to make sure the right thing is happening for you:)
 

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When i was working on the details of buying my WRX, i was talking to the finance manager about getting the promo interest rate (the 3.9% for 60mo they were running last summer), i was surprised when he said that Subaru Credit used a 45% ratio(45% of monthly income towards a car payment) So, for your brother, making the cut on the cashflow part of the equation shouldn't be a problem.

The lack of credit history may be a problem though. He would probably need to get a cosigner or be forced to pay a stupid high interest rate. (nobody should be paying over about 6% on a 48-60mo car loan in this market)

If you think that your brother can make all of his payments on time, why don't you cosign for him. If he keeps good on the loan, it'll only add good credit history to your credit record as well.

Just the 2 cents from another finance nerd.

PS, if that dealer won't let a potential customer drive the car they want, i'd tell them that you're taking your business elsewhere, or talk to the sales manager about the attitude of his/her salespeople with regard to young drivers(which just so happens to be the target market of the cars that the salesperson is supposed to be pushing)
 

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in order of importance(from personal experience):

fico score - to qualify for good interest
credit history length - to just plain qualify
down payment - a short credit history can be forgiven with a big down payment.
job history - low down payment can be forgiven if you have astable long term job.
income - the size of mothlys you can make doesnt really go very far in the eyes of the financier. In fact, it can make you look like a risk to them if you say you'll take a huge payment burden.
 

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Discussion Starter · #10 ·
thanks for the info guys, I've learned a lot from your posts.

as far as the guy who asked why there were hyperlinks in posts, you have a virus!! You need to use spybot or adaware to remove it! I had the same thing before, where it was making random words like "credit" "asian" "auto" etc into links to advertising pages relating to the words. :rolleyes: :mad:
 

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First of all, if a dealer isn't willing to let you drive it, no matter what you age is, find another dealer, thats bs. Secondly, I take it that you are somewhat young STopLightWarrior because if you aren't there should have been no reason for them to not allow your brother to drive it. Perhaps next time you go to a dealer, say that you are looking at buying for him, but he has to do the test drive. But in any case, don't buy a car you haven't driven.
 

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Or just tell them you're in a hurry because you have an appointment at the Mitsu dealership to drive an EVO ;)

Chop chop sales b*tch, times a wastin! :cool:
 

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It really depends on his history and how long has been at job. Has he had any late payments on ANYTHING??? Also, be careful, the finance department might try to "sell" you into a higher interest loan due to the fact you dont have a lot of history...that happened to me once (Of course, I called his bluff).

Another thing you might want to try is to secure a loan before going in to the dealership. I think any dealership will take a buyer a lot more seriously if they come in with a loan preapproval already. Also, the financial institution where the 10k is at will be more willing to take the risk due to his history with them...
 

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man i wish i made $2k a month... he would be able to make payments easy if he makes that per month


besides, even if he can't get fianced through the dealer... some credit union more than likely will...

btw where does your brother work?
 

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When I was about to graduate from college, I got an offer from Toyota. Basically it said that if I could show proof of a job offer making over a certain amount, they would defer my first payments by 3 months, and nearly guarantee acceptance of my loan application. I took advantage, and wound up with a brand new Celica.

It surprised me at the time; I had zero credit. I had never had a credit card, never financed a car or house, nothing. I'm trying to remember the interest rate; I don't remember it being oppressive at that time. I don't know, it just seemed like a risky proposition for the finance company at the time!:)
 

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RayfieldsWRX said:
It surprised me at the time; I had zero credit. I had never had a credit card, never financed a car or house, nothing. I'm trying to remember the interest rate; I don't remember it being oppressive at that time. I don't know, it just seemed like a risky proposition for the finance company at the time!:)
Even so, less costly than losing you to the competition. ;)

-snowcat
 

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snowcat said:
Even so, less costly than losing you to the competition. ;)

-snowcat
Good point!
 

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If you put down 10g on 30g car probably 75% of the banks will pick you up with no credit history......in which case you have no credit score
......HOWEVER......BUT......
your interest rate will be at least about 15%
.
Path NUMBER 2 ......HIGHLY recommended
get a cosigner with a high credit score like 700
you will get picked up at like 5% maybe less
i to work at a dealership and i do this stuff all day long
good luck getting a car
 
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