Question about credit...

[antonio1988]

Hypothetical situation that could become very real:

My car is paid off... My girlfriend buys my car off me for $17k, gives me $3k up front and finances the other $14k. Do I receive that money immediately from the bank?

I then take the full $17k (if the bank gives it to her to give to me) and then apply that amount to buy an 07-up GT500. I see them selling, typically, for $32k to $40k. So let's say $36k is the median and I finance the other $19k, how good does my credit need to be in order to be approved for that kind of loan? I'm 21 years old making $34k and pay my own bills (no rent or food to pay as I live at home and I have a prepaid account for school). I have two credit cards as I don't really use them and my score is on the better half of the spectrum. Any insight guys? Could this even possibly happen for me? Thanks!

 

[Franchi]

Have you checked yet on what insurance alone would run you on that car?

I would imagine it would be a LOT.

 

[usafimj]

If your car is paid off then the bank would give your gf a check for $14K to give to you. She would pay on the $14K loan.

 

[JeremyH]

Alot of places will let you pre-apply for a loan they will check your credit and give u a max # for the autoloan, sometimes different #'s based on the car (collateral) and an interest rate.

When i was 18 i got approved for a max of $19,000 @ 7%, my only credit was cell phone i had for a year and one credit car i never used. Then again being military with little to no credit history helps.

 

[stang7300]

Honestly, start saving for your own house.

But I see no problem why the bank wouldn't finance you with such a good down payment.

 

[Steedman07]

As long as your debt to income ratio will support the payment at whatever interest rate they will gave you on the 19k, you should be fine. You have ALOT of equity going into it, even if you have so-so credit, they should approve you based on equity. I have a beautiful Blue with white stripe, HID's, black leather 2008 GT500 one owner completey stock with 14k miles on it for sale. PM me if you're interested..

 

[LAllison20]

Insurance will kill you, looked into getting an 2011?

 

[jroc07gt]

get a 2011 gt

 

[antonio1988]

Have you checked yet on what insurance alone would run you on that car?

I would imagine it would be a LOT.

Couldn't be much more than now, either way I'm putting the car in my dad's name to save me some dough.

If your car is paid off then the bank would give your gf a check for $14K to give to you. She would pay on the $14K loan.

thank you

Alot of places will let you pre-apply for a loan they will check your credit and give u a max # for the autoloan, sometimes different #'s based on the car (collateral) and an interest rate.

thank you

As long as your debt to income ratio will support the payment at whatever interest rate they will gave you on the 19k, you should be fine. You have ALOT of equity going into it, even if you have so-so credit, they should approve you based on equity. I have a beautiful Blue with white stripe, HID's, black leather 2008 GT500 one owner completey stock with 14k miles on it for sale. PM me if you're interested..

Thanks for the info, PM me your price and location

Insurance will kill you, looked into getting an 2011?

2011 with the options I'm going to want it with will not run any less than $34k, and the car will be in my dad's name for insurance purposes

get a 2011 gt

see above response lol

Also, the modding potential of the GT500 is far superior to that of the 2011 GT I would think... I mean, the car runs 10s with less than $5k in mods

 

[Dave]

Honesly insurance rates for the gt are pretty low compared to most sports cars have yor dad check what gt500 does to the cost otherwise when I bought my car I was upside down big time on my loan with fair credit and very little down. Long story short I was approved for 30k at 8 percent. Not ideal but I wanted the car! If the insurance won't kill you, you shouldn't have a prolem. You should think about whether a nicer car is more important than being able to buy a place of your own soon though.

 

[antonio1988]

Honesly insurance rates for the gt are pretty low compared to most sports cars have yor dad check what gt500 does to the cost otherwise when I bought my car I was upside down big time on my loan with fair credit and very little down. Long story short I was approved for 30k at 8 percent. Not ideal but I wanted the car! If the insurance won't kill you, you shouldn't have a prolem. You should think about whether a nicer car is more important than being able to buy a place of your own soon though.

that's what's killing me right now lol, I do want to buy a place, there's ridiculously nice 2/2 apartments in great areas here in Miami going for about $600/month on a 30 year, and houses going for just about $1k/month on a 30 year, and those are 3/2's!

 

[white05gt]

that's what's killing me right now lol, I do want to buy a place, there's ridiculously nice 2/2 apartments in great areas here in Miami going for about $600/month on a 30 year, and houses going for just about $1k/month on a 30 year, and those are 3/2's!

I couldn't decide whether to buy a house or build a fox body that I had until I got kicked out of my mom's house when I was younger. Long story short, best thing that ever happened. Buy a house and you won't regret, you can always get a diffferent car in a few years once you get settled into your new place.

 

[Dave]

that's what's killing me right now lol, I do want to buy a place, there's ridiculously nice 2/2 apartments in great areas here in Miami going for about $600/month on a 30 year, and houses going for just about $1k/month on a 30 year, and those are 3/2's!

Not trying to discourage you at all man , but at your age credit is easy to have overwhelm you really quick, ask me how I know you have a sweet car already one I'd have killed for at 21! I shouldn't be lecturing though, I have a $1000 dollar a month mortgage plus a $500 car payment, not to mention insurance credit cards and so on. I make almost exactly what you do(although I have my wifes income to help) what I'm trying to say is the hole
gets deep fast! In your position at your age I'd probably not think about these things. Just thought I'd chime in, have fun either way bro!

 

[mikeysgt]

I say Dave your money for at least another year for a Down payment on a house. I'm 28 and about to buy my first home and would kill not to have the debt I do going in. My credit score is above 700 but I pay my car and a few credit cards I wish I didn't have to pay. Especially when I see how different my life would be making what I make with no car payment or credit card payments. My plan is to have my car paid off in two years and my credit cards in a year. I thought having a bad ass car is what I wanted but living at home or living in an apt gets old real quick. I can't wait to move my stuff ONE LAST TIME In a month!

 

[antonio1988]

thanks for the pep talk guys, I think I'll go ahead and just save up for that down payment on a house or apartment

 

[stang7300]

A very wise choice.

 

[Steps]

I had my first home built and I moved in at 24. I would suggest going that route as well. It ROCKS to have a home of your own. Once I was moved in and everything settled down I was able to look into car purchases within a year.

ALWAYS leave yourself an out whatever you do. I lived in my home in East TX for 4 years then my company closed down the building I worked in. I had to move to Denver and ended up having my house payment and rent. All shortly after my wife left work to stay home with our newborn. We made it through because of good planning and staying away from more debt.

 

[Franchi]

It's a wonderfully feeling to have no car payments, no credit cards to pay off, and comfortably own your own home.

90% of stress I used to have in my earlier 20's got eliminated completely when I finally got smart and dug myself out of debt completely. And was able to save enough for a downpayment on a house that I can eliminate PMI almost right off the bat.

 

[antonio1988]

Thanks again guys, I'm going to pay off the little that I owe on cc's and start putting the money aside for a home

 

[white05gt]

Thanks again guys, I'm going to pay off the little that I owe on cc's and start putting the money aside for a home

YOu will be happy you did, don't forget to have money for furniture too. I got the money for my down payment and when I moved into the house, I realized I had to buy everything to go in a house.