Getting a car and car loan?

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  • Getting a car and car loan?


Answer #1 | 19/12 2013 17:46
Listen up : Lenders could care less about your student loans. As a lender for over 40 years I look for two important things . ABILITY + STABILITY . Lets just say I loan you $ 10,000 over 5 years . You would have to pay me $ 200 a month each and every month for 60 months . So , you are borrowing $ 10,000 and paying me back $ 12000 . The difference is called INTEREST . All I'm interested in is does your job pay you enough to pay your Mortgage/Rent/Food/Insurance/ Electric/ Phone/ Water/ Clothes/ Shoes/ Medicine/ Haircuts/ etc, and still have enough left over to pay me my $ 200 . That is called DEBT to INCOME . You must pay your CAR NOTE if you lose your job, if you are sick, even if you break a leg . That is why we sometimes require a CO-SIGNER , or someone that will pay your NOTE when you don't . STABILTY simply means that you live at same address for at least a year and that you are a upstanding member of the community .
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Answer #2 | 20/12 2013 07:02
You don't have to get a car loan. Just buy a cheap $2000 Mazda Protege or Toyota Corolla or Honda Civic or Mitsubishu Mirage. They will last you a few years and allow you to pay off a good chunk of student loans. Usually, you can only get car loans on cars costing more than $10,000. With a good credit history (credit cards and other loans), you can probably get a $10,000-15,000 loan for a new small car like a Honda Fit or Ford Fiesta or Nissan Versa Note. But it would be tough getting approved for a loan for a $18,000+ car unless you have a big downpayment.
Positive: 50 %

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