first loan a car loan?

dunworth1

hey,

so i would like to try get a loan to buy a new car
the thing is i have never gotten a loan before as i have never needed one
i'm only 22 but i am in full time employment.

taking a guess that i would need to have a regular savings amount for a couple of months before i could get a loan.

i have a cu account if i start putting some money in every week from now until sometime at the start of next year would this be sufficient enough to use
to go for finance at a dealership?

i really don't know where to start any help would be great #

thanks

kjbsrah1

If you hold an account for a period of time with a financial institution and ask them for a loan they will probably look to see that wages are being paid into the account you have with them. If so thats the best thing as far as they are concerned. They will have a look over your recent activity to see if you are going into your overdraft, if so how often, and what your expenditure is on. Basically they just want to see that you can afford the repayments - whatever they want your monthly or weekly repayments to be (dependant on the amount borrowed). And that after your repayments that you are not living on the bread line.

If you are borrowing the whole amount of the car or if you are in the position to pay part of the price with a lump sum and only borrow some of the money will also play a part in the financial instituations decision to lend or not.

For a car, i have found the credit union to be more approachable than the banks, but depends where you have your account and your savings history and current status (employed or otherwise).

Good luck with it. It would be wonderful to drive a brand new car

The Dagda

dunworth1 wrote: »

hey,

so i would like to try get a loan to buy a new car
the thing is i have never gotten a loan before as i have never needed one
i'm only 22 but i am in full time employment.

taking a guess that i would need to have a regular savings amount for a couple of months before i could get a loan.

i have a cu account if i start putting some money in every week from now until sometime at the start of next year would this be sufficient enough to use
to go for finance at a dealership?

i really don't know where to start any help would be great #

thanks

Many manufacturers are offering better lending rates than banks.

Use one of the manufacturers that offer a better rate.

dunworth1

The Dagda wrote: »

Many manufacturers are offering better lending rates than banks.

Use one of the manufacturers that offer a better rate.

they would look for credit history no?

and want to see bank statements etc. this is normally six months isnt it
so if i be really good with my account for the next while

dunworth1

kjbsrah1 wrote: »

If you hold an account for a period of time with a financial institution and ask them for a loan they will probably look to see that wages are being paid into the account you have with them. If so thats the best thing as far as they are concerned. They will have a look over your recent activity to see if you are going into your overdraft, if so how often, and what your expenditure is on. Basically they just want to see that you can afford the repayments - whatever they want your monthly or weekly repayments to be (dependant on the amount borrowed). And that after your repayments that you are not living on the bread line.

If you are borrowing the whole amount of the car or if you are in the position to pay part of the price with a lump sum and only borrow some of the money will also play a part in the financial instituations decision to lend or not.

For a car, i have found the credit union to be more approachable than the banks, but depends where you have your account and your savings history and current status (employed or otherwise).

Good luck with it. It would be wonderful to drive a brand new car

thanks

i think my biggest problem is that i'm currently not saving anything really
most of my money is spent on nights out and to be honest rubbish
so the way i see it that if i had a new car and was paying off a loan i would have something to actually show for me working

coylemj

dunworth1 wrote: »

i have a cu account if i start putting some money in every week from now until sometime at the start of next year would this be sufficient enough to use
to go for finance at a dealership?

The straight answer to that question is 'No', saving money in institution X buys you nothing in terms of reputation or credit worthiness with institution Y.

While some car dealers are offering good deals on finance, your (lack of) credit record may be against you. It may be worth doing as you say and saving money regularly with a specific institution with a view to asking them for a loan in the future but that savings record will not be visible to any other institution.

dunworth1

Would the y institution not ask if you have savings anywhere else?

mickman

Brand new car ? What a waste of money. You are 22 - nights out are what those years are all about

coylemj

dunworth1 wrote: »

Would the y institution not ask if you have savings anywhere else?

They're more likely to ask you why you haven't been saving with them. If you show up out of the blue looking for a loan when you have no credit record (with the ICB) and no track record of savings (with the crowd you want to borrow from) then you're likely to hit a brick wall.

Decide who you want to borrow from and start saving regularly with them now.

What you're asking us to believe is that you're going to stop your partying and use the money to pay a loan on a new car, then you will .............. stay in every Saturday night while reading the manual for your shiny new car?

Good luck spinning that yarn in front of a bank or credit union manager.