She has no history, shes only got one credit card, with a pretty low limit. Her father is being an ass about co-signing. He wants her to not take out a loan for a car. He thinks she should get a 5k ford or gm, which is a bad idea. She drives to and from Darien Lake everyday for work, she needs something newer and more reliable.
edit: getting this loan co-signed would be a great way to build some positive credit, but it is not going over very well.
Thats whathappens when you rob the cradle… 
Have dad co-sign. A secured car loan is a great way to build credit history.
Also, look over the reports, make sure everything is up to par. Then open up a small & reasonable credit card (secured or otherwise). Just make sure it doesn’t have monthly / annual fees. And make sure to use it responsibly. Do NOT open up 5 of em… :roll: Its much easier to build good credit versus repairing poor credit.
As far as where to go now, I’m sure that dad will have an opinon… but remember that CapOne auto may NOT have the best rate / terms…
Credit Unions; Retail Banks; Dealer financing.
Try to get all the applications in during one short period of time… less of a hit (inquiries). Also remember that you are not bound to any loan or terms until she signs the contract / check. There is nothing at all wrong with rate shopping companies against one another or against dealer financing.
Oh, you responded while I was typing, sorry.
5k cars can be awefully reliable… but thats another argument.
CapOne denied due to thin credit file?
Do you know roughly what her score is? Or, is it above ~650?
$5k car for the next couple years while she works on building credit. :tup:
I don’t know exactly why they denied it, they are gonna send a letter in the mail. Her salary is not very high but she also does not pay any rent or utilities. I would imagine that her score is probably over 650, but she has not gotten the reports yet.
5k car is a good idea. No one ever said she had to keep it a long time.Just long enough to build her credit enough to buy a car on her own.
Well, there is alot to be said then.
If you credit file is great, the DTI & LTV can be a little higher
If the LTV is great (low), the credit can be a lil weaker & the DTI a lil higher
If the DTI is great (low), the LTV can be a lil higher and the credit a little weaker
With a 650+ score, minimal history, strong DTI… she going to need to shop in a lower bracket, or put some serious cash down to get the proposed LTV down.
I really doubt she “needs” a 15k car, but thats IMO.
That is a VERY general statement.
If she has to go it alone, her best bet to get an approval will be through the dealer. Seriously… they have the bartering “power” with finance companies to get “weaker” apps approved.
Remember, she lives at home, has zero bills (other then say a cell phone & small card), and has been in her job > 1.5 years. 
she has 5k to put down, so if she buys a 13k car, she should have low enough payments for this whole thing to make sense. If she stretches her budget and cuts down bs spending, she can “afford” almost 260/month. But, She doesn’t want to do that, she wants to stay around 200/month, which is do-able with a half-way decent interest rate.
TORQDSS, what do you think man? can your dealerships get her financed?
torqdss + cobalt = win :tup:
13 - 5 = 8
8 @ 9%, 48 mos = $199 / mo.
exactly. just need to get her into it
would rather see her get into a few year old honda civic or scion tc, then a chevy cobalt. I am domestic hater.
I agree… I’d say honda would be better the a cobalt, considering she’ll prolly only have it a few years. I have to assume resale will be better.
Considered a lease? Though they are “generally” harder to get in this case.
yeah, having her instantly upside down on the loan would be bad. Loan is out of the question, she drives to and from Darien Lake every day. Not to mention, we are likely moving out of this state within the next 6 months.
My thinking was that, hate them or not, cobalts are alright cars. Nothing inspiring but they’re not bad. She may be able to get a 0% financing deal, which would build her some decent credit without paying near double digit interest.
But yeah, I’m sure Cobalts depreciate fast enough that it’s probably a wash between a used honda with high interest and that. :shrug;
Wait, this is NYSpeed.
She should get an optioned out Civic SI. Who cares if the interest rate is 12%. Just stretch out the payments to 84 months so that she can afford it. When she’s done she’ll have 7 years worth of credit history and I’m sure the civic will still be worth $15k since it’s a special model. :tup:
well, with 5k down she won’t have to worry about neg equity.
Good call on no lease then.
PM Torqd and go from there. He can be her best friend in this… unpaid endorsement, as I’ve never done bzns w/him. 
My problem with a used Honda is what you get for your money because of that resale. When I was helping my b-inlaw look at cars around 8k he could get a couple year old Focus with 20k miles, or a 5 + year old Honda with 90k miles. That 90k mile Honda is going to be getting pretty old in the 4th year of that loan at 12-15k/year.
ehh, I have seen my fair share of broken down domestics. We both feel a bit more comfortable going with the civic/toyota.
yeah, I suppose the neg. equity won’t be a big deal since the down payment is significant, but the resale value after a few years with lots of mileage is still going to be worse then that of a used honda.
cost of doing business in this end of the pool.
$0.02
I have heard some real horror stories with focuses that have barely any mileage on them. Actually, her co-worker just sold a focus for 700 dollars due to the fact that it had such bad mechanical issues that it was falling apart.