It didn’t go as I originally planned, but I got a nice car for a good price and I’m happy!
My list had numerous cars on it, all within my price range and all that I could get with my parents as cosigners. I went to a few dealerships where they offered me whatever I wanted based on my income, but with the small little clause that my parents had to cosign and have the vehicle in their name.
I almost signed on a black 2000 Mitsubishi Eclipse Spyder but after some research and a lot of Q&A time I figured out that by going that way I get no credit on my record, so even though I was looking at $25-$35,000 cars and even if I had paid the payments, 3 years down the road when I go to get something new…I’m in the same financial place I am now! That would not work for me, since my goal is to get my credit established.
I looked at a lot of options and in the end I decided the best option to establish my own credit was to buy. So, after a lot of looking I found a 1999 Chevrolet Malibu for $15,000 and I bought it. I qualified for the financing but being a first time buyer, the interest rate was outrageous, 17.9%
The payment is only 313.00 a month so I plan to make a payment on the car each month and in addition I plan to make an extra payment to an interest bearing savings account at my bank. That way I can pay the car off early(I made them wave the early payoff penalty!) and I plan to refinance it as soon as I’ve made enough payments for the bank to approve, probably 12-14 months.
All in all, I didn’t get the best deal out there, but I am a first time buyer and it was hell finding someone that would work with me w/out a co-signer. My goal was establishing my credit and that first step has now been taken. The next step is to pay every month and I should be off to a good start to good credit at a young age!
Are you sure that having a cosigner doesn’t go on your credit record? I bought a car and a computer when I was under 18, both with co-signers, and I’m pretty sure it went on my credit record. I’ve never had any problems getting credit, even when I was relatively young (19, 20, etc.)
They were going to put the car in my parents name against their credit. It wouldn’t have benefited me at all, and thats how all 3 places wanted to set it up. They even went so far as to tell me it wouldn’t help my credit.
Hmmm… I guess in my case, the car and loan was in my name, with a cosigner. 'course, I was buying a car that cost about 3K in 1987, so maybe they were more apt to want to do that with a cheap car and not a really expensive one.
Back in '97 I financed my first car. The previous vehicle I had payed cash for. I don’t think it has anything to do with the price, because mine was $26k. My Dad cosigned for me, and it affects both of our credit ratings. I would double check if I were you, because if you’re making payments, you should be getting credit for it. I’m not an expert, but that just doesn’t sound right to me.
I think it depends on how the car is titled. In 1987 when I got my first car, my brother-in-law cosigned the loan for me. Both our names appeared on the title and both of us got credit on our credit reports. A few years ago we co-signed for my mother-in-law to get a car (she had just moved to Texas and didn’t have sufficient work history to qualify on her own) and although she made all the payments, my husband and I got credit for it all.
