bloodraven

from a personal experience, I don't see much problem in financing one, as I did with my last one. My next one I have to get 2k from a loan, but I had the cash and something came up, but its okay, because my credit is amazing...but if you can't make the payments...don't do it...my payments weren't that high, but it made fixing the car a problem...

will951

I think you are completely wrong here! I financed my car to help my credit rating. At the time my credit was 749, but with no high value items on it. Just things like credit cards, bills etc.

It doesn't make sense for someone with a long credit history to finance an inexpensive car like this. But it makes great sense for a young person without much financial background to. This way you can show history of good payment on a loan item which will help you the next time you go for a loan for another car or even a house.

BTW Rock. I am a member of Denver Credit Union (my former residence) and they financed the car for up to 5 years at 6.2%. I chose 3 years and pay double payments to get it out of my hair.

Magown

One thing you guys aren't considering is if he finances a 951 and puts the title up as collateral, the lending institution will require full coverage insurance. At his age, the premiums will probably cost more then note. You better start saving all you're lunch money, because a 951 is damn near as bad on the wallet as a Ferrari.

Judson951

I am 25 and I pay 450 a year. But I only drive 2500 miles a year. Kinda suck but she is my garage queen.

SamGrant951

25 is a big difference from 17.

UDPride

Steering a buying decision -- or the manner in which you shall buy it -- for the sole (or majority) purpose of affecting a credit score in my opinion is for all the wrong reasons. Credit scores are overrated. They are nice to know, but many times are not worth the paper they are printed on. At least 1/3 of credit scores are inaccurate anyway no matter which of the three you use. The two biggest factors in credit scores are paying bills on time and the amount of credit you use each month compared to the amount of credit afforded to you or the amount of income you claim. Spending MORE each month on a CC and paying it off can actually hurt your score because it shows a propensity to use a lot of credit a lot of the time. And drawing yet another line of credit or showing further obligation to another loan can do the same thing. A person with 3 lines of credit/loans paid off each month can have an infinitely better credit score than someone paying off 10 lines at 10x the value.

But I digress. My point was, why borrow money for a cheap car. For small amounts like this, rather than increase debt, just increase wealth.

theedge

I took out a loan for my car, $10kCDN. I had to get my parents to cosign beause the car was in the US, and I couldnt import it till I paid obviously, but it being in another country buggers their rating system up. So at 19 I had to get a cosign. If it had been a Canadian car it would have been all under my name....

However id been working fulltime and then some, college diploma, $6k in savings, excellent current and future job prospects.... You see where im going here. They look at more than you think for loans.

Brian McCoy

While we agree on the increase wealth/pay cash.. I disagree here. To many places look at a credit rating (any lending institution, be it Sears for a $1k washer and drier, PeopleFirst for a $100k car, or whatever mortage company for a $300k+ home) and it's worth doibg what's necessary to have something at least deceint (mine was in ruins from to many defaults while in college). I absoultly could NOT get a loan, for any $$, no matter who I went to and no matter what I was going for. Shoot, I couldn't get a credit card (unless it was 100% secured) or a frickin gas card that was good ONLY for gas. I took out a secured loan for my 951, made payments for 2 years and ended up spending about $400 in interest... this was enough to get my credit high enough that I was able to finally get an unsecured credit card (woohoo, I've got $500 in available credit.. lol). The whole point in getting the loan was for credit.... of course, I could have cashed out my CD (how the loan was secured) and paid off the loan at any time, but that's not the point.

It's a stupid game, but if you live in this country and want to have anything nice (and aren't Bill Gates with that kind of liquid asset), you have to get it on credit. Well, unless you want to HomeStead in Alaska and build whatever you can with available materials on your property..

UDPride

Thats strange that you could not even get an unsecured credit card because they give away credit cards with untolled spending limits at just about every college campus in the nation to people with absolutely no history of creditworthiness and no history of even any income. The whole point of the credit card is to make money on people who have no money and buy things they cannot pay off at the end of the month.

I dont discount anything you said. Im sure it happened. Ive just never run across it before. There are more people walking terra firma with more lines of outlandish credit than ever. The average person services a balance of $3000 of credit card debt a month (not people like you or I). Its of biblical proportions. In fact, Ive had a harder time gaining efficient credit BECAUSE I pay my bills on time. Whos wants me as a customer? Nobody really because theres no incentive. Factor in the per diem for every credit card charge kickback the stores must eat and pass on, and Im costing everyone money but myself.

OK way off topic. Whatever Rock does, lets just hope the car is a keeper. !!

theedge

Ive been told no several times for credit cards. Even for a stinking $500CDN limit. That was for a bank card however...

lilredpo

This may have already been stated, but why not consolidate to one ride and you'd probably only need half the cash.

Good luck!

ckathens

Gonna be tough getting any loans, even from a credit union. Our credit union wouldn't authorize a loan for anything older than 1994. Which is why we have a '94 968.

cheetah chrome

I financed my 951 through peoplesfirst.com (now capital one autofinance) and only have good things to say about the experience. I'll do business w/ them again.

dave1200

Wait it out....and have your mom co-sign for you. Good way to get credit started.

Charlotte944

If you really want a 951, sell one or both of the NAs and pay cash.

Going into debt is never a good idea, regardless of your financial status. I avoid debt like the plague.

Look at it this way: A bank is in business to make money, and they are not going to cut you any slack. In the end you wind up paying more for the car than it is worth, so selling it later on won't get you "in the black." By the same token, if you pay cash you will have more jingle in your pocket
to cover maintenanace and repairs on the "new" car.

To get an idea of what you're up against, try to find a loan amoritization program and run the numbers.