Im 20, will be 21 in May. have been driving and have had a job since I was 17. Got my permit at 16. I live in Queens New York, and am currently in the process of buying an RX8. Biggest issue I'm finding right now is financing. Most companies and banks just wont finance me for 20grand. Anyone know any company that is reputable and willing to finance younger people.

Also, since im in College, Im wondering if I can take a College load for 20g and just use that... any ideas?

 

you might have to get a co-signer

 

you will need a cosigner..

It was funny reading your story because you described the situation I was in.. scary. I'm 20, from Queens, had my permit since 16 and have been working for the last 3 years. Go to college at Hunter. I too went crazy and looked everywhere to get financed for ~20k.

This is what I'm doing, I'm at the point right now where I am just looking for the car to buy, all financing straightened out (i think i may have found it).

Unless you are buying new, you won't need 20k+ imo. My main advice, Just save dude. The last 7 months of my search to get financed have been really beneficial. I have to say I have learned so much about this car since i saw it at a dealer lot back then and wanted to drop 19k for a 2004. My parents said it was out of the question to cosign with me, they said: "you want it, work for it". So I did.. 7 months later I have a healthy amount of cash that will pay for more then half of any RX8 I find in the 14-16k price range (which I am aiming for). The rest I will finance from my local bank as a personal loan, the loan won't amount to more then 7k. Bam. I don't have to worry about full coverage on the car anymore saving $85 on the insurance bill a month (i believe ALL companies that offer auto loans REQUIRE you to have full coverage on the car as a term of the financing, and that can be steep.).

Whatever you do, don't spend 20k on an RX8 unless you are planning to buy new. Mechanically, iirc, all RX8's from 2004-2007 are entirely the same. So no hassle buying a cheap 04. With the thousands you save buying a earlier car.. you can invest in a MAZDA extended warranty and you're set if you're paranoid about the rep the 04 has. Up to you.

I'm actually going to check out a very possible buy on Sunday. May just be it, after 7 long months of wanting this car, I may just do it without having to screw up the rest of my life cuz digging a $20,000 debt hole when you're only 20 years old and going to school would have been a bad idea back then.. I thank my parents for that.

Since yer in NY also, hit me up on AIM and i can show you some great RX8 deals.

/endlifestory

 

If I purchase a used 04 which the warranty is out on, can I still purchase the mazda extended Warranty? Does this apply to 05's as well?

yeah, the 20k one I was looking at is an 07 with 2k mileage, and pretty much everything I want and don't want. You are probably right, just gotta save up some more, and I was thinking the exact same thing, take out a personal loan or college loan and use that to buy the car because i want to build my credit as well. (its great right now, but It needs to be excellent cause I want to buy a house when I graduate). Thanks again, and in advance for any more responses.

 

Ask someone to cosign for you. I'm in a similar boat and I had my mother cosign; I got a good APR and my name is still on the financing docs, so it goes on my credit.

 

If it is your first major purchase (car, house, etc) you will probably need a co-signer. As for college loans. they typically want a cosigner too. In fact, I was able to sign my own car loan at 20(I had cosigned on my previous car), but I need a co-signer for a school loan again and now I'm 22. payments were fine, just the amount of debt to income I have is to high. Plus, you will typically only be able to get a loan for school up to the amount of tuition, and some banks will only send the check directly to the school.

 

hey,

I was 20 when I got my first car loan for my RX-7. (This was 8 years ago). I think I financed about 15k, and just keeping on top of your loan. Only advice I can give you, always try to keep a reserve for your car payments for a few mos, in case you have some bad times, or just bad luck (accident, school expenses, etc) that you might need some money. . Having a sports car can be addictive and just a money bin that you keep tossing money into. Although I make a lot more $$ now, I spend less on it since I know i'm not going to get much back (its not an investment - its an expense). I'm sure you'll do fine. Good luck with your loan and your car. - ken

 

I think I was 17 when I got my first car loan. It wasn't for that much though. When I bought my first new car I was in college and had my parents co-sign. The problem is if you're young and don't have much of a credit history than they want you to have a co-signer. Once I got a job out of college I had no problems getting a loan. They say the mortgage industry lends too much, hell I can get money for anything I want from banks now. Especially with all the online processes now, it's quick to get money.

 

Try a credit union.