tunernocrust96

Hey guys, I am currently 19 years of age. I really want to purchase an s2000 later on this year maybe around September time or so. I have a solid full time job , just got a secured credit card a few months back To start building my credit. Plan is to have around 5,500 saved up to use as a downpayment on a 2002-2005 model s2k, ap2 is more preferable.
Is it possible that the bank will help me out with a Loan around September time considering I will have only had a credit history of 6-7 months?
I just wanted to hear other peoples input since I haven't had experience with loans before. Thanks guys

Sabre

They'll possibly give you a loan since you have a good down payment, however due to the lack of credit history, you will pay a much higher interest rate

HondaTN

I'd encourage you to save enough to buy with cash. Buy from a private party because You'll get a better deal by being a cash buyer and it lets you be picky about the one you get. The other upside is not paying interest, which long run means you end up not paying $1,000+ or more for the car depending upon how much you finance, interest rate and length of the note. They are great cars, but I also own a MazdaSpeed Miata and they are much cheaper and can be easily modified. Very fun to drive and the wheels and styling much sharper than standard Miata. When it hits boost it has a stronger pull than VTEC but makes less overall power. Either way, good luck!

darcyw

negotiate your interest rate- shop around. Don't accept their first bid for your business.

good luck.

darcy

Hidef1080

I'm not sure if a bank will give you a loan on a car over 5 years old. I may be wrong on that now but that's the way it use to be.
If you have a savings account with a Credit Union you will have a better chance of getting a loan. They should give you better/lower rates as well.
Save as much as you can and NEVER be late on any payment.

TheMuffinMan

<1 year of credit and you want to get an auto loan? Not going to happen without a co-signer...And you're not going to get a good rate.

And as others pointed out, some (most) large banks will not give auto loans for vehicles older than a certain age (around ten years at my bank) and you're required to certain insurance coverages.

2Kaputnik

What others have said. You will have a very hard time getting a loan on something more than 10 years old. Trust me, at your age, the last thing you need is to be saddled with car payments on a 10+ year old S2K.

If you have a solid job, save and pay cash. There will still be plenty of S2Ks around.

cosmomiller

Echoing all the above, if you are able to secure a loan the minimum will be at least 8-9% if not higher. Usually credit unions give a better deal. Sometimes insurance companies also serve as banks such as USAA. They also provide the ability to write a "check" on the spot so you can negotiate a good price and essentially pay cash.
10 years is a threshold mark for loans; either the rate goes up a lot or it becomes unavailable from many institutions.

It is always better to pay cash. If and when you do, start another car "fund" in savings. Pay yourself the money plus interest, each month just like a payment on a loan. That way when the time comes to get another car you will have the funds in the can. Except in this case you paid yourself instead of the institution.

Zack225

FWIW I had no problem getting a loan for my 02 last year through my credit union with a reasonable rate.

Reasonable Doubt

Its possible, just expect a high interest rate and a co signer. Keep saving money because it will take some time to find the "perfect" car.

I bought the first s2000 i saw at a random dealer and paid off my 5 year loan in ONE year. and although the body wasn't perfect, it had a clean carfax and the car is healthy. Has been serviced by Billman as well. I plan to keep the car the rest of my life so im taking my sweet time with everything.

You will also need side money for emergency situations. I work on my own car with a friend because i worked at a dealership and i still have access to it. plus i have another car as my daily driver. my s2000 has been in storage all winter and will come out in next month in May. i only put 4000 miles my first year.

you also need to take into account that at 19 your insurance will be very expensive. so a car loan plus car insurance will be at least $500 a month. thats the positive thing about paying the car in full. you dont have loan payments. but not everyone has those type of funds.