General Question

JasonH's avatar

Making payments on a car...

Asked by JasonH (107points) May 28th, 2008

i make about 900 a month & i live in Southern California…..this is my first time looking into a car ok so here goes i found a car for about 9,999 i want to make payments to the car & insurance of about 400 a month is this ever possible or am i just SOL? also my Credet isnt to swell i donot want a loan i just want to make payments that fits my budget…. thanks.

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18 Answers

marinelife's avatar

I don’t understand. How, other than by a loan, would you “just make payments”?

JasonH's avatar

where would i get a loan? my bank said no so now what ?!?

JasonH's avatar

strong wheres a good site for an auto loan that possibly 97% will approve me…?

marinelife's avatar

Are you or could you become a member of a credit union? That will get you a decent rate even with “not too swell credit.”

Lacking that, the dealer will probably finance it for you, but the interest rate may be steep. You will have to get them to do a work-up to see if the payments will be in the range that you need. Be firm. Tell them that is what you can do. Be prepared to get up and walk out.

JasonH's avatar

i really dont care i if make payments for the next 9 years i just want a car to get a better job at more distance than where i am, taking the bus sucks ya know done it too long long enuff. im fairly new to the work financing ill have to google that word. yea my fience told me to be ready to walk out and to have a firm approch on what i want she said the car sales men are crooked and will try to lie cheat like if i went in and said i could only afford 400 a month theyd probbly try to make it 700 a month….

Seesul's avatar

Be sure to figure out TOTAL final cost and see if it is still worth it. You also need to figure in gas (today I saw regular in NorCal for $4.39 gal) mileage, repairs, etc.
Your cost is nearly 1/2 your income. Do you really want to spend that?

PupnTaco's avatar

If you don’t qualify for a standard loan, don’t be tempted by predatory lenders. You’re better off in the long run finding a way to increase your income and repairing your credit. Try again in a year or so.

marinelife's avatar

@JasonH By the way, welcome to the collective!

JasonH's avatar

well i guess im lame for the next year, cause i really need a car. this sucks my bad credit is no way my fault iv tried getting so-called “Free Credit Reports” they dont work. all bs. seems like life only gets harder day by day!

PupnTaco's avatar

If there are items on your credit report that are innacurate, put your dispute in writing and mail it to all three credit reporting agencies. Then just make sure you have no late or missed payments going forward.

Seesul's avatar

Your credit history could be your lack of it and age. At 22, even if you haven’t defaulted on anything, one usually doesn’t have much to go on. Your also in an area with one of the highest costs of living, and you didn’t say whether $900 per month is before or after taxes. You are also looking at a car that is already 5 or 6 years old and even though you say you don’t care if it will take 9 more years to pay it off, by that time, you have to factor in repairs for it’s age alone. You will also be battling a less than efficient freeway system, in an area with a less than desirable mass transit system. You might want to look at reality a bit and find an area that doesn’t have all of those things going against you when on a limited income.

Also consider that they may not be quoting you the correct insurance rate. You are also at an age that it is very high. If you have a perfectly clean record with say, 5 years of experience in California, it is at least $1200 per year for a newer model of the car you are considering. Take any of those factors away and you are looking at more.

Just some things to consider, especially for someone contemplating marriage.

ubuntuclimber's avatar

Debt is a horrible idea, especially with your total income. You are 22 and make $900 dollars a month. You have an income issue. I hope you are working part-time while going to school, which means you make $11.25 per hour (assuming 20 hours per week). Sounds like you need a bigger shovel to get on top of things, and may want to consider another job.

How much debt do you currently have (credit cards, student loans, etc)?, and what are your other monthly expenses? Do you have a monthly budget, and if so, do you stick to it? If yes, then why not just save your nickels and dimes for 6 months or so, and purchase a vehicle that will suffice. Then, save more (hopefully you will get a pay increase), sell your crappy car, and then buy a better, but not great car. Repeat this process while you continue to grow financially.

A great place to start for financial advice is Dave Ramsey:

Good luck.

JasonH's avatar

going to school yes part time job bogus huh…this would be my first car.

JasonH's avatar

my parents could careless about me so im doing what i can and have lasted as long as i could with out having to make the mistakes most Americans make these days with financing cars and leasing, right now its ether bite the dust witch iv done long anuff, i guess i could allways shoot over to Craigs List and by a $500 car and just be happy :) any advice if u wanna talk private also so we could further discuss this i guess email me at

Michael's avatar

Jason, unless you have some other source of income, you absolutely do not want to be making payments that amount to 44% of your monthly income. This leaves you no wiggle room, should something unfortunate occur. Look to buy a cheaper car. You should be able to find a used car (7 or 8 years old, 60 or 70 k miles) for 6 or 7 thousand dollars. If you have a little money to use as a downpayment (say $1,000), then you might be able to get your payments down to $200 month. That’s still pretty steep for your monthly income, but much more doable.

richmarshall's avatar

Auto lenders will look at a few different things:
Character~~Your credit.
Capacity~~Your debt to income ratio.(DTI)
Collateral~~Cash down.
From what you have said it will be very difficult to get a car loan without a solid co-signer.

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