Mondaypride Posted August 22, 2006 Share Posted August 22, 2006 Hi, This is my first post so please bare with me. I have some questions regarding the finance options Subaru offers (or any other ledners you can may refer me to). I am a college student and I have been saving up some money to buy the 07' LGT this coming November. Yes, I plan to finance the LGT. ( I don't think I can save $20k within 3 months) My question is how do I get credit approval to purchase the '07 LGT? I am a full-time student working full time job only during the summer/fall times. Which makes a difference I presume. Do I need a proof of income? If so how much do I need to show to qualify? How does the subaru soon to graduate finance work? I won't be done with school for another year. And what are the APR lenders normally offer to students like myself? THANKS! BTW I am from the Tri-State Area Link to comment Share on other sites More sharing options...
lhsa Posted August 22, 2006 Share Posted August 22, 2006 i don't know how you're going to purchase a 25K+ car without a cosigner as a college student, unless your making good money on a consistent basis. Link to comment Share on other sites More sharing options...
chenc544 Posted August 22, 2006 Share Posted August 22, 2006 You can try to get pre-approval from various website like lendingtree first. That will give you an idea how much they will approve you for. You will have to provide them with your income level and such. Depends on your credit score they might ask you for proof of income. Chances are you won't have a good credit score because you haven't had the time to build it up. Your credit score will also affect your APR. As an example, a 5-year $20,000 loan with 7.5% APR will have monthly payment of ~$400. Can you afford $400/month payment along with insurance, gas and rest of your expenses from your summer income alone? That's basically the question loan company is going to ask. Link to comment Share on other sites More sharing options...
pinski Posted August 22, 2006 Share Posted August 22, 2006 You'll need a co-signer unless you have stellar credit and/or a good continuing income. If you can get your folks to co-sign with you, you can use their credit rating adn income as the guarantee that the loan will be paid each month. Since you've only got one year left, why not just wait until next summer and pick up a new '07 when the dealers are really trying to get rid of them? Link to comment Share on other sites More sharing options...
OrangeTea Posted August 22, 2006 Share Posted August 22, 2006 Yeah, even if you can get a loan without a co-signer, you'll get murdered on APR. Here's the tip: To build a Credit, buy a used car that you can actually pay off right away or within a year. Finance the thing, then pay it off right away. You'll lose some money on it but, it will build a strong credit score for you. Just make sure when you do this that your financing isn't structureed in such a way that you pay the whole interest for the duration of the loan even if you pay it off early. It's rare but some shady loan companies do that crap. Link to comment Share on other sites More sharing options...
Mondaypride Posted August 22, 2006 Author Share Posted August 22, 2006 Thanks for the quick response guys. Yea I can afford upto $450/month car payments and the insurance. But after reading the replies IT DOES seem like I will get murdered on the APR. My credit score is around 680 which is average I guess. But I do not have a fixed income. I guess I will have to hold off another year until I finish school. Link to comment Share on other sites More sharing options...
VTsullyman Posted August 22, 2006 Share Posted August 22, 2006 Maybe buy a used one. There are lots of 05 and 06s with low miles aorund. Look for a good deal and do a lona that way. As a general rule of thumb they dont like to lend you more than you make in one year. I would just go talk to a dealer near you. If he wants you to buy hat car bad enough you never know what will happen. My dad got his 2.5 XT limited for like 7 grand off the sticker. Work the dealer and just be prepared to walk away. It took me a while to find mine and then i busted the car dealers call untill i got what i wanted. 2007 DGM LGT 2003 Suzuki SV650S Link to comment Share on other sites More sharing options...
coxx Posted August 22, 2006 Share Posted August 22, 2006 FWIW I had someone co-sign for me on my 1st car, which I leased. After that lease was up & was able to get credit no problem. Once you get started, as long as you don't mess up & not pay off the loan, you'll build yourself up enough credit to make real purchases. "Barack Obama, mothaf#%@a! Barack Obama! I'm the president...of hittin' the ass!" -this is not a political view it's merely a quote from a hilarious tv show. Link to comment Share on other sites More sharing options...
Mondaypride Posted August 22, 2006 Author Share Posted August 22, 2006 My parents are overseas and can not cosign my car. Who qualifies as my cosigner? My bro has a credit score around 720 or 710. He doesn't have much income though. Does he qualify? Link to comment Share on other sites More sharing options...
chenc544 Posted August 22, 2006 Share Posted August 22, 2006 My parents are overseas and can not cosign my car. Who qualifies as my cosigner? My bro has a credit score around 720 or 710. He doesn't have much income though. Does he qualify? Pretty much anybody can co-sign with you. They will be on the hook just as much as you. In essence they are buying the car with you. Link to comment Share on other sites More sharing options...
BDII Posted August 22, 2006 Share Posted August 22, 2006 [ quote=Mondaypride;727743]Hi, This is my first post so please bare with me. I have some questions regarding the finance options Subaru offers (or any other ledners you can may refer me to). I am a college student and I have been saving up some money to buy the 07' LGT this coming November. Yes, I plan to finance the LGT. ( I don't think I can save $20k within 3 months) Down payment is key! My question is how do I get credit approval to purchase the '07 LGT? I am a full-time student working full time job only during the summer/fall times. Which makes a difference I presume. You will find it hard to finance a car without a job... Do I need a proof of income? If so how much do I need to show to qualify? How does the subaru soon to graduate finance work? I won't be done with school for another year. YES, all banks require this. And what are the APR lenders normally offer to students like myself? Most offer nothing until you have graduated THANKS! BTW I am from the Tri-State Area your welcome Need forum help? Private Message legGTLT Link to comment Share on other sites More sharing options...
Mondaypride Posted August 22, 2006 Author Share Posted August 22, 2006 Thanks for the clear answers. I appreciate it. I will most likely buy a used car at this point and pay it off within a year and maybe buy a 08' LGT Spec B in the near future. What is a good place to start looking for a car loan? Lendingtree?? Link to comment Share on other sites More sharing options...
Mondaypride Posted August 22, 2006 Author Share Posted August 22, 2006 Thanks Link to comment Share on other sites More sharing options...
Jimbizzle Posted August 23, 2006 Share Posted August 23, 2006 I have a full time job and I go to school full time. I just got a loan for about 22k with rate of 7.64%. My monthly payments for 5 years are $460. I had a credit score of 660. Link to comment Share on other sites More sharing options...
EL PAALO Posted August 23, 2006 Share Posted August 23, 2006 you can use the cash you have for the down payment that you saved and get a loan from your bank based on that for a used car. paying it off quickly actually won't help your credit score as much as making all the payments on time afaik. Link to comment Share on other sites More sharing options...
Mondaypride Posted August 24, 2006 Author Share Posted August 24, 2006 Jimbizzle 7.64% is not too bad for a 5 year loan. Where did u get this loan from? The bank, dealer or one of those credit card companies? I would jump in for a loan around that kind of APR. And how much down payment did you make? Link to comment Share on other sites More sharing options...
NutBucket Posted August 24, 2006 Share Posted August 24, 2006 I have a full time job and I go to school full time. I just got a loan for about 22k with rate of 7.64%. My monthly payments for 5 years are $460. I had a credit score of 660. That's not bad. I bought my car while still in school but had been working the same job for more than 4 years. I think the main thingo for lenders is FICO and stable income. FWIW I got 4.74% over 6 years. I think my FICO was mid 700's. Link to comment Share on other sites More sharing options...
Mondaypride Posted August 24, 2006 Author Share Posted August 24, 2006 Where did you guys get these auto loans from? The dealer or the bank? It seems like capitalone and eloan is over priced interms of the APR and some even charge you origination fee! I am very curious to where I can get a decent APR loan for 5 years without hidden fees. Link to comment Share on other sites More sharing options...
NutBucket Posted August 24, 2006 Share Posted August 24, 2006 I got mine at the dealer but my bargaining chip was I knew I could get 5% from my credit union. Since they beat it I took their deal (which incidentally was through another credit union). Link to comment Share on other sites More sharing options...
The B4 Posted August 24, 2006 Share Posted August 24, 2006 Where did you guys get these auto loans from? The dealer or the bank? It seems like capitalone and eloan is over priced interms of the APR and some even charge you origination fee! I am very curious to where I can get a decent APR loan for 5 years without hidden fees. The special rates from Subaru Motors Finance (Chase) [sIGPIC][/sIGPIC] Link to comment Share on other sites More sharing options...
Jimbizzle Posted August 25, 2006 Share Posted August 25, 2006 I got my loan from the bank. Friend of a friend of my brother in law. I put down 10k Link to comment Share on other sites More sharing options...
Irrational Exuberance Posted August 25, 2006 Share Posted August 25, 2006 i don't know how you're going to purchase a 25K+ car without a cosigner as a college student, unless your making good money on a consistent basis. bullshit, lgt is my second car without a cosigner and im only 21. if you have 2+ years of good credit history (least 2 credit lines, or bill history for cell phone ect ect) you should be able to get financing on a 72 month note pretty easily at your local credit union. "i like my women the way i like terrorists... ...screaming gods name and ready to explode." http://img255.imageshack.us/img255/5479/troy3nu5.jpg Link to comment Share on other sites More sharing options...
psucaptainkickass Posted August 25, 2006 Share Posted August 25, 2006 You're in college. As a recent college grad, here is my advice. Suck it up. Buy a beater (possible an old Subie...they are bullet proof you know). Take the money you save, and spend a bit on booze....ok...maybe more than a bit... Fast forward...graduate. Get a job, then get your LGT, who knows, by then the Legacy STI may be over here, and you'll comfortably be able to afford your car without struggling to eat. Plus you'll have $$ left over for mods Link to comment Share on other sites More sharing options...
SLegacy99 Posted August 25, 2006 Share Posted August 25, 2006 Wow you must have a good summer job. Im a student as well, but I dont think I could afford this car even after I graduate. Link to comment Share on other sites More sharing options...
ece_tim Posted August 27, 2006 Share Posted August 27, 2006 Thanks for the quick response guys. Yea I can afford upto $450/month car payments and the insurance. But after reading the replies IT DOES seem like I will get murdered on the APR. My credit score is around 680 which is average I guess. But I do not have a fixed income. I guess I will have to hold off another year until I finish school. I'm in the same boat as you man, except I'm even about to start a full-time good paying job. Unfortunately I have a lot of student loans and other costs, so I'm probably going to wait until they're clearing out the 07's. Just wait man, its not worth it to potentially financially ruin you. Hold back the urge!! Link to comment Share on other sites More sharing options...
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