Question on Car Financing..

Hey, I'mm looking to buy my first new car within the next 2 weeks. I can easily afford the payment, insurance, and gas every month, and still have a lot of money left over. I still live at home with my parents, so I wouldn't have any other bills. The car is a new Volkswagen GTI in case you were wondering.

My problem comes in in that I need a new car, as my current car (a $1000 Jeep that I've had for 2 years) is about to blow. If I can't get this car now, I will have to waste money on a car for 3 months until I can.

I am 17 and was wondering if I could finance it, with one of my parents as a cosigner. They both have credit ratings of about 750. I have found some sources saying I can, but never a definitive answer. I'm in Nevada, and would have a parent cosign when I turn 18 if I have to wait. Thanks.

 

I don't know about Nevada, but a lot of states won't enter into a contract with a minor under the age of 18. Even when you are 18, I'm fairly certain that you will have to get a parent to cosign with you.

If you're 2 weeks from buying the car, why don't you just talk to the local bank that your parents do business with? You'd get a lot better answer there than anywhere else.

 

Contracts that are entered into with a party that is not of the age of majority are viodable by either party. Basically there would not be a bank that would lend you the money to buy a car, co-signer or not, because you could come back later and say, "Uh, I really don't want the car anymore, I want to void the contract." and the dealer would have to take the car back and void the loan paperwork. If Nevada considers 17 the age of majority, you should be able to sign a loan with your folks as cosigners and get the car. If not I'm affraid that you are SOL until your 18th b-day.

 

So even though my parent, who is legally able to enter a contract agrees to pay should i default, which is essentially a contract of its own, it still wouldnt work? Once again our legal system makes no sense whatsoever, 17 year olds can commit crimes and be tried as adults, yet aren't able to legally do other things people 3 months older than them can.

 

here is a suggestion. Give your parents your money, and have them buy the car for you. They can make the monthly payments with your money.

 

I've thought about that, but I came up with a new idea thats a little complicated, but I want to build my own credit up early, so I'd have to have my name on it.

I would have them buy the car and me pay it through them for 3 months, then I'd use the other parent as my co-signer through a credit union loan, and buy it from them for the remaining balance, and pay it through my credit union.

 

do you have any credit yet?

 

Duh, he is 17. Where is he supposed to have credit established if he is needing his parents to co-sign for him now?

Sounds like a plan, to purchase the car from your parent and get the other to co-sign for you on it. Go to your credit union and discuss this with them and get their pre-approval on it so it will go easily when you do it. I was in the high-end auto business for 23 years (BMW, Audi, Ferrari) and have seen this done in the past.

 

oops, i forgot that.


Why do you want to establish credit so young??

 

I plan to be able to buy a house by the time I'm 20, and I want to have a history of good credit already. My plan is to get a car loan, make on time payments and pay it off, get a student Visa from Bank of America, and Make all on time payments on that, and generally just start building it up so I can get good rates when its time for me to finance things in the future.

 

dude, you are young. Live a little before you have to settle down and worry about all of this stuff.

 

Haha, this is my way of having fun. I don't feel comforatable unless I have things in place to help me in the future. Besides, all my money is just sitting, doing nothing right now, might as well put it to good use and get something I want.

 

it is good that you have your priorities straight, but damn, live some more. Put that money into a mutual fund or something, let it grow. Or just blow it on something fun. Have the best damn weekend or whatever you want. Be a teenager while you still can.

 

The one glaring bad part of this is that you'll most likely have to pay sales tax on the car twice then. do you really want t odo that? or does your state not have sales tax? if i were you, i'd seriously just hold out as long as you can and try to get to 18 before your Jeep goes *pop*

 

I built/bought my first house at 20,fresh out of the U.S. Navy...you can do it if you study hard, work hard, save your money and learn the art of deferred gradification...

 

I don't think NV has sales tax.

 

ah... yeah, nevermind then. still, there's title and registration and any inspections that would have to be paid twice, right?

 

Nevada doesn't have used car sales tax.