Anyone a finance manager or know about financing?
 

So, I've been trying to buy a new quad since I was 14, and after many deals with family falling through, when Iturned 16 Ig ot a job, and kept it unitl I was 18. I then quit, but unfortunately had to return to work there due tot he fact that finding a job around here is hard. So anyway, I want to buy myself a quad and I figured if I finance it, I can establish credit so later on things like a new car or house will be esier for me to get. I want to know if you guys think it is even going to be possible for me to finance a quad. so here's the rundown

I just turned 18 and don't have any bills. Gross approximately $1200(bring home $800-$900) a month and have only had one employer my entire working career, the problem is I quit for about a month and a half when I thought I had another(much better) job lined up and things fell through(I know, stupid) But I am currently employed by the same company- since early December. Now, I have no credit, I have tried once before to buy a quad but needed a co-signer, and will have about $1500 for a down payment. Anybody "in the know" think I have a chance at getting financed?

Now, I don't want to hear any "pay cash, blah blah blah stuff". I want to buy a "toy" before I have real bills and can afford to. I've had more than enough time to wiegh the + and - to financing, and I have made the decision that I want to try to. I also plan on paying it off within a year(before I go away to college) SO if you have any advice or input on this subject, I would appreciate it.

Anyone a finance manager or know about financing?
 

Its possible,
Usually they look at your FICA score, and if its not a certain number , ans you have a max number of adverse accounts (or none), ect. But recreation vehicles are low on the list of priroities. They know what you are going to have to start paying rent/mortgage, get a truck, ect.
Do you have a checking account? A savings account?
If you do, go to your bank first.
If not, ask the finance manager/salesman what credit unions/banks they work with, and go down there and talk to the loan officers in person first. Keep the ball in your court.

Anyone a finance manager or know about financing?
 

Yes, I do have Checking and savings account. I am afraid though that that will adversely affect my chances because when I opened my account, the gentelmen that opened my account opended 2 checking accounts, closed out one and sent me the checks for the closed account before I realized it and ended up with 2 bad checks because of it(although this was resolved). Also, if I had my $1500 down payment and used my vehicle as collateral, would that help my chances? I appreciate the response.

Anyone a finance manager or know about financing?
 

Probably your best bet is with your local bank. Having a significant down payment is a great idea.

A loan is all about risk - the bank is assesing how much risk is involved to come up with an interest amount within the current market range. On the minus side - you are young and have no credit history. This will cause the lender to be less interested in making the loan and thus, they will charge you a higher interest rate. What you need to do is to offset this by selling the bank on the positive side of giving you the loan: You will be making a down payment so the ATV should always have a value high enough to pay off the loan, you have a steady income with few expenses - can't hurt to go to the bank with a budget plan. You should be able to get a loan however expect to pay a few points extra in interest or even have a requirement for a co-signer.

I bought my first new car at age 19. I'd been working for years, had saved some of the money and was able to get a competitive loan through my local bank. However, since I had no credit history, they required that I have a co-signer. So basically, my first 'loan application' was to convince my dad that I could afford the car, then with his co-signing I was able to get the loan. That was the first and last time that I needed a co-signer. You may not like the idea of a co-signer, but look at it from the bank's point of view; If you can't convince your parents (or other potential co-signer) that you are good for the loan, why should the bank believe it either.

Also, if you can't work things out with your regular bank, shop around. Bottom line - Getting a loan is just buying money.

Jaybee

Anyone a finance manager or know about financing?
 

i was 24 when i bought my own quad,i owned my own construction buisness at the time.i had no credit what so ever,i went there thinking if i had half the money i could finance the rest so i could build up some credit.at the time i showed them proof that i was bringing home $2500 on a bad week,i even showed them a few weeks that i brought home $6000,then denied me financing without a co-signer,i said ok whatever then and just paid cash,drove home with the machine in the truck and no sooner than i walked through the door the phone rang,it was the dealer,they said they found a bank to finance me at a low rate.so i ended up getting all my money back and filled out the finance papers.im assuming they are going to want a co-signer before they finance you,but it doesnt hurt to try..good luck..

Anyone a finance manager or know about financing?
 

Thanks for the info. I had tryed once a month or two ago, and they said I needed a co-signer, or $800 down, which I had but I blew up the tranny in my car so that had to come first. My biggest concern is the fact that I had quit my job, and have only been back for a short period of time.

Anyone a finance manager or know about financing?
 

what about financing through the manufacter honda,yamaha,or whoever ? u may have a better chance than with a bank

Anyone a finance manager or know about financing?
 

LOL, funniest thing I've ever heard. I'm not trying to dog on ya, but if you do a little research you'll understand why I laughed at that comment. I do appreciate you throwing out idea's though.

Anyone a finance manager or know about financing?
 

Actually Pendejo, you may want to laugh a little less and check out the manufactures deals. Lord knows, if you search through these forums, you'll find that I'm the first one to rag on the dealer financing deals. However, not all the dealer financing plans are bad. My only complaints are the misleading "buy a quad for $49 a month" types. Many manufactures offer regular term financing at competive interest rates. The big thing about the dealer financing plans is that you need to make sure that you are totally clear as to the terms, conditions and possible penalties of the plan. Just be wary of plans that have low, short term interest rates and above all else, make sure that your finances put you in a position where you know that you can afford whaever payment plan you set up.

One possible advantage for you with the dealer plans is that your age and lack of credit history will be less of a factor. Since the manufactures financing plans have more built-in safeguards (safeguards for the manufacturer - if you fall off the plan then it kicks into a higher interest loan) they have more of a hold over you than a regular bank would. This could mean that you could finance with them without getting a co-signer. I still think it's a better deal to go with a bank or credit union, but as a first time borrower, you are going to have to make a few compromises.

You seem to be approaching this in a smart way so explore all the options and stick to your budget.

Jaybee

Anyone a finance manager or know about financing?
 

One quick point on security and repayment of certain loans ie recreational property. Atv's, boats, travel trailers, cottages and any other hobby collateral have higher rates of none payment simply due to need vs want, this is why interest rates are higher and approval percentages are lower for these items.

One needs a car to get to work, one needs a house to live in but if you lose your job the first payment to be skiped will be the ATV's and any other hobby asset you have in your garage. This why cottages require a higher down payment of 25% vs 5% for a residential home. The buyer now has incentive to deal with the cottage and not let the bank forclose as the owner could lose $50 grand or so.

Banks are low risk lenders therefore they need to mitigate losses as the shareholders demand this to protect their own investment.

If you are having a hard time obtaining credit try a secondary lender, you will pay 4 times higher interest but you will have history of repayment after the loan has matured. Also, don't pay the loan off early as this does not help you becuase lenders want to see that you can make the payments month after month and most important, on time. I can not stress this enough. Always make your payment on time!

And yes my background is in banking as a SR manager.

Good luck

Anyone a finance manager or know about financing?
 

So, no better ways to get financed eh? I have a quad, but wanted to buy a new one for the sole purpose of establishing credit. I have a truck and car, no payments, so the quad is the only thing I'd want to get new and finance. I'm 19 with no credit (besides a few paid in full Visa payments) and have been denied three times by the dealerships and manufacturers. It sucks. I can get financed for a $20k truck, but not a $6k quad. I know it's higher risk for them to sell a "toy" to you versus a need, but I NEED credit so d*mn!. Anyways, making a down payment doesn't help in getting financed on an ATV, just reduces your monthly payments. I doubt any other dealership will be different as far as financing goes, it's not their fault. The only thing I've come up with is to take out a small loan (like $500) and pay it back monthly to build credit. I don't make a lot, $600/week salary but it's plenty to finance a quad having only a cell phone bill. If anyone else knows a way, let us know!

Anyone a finance manager or know about financing?
 

That's not so funny, they might be the only ones to finance you. It is not like you are going to get a 7% loan from a bank, either way you are looking at a good 20%. At your age, the best thing you can do for your credit is go back to school, and get student loans. Don't miss a payment, or you are screwed.

Anyone a finance manager or know about financing?
 

Sorry, guess I jumped to conclusions with the Manufacturer financing. It's just hard for me to want to even attempt with them with all the horror stories I hear, plus the first time I tryed the salesman said the only way I'd get financed through through Kawie(Househeld Bank) is if I had Perfect credit, he says they are extremely picky whereas one of the credit unions' the dealer uses is less-so. So let me run this by you guys, the last time I tryed, the salesman tryed through a Credit Union(Selco) and they said they would loan to me if I etiher had a co signer with near perfect credit or $6-800 down. Do you guys think that with my employment history that would still apply? I guess I just need to speak with the dealer about this stuff, but I really want as much information as possible before I get in over my head into something. Thanks

Anyone a finance manager or know about financing?
 

I doubt the employment thing would matter, as long as you have a job now. Espicially if its in the same feild.

Anyone a finance manager or know about financing?
 

I agree with KGB. The only way to find out, is go apply again. One thing though, I was told that if you apply to, let's say, Yamaha from one dealership, and they approve, then apply at a different Yamaha dealership you willl get denied. What I'm saying is don't apply at two different dealerships, even if they both sell the same brand.

Anyone a finance manager or know about financing?
 

Really, didn't know that. Anyway, there's really only one dealership that will get my business and thats who I'll try with again, seeing as I was "approved" through them, I guess you could say.

Anyone a finance manager or know about financing?
 

The fact is you will not get financed by a dealer with out a co signor. Look at the risk they are taking. They will not finance you with out a co signer. What I would do if I did not have a co signer is go to my local credit union. Remember, 95% of the time when you are turned down for cresit it is for the best. It helps protect you from yourself. You do not want to mess up over a ATV. So get a loan from your credit union far a mid range bike. Something you can afford that if it breaks you can still get it fixed with out breaking your bank. You do not want to be stuck at home while your buddies are going on a trip because you have to pay for your ATV. Take baby steps. Buy a mid level bike, and step up when your 20 or 21. Then your credit will be established and you can get those promotions. Good Luck.

Anyone a finance manager or know about financing?
 

Yea, it was a credit union that said they would loan to me with a down payment.

Anyone a finance manager or know about financing?
 

Well, I finally went and talked to the dealer last week. I talked with the same salesmen, told him I have $1000, maybe more to put down on a new 400. He says "ok, we'll se what we can do". Hour later and now the credit union wants a Co-Signer plus cash down, I was kinda p1ssed since they told me before all I needed was 6-800 down. As I was walking out the door he says "wait, there is another option..."

"We have another company that can get just about anybody financed, but you'll pay about 30%"

I told him ok, since I had planned on paying it off soon anyway. He goes into some guys office for half an hour and comes out and I can tell by the look on his face it was a no go. "They want $4500 down now". So I said thanks and left. Now, this makes absolutely no sense to me whatsoever. This dealer has billboards posted that say "Guaranteed financing...as the law allows" "Good credit, bad credit, no credit OK" and this is the best they can do, make me put $4500 down on a $5500 machine AND pay an outrageous 30% interest. I know someone without credit is a huge risk but come on, that's just crap. A buddy of mine had no credit, quit his job and came back twice, then quit again and only had a job for a month and got a 2004 Silverado, but I can't seem to get a $5000 ATV even with a downpayment. All this after they told me 4 months ago that I was approved if I could come up with the $800 down payment. Grrrrrrr.... Ok done ranting now.

Anyone a finance manager or know about financing?
 

Well, quads and dirt bikes are generally considered more risky as it is. They are not usually left parked on the street (where they can get repo'd), and they are more likely to get thrashed (and loose most of their value). I don't think briefly leaving your job will hurt your credit. Actually, if I were the loan officer, the fact that they hired you back would indicate to me that you must be half-way responsible and a good worker, and smart enough not to burn your bridges.

You might consider financing something else to establish credit, like a car or truck, and save some more and pay cash for a used quad if you have to.

It sounds like you have a pretty good head on your shoulders. Don't let your lust for a new machine overcome common sense (like financing something at 30%).

Two rules when you do finance something:

NEVER, EVER get into anything upside down. Make sure you put enough down that you could easily sell the item used for more than you owe.

ALWAYS make sure there is extra money left over each month, and that you have a reserve of cash. The car will someday need tires, the water heater will break... You need to have enough money saved up so you could keep up your payments long enough to sell what you owe on, in the event you got laid off or hurt and couldn't work...

Anyone a finance manager or know about financing?
 

Hey kid! Go find ATV rental and rent for the weekend when you want to ride. You basically have no money, it's better to rent when you want to ride than getting into a loan situation and you have no job to pay. As you described, you are not that responsible for job or money. Don't buy one and then go to college and have to sell it. You will lose a lot of value and owe more that what it's worth.

Anyone a finance manager or know about financing?
 

i went through this exact same thing a couple years ago. i proved that i made plenty enough to cover the low payments of an atv, and altho i didnt have much of a credit history, i proved that i was responsible and made all my payments on my phone and my old credit card, as well as my SUV. yet i put an application in to finance a new quad that was $5200 out the door done deal, and i had a $3000 cash in my pocket on the table at the dealership for a down-payment., (which was more than 50% of the total cost). i was denied instantly because i had no co-signer.
so i went and payed cash and got an atv i like better anyway. right now i have had time to build up a little more credit, so i went and tried to finance a new 2005 atv. once again i had no co-signer and i was denied INSTANTLY again.

here is my opinion, and the old timers can say what they want to (i mean no offence or dis-respect at all) but if you think about it, thse credit companies (no matter which one they all suck) Discriminate against anyone who is under 30 years old or so. this same thing has happened to alot of people i know.

so when they say "you need a co-signer" what they really mean is "we will not approve you because your age ultimately means you are not responsibe and cant make payments" thats what they really think about the younger crowd. they look at what a few people have done in the past, and they expect you will do that same exact thing. so what a few un-resposible people do, effects millions of truely-responsible people in the end.

so all i have to say to these credit companies, is kiss my arse, if they dont want my buisness than i dont want theirs.

Anyone a finance manager or know about financing?
 

PmanX8,

Hey, I understand where you are coming from. I don't think it is really that they have a bias just based on age, though.

I would imagine that someone somewhere in the finance world has figured out statistically what the odds are of someone defaulting on the loan if the person is 23, has $8k in the bank, rents, and has had a car payment for a couple of years with no problem.

Likewise, they can probably also tell you the odds of a 39 year old guy defaulting, who has 12k sitting in the bank, 200k in various retirement investments, and say 70k equity in a house and 20 plus years of positive credit history....

I'm sure the finance company would love your business, afterall, interest money from you would spend just the same as interest money coming in from someone who is 50. It's just that the odds/statistics may not work out, not something personal against you, or young people.

Unfortunately, there are people out there who will finance something, trash it, and never make a single payment. In small loans especially, the risks are high, and one bad loan will cost them more than they make in a bunch of good ones... Also, a lot of the lower rate financing places won't deal with a loan smaller than 5k or even 12k...

Anyone a finance manager or know about financing?
 

NoATV, I have to disagree, but am not going to comment any further than that. Anyway, as far as the quad goes, I don't really care anymore. Apparently I just wasn't meant to have one because the way things keep going related to it, it certainly seems' like more than a coincindence that somebody is keeping me from owning own(this coming from someone who doesn't believe in things of that nature usually). I appreciate all our input and advice though.

Anyone a finance manager or know about financing?
 

I have been in finance for 15 years. You need to understand that most financing is based on credit scores now. Credit scores are based on various factors, including age, time in your job, and credit history. Lack of credit history is almost as bad as bad credit history. You should do yourself a favor and get yourself a credit card. Try to get a Visa/MC not a dept store card. This is your most likely source of initial credit. Start with a low available balance, less than $1000, and use it but pay it off monthly. If you do this for a year then other forms of credit will become available.

Anyone a finance manager or know about financing?
 

try a bank but if they turn you down, do like I did when I was 17. go to a finance company, They will lend money to the dead for gods sake. You will pay some kick ass interest for six months then return to the bank and show them your responsible. Check in to costs of paying the finance company off early also.