I've been trying for the last three days to finance a '00 400EX, and so far I have been unsuccessful. My problem is I don't have any credit, and my monthly income is not from a regular job, so they see me as unemployed, even though I'll be able to have it paid off by the end of the summer. I've tried my bank, other banks, and the local Honda dealer (who happens to finance through my bank, so I was screwed anyways), and none of them approved the loan. Has anyone been in a similar situation and managed to get the cash somehow (other than robbing a bank)? Please help, I'm very frustrated.

 

What you should do, is just save up and pay cash for it.

You go out and wreck it then you are making payments on top of repairs

 

you need someone with good credid to co-sign the loan,and a bigger down payment will help persuade the bank,otherwise if you do get a loan you'll end up with about 18% intrest and end up paying 1 1/2 times what its worth

 

Motorhead:
Frankd is right. Have you tried getting someone to co-sign for you? Not sure of your age, but this could be your wife-if married, parents, grandparents, etc. It basically says that if you do not keep up with the monthly payments, your co-signer agrees to pay-only when you can't. I ran into this same type of problem last year, trying to finance a new car. Didn't have enough cash, so the loan was about double what I had borrowed previously. Since I hadn't borrowed that kind of money before, they required a co-signer. Got that, and everything went through just fine. Also, the more money you have in your pocket as a down payment, the more the bank will listen to you. Money talks in this game, sometimes it takes more up front, to get what you want. It also helps lower the interest rate, as your loan will be for a lower amount.

Also, again, not sure of your age, but a good way to start establishing credit for yourself is to get a credit card. I hate to say that, but at least it's a start. The key though, is NOT to use it. If you do, PAY IT OFF IMMEDIATELY! Otherwise, they tack on all the interest, and possible finance charges, or overdraft charges if you exceed your limit. They give credit cards to anyone at the age of 18 (I think), so it shouldn't be too hard to find one. Even if you don't use it, you are still establishing points with the credit bureau, which will help you later in life with things like car loans, or home loans.

Good luck!, Hope something works out.

Mike

 

Thanks for all the advice guys. For the record, I'm 20. I was trying to avoid saving up for it, since having it now would be better than having it later.
Also, I have tried a cosigner, my parents won't cosign (they don't think I need to buy a new wheeler), and my brother's credit isn't good enough. Like I said, I'll have it paid off by the end of the summer, so I don't care if they wanted to charge me 50% interest! It wouldn't affect what I end up paying by very much (since there will only be about 4-5 months worth of payments). I've even told the bank that I would put up the title to my current fourwheeler and my '86 Ford Bronco for collateral, but they said that wouldn't help, because of my complete lack of credit. Ugh.
I'm sure glad my parents have told me not to get all those 'evil' credit cards, because the thousands of dollars I've spent on stuff over the last two years could have gotten me some good credit, and god knows we wouldn't want THAT to happen!! (that was sarcasm, sorry guys, just needed to vent a little

Any more ideas are welcome, but I think I've exhausted all possibilities.

 

Motorhead,I truly give you my sympathy.I too was at 19 yrs old and had 000 for a credit history.I know what it feels like to want something and no one there to help.My parents would'nt co-sign for toilet paper, even if I needed it.

Now,at age 42,when my son Rocky was 16,I co-signed on a 500 dollar loan for him.Than at age 17,I co-signed again for 1000 dollars.He paid both loans off.

I did this for two reasons.One,when he turned 19 or 20 and wanted something of value,the bank would have a past credit history to look at.Two,hopefully I would not have to co-sign anymore.

Well, now he has a great job and wanted a newer Firebird and everything went well with him getting a loan.

Its so TOUGH being young.It seems like nobody understands us when we are that young.But today,looking back,Did I really need my father co-signing for a 1970 SS Chevelle 454?

''Thanks DAD'',I might have killed myself in that car.====BILL

 

Bill:
I think it's great you were able to help out your son. It really makes it difficult to acquire credit ratings if your parents won't help you out. (I speak from past experience), though when I look back, it was probably better my parents wouldn't help me at the time!

Motorhead:
I'm really sorry to hear of your circumstances. Not sure how you would be able to get the loan now. Hate to say it, but maybe you will have to work for another month or so, then go in with the extra cash, see if that helps change the banks minds. I would still suggest getting a credit card of some kind, and just not using it. It will at least get you a start with the credit companies, which will help later on for other loans.

Best of luck to ya!

Mike

 

Motorhead,where does your monthy income come from if its not from a regular job?I think you not showing income from a normal job is hurting you as much as showing no previous credit history.Maybe you are self employed?

Someday,you will be allowed credit.Im recommending that you practice keeping it in good standing.I have a 52 yr old brother with a horrible credit history.The banks wont even look at him.

Hang in there,in time,things ''WILL'' straighten out,===BILL

 

Well, right now I'm going to college, and so my dad offered to give me $300/month for school expenses so I wouldn't have to work part time. This is my monthly income right now, but next month when school gets out I will be working at the local paper mill as a summer hire, and I'll make plenty of money through the summer to pay the loan back. I doubt the fact that I will have a job next month really helps my getting a loan now, I'm afraid I'll just have to wait until I start working, then maybe I'll have better luck.

 

Hey Motorhead:
Are you down there at LCC by chance? I'm up here at WSU in Pullman, run down to Lewiston quite frequently. I know what you mean about the school thing. Can't wait to get the heck out of here. If all goes well, I am hoping to get graduated by May 5th, then no more school!

Good luck to ya, sorry you've got to wait a little longer. It'll work out though.

Mike