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Started By
Message
My son needs a new car - recent college graduate
Posted on 9/8/17 at 2:47 pm
Posted on 9/8/17 at 2:47 pm
He graduated from college last year and is currently living in San Diego. He got t-boned last month and his car was totalled.
He is looking to get another car, but he has no credit. He was looking to get a slightly used Kia Optima, but all of the interest rates for loans on used cars are 12% plus, because he has no credit history.
I have suggested that he check out new cars, because they may have special pricing/financing deals for new graduates with no credit history. He has a solid job as an officer in the Navy.
Does anybody have any experience with which manufacturers are aggressively going after recent grads?
He doesn't really care that much about the car, itself. He is looking for something reliable that will last a long time. A Honda Civic, or something similar.
He is looking to get another car, but he has no credit. He was looking to get a slightly used Kia Optima, but all of the interest rates for loans on used cars are 12% plus, because he has no credit history.
I have suggested that he check out new cars, because they may have special pricing/financing deals for new graduates with no credit history. He has a solid job as an officer in the Navy.
Does anybody have any experience with which manufacturers are aggressively going after recent grads?
He doesn't really care that much about the car, itself. He is looking for something reliable that will last a long time. A Honda Civic, or something similar.
11
Posted on 9/8/17 at 2:57 pm to Jax-Tiger
If he is an officer in the Navy, have him look at Navy Federal CU & USAA. I am a member of both institutions and I believe used vehicle loans at Navy Federal are ~4% under 60 months. If he has no credit, they may work with him.
I would also suggest he get a credit card and start putting regular expenses that he can pay off on that card each month. Gas, groceries, etc. Things he can afford and is going to buy anyway. This will help the credit issue over time.
Lastly, if he was T-boned and the car was totaled, did the other drivers insurance company cover any of the damage? He should have a significant amount to put down or almost pay in full depending on what he was driving previously?
Navy Federal
I would also suggest he get a credit card and start putting regular expenses that he can pay off on that card each month. Gas, groceries, etc. Things he can afford and is going to buy anyway. This will help the credit issue over time.
Lastly, if he was T-boned and the car was totaled, did the other drivers insurance company cover any of the damage? He should have a significant amount to put down or almost pay in full depending on what he was driving previously?
Navy Federal
This post was edited on 9/8/17 at 3:33 pm
Posted on 9/8/17 at 3:02 pm to Jax-Tiger
Toyota has grad assist program, 20% down on Corolla and get done
Posted on 9/8/17 at 3:37 pm to Jax-Tiger
My son bought a new truck a few months out of college. My husband had to cosign for him. A few months after that my son bought a $250,000 house by himself. Funny how credit works.
Posted on 9/8/17 at 4:09 pm to LSUShock
He was driving a 1998 Camry. He got 3 grand for it. I thought that was pretty good...
I advised him to get a credit card after he graduated, but he kept putting it off. He filled out his application at USAA two days ago.
USAA quoted him 12.3%. He literally has no credit and no debt - not even school loans.
I advised him to get a credit card after he graduated, but he kept putting it off. He filled out his application at USAA two days ago.
USAA quoted him 12.3%. He literally has no credit and no debt - not even school loans.
Posted on 9/8/17 at 4:13 pm to Jax-Tiger
quote:
USAA quoted him 12.3%
Highway robbery
Posted on 9/8/17 at 5:17 pm to Jax-Tiger
quote:
He was driving a 1998 Camry. He got 3 grand for it. I thought that was pretty good...
That's a good start for money down on something nice and new. Hopefully Navy Federal would better that 12%. That's crazy.
Now that I think about it, when I bought my 2014 Accord brand new, they were running a decent new grad promo on financing. I had the credit history, but I think it was like .9% or something. Honda
This post was edited on 9/9/17 at 7:53 am
Posted on 9/8/17 at 8:26 pm to Jax-Tiger
He probably needs to find another clunker and drive it for a bit while he boosts his credit by getting a credit card and using it
Posted on 9/8/17 at 9:12 pm to Jax-Tiger
Tell him to buy a used Honda/Toyota for $5k cash. Get a credit card and build credit
Posted on 9/9/17 at 2:24 am to Jax-Tiger
I'm pretty sure most manufacturers offer incentives for new college graduates. However, the lending institutions will still want some type of credit history and unfortunately sounds like it's a big impact to his rate.
Why not just get a co-signer? Easy way to get a car at a lower rate and build his credit.
If not, look at used cars. I wouldn't suggest paying cash as it won't help his credit problem. Just finance 5-7k, pay it off in a year or two. Won't cost him that much in interest and builds credit history.
Why not just get a co-signer? Easy way to get a car at a lower rate and build his credit.
If not, look at used cars. I wouldn't suggest paying cash as it won't help his credit problem. Just finance 5-7k, pay it off in a year or two. Won't cost him that much in interest and builds credit history.
Posted on 9/9/17 at 11:00 pm to Jax-Tiger
Have you considered co-signing for him?
If he just has a lack of credit, you co-signing could get him a very good rate.
If he just has a lack of credit, you co-signing could get him a very good rate.
Posted on 9/9/17 at 11:43 pm to Slickback
I am cosigning. He's still not getting a great rate.
I just found out that he gave them his net income, instead of his gross income. Hopefully that helps.
I think he is going to get a Kia Forte. He found a brand new one for $15,600, including tax, tag, and title. Waiting to see on the financing.
I just found out that he gave them his net income, instead of his gross income. Hopefully that helps.
I think he is going to get a Kia Forte. He found a brand new one for $15,600, including tax, tag, and title. Waiting to see on the financing.
Posted on 9/10/17 at 10:41 am to Jax-Tiger
Toyota often has 0% financing deals on the Camry. In my opinion, the Camry would be much more reliable and a better deal if it it initially cost a few thousand more than the Kia.
Posted on 9/10/17 at 1:40 pm to Jax-Tiger
He needs to use the $3000 and pay and extra 1-2,000 and get a high mileage Honda or Toyota.
Teach him now to pay cash for cars.
It will save him so much over his lifetime.
Teach him now to pay cash for cars.
It will save him so much over his lifetime.
Posted on 9/11/17 at 1:08 pm to SECdragonmaster
quote:
He needs to use the $3000 and pay and extra 1-2,000 and get a high mileage Honda or Toyota.
Teach him now to pay cash for cars.
It will save him so much over his lifetime.
While I agree, he wants a low mileage car because he takes a lot of trips into Arizona/New Mexico, and he is often driving in areas where there is no cell coverage or people. He wants something reliable.
It seems that right now, some manufacturers are offering new cars for about the same cost as a low mileage used car because of the incentives they are offering right now.
Posted on 9/11/17 at 8:45 pm to Jax-Tiger
To help him with his credit, put him as an authorized user on your oldest credit card with a high credit limit (low balance preferably) and cut up the card. Over a few months his credit will go up
Posted on 9/12/17 at 11:01 am to mobbarley
quote:
To help him with his credit, put him as an authorized user on your oldest credit card with a high credit limit (low balance preferably) and cut up the card. Over a few months his credit will go up
definitely this ^
also on board with the higher mileage toyota route. ive never heard of a camry having problems with less than 200k miles. i sold a 2007 camry in 2015 with 100k miles for $8,000 (had some higher end options as well). something like that would be plenty reliable for your son and last him well into his next car purchase. personally, i'd trust a 5 year old toyota over a new kia.
we have a honda accord now, which we love, but it has had transmission trouble. i've heard of several others with same issues. not a broke down on side of road kind of issue though.
This post was edited on 9/12/17 at 11:01 am
Posted on 9/12/17 at 1:04 pm to Jax-Tiger
Can you afford to pay cash for the car? I might consider that and charge him 2.5%. The kid seems to have his head on straight and this would be a little help with the interest. There are worse things for a young man then having no credit.... Bad Credit.
I would insist on a "starter car", which seems to be the choice anyway.
I would insist on a "starter car", which seems to be the choice anyway.
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