Why am I having trouble finding a car loan?

I'm 24 years old and I need a new car desperately. I just started working a good job this year and I'm looking for a newer used car for about $15,000 and I can put down $1500 at the moment. I was looking at a few different cars and noticed they always want a higher down payment just to get my payments below 300 a month for 60 even 72 months... My credit isnt bad but it's not great either. The thing is it doesnt matter that all these cars are the same price when I look at a cheap chevy or something I wouldnt buy suddenly my interest rate goes way down even though it's the same price. Can someone shed some light on this for me or give me any tips?

3 Answers

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  • 3 weeks ago

    I see a number of things that are possible problems here. 

    First, you say you got good job this year, but you can only come up with $1500 for a down payment. That's only 10% of a $15,000 car purchase. You should be thinking about *at least* 20% for someone with not-so-good credit, a short employment history, and wanting a *long* loan term of 72 months (the longer the loan, the higher your interest rate).Second, a $15,000 car is way too ambitious for someone in your circumstances. You should be looking for something in the $8000-$10,000 range as a first step (upgrade to a more expensive car later when you're better able to afford it), make a relatively large down payment (at least 20%), and get a loan term of no more than 48 months.By the time you finish this loan, you will have longer-term employment, a better income, and an improved credit score -- as long as you make ALL your payments on time and NEVER miss a payment. Then . . . .  you will be able to afford a $15,000 car (or higher) with ease.

    Like a lot of folks of your age and circumstances, you may be guilty of wanting (or expecting) too much, too quick, too easily. Slow down, take smaller steps, don't be impatient, and you'll do just fine. 

  • martin
    Lv 7
    3 weeks ago

    The financial analysts making the decision on the loan are looking at your age, years of employment, wage level, and all the probabilities. Your best bet is to get the car you really want, as long as your job is secure, and give the lender the higher down payment in order to get lower monthly payments.

  • 3 weeks ago

    Ask your bank if they can help. As a customer you should get preferential treatment.

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