Anonymous
Anonymous asked in Business & FinancePersonal Finance · 3 weeks ago

Questions about auto loans?

I'm 17 and interested in getting my first car. There are certain things about getting and using a loan I'm just a little confused about. I kinda understand interest rates are and what financing is. I don't know if my question will make sense, I'm poorly educated on this kind of topic but I'd really need to learn. 

-Can I pick any amount of loan that I want? 

-If there was a car that cost a little over $5,000 and was not from a dealership meaning I had to pay in full, would it be bad to use a loan for that? Would nearly using all the loan money affect my credit score?

- How would I keep good credit?

-How do I find out what % of interest rate will I be paying? Not the amount of money I'd end up paying, but the percentage that helps you figure out that amount. 

I'm not exactly sure what I know and don't know, so literally giving me any information on this topic will help greatly. 

2 Answers

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  • 3 weeks ago

    u can not get any loan u want. u should have a proper income to get a loan. if u have a job and a monthly salary u go to a dealership (they arrange loans, but more expensive ones) or to a bank and enquire there. it does not cost anything. after u find out what sort of a loan u can get u search for a car. no, u can not get a bigger loan than a car cost. first u find a car then u apply for a loan. some dealerships where i live may sell u a car no money down. so they finance 100% of the car cost.

  • 3 weeks ago

    (after you turn 18 ...} The loan amount will be less than the car you contract to buy. [Price - downpayment = loan amount.] The car is the lender's security (that you will repay the loan; or else they settle the debt by repossessing the car).  The contract has to tell you the interest rate. Creditworthy adults can get loans to buy a car from a private seller. Borrowing and using money is a (credit) non-event, NOT REPAYING the loan within terms is what ruins your credit. {editorial - we really need more reality based algebra classes in our schools.}

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