It's not just the credit score that matters. Much more important is your income and debt/income ratio.

A credit score only tells them that you are good at paying bills on time, your income/debt ratio tells them wheter or not you can afford the car.

 

Ok cool. I know I can afford the car, my current debt and expenses are almost nothing because I live with my mom still (I'm only 18) and make about $80,000/yr. My issue is the fact that my credit isn't established because of my age. Would it still be possible to qualify?

 

If you're only 18 get ready for some nice insurance. You're classed as a brand new driver. How long have you held this job for? At 18 and if you haven't held the job for a while (3 or so years I think but don't quote me). They don't classify it as a secure income and will most likey get you to need a cosigner. I know my car when it was all said and done was close to 50g's (lots of custom stuff). And i have close to a six figure income with nobdebt and I was having a bit of trouble with the finance. Lol almost came to a point where I was just going to pay for the thing outright but in the end the dealership pushed me through.

 

Actually my credit score was high enough that I got the 3.9 interest with only a verification of employment. That was the first time I ever bought a car where the debt to income didn't necessarily matter....HOWEVER, if you have no established credit then be ready to prove you can afford it. As for the credit score....if you have above 680 with at least 3 years of credit history you are golden. You may not be able to choose your interest rate like I did but you have nothing to worry about. They classify you in Tiers (spell) according to credit worthiness (not just score but background too) and each tier has different rates and such to choose from. Thats a brief explanation of what I interpreted from my guys speech. ALSO, I drove by the dealership today and saw a 1.9% offer on the window of the GT they were selling. Maybe things changed in two weeks but that wasn't an option when I bought mine. They had 2.9% @ 60 or 3.9% @ 72. I opted for the lower monthly payment bc the difference in the amount of interest paid when the loan was paid in full was SMALL. Anyway, hope this helps.

 

Ok thanks guys, looks like I might as well go with a cosigner to ensure I get the loan to create some credit background for myself. I already know what my insurance will be, I'm not going to say how much because it's embarrasing. I could always buy the car outright but I think that's a waste of money IMO

 

Typically a cosigner is only helpful when you have a lack of income, and at 80k I would say you are ok in that dept.

 

Why would that be a waste of money? That actually makes the most financial sense.

Unless you plan on leasing it, the goal is to pay as little interest as possible. If you can put down the cash and buy it outright, that would be the best way to go.

 

Putting anything down on a car is the worst decision. Let me explain.

With that $30,000 I could put 10% down on a pre-construction condo for $300,000. Most condo's outside Toronto are seeing an increase in value of at least 5-7% from the time of deposit until the time the building is complete. Knowing that, if the $300k condo goes up 5%, we're at $315k. Since I only put down $30k, I just made $15k on it. Thats also known as a 50% ROI. Please explain why this is anything other than the best option?

Keep in mind that not everyone can do this, I'm just saying that if you can get money for 2.9%, i'll borrow as much as they'll give me because I can earn triple or more than that interest in safe investments.

 

financing always makes sense when rates are low.

Even if you have 40K in the bank, it doesnt make sens to pay it in full.

That 40K is worth more if you have it working for you than the cost of Hyundai financing.

If you are making 80K a year with no expenses, you are golden. Do you have a credit card, if yes how long have you had it

BTW...how do 18 yr olds make 80K these days lol

 

I have a Visa that i've had for about 10 months now. As for the job, its a combo of a restaurant I own and a construction company I own.

 

if you have had a visa for 10 months you won't have an issue.

but if you own 2 companies, why buy it...lease the thing as a company car. Genesis lease rates suck balls but you dont care if its a company car.

 

+1 Company car=tax right off.

 

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<div style="font-style:italic">Ok thanks guys, looks like I might as well go with a cosigner to ensure I get the loan to create some credit background for myself. I already know what my insurance will be, I'm not going to say how much because it's embarrasing. I could always buy the car outright but I think that's a waste of money IMO</div>
</div>Typically a cosigner is only helpful when you have a lack of income, and at 80k I would say you are ok in that dept.

Yeah I get what you mean but lots of people have said I have a lack of "income security" since I have only done this work since mid-08. I'll talk to the dealer and see what's up

 

Well first off writing it off as a company car is a very smart move and you shoul look into it. I always went that route when I had my own business. If you're business's are that new I would consider dropping your personal incomes by half and putting the other half backinto the company. And also you being 18 and running your own company's then yes you certainly do have no job security unfortunatly.

And cosigners are always helpful no matter how much you make a year. 80 grand is not a lot these days depending on your work, I was making 75gs a year when I was 16 as a heavy equipment operator. It's just about how hard an how much you are willing to work.

Let us know what your dealer says

 

I'm going to look into leasing it under the restaurant since it's INC. Again, I'm going to have to talk to the dealer. Payments are like $800/month for the 36 month lease! At this point, I'm not going to rush into getting a car before April. I have the truck for construction that's decked out with every option so I'm very comfortable driving, it's just not the best with corners LOL

 

800 is nothing if you're writing it off on the company!

 

I know but that's 800 payment, 800 insurance on top of the $2200 per month I pay for the truck and insurance

 

Well then maybe you should look at a 2.0l then. Way better anyway lol.

 

you pay 2200 a month for your truck?? jesu!

 

Putting the car under your business can be a good thing at the time... but at tax time you better claim what youve used as personal (and by the sounds of it, all would be personal)... if you dont... revenue canada can come and "make up" how much they think you used it for your company and get that from you... try not to mix business with pleasure... ive have friends who used a company truck for personal use (over several years) all of a sudden owe $15 k to the government because they didnt pay it for 3 years of use (claimed)

 

dont worry about prsonal use. I had a company car for years. Theres a tax form form (AB-4) that you fill out to claim prsonal use/work use distribution. Co workers clamed 100% work use as they had second personl cars. Ive never had an issue. My dad has had both his vehicles under his company for years, he wouldnt do it any other way.