auto

Keep car payment in line with income

Dear Terry,
I'm trying to buy a used car from a dealership for $16,000. I earn $800 a month at my job and about $1,000 a month on eBay. I am only 18, but my credit score is 712. I keep getting denied because "officially" I do not earn more than $1,000 a month -- a figure required by three different lenders.

How can I be financed? I do not have any other bills and already save my money to invest in mutual funds weekly and have a full ride to college. I just want a nice car. I can put it on a credit card but the interest would kill me and I don't want to do that.
-- Alex

Dear Alex,
It's good that you have such a solid financial base at such a young age. You mention that you have money in mutual funds. If you have enough there, a bank may be willing to lend you money with that as collateral. Another option might be to look for something a little cheaper. While it sounds like you have a thriving eBay business going, that could change and you may find yourself hard put to make $400 a month payments on $800 a month in salary.

This week
4 safeguards when co-signing a loan
Should I refinance my loan or pay it down?
Why won't anyone finance my car deal?
Is it best to let the dealer arrange financing?
advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Air bag recall hits 4.7m cars

About 4.7 million cars have been recalled due to a possible problem with the airbags that could cause them to deploy unexpectedly.  ... Read more


Connect with us