WWYD? [NWR]

MissOnnaleese

       A few weeks ago my car was parked in the parking lot of walmart and the front end was run over. [Yes the guy was in a truck, and literally drove up and over the front  of the car] They totaled the car out and gave us a check for 2300.
We've been trying to get a loan out for a new car.
      The problem with this is whether we'll be approved or not. Both of us have very good credit [all bills are paid on time in full yadah ydah] however neither of us have a long credit history which is making this process a pain in the arse. So heres the question

Should we continue trying to get a loan for the car or just give in and spend our savings [ around $8,000]


Side notes/
Push come to shove we'll most likely be able to get the loan, whether its a car loan or personal loan, its the matter of waiting.
We're not in a huge pinch because BF's dad is a mechanic so they always have an abundance of cars we can barrow in the mean time.

PaigeMcC

I would wait. I actually just got my first car in August and I had to wait b/c I really didn't have enough of a credit history to get it before that.  I'm not sure how stuff like this works in other countries but would having a co-signer with more history help at all? In the end my dad signed as my co-signer on my car just to get the process rolling

tafft1

My co worker just had a hell of a time getting a loan and eventually had to have a co signer , however she didn't have any credit , good or bad so i think you are on much more stable ground. No harm in taking some from savings to help  - but i don't see the need to take it all and deplete that hard saved money all at once unless it was dire straits. Be persistent and try looking at all options before making a final choice. Good luck

katanne9

It depends, how much savings do you have?

The only thing I plan on taking out a loan for is a house or higher education. So, IMO, I would pay for it up front if you can.

loopy82

Have you gone to a bank or dealership yet to see if you can get approved and for how much?

It doesn't cost you anything to go into your bank or the dealership to get your credit/ application run to see if you qualify for a loan and at what rate.

My FI works for a dealership so I hear a ton about the financing stuff.

If you know you have good credit and have credit that is definitely a bonus. Banks are generally picky about the age and miles on a car when they give out a loan.

If you didn't absolutely have to I wouldnt blow your entire savings on buying a car. Maybe use some of your savings so you can put money down. That may also help with the financing portion of it.

MissOnnaleese

Thanks for the opinions!

Loopy, we went to the dealership that BF's dad works as a master diagnostic technician, and could get approved for around 27,000 with BF and his dad buying. However we don't want to spend that much because we have a 5 year plan [haha] and that much just doesn't work into it.

We've put in our app at our local credit union we've both banked at forever and are waiting the results. [Every time we go in the loan person is on lunch. irratating]

I think we'll hold out and just get the loan, and continue saving our money

loopy82

yeah $27,000 is ton of money to spend on a car. Well at least you know that you have options available to you.

Good luck!

Oh and since you can spend up to 27 - I'll sell you my civic for the $17,500 that I owe.  

nefariousmango

We used our credit union and got a great deal, better then the dealerships could offer us by a mile, so I think that's a good route!  They do loans for used cars, we ended up buying from a private seller because the car we wanted is hard to find (forester, newer, manual transmission).

MissOnnaleese

Hahah Loopy 17000 still a little to high for me! BF is going back later today to hopefully talk to the loan person. So hopefully today we figure it out! But I highly doubt it haha

loopy82

Yeah that is what I get for getting a brand new car. I have come to realize that I should not own brand new cars. I am super picky while its under warranty and think the car should continue to be 110% perfect. While when I own a used car I don't let the little things bother me.

Well good luck and personally I enjoy car shopping, even though it seems like most people hate it.