Buying my first car? Questions?

Used cars are out the question.

Hey! So I'm 18 years old, and I need to a buy a car. My mother's car broke down, and we're car-less at the moment. I was looking at mustangs and challengers. I can afford a $1,000 down payment, and I can afford the monthly payment and insurance with my income.

The thing is, I have no credit at all & my mother's credit is absolute trash. How do you think this process will go?
• What do the dealerships look at in order to approve you?
• Can I even get a car? Dodge or Ford houses.
• Should I apply for a car loan, or is there too much risk? Am I even able?

I'm responsible with my money and would make payments on time, even if I lost my job I could dip into my savings for awhile.

• If I did get a loan, what would be the process on that?
• If anyone can recommend reliable cars. Of course I care about the aesthetics but I'd choose reliability over looks any day.

In order for you to obtain an auto loan, you must meet the requirements set by the lender. You need a history of full time employment, a good credit history and income of at least $1800/per month assuming you have very few other monthly obligations. Most 18 year olds would not qualify.

My greatest lesson in life to you is to pay cash for your cars - all your life. You got $1000? Buy a $1000 car and save the money you would be making payments for the next car. You would be able to buy a car which is twice as good in about a year. (My first car cost $35, Now my cars cost $120,000 new).

At 18 don't look for a loan or Mustangs and Challengers.
Look for something cheap, both to buy and run. It will probably last as long as you are more likely to run a Mustang into a tree.
Get some more money behind you before trying to drive above your means.

You will not get a loan. You might get a buy here pay here piece of s* it from a shady dealer, but that's about it. You have champagne taste and a beer wallet.

You can get a loan *only* if your mother's credit is good and she co-signature the loan.
(unless the the APR is over 15%)

I started driving on my 16th birthday, no "permit", no "road test", on the road without training.
First two cars were PoS, cash. No tickets, no accident for two and a half years.

Third was also for cash, that I borrowed from my mother. It was a Sports Car. I totaled it within three months. You might want to reconsider that Mustang/Challenger. Think "Used" and "Fiesta."

@ 18 it's unlikely you will get approved for an auto loan for a brand new car… Get real a used car is what you will get.

Since "used cars are out of the question", I guess you won't be purchasing a car.

"I'm responsible with my money". If this was true, you wouldn't have written the note.
- you wouldn't consider a Mustang or Challenger
- you would purchase the used car for the $1000 that you have saved.

You asked multiple questions, I'll answer them in the order you asked:

1. The thing is, I have no credit at all & my mother's credit is absolute trash. How do you think this process will go? - I think the dealership is going to require an 18 year old to conduct a credit check BEFORE they are allowed to test drive a brand new muscle car, and upon completion of the credit check they'll direct you down the road to a lot that sells used cars for $5000 or less and does in house financing.

2. Can I even get a car? - Yes, probably, but you need to think in terms of the number 4: You can get something with 4 wheels, 4 doors, 4 cylinders, and a 4 digit price tag.

3. Should I apply for a car loan, or is there too much risk? Am I even able? Sure, you can apply, but with only $1000 down payment, no credit history, and very short work/income history, Its likely that the only loan you will qualify for is from a shady lender with a maximum purchase price around $5,000 and an interest rate significantly higher than what someone with good credit, work history and bigger down payment would pay.

4. If I did get a loan, what would be the process on that? - You can either apply through the dealership or apply at the bank/credit union or lender of your choice. They will walk you through the process. If you go through the dealer they handle everything. If you go through your own bank you get pre-approved, then once you've picked out a car you give the loan info to the dealer and they contact the bank to collect the funds from the loan.

5. If anyone can recommend reliable cars. Of course I care about the aesthetics but I'd choose reliability over looks any day. Honda and Toyota are known for decent reliability, but many other manufacturers with good ratings as well. It also depends on the year and model. Do a bunch of online research before you buy, especially if you buy used because there will be info online if a specific car has a common problem.

It's going to be hard since you are only 18 and probably have no credit & your moms is trashed. They require decent credit. They also look for full time jobs. Having savings means nothing to them, they want to know you have continuing income. You will also need probably around 20% down since the credit issues are so bad.

Your 1st car to be a stang or a challenger is simply unrealistic. Nobody is going to give a teenager a loan on a new car. Sure used cars are a GREAT option but it requires you to stop being a snob. MOST peoples 1st car is used. I'm 41 and still have never purchased a new car. I love my 2009 Nissan Versa. It is a great small fuel efficient car. But I'm not a self entitled nose in the air snob.