I just have to crunch some numbers, but I think I could afford it. I make a little over 40k a year and almost no bills.

 

Just out of curioisty how r u making 40k a year at 19. Shouldbt you be in college

 

By working hard lol. Well I just got a job a few weeks ago that pays 33k a year and I have a part time job on the weekends working at sears for a marketing company that pays a high base pay plus commission. Both jobs are very chill and they were a little flexible with me on my schedule so I still go to college 2 days a week and I have online classes. I still make time to go to the gym 3 times a week I have a very busy schedule everyday

 

I'm 25 and I'm buying a 2011 GSR w/ 28k miles from VA and getting it shipping to MI. My credit score is 720 and I got approved for 4.5% interest rate for up to 72 mo. Ended up paying $29,999 and I put $5k down.

If you have any questions about buying a car feel free to shoot me a pm, this was the first time I bought a car as well.

I'll be a member of the Evo community in about a week

 

First off, car dealerships are better customers than any individual will ever be. We broker more loans with Wellsfargo in one month than I've never taken from them in 14 years of banking with them.

Second dealerships get paid more money when you finance with them. So we have a financial incentive to offer you the best rate we can find, even if that means rate matching. If the dealer works with more than 1 lender they can often try to get those lenders to compete with each other for your business.

Now in to specifics about your situation. It's more than just credit score. It's about history. If you have a loan that your parents put you on, and it's already paid off in that year, it doesn't help as much as you would think it might. Secondly, it doesn't hold as much weight if its not a car loan, or worse not a structured monthly loan.

Even if you have a 750 credit score and 18 years of good payment history there is Debt To Income (DTI). Most banks won't allow your monthly car payment to exceed 20% of your gross monthly income. So take what you make an hour, multiply by how many hours a week you work, multiply that by 52 weeks in a year, divide by 12. That's your gross monthly income. Now take that and multiply by .2, this is how must most lenders will cap your maximum payment. lenders will always factor in insurance, gas, food, and housing regardless of whether or not you actually pay for those things or not.

Furthermore if you already have a lot of debt, it may be less than 20% of your gross monthly income. However, I assume with 1 year of credit history you probably do not have a lot of other debt.

So lets assume you have good enough credit. If you buy a new base Evo for around $33,500. And lets just say you put tax and licence down so that I don't have to estimate that based on your individual state. With 0 interest attached 33,500/6 is $558 a month. So add interest in to that, and lets say its $600/m. So you'd need to make a minimum of $3000/month (or 36k a year) assuming you have excellent credit.

 

Thanks! Definitely will and congrats on the new ride!


Didn't know that. I just did the math and looks like I would still be able to make a payment every month on it. Here's what I plan on spending. My limit for the car would be $25k and that includes all fees and taxes from the dealer. I plan to leave at least a $10k down payment and finance the rest for 60 months or possibly less.

 

I thought you knew they Mitsubishi still have 0% for 36 months going on, which was what I did.
But of course, you have to purchase it new.
And honestly, Evo holds value very well, even if you buy it used with less than 60k, especially when financed, you are still looking at something around 30k-33k total from dealer , which only 2k less a brand new EVO( My 2014 was 35k otd with 36 month finance. ). I also think private sellers price their car high as well, I think it is hard to find a decent one that is under 25k.

Not sure how much downpayment you can put down, but at your age, I would either wait until I can make a huge downpayment or get an another car with cheaper insurance rate.

On another note, I would only buy these kind of car new. but that is just me.

 

25k OTD at a dealer puts your price range around 22-23 (depending on what state you live in).

I did a search on Autotrader and you're talking about 5 Evo X's in the entire US for 23k or less.

 

with tier one credit you should be able to find auto rates from 1.48 to 1.88 as of this first fiscal quarter. I think you might even see lower rates later this year as well.

 

My friend says the same thing, but there are a lot of people that have bought them used and they've turned out great.

I live in Maryland. Yea I saw, but I still have a few more months until I'm ready to buy and if an X is out of my price range I'll just go with an older Evo, which I've seen a few around my area for $13-$14k that don't look beat to hell.

 

I work for one of the major banks here in the U.S. You are better off going to a credit union, who has less overhead and NEED the business. I do auto loans all the time and its a pain and not very customer friendly. People think just to go to their bank where they have accounts but dealerships use 20-30 banks who will compete like someone mentioned.

Just make sure you can afford it, I was 19 and wanted the world but waited. I'm 31 now and just got my evo 8 that I was able to fully build my way with $ I have saved. It's nice knowing I make a decent salary now and am more mature as well.

I will mention I ended up with a GSXR bike at 19 instead lol.

 

Why are people paying so much for used evo's I just bought a 2014 Brand new for 32k plus taxes and everything of course

 

I sell cars at a Mitsu dealer... Stop worrying about taxes... When you go to walmart and buy a cart full of stuff they dont pay your taxes for you ... It is not a dealerships job to pay your taxes.

 

Credit unions are almost always the best rate. 700 plus credit score should make it really easy to get a loan regardless of minimal credit history. I highly recommend going to a CU or bank first and get a pre approval. A dealership will still want to find you a different loan but you will have a baseline rate and terms so the dealership can't screw you there.
That being said 20 year olds shouldn't have Evo's.
20 year olds shouldn't buy "new" cars. It's a financial mistake. Either way, wish you well in your endeavors.

 

I also sell cars. This is a pet peeve of mine. That and people who think that a "cash" price is better, which of course it is definitely not. Your deal on the price of the car is always better if you do your financing with the dealer.