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Discussion Starter · #1 ·
Well I was going to have my mom take out a loan for me and I pay her so that she can pay Toyota since I'm under 18 but now my parents don't want to do that because they don't want to be responsible for it if I quit my jobs.

Right now I have $3,000 saved up and I make $400 a month and I was wondering if there was anyway I can finance a tC without being 18 years old. And of course, I have no credit.

I'm hoping some of the dealers we have on here can answer my question.

My second idea of acquiring transportation is just to spend my $3,000 on a motorcycle but then I would have to wait till I'm 18 to get my M license anyways. My last resort is getting a used car for under $3,000. But I'd rather find out if there's anyway I can finance a tC right now. Thanks.
 

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When I was your age and in your situation (lol, I'm only 20!), I saved up like $4000, bought a '95 prizm in good condition, and worked like crazy to save as much money as possible. Turned out all of that overtime, as$-busting/kissing landed me a higher paying career in the same company. Now I make 35k/yr doing simple IT tasks in the company, while reading YSTC in my spare time, lol. At any rate, you're not 18, you have no-credit (been there before, it sucks something terrible), and your parents seem like they want no part of your tC plans. From the looks of it, I don't think you'll be driving a tC just yet. And if you're only pulling in $400/month, I wouldn't advise it. With no credit, expect to get wacked with a 14.6% interest rate (I'm still paying at that rate, but I already have my bank in agreement to give me 5.2% come aug 06), and a required sizeable down-payment. I put down nearly $10k with my prizm trade in, and cash. I pay a little under $300/mo for 5 years. It'll be realistic come aug when I have a realistic APR. But again, in your situation, I would not advise a brand new car. You simply don't make enough money yet, you're not old enough to take out a loan, and you don't have enough money saved up (maybe you have more somewhere? always a good thing right?).

BUT, at least you're looking in the right place to start. If I were you, I'd look for a used tercel/corolla/civic/accord/camry. Just something to get you around reliably so you can save more money for the tC purchase. And in that time frame, you can then say open a checking account in your name, maybe a savings account too, get a cell phone, credit card, etc, and start establishing credit. SOOO that when you go to get your tC in a couple years (or less), you'll be a few steps ahead of the game


Good luck to you in whatever you decide to do.
 

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Sorry, but one more thing to mention...


*drum roll please...*

INSURRANCE! $400/mo simply won't pay your car & insurrance bills in your situation.

"Welcome, to the real world." - Morpheus, The Matrix, 1999
 

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I'm not expert on this, but...

I seriously doubt you can take out a loan (even if someone co-signs on the loan for you) under the age of 18. Even if you were 18, you would most likely need a co-signer with established credit since you have none. I'll be 24 in February, and my mother had to co-sign on the loan for my tC... and I'm a member of a credit union.

I'm a fan of motorcycles myself. But, it is a dangerous, and depending on where you live, probably impractical means of transportation as a daily driver, even though most bikes get great gas mileage. Remember you have to compete with the elements (rain, snow, wind, etc.). I hate to think of what your insurance costs would be on it at your age.

I don't think you have to be 18 to have your M designation where I live (Virginia), but check your local DMV. I also recommend you take an MSF RiderCourse training course before you try to get your motorcycle license... even if you already know how to ride. A lot of times, this will exempt you from taking the road test at the DMV and may even get you an insurance break. Plus, the statistics don't lie... I think it's 92% of motorcycle accidents involve people who taught themselves or were taught by a friend (I could be wrong here... and I don't remember where I got this figure lol... even if I am wrong, you would benefit greatly from taking an MSF course).

Your best bet is to prove to your parents that you are responsible and that they can depend on you to keep up a monthly car and insurance payment (you should offer to pay both, even if they don't ask you to). They can always sell the car out from under you if you fail to pay up. A lot of begging couldn't hurt, either.

I feel for you man... it sucks to be in your situation... and it sucks even worse to try and establish credit. Just remember, you've got your whole life ahead of you to own a nice ride... buy something that's cheap and safe and easy on the gas and insurance for the present. As long as you've got your own means of getting from point A to point B, you're better off than you are now.
 

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Discussion Starter · #5 ·
Also forgot about insurance, since I was asking my mom to take out the loan I wanted the insurance to also be under her name. They're afraid I'll stop working because I decided to quit one of my jobs so I could bring my grades up. Now I'm only tutoring and making $400 a month instead of $600.

Edit: I live in Fremont (nice, quiet, safe, and boring city) and I didn't think driving a motorcycle would really be dangerous here, but then I'm moving to Southern California in ten months, and I've heard about the driving there so I might change my mind.

I used to drive a 91 Camry so I could get to work, I was hoping now that I have alot more money than $0 that I could get something nicer.
 

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I mainly say motorcycles are dangerous because... even if you are a terriffic, veteran rider, you are still the smallest thing on the road, and the hardest thing to see. It's amazing how stupid other people can be, and when they're in a 4000lb car and you're on a 400lb motorcycle, they are gonna win when push comes to shove.

If you do decide to ride a bike... please wear the proper safety gear, regarless of your local helmet laws. It's not worth risking it.
 

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Discussion Starter · #7 ·
I will always wear a helmet, plus I think think full riding gear looks cool. Like a Knight in shining armor haha.

I love how you guys respond in the forums so quickly. YSTC.com is the greatest.

If I do get a motorcycle... I hope I never get into an accident, I've heard so many stories from people trying to discourage me... which is why I would rather get a tC but it seems impossible even if I go back to making $600 a month.
 

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Good luck. When I signed my paperwork, I was 21 with two full time (yes 80 hrs a week) jobs with a 5 year credit history (cell phones and cards) and I STILL couldn't finance on my own. My dad co-signed with me and we were approved. We got financed at 10% (sucky) but my credit was actually the part that kept it from being something like 14-15% instead.

Moral of the story - establish and keep good credit or you will get f'd over and over again.
 

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^^^ There's an old saying that goes "You ride 'em, you wreck 'em". Or something like that. If you're going to ride a bike, you should assume you're going to be wrecking it and plan accordingly. lol

I love watching the shows on Discovery channel about motorcycles (American Chopper, Biker Build Off ... and that other series Jesse James did.. Motorcyle Mania or something like that... where he builds a bike and takes it on road trip.. one of them was with Kid Rock down to Mexico)... but a lot of times, they don't wear a helmet, much less any other safety gear (and Paul, Sr. is anti-front brakes... 60% of your stopping power is in the front brakes). I just think they should be poster boys of safety, considering they are so popular... I don't want them to be a bad influence on top of all the interest they create in motorcycles.
 

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QUOTE
I love how you guys respond in the forums so quickly. YSTC.com is the greatest.[/b]
Word up, naw mean?
 

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You guys have some high interest rates. I think mine is 5.5% for 60mo via my credit union. The dealership couldn't beat that, even if I had perfect credit.
 

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Yeah, i started building credit when i was young. Got my first credit card at 16, first job at 16, been with the same company since then just working part time while in school. I paid all my bills on time and pretty much kept really good credit. I was able to get my own loan for my tC from my credit union at 19, no co signer and my interest rate was 4.75% for 60mo, with $6,000 down. I was lucky.
 

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Minors can't enter into legally binding contracts...so there's no way that a company is going to give you a loan without a co-signor before you turn 18. Sorry.
 

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Yes, you need her to co-sign on it. Get quotes on your insurance first too, even if it's under your mom's name. See how much it is and how much you can afford.. Also factor in things like maintenance..
 

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Originally posted by basilisk4@Jan 4 2006, 04:49 AM
Minors can't enter into legally binding contracts...so there's no way that a company is going to give you a loan without a co-signor before you turn 18. Sorry.
to support and simplify what marty said...


he's right.

that, and TFS has a minimum income requirement of $1400/month. any of our CUDL partners will have a requirement as well, and while a few may drop the required amount lower than TFS, 4 bills wont cut it.
tell your parents that if you flake, a dealer like myself would be happy to buy it back from them so they dont have to make payments. we can say that, because we know you arent going to flake.
and, if you did, i really would buy it back.
 

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Discussion Starter · #16 ·
So.. to sum things all up... my goal is impossible without my parents, and motorcycles are cool.

Thanks everyone for your help, I'll try do what I can. Now I'm worried about trying to buy a tC even when I'm 18.
 

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Ironhead
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work on your parents, they should want you in a solid, reliable, safe car.
 

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I'm not sure, but I think the tC would probably cost them more on insurance... You should offer to help offset that cost if you can afford to, maybe that will help sway them to your side.
 

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tC will definitely cost more. 2-Door Sports Coupe (It's in the sports car bracket) compared to a 4-Door sedan.... Insurance is up up up.
 
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