How many years of credit do I have to establish to get a brand new car under my name?

Question

I just turned 18 last September, own three credit cards, and have an excellent credit score. I have two cell phones under my name too. I'm looking to buy a brand new Cadillac this summer. You think any dealership will take me serious and allow me to finance a car under my name without my parents help?

Answer 1

I doubt that you can buy a new Cadillac unless you have cash.  It's not just your credit that matters - it's your down payment and income.

Answer 2

Auto finance is what I do for a living and the short answer is no and I will explain why.

Auto loans are based on the following factors;

1. Loan to value.

2. Term.

3. Age of vehicle.

4. Miles on vehicle.

5. Down payment.

6. Time on job.

7. Time at residence.

8. Monthly income before taxes.

9. Credit score/profile.

10. Total debt to income ratio.

This is what they look for;

1. Between 85% and 140%.

2. 36-72 months.

3. No older then 8-years.

4. less then 100,000 miles.

5. 10% or $1,000.00.

6. 2-years.

7. 2-years.

8. $1,500.00 to $2,000.00 depending on lender.

9. 540 minimum score with 3-years in the bureau and 4 trade lines paid as agreed with 1 being a installment loan paid 12-months for at least $150.00 a month.

10. No more then 45%.

Where you are going to run into big trouble is numbers 6,7,8 & 9, at only 18 you most likely have not been on the job or at the same residence for 2 years, most likely do not make enough money to budget for the payment (max. allowed is 20% of your monthly income before taxes) and no way have you been in the bureaus long enough or have the profile needed for this loan in your name only.

Get one of your parents to co-sign this time and as long as you pay as agreed you should be fine on your own next time.

Answer 3

They will take your income in consideration of getting a loan.  They want to make sure that you can afford the payments.  They also want to know how long you have lived at your current address, most want you to have been there at least a year.   They will want to know how long you have worked at your current job.  Its more than just your credit score that determines if you get the loan.  Having a good down payment will be a benefit.

Answer 4

If your credit score is good then you shouldnt have much of a problem getting the car... but it really depends.  I'm not sure if age is a big factor or not.