I have been employed for almost a year with the same company and make enough to cover rent, gas, and food monthly. I have student loans that come in and will afford me almost 900 in addition to that every month. I currently have a car that is 5 years old and I am concerned that within the next few years I will have to make costly repairs that will eventually add up to more than the car is worth. And I don’t want a situation where my car craps out and I have no money to buy a new car, SO i was thinking about buy a new car before my current one looses all value. I drive a chevy cobalt LT 2006. Also my current car is paid off.
I am looking to buy sometime in january when I will have the most money available in my account.
My neighbor has said he would like to buy my car for around 5000 (at least 500 more than a best case senario trade in) and so I could use that as a down payment for a new car. I pay rent, cable and power all on time and have never had a late payment. I have no credit cards what so ever as I would really rather not put my self in a situation where I am in debt in addition to my student loans. I was looking at cars and SUVs under 23,000. I haven’t decided what exactly but obviously vehicles with comparable or better MPG than my current car.
I have a few questions:
1) Which credit score website is the the most accurate for the cheapest price?
2) What sort of documentation should I bring in to the dealership regarding my student loans as proof of ability to pay?
3) Will I need a cosigner? My sister is almost 16 and I would rather not have to ask my mom to cosign as I would like my sister to be able to have that option and pay the lowest she can for the car. She’s been saving her whole life for car and I don’t want to ruin that for her.
4) Obviously my APR is based on credit score, employment history etc but what can I expect so I can start looking around online etc? I would rather only pay for the credit score once and closer to when I will buy the new vehicle.
5) Because I have little credit is it even worth looking into bank loans? Will it be a substantial difference in APR?
Thanks in advance.