What are the implications of a young person w/ co-signers but no credit history taking out a $5,000 car loan?
I’m 19, have a job that pays $ 15/hr for 20 hr/week ($ 1,000 a month after taxes), informally rent out a guest room behind my parent’s house for $ 200/month, and have $ 50 in other bills. I don’t have any credit history, but I have had a good history with my B of A bank account since I was 16.
I’m a freshman at a community college, which is paid for by a federal grant, and I intend to eventually transfer to a Cal State for $ 3,000 a year, which will be paid for by financial aid/parents.
I’m a strong asset to a small, profitable business of 4 (2 coworkers & our boss). My job is skilled–I’m a front-end web designer/coder. My boss is awesome, I got a $ 500 bonus + $ 250 shopping spree (our company holiday party) for my first Christmas working there after being hired last July. I feel very secure with work.
Do you think I’m in a good enough financial position to sell my car for about $ 2000 and take out a loan for about $ 5-6k cosigned by my parents to buy a used mid-90s BMW 3 series?
Thanks for the input everybody. I do plan on maintaining the car with my dad–he’s very much into cars, and has always fixed almost all of our family’s car problems. The only thing he doesn’t like to work on is the tranny, but he even fixed the transmission in my ’98 ford taurus wagon when we were quoted at $ 2,000 in labor for it. I’ve always changed the oil / rotated tires / changed brakes with my dad, we would never pay for routine service. I would actually *kind of* look forward to having to take care of a vehicle, just to learn from him.
If I don’t get a car, a laptop is something else I can use, that could possibly serve to build credit (under a student loan, too). Would a 10-month or 12-month loan for $ 1,500 on a laptop be a possible course of action?