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Posted in Auto Loans
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Question By
corgimomma15

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Getting a car loan with a part time job
I am 22 years old. I will be going back to school in August and I will need a car. I don't trust myself with a beater so I will need a loan. However I will be going down to part time once I go back to school (currently make $10.25/hr, work 32+ hours a week right now, will be going down to a max of 20 hours a week once school starts).

- 740 CK credit score
- No debt right now ($1,500 in federal student loans from getting my associates degree, two credit cards I do not carry a balance on and keep utilization below 10%)
- Will be taking on debt shortly (student loans, not ideal but it is a nessisary evil) but this will be after I get the loan
- $4,000 in cash I'm able to put down
- Looking at cars in the $9,000 - $12,000 range, USED

Will I be able to get a loan?

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Top Contributor
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I think you should be able to get a loan but the real quesiton is whether or not you can actually afford the loan. When you are determining how much you can afford to pay each month once you go to part-time, also keep in mind that there are addition costs to consider. In addition to your monthly loan payment, you will have to pay for car insurance, gas, auto upkeep/maintence/repair (ie oil changes, tires, brakes, etc.) and annual taxes, tag and registration.

Top Contributor
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I would say that you are setting yourself up for some real financial hardship. I don't see how you could afford to do this on what you will be making. Between the loan payment and full coverage auto insurance that would take at least half a month of your pay, maybe more when you go to twenty hours per week. It would be very tight at 32 hours per week. Get yourself a cheap car with cash and don't insist on spending all the cash that you have saved up, you will need it for other things. Besides that, your debt to income ratio is probably close to being maxed now and if you could possible get financed for an auto loan (I don't think you could currently) then you would surely max out your debt to income ratio and that would prevent you from getting the school loans that you need.

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