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beezyj

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Just Graduate from College, Need Car
I just graduated from college and will need a car before I start my new job in 2 months. How can I get approved for an auto loan (no cosigner!) and what terms (APR, term, etc) can I expect? Also, I'm looking at new cars (plan to keep for a while) but am also considering used.

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College grad programs

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I'm in this situation myself, and have looked into this. Honda and Toyota both have financing programs for recent college grads, you just show them your degree and/or job offer letter and you can qualify for a loan. Honda also gives a $500 discount on the car if you do this program, and toyota up to $750 I believe. If you negotiate well (try truecar to get a feel for how far you can push) and you add in that discount, it can actually be almost as cheap to buy new as to buy gently used (keep in mind, registration and insurance will also be more expensive on a new car than a used car, even if you get a great deal on the car itself).

The interest rates are also good, as low as 0% for 5 years with toyota or 0.9% for 5 years with Honda. If you have sufficient cash to buy the car outright, you should still consider financing if you can get those rates- it helps build your credit and you can avoid losing money to interest by just putting the money in an online bank account like ally or amex bank that give .9% themselves while you wait to send each monthly payment.

Here are the links, or go in and talk to  your local dealer (Other vehicle makes may also have similar offers, but I have been looking at honda and toyota myself recently and I know they both do):

https://www.toyotafinancial.com/pub/w/#planning_center/financing_options/buy/college_graduate_program

http://www.hondafinancialservices.com/finance/college-grad-program

For a money-conscious young person looking for long-lasting value and dependability, it's hard to go wrong with a corolla or a civic. The new accords are also very nice. Good luck, and definitely use truecar- I was surprised to learn that you can usually negotiate a price well below invoice.

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I have some established credit, but very little (1.5 years for student loans,8 months with a credit card). Chase Bank, No negatives, CK 708, 22 years old. Have an offer letter that states start date and pay from company.

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