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Posted in Auto Loans
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Question By
blilac

1 Contribution
5 People Helped
Should I buy a car now?
I'm 21 years old, I have 2 credit cards and one student loan account. My debt to income ratio is very low. I've been working a steady job for 6 months now and have been able to save up roughly $1500+ for a down payment on a car. My credit score is good, 725 according to TU/Equifax. 720 according to Amex's free FICO score.

I am getting ready to move to another state. I have not quit my job yet, and I do not have another job lined up immediately. Due to my personal situation, I need to move. I do not have a car, but once I move, I will definitely need one in order to be able to get to work, etc. I'm not looking for anything very fancy, just something cheap and reliable. I'm looking to spend $7-10k on a car.

Should I buy a car before I move? While I'm still employed?

What are my chances of being able to get an auto loan once I move and have a new job for a short period of time (2 weeks or so)?

I'm also moving across state lines. Will that be an issue if I do decide to buy a car before I move?

Any advice is welcome!

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8 Contributions
89 People Helped

Stop wait!!!

I strongly urge you to wait until you have a steady income in your new location before trying to get a car. If you don't have any income or the income you do get may not be enough to support yourself plus pay for the car and you don't want your first car to also be your first repossession. 

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As already said, it would not be a good idea to purchase a car before you quit your job, there is a good chance you are setting the potential for years of problems due to bad credit if you are unable to find work to make your payments. To answer your question though, yes it would be better to purchase a car now before you become unemployed in a different state. Chances of getting approved now would be much higher than chances of getting approved in your next situation and in that situation chances are slim to none.

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