Will I be able to finance a 2008 Honda Accord at 18 years old?

Ok, let me give you my info. to see if you can tell me any different from what I’ve heard.

1. I make about $500 a week gross, $425 clean. About $1700 a month.
2. My credit score is 694, with only a credit card and a limit of $600. I’ve had it for about 13 months, and I’ve never payed late.
3. I want to finance a used 2008 Honda Accord Coupe, which will be about $20,000, with a 60 or hopefully 72 month term. According to http://autos. yahoo. com/car-finance/monthly-loan-calculator. html, with a down payment of $5,000, no trade in value or rebates, 60 month term, zip code of 33015, and interest rate of 8. 25% based on my credit score and location by clicking the “find your rate” link, my monthly payment will be an estimated $334.

My problem is that one day I spoke to a car salesman and he told me my APR will be around 18%. That was when I told him I didn’t want to cosign. He did not obtain my credit score, so maybe he assumed I had no credit. The reason im confused is he tells me 18%, yet online it shows 8. 25% Someone tell me how this really goes down and if I will be able to obtain this car financing according to my above information, or cosigning with someone? Thanks!


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This entry was posted on Monday, June 21st, 2010 at 9:27 am and is filed under auto loan calculator. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “Will I be able to finance a 2008 Honda Accord at 18 years old?”

  1. its low rate for your age/nobody wants to lend that much to youngys/get offers in writing and go from there

  2. I have a hard time believing you have a 694 at 18.

    And being 18, you probably don’t qualify for anywhere near an 8% rate. That’s for people with a proven track record of paying for things.

    (A credit limit of 600 wont get you a $20k car)

    Now, if you have $5000 down, someone will take a chance on you at a high rate of probably 15-21%.

    But, they may tell you that you need a cheaper car too.

    My credit union has 3. 99% car loans. But only for people with higher credit scores than yours and credit history’s going back many years.

    Because you don’t have those things, you are a higher risk. Even with $5000 down.

    But, you are the consumer, you don’t have to pay those rates and you shouldn’t.

    Buy a $5000 car for cash. Or a $7500 car and finance $2500.

  3. You are a first time car buyer with new credit. The best thing for you is to join a credit union and then apply for a car loan. They car offer you a better rate than any car dealership. You can not base the rate from your credit score, remember you have new credit and the highest is $600. You are also better off asking the credit union to find you a car you want, most credit union has a buying service for there members. They will negotiate the price of the vehicle for you, unless you want to spend hours at the dealership going back and forth on the price. Hope this will help you out.

  4. Funny.

    The most months you will get to finance what is pretty much a two-year old car is 36 or 48 months.

    You can forget about this 60-72 month nonsense. That’s for brand spanking new cars.

    Redoing the math, those ~$400+/month payments for four years in a sh!tty economy where kids are the first to be let go in slow times don’t sound so good now, do they?

    Nope.

  5. Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carquotes. sinfree. net

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