Is a $5,000 loan too much for a 19 year old?

[brandon_k_w]

Looking at this truck:

http://www.globalsuv.com/showitem.cfm?itemnum=1074.0

Price on it shows as $10995 + fees and crap = about $12000 ?

I have $7,000 so far for a down payment. All I need to get is a $5,000 loan? Anyone younger buyers able to get this big of a loan? This would be a good way to build up my credit rating too. I'm just fearing that once I get the loan, the majority of the money I make from my job will be going to these loan payments (for 12 months), and I will regret it in the long run, even though I love this truck.

[MikeLee2484]

you may have to have someone as a co-signer on the loan...meaning that they would be in trouble too if you didnt make the payments...but i would say that you should be able to get a loan...one thing that you may want to try doing is have the loan period longer than a year...that way you would be held down to put all of your money into the car...extending the loan of a longer period of time does cost more in the end because of compounding interest and what not...but it gives you the chance to pay more when you can and less when you have to...basically you can have a smaller loan amount due each month but pay more than is required...which pays down the principle faster...but if you want to do that make sure there is no fee for paying off the loan early...i hope that all made sense

[brandon_k_w]

Originally Posted by MikeLee2484

but if you want to do that make sure there is no fee for paying off the loan early

This is what I was thinking about doing, paying off the loan early. I have actually been saving almost every dollar from my checks, so I don't think I will have a big problem putting the rest down for payments. I just want to have the truck paid for ASAP, so I can stop worring about payments. My parents get loans from SAFE Credit Union, so this is what I'm sure i'll be doing business with. I'll have to check their FAQ to see if they require a fee to pay off a loan early. Thanks for that info

[illusion123a]

YOu may want to have your parents co-sign anyway becasue if there name is not on the car you may not be able to on there car insurance, at least that was the problem that i had when i was 21 and bought a brand new car. I have really good credit (well for being so young) and i caould have gotten the car in my name only , but when i called the insurance to tell then about the new car, they told me that at least one of my parents names needs to be on the car.
have fun looks like a good truck, thats cool that you were able to save that much, i wish I would have done that

[Andydg]

You should have no problems getting a loan for just $5000. I'm 18 and I got approved for $17,000 without a co-signer...however the interest rate was like a credit card. Try and make it a 2 year loan and just try and pay it off in a year if they don't have penalties, that way if you find that it's taking every dime you own you can just pay the minimum payments.

[jmrev]

do you have good credit? or else it would be hard to do it without a co-signer.