Funding A Used 4Runner

[Grease]

What's up guys,

I'm a college student looking to purchase an 04' Sport 4Runner with 90k miles, it's a one owner vehicle and looks to be clean.. I'll be test driving it Saturday.

Anyways my biggest concern is funding the vehicle with it's age and mileage.. And my age and lack of any real credit history. I have a decent credit score but I do not have any major purchases, such as a car or house..

Looking for any tips on places to even get a loan then possible places that offer lower APR rates.

My parents can help co-sign for me
I'm 80% sure it's a private party purchase
I have 2 jobs, am a full time student and have 0 outside expenses (except for beer & gas)

I don't usually fall in "love" with a vehicle but this one just seems to be "the one" with the V8 engine and 4x4 with low miles and it's extremely clean. I'm excited to even test drive this thing and if all goes as planned I want to drive off with it, but I'm just nervous that I won't be able to get approved for a loan..

 

[NinjaOne]

What's up guys,

I'm a college student looking to purchase an 04' Sport 4Runner with 90k miles, it's a one owner vehicle and looks to be clean.. I'll be test driving it Saturday.

Anyways my biggest concern is funding the vehicle with it's age and mileage.. And my age and lack of any real credit history. I have a decent credit score but I do not have any major purchases, such as a car or house..

Looking for any tips on places to even get a loan then possible places that offer lower APR rates.

My parents can help co-sign for me
I'm 80% sure it's a private party purchase
I have 2 jobs, am a full time student and have 0 outside expenses (except for beer & gas)

I don't usually fall in "love" with a vehicle but this one just seems to be "the one" with the V8 engine and 4x4 with low miles and it's extremely clean. I'm excited to even test drive this thing and if all goes as planned I want to drive off with it, but I'm just nervous that I won't be able to get approved for a loan..

Assuming you have 2k-4k cash/trade in you should be fine.

If you have that a good relationship with your bank might help. Some banks are willing to gamble more on current clients in good standing.


What's the asking price, if I might ask?

 

[Grease]

Asking price of $10,999 and my Dad is allowing me to rebuild (and possibly sell) a 1979 Chevy C10 with a rebuilt engine.

Assuming I get $2,500 for the C10 then throw $1,000 cash down and only have around ~$8k loaned against me. Credit score is around a 655 last I checked

 

[NinjaOne]

Asking price of $10,999 and my Dad is allowing me to rebuild (and possibly sell) a 1979 Chevy C10 with a rebuilt engine.

Assuming I get $2,500 for the C10 then throw $1,000 cash down and only have around ~$8k loaned against me. Credit score is around a 655 last I checked

I was in the same boat as you when I purcahsed my '04 two years ago. Credit rating was a little higher

Loan was ~$17k after $3500 down. Was able to get the loan through my bank w/out co-sign. Mine was a bit more because it was a couple years ago and I also got a 3 yr warranty which raised the price a couple thousand.

 

[Grease]

I was in the same boat as you when I purcahsed my '04 two years ago. Credit rating was a little higher

Loan was ~$17k after $3500 down. Was able to get the loan through my bank w/out co-sign. Mine was a bit more because it was a couple years ago and I also got a 3 yr warranty which raised the price a couple thousand.

What bank did you go through?

I tried my bank (Chase) through their quick online process and they won't do any vehicle over 5-6 years of age and over 75k miles...
BUT we have used Chase for years and have a joint family account, ect.. So there is a possibility we can get one in person.

Despite my age and weaker credit score, if I can put 25-35% down on the loan and have a co-signer I feel that a bank wouldn't see me as a liability.

 

[NinjaOne]

What bank did you go through?

I tried my bank (Chase) through their quick online process and they won't do any vehicle over 5-6 years of age and over 75k miles...
BUT we have used Chase for years and have a joint family account, ect.. So there is a possibility we can get one in person.

Despite my age and weaker credit score, if I can put 25-35% down on the loan and have a co-signer I feel that a bank wouldn't see me as a liability.

BECU. You can always call/stop by your local branch to appeal.

 

[KidVermicious]

Unless you have negative reports on your credit, you'll have no problem getting a loan from a bank, or better yet a credit union.

But don't do it. Fix up the C10 and drive that. There's nothing wrong with taking out a loan when you HAVE to, but in your case you don't have to. You don't need to have that 4Runner. You'll be money ahead to drive a truck that's paid for until you have the cash saved up to get the rig you'd prefer.

And those old Chevy trucks are classics. It might grow on you, you never know.

 

[tigger]

Try dcu.org They are an online Credit Union based out of the NE. (and have regular branches in that area as well) Anyone can join. They have a pretty good track record of funding loans to people with credit issues or lack of credit and have excellent rates. I used an approval from them to get a good rate from Toyota.

They will fund loans to private party purchases as well. They came highly recommended from the FICO forum.

 

[philsey]

Unless you have negative reports on your credit, you'll have no problem getting a loan from a bank, or better yet a credit union.

But don't do it. Fix up the C10 and drive that. There's nothing wrong with taking out a loan when you HAVE to, but in your case you don't have to. You don't need to have that 4Runner. You'll be money ahead to drive a truck that's paid for until you have the cash saved up to get the rig you'd prefer.

^ This. Focus on completing your education as debt-free as possible. Tell your Dad I said he is making a mistake co-signing a car loan - books? sure .... tuition? yep. Car not so much.

You may NEED transportation, but you do not NEED that 4R. Tighten up.

 

[Grease]

Unless you have negative reports on your credit, you'll have no problem getting a loan from a bank, or better yet a credit union.

But don't do it. Fix up the C10 and drive that. There's nothing wrong with taking out a loan when you HAVE to, but in your case you don't have to. You don't need to have that 4Runner. You'll be money ahead to drive a truck that's paid for until you have the cash saved up to get the rig you'd prefer.

And those old Chevy trucks are classics. It might grow on you, you never know.

I understand where you're coming from with the C10, but it has a timing issue and does not run at the moment. I got a little ahead of myself for saying that I could get $2500 for it because it's not in running condition yet.

To be honest, if this vehicle is mechanically sound,this IS the vehicle I want. Coming from a family of strictly Toyota owners I've always wanted a twin turbo '93 Supra and a 3rd or 4th Gen. 4Runner.

Taking on debt as a student is always a risky idea, but my room & utilities are paid for along with my meal plan. My main expenses would be the loan payment, gas and insurance along with maintenance.

 

[Nervo19]

I'm not sure I'd want my college student depending on a '79 vehicle. I'd at least prefer airbags.

If you have a bunch of student loans don't borrow for a car. You could work this summer and pay cash for a 3rd gen 4Runner. If you don't have loans, try a credit union. They usually have the best rates and will usually give you a lower rate if you will do automatic withdrawal. Also your parents bank might give you a decent loan.

How much is this 4Runner? Have you run it through Carfax to make sure the mileage is accurate? 90k at 12 years old is kind of suspicious IMO. There are multiple threads on what to look for in a potential purchase.

edit: I googled "banks that finance cars more than 10 years old" and found an article that gives good bank leads and explains the process well:
http://www.thesimpledollar.com/best-auto-loans/

 

[e60ral]

If you can definitely make all your payments on time, financing will help improve your credit score in the long run

 

[wadle5]

As others have said, definitely go through a credit union for better rates.

I'm not sure I'd want my college student depending on a '79 vehicle. I'd at least prefer airbags.
90k at 12 years old is kind of suspicious IMO. There are multiple threads on what to look for in a potential purchase.]

I don't know, but those older vehicles also seem built out of solid steel and quality as opposed to plastic and foam everywhere. Sure they have airbags but that C10 I think would do just fine in an accident.
In regards to 90k in 12 years I don't know if I would say suspicious, but definitely always spend the money up front for a lookover and carfax so you aren't stuck with a vehicle that will drain your wallet.

 

[NinjaOne]

In regards to 90k in 12 years I don't know if I would say suspicious, but definitely always spend the money up front for a lookover and carfax so you aren't stuck with a vehicle that will drain your wallet.

I got mine with 80k and have had to replace most of the rubber. (Bushings, belts, boots) Balljoint boots were torn and that meant new balljoints/control arms. Thankfully warranty picked 90% of that up for me, good gamble on the investment.

If it is a V8, my guess is it is still the original timing belt and you for sure will want to change that. Understand you will likely have a fair amount of initial maintenance costs, cheaper if you can do it yourself. Might new brakes in the next 15k?

Worth having a mechanic look at if you have one you trust and the owner will let you.

 

[Grease]

I'm bringing my Dad along with me who has rebuilt a fair share of Toyotas, Jeeps and diesel trucks. Hopefully everything he looks at will please him.

I'm going to assume that it's going to need a new belt, possibly a water pump, brakes.. I am looking to take out a $14-15k loan to help offset any initial expenses if possible.

Hopefully I can get the truck for around $10k then use any leftover money to start chipping away at the payments once it's mechanically sound.

Time will tell.. I'm concerned with this truck because it's priced too fair, like I had mentioned earlier I'm used to guys thinking their stock 03' with 225k miles is worth $18k.

 

[Dropzone]

You know with an auto loan you will need full coverage?
That impacts the $300/month payment you are looking at for a $15k 60 month loan.

Impressive a student can take on that kind of burden while in college

 

[Grease]

For an $11k loan @60 months I'm anticipating a $193-210 monthly payment, tack on $100-120 that sets me back roughly $330 a month. At $15k it would be closer to $370...

Not saying it's going to be easy but I don't foresee any real problems with it. I don't necessarily flaunt my money and I have very little outside expenses besides the occasional night on the town.

 

[Engineer]

Your not going to ruin your life by buying the 4runner however being not to far of school myself (5.5yrs) I would suggest your hold off till you have graduated and have a full time job. Your income will likely be much higher then it is now, you will have the security of knowing you have a job, you will have a better idea of where you will live and then IF you want you can get a similar truck or even a newer one if you so desire.

Remember this is a 4runner, I know its in good condition for its age but these things are not unicorns. If you found a steal/good deal on a TT Mark IV Supra then I would say well that may not come along again and you should jump on it

Either way good luck with school and enjoy it! Only word of advise I will leave is once you get a full time job try to pay your self first. The best thing I have done so far was signing up 1st month for a large 401k/IRA deductions straight from the paycheck so I never saw the money, you feel no pain as you never had it and its amazing how fast assets start to accumulate even in a short time....If I die before I retire I will not have enjoyed a dime of that money so plan for the future but enjoy life now.

 

[Nervo19]

Before you buy it you need to price full coverage insurance. Tacking on to your parents insurance would be ideal. My son's Tacoma is about $76 a month on my USAA plan. I've had no claims since 2003 or tickets so my rates are very low. People tell me the rate I'm paying for him is very low.

You will have to pay insurance, sales tax and personal property tax if your state has it. The sales tax will be tacked on when you go to register it. Son's '00 Tacoma was a few hundred.

Generally a bank will not loan you money above the blue book price. The truck is their security if you default. They have to be able to auction the truck if you stop making payments. If you get the seller to "embellish" the sales price you will pay tax on that price and face fraud charges if discovered. They can also "demand" you pay in full or face repossession if they suspect impropriety. Read your loan papers. If you seriously need to borrow money to make repairs or mods now you can't afford this truck.

Ask the seller now for the vin# so you can check it out before bothering to drive it. I found two different 4Runners with massive problems when I was looking last year. Carfax checks saved me from wasting time. One was an odometer roll back and it was at my local dealer! One was on a car lot and had been owned in AK for most of it's life and had been totaled yet it somehow was registered in VA with a clean title. People buy Carfax three at a time so maybe someone has a check left over and can do it for free.

 

[Grease]

Before you buy it you need to price full coverage insurance. Tacking on to your parents insurance would be ideal. My son's Tacoma is about $76 a month on my USAA plan. I've had no claims since 2003 or tickets so my rates are very low. People tell me the rate I'm paying for him is very low.

You will have to pay insurance, sales tax and personal property tax if your state has it. The sales tax will be tacked on when you go to register it. Son's '00 Tacoma was a few hundred.

Generally a bank will not loan you money above the blue book price. The truck is their security if you default. They have to be able to auction the truck if you stop making payments. If you get the seller to "embellish" the sales price you will pay tax on that price and face fraud charges if discovered. They can also "demand" you pay in full or face repossession if they suspect impropriety. Read your loan papers. If you seriously need to borrow money to make repairs or mods now you can't afford this truck.

Ask the seller now for the vin# so you can check it out before bothering to drive it. I found two different 4Runners with massive problems when I was looking last year. Carfax checks saved me from wasting time. One was an odometer roll back and it was at my local dealer! One was on a car lot and had been owned in AK for most of it's life and had been totaled yet it somehow was registered in VA with a clean title. People buy Carfax three at a time so maybe someone has a check left over and can do it for free.

So far, between Geico & State Farm with Full Coverage I'm looking at $110-125 a month on an '04 4Runner V8 Limited. Your son has a great rate, I might have to look into USAA.

I'm considering buying the Carfax 'Unlimited' vehicle check for $60. I feel that it will pay dividends in the long run.

As far as the loan I'll take as much as I can get at this point, dcu approved me for $3k without a down payment or co-signer. So between that and my student loans that I must begin paying off when I graduate I'm looking at a 3rd Gen. at best and keeping it simple. Time will tell, I'll be working 3 jobs this summer between an internship, my buddy and the family to help get enough saved up for a substantial down payment and go from there.

I really appreciate the help y'all, it's good having a third party perspective on things.