How to buy a car when You are self employeed???

[hzsogood 5,000+ posts]

My cousin asked me this today, and I really didnt know what to tell him.. So Ill try here, as the bank didnt have many options either..

He delivers pizza for a small ma and pa shop locally and makes about 1500/month, BUT he is 1099'd with only his monthly "gas allowance check " of 250/month/.. SO his `1099 says he made around $3000 last year .. If he would have added tips he would have been surcharged, plus had to pay a 15% self employment tax, on top of state and Federal.. THat is all BS imo... Kids 18 yrs old, and is busting the **** out of his car and isnt being compensated... Anywho

Obviously a dealer or bank is gonna laugh when he brings in his Yearly 1099 and it says $3000 for the year.. even tho he makes descent money.. SO any ideas

Co-Signer?

Would going thru the dealer make a difference, so he wouldnt need proof of income?

Click to read more...

 

[tipnitty 10+ year member]

Co-signer or save and pay with cash.

/thread.

 

[Bettr n' Revrse 5,000+ posts]

Well if his parents have good credit when they cosign for him there credit is transfered to him...

 

[hzsogood 5,000+ posts]

K. Thought of a co signer but wasn't sure. He has 680 credit but with no steady proof of income it's tough

 

[Louisiana_CRX 5,000+ posts]

pay cash thats what i always do ...if you can't afford it don't buy it thats whats wrong with this country today...everybody trying to live beyond their means

 

[dragnix 5,000+ posts]

pay cash thats what i always do ...if you can't afford it don't buy it thats whats wrong with this country today...everybody trying to live beyond their means

yes, and you're one to talk

 

[sleazebagger 10+ year member]

pay cash thats what i always do ...if you can't afford it don't buy it thats whats wrong with this country today...everybody trying to live beyond their means

hey, I dont see anything wrong with putting down 60-70% to build credit. I put down 6g's on my 10,500 explorer so I could get my credit score in the 700's to buy a house.

I am in the same situation. just started a new business but the bank wants 2 years of history so I lied and used my old employer, got the car end of story.

btw, who the hell can pay cash on a house?

 

[Louisiana_CRX 5,000+ posts]

hey, I dont see anything wrong with putting down 60-70% to build credit. I put down 6g's on my 10,500 explorer so I could get my credit score in the 700's to buy a house.
I am in the same situation. just started a new business but the bank wants 2 years of history so I lied and used my old employer, got the car end of story.

btw, who the hell can pay cash on a house?

i paid cash for my house and bought the biggest house in town fvck banks getting years of intrest

 

[jco1385 5,000+ posts]

the credit system is a scam //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[thevic24 5,000+ posts]

hey, I dont see anything wrong with putting down 60-70% to build credit. I put down 6g's on my 10,500 explorer so I could get my credit score in the 700's to buy a house.
I am in the same situation. just started a new business but the bank wants 2 years of history so I lied and used my old employer, got the car end of story.

btw, who the hell can pay cash on a house?

Louisiana_crx and drug dealers:fyi:

oh ya, and me.

 

[ChevyRidinLow]

dont ever buy a car you cant pya for in full with cash then and there and thats what you should tell him especially since he is young. all odds are against him. idk about where you guys live but i get my cars from a family friend who owns a dealership, we go to auctions and buy used cars at like 40% of value and sell for 60% of value, selling about 10-15 a week. find a guy like this. the last car we picked up was an 05 chrysler 300 with 81k miles for 2500. perfect condition. power everything, tilt cruise, ice cold air. sold it 3 days later for 4000 tax included. just educate him on value of cars and that its better to have a 2000 dollar car that lasts 7 years and has cheap replacement parts than to have a 20000 dollar car that costs a ton to fix and after 7 years isnt even 1/3 paid off...and of course by then the car you still owe 10 grand on is a piece of **** and keeps breaking down.

 

[dragnix 5,000+ posts]

just buy a civic

 

[hzsogood 5,000+ posts]

dont ever buy a car you cant pya for in full with cash then and there and thats what you should tell him especially since he is young. all odds are against him. idk about where you guys live but i get my cars from a family friend who owns a dealership, we go to auctions and buy used cars at like 40% of value and sell for 60% of value, selling about 10-15 a week. find a guy like this. the last car we picked up was an 05 chrysler 300 with 81k miles for 2500. perfect condition. power everything, tilt cruise, ice cold air. sold it 3 days later for 4000 tax included. just educate him on value of cars and that its better to have a 2000 dollar car that lasts 7 years and has cheap replacement parts than to have a 20000 dollar car that costs a ton to fix and after 7 years isnt even 1/3 paid off...and of course by then the car you still owe 10 grand on is a piece of **** and keeps breaking down.

Well he's trying to establish credit for school, house etc. He makes alot of money a month and is 100% in job security. ( family business ) he has about 6k in the bank pays his rent and all other bills ( utilities phone cable Internet etc etc ). Just buying a crap car is going to do nothing nor will any secured loan. A 4 year car loan paid off clean with no late payments can raise your score 100 points easily. Which would be a he'll of a credit score for a 22 yr old (750) when he looks to buy a house

 

[ChevyRidinLow]

Well he's trying to establish credit for school, house etc. He makes alot of money a month and is 100% in job security. ( family business ) he has about 6k in the bank pays his rent and all other bills ( utilities phone cable Internet etc etc ). Just buying a crap car is going to do nothing nor will any secured loan. A 4 year car loan paid off clean with no late payments can raise your score 100 points easily. Which would be a he'll of a credit score for a 22 yr old (750) when he looks to buy a house

good point, but none of us have job security because there is not money security i can understand trying to build credit but you can st up a debit/credit account and just pay with debit and it will build your credit without ever actually using credit. my mother is a financial genius and she set up an account like this for me, i have perfect credit but was never credited anything (excuding my home)

 

[ChevyRidinLow]

just buy a civic

vtec 4 bangers are the most powerful force in this universe //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif but rly, if i put as much boost an crap on my '57 as they put on those acuras and civics mine would travel through time.