A new vehicle sounds like a dream for a young person, but they have to
remember that the payments are just the beginning- the insurance on a brand
new vehicle will be very high for a young man and there's the routine
maintenance, gasoline, tires, etc.  Will he still be able to afford rent and
all his other living expenses?  New vehicles are routinely financed for 6-7
years- that's a HUGE long term commitment- even with a large down payment
his monthly payments could be in the $400-600 a month range.  Maybe a used
vehicle would be better for his first purchase?  Even one that's nearly new
will be substantially less expensive to buy and he might find financing is
easier on a gently used late model vehicle.

He needs to start establishing some credit whether he buys the new vehicle
or not.  Just about anybody can get a credit card with a low limit- even if
he has to deposit funds to offset his credit limit- ex:  deposit $350 and
get a $300 limit.  He should use it for *every* purchase he makes and pay it
off every month.  That's one way, but it will take at least a year and maybe
more to get a record established.  My banker once told me he'd rather see a
credit rating that's a little shaky than none at all.  Then there's the
'tote the note' used car dealers- they charge terribly high interest rates
and often will not give a rating to banks and credit bureaus- their way of
trapping someone into dealing with them again and again.  I worked in auto
dealerships for about 25 years, so I do have some experience in this area.
I thought GMAC financing- thru Chevrolet, GM, Pontiac, etc. dealers- had a
first time buyers program for people just like your son.  They will most
likely want a hefty down payment.  What they are looking at is if the
vehicle must be repossessed will they lose money or be okay when they resell
the repossessed vehicle.... which would mean in the $6-8K cash down payment
range..... maybe???  I wish him luck.  It's not easy getting established.

Leslie

Hi Vickie,,,,,   My suggestion is fix the problem that does not allow you to
give a hand to start this boy in the world today.   If he is not responsible
with the things he does,,,, he does not need a car or pick up until he
proves himself.
Harv

I am going through this with my son.. he is almost 19 and has no credit at
all.. so he is unable to even get a used car financed.. even though he is
attending school and working over 40 hours a week. At our credit union they
offer a secured visa that you put 300 dollars into and make payemnts when
you buy something.. after 6 months of good payment history they refund the
security deposit and give a line of credit. The lady at the bank said that
this is a great way to build credit on his own.

Why does he need a brand new truck?  My friends and myself all drove
junkers until we were established enough to buy new cars. Their kids are
doing the same thing now.  Right now I am driving an 8 year old used car
that was a "steal" and retired my 16 year old car that I had bought
almost new.  Young people (and some older ones too) run into trouble
when they satisfy their "Wants" instead of their "Needs".

I'm not criticizing your son, but just want his age group to face the
facts of the costs of living as adults.

Ann.

When a lender is looking at risk in making a loan, they of course look at
ability to pay.  A one year job history, as great as it is for a 20 year old
doesn't look like a lot to them.  And they look at his income as having to
support him first even though he isn't currently renting an apartment.

Actually it would have helped him it he had been renting an apartment and
paying utilities.

Because the other thing they look at is what my brother, who was a mortgage
banker, called willingness to pay.  They want to be sure they are lending to
someone who "gets" that a payment due on the first of every month, has to be
paid on the first of every month.

Until you have a track record they aren't going to let you sign up for the
Indie 500.

The richest person in the world can screw up their credit rating by being
casual about getting the payments made on time.  They don't care so much
that they eventually got paid including late fees.  They want to lend to
someone who is self motivated to make every payment when it is due or
before.

As I remember it, when you have someone co-sign for you, that loan doesn't
help your credit out all that much either.

He needs to buy something cheaper, make the payments and insurance and
registration on time, and then look at his dream truck.

Yes he's saved up the down payment.  But he has yet to save up the life
experience.

Jo