dieselJon

Ok, I have wrecked my truck. Now I am looking for another one. I have bought my parents down-right, best looking 87 Suburban I have EVER seen in all my 19 years But it needs a new engine, tranny and rear but I cannot add the Cummins till I get another vehicle. Now I have always wanted a 00-02 Chevy 2500HD 4x4 with either the 6.0 gas or DMax. My problem, getting a loan

I have absolutely no credit and either a) need a co-signer or b) a CD to use as a co-lateral. The co-signer is out as my parents do not want to go through that which is very understandable. I want to build credit to eventually get a mortgage to buy a house but not use credit cards in the process (thank you to my friends who one is a financial adviser and the loan lady at the local bank.) The reason for getting a truck with a loan is because I will have it way past the amount to pay off the loan. I will make sure of that

So I have a couple of questions. 1 is, should I get a Dmax and pay the higher price and what would I have to look out for and 2 how to get a loan? I currently make a little more than $10/hr.

The truck will be used to tow occasionally and it needs to be either a ext or crew cab for family, both present and future.

Thanks!

Jon

satburn

If it was me and keep in mind I don't have all of the info needed on your COMPLETE situation. I would go find a very cheap car that gets great gas mileage. If you can drive the Suburban for a while, save some money, keep your eyes peeled for a little cheap car. Pay cash for the car. Then you can work on the suburban/cummins swap if that's what you want. I assume you still have the wrecked truck?

Back in the day... I built credit by taking a secured loan out against my savings and had the bank make automatic payments back. I know you don't want to hear it, but these things take time. Start small and work your way up, you'll be glad you did. Jumping into "big" money before you're ready can and usually does come back to bite you.

The above is my opinion and an opinion at that. Take a listen to what others say, make your own decisions. Good luck.

Grit Dog

Knowing you need to use/secure credit in order to build a credit rating, getting a car loan is not a bad deal, although having credit cards and paying them off will also help establish credit (and it won't cost you any interest if you use them for normal purchases and pay them off every month).
You mention getting a DMax. Although I think they're good trucks, you don't appear to be in the financial position to take on a $15k-25k loan. You mentioned your wages and "family" to think about.
My advice would be to either fix up the Suburban, probably get an entire junkyard drivetrain for $1500??, and have a cheap vehicle, assuming you can do the work yourself.
Or, get a loan (if needed, and will help w/ building credit) for a truck if you really need an EC or CC pickup. '90's model GM trucks are, in my experience very reliable. Could probably get a mid/late 90's 1/2 ton EC for $4,000 to $7,000, or a crew cab 3/4 ton same era for $6,000 to $10,000, in good condition.
If you are unable to get a decent interest rate on a car loan due to alck of co-signer or collateral, then work on the first option, or buy a beater you can pay cash for. Don't get sucked into some high interest rate "sucker" loan just to establish credit. Think about the fat rich guy you'll be paying a huge amount of interest to so that you can drive a nice used vehicle.
Don't overspend what you can afford just to have a "cool" truck. Save now and you'll be in the position to have a "really cool" truck in a few years and you won't be sweating the payments then.

Dr. Evil

Very good advice....these trucks are expensive to maintain and very expensive to fix if you suffer a major breakdown.

At your age, get something affordable and save as much as you can so you can pay cash when you can afford it.

dieselJon

Thanks guys!

I was going to go the gas route as I can get a 01 Chevy 2500 Ext around here for about $10k, give or take about $2k. The reason for kepping it under $13K (MY upper limit, not the stealerships. They say I can go more, Yea right ) because living at home, I can pay it off in a year. I have found good deals like that around here. Nice living near Chicago where everyone needs the newest and latest toys.

Now, time to look for a econo car.

Jon

Jeff in TD

I guess I'd have to say that assuming college and moving out to a place of your own are in your future, getting the cheap and reliable economy car makes sense... but then I drove a 55 ****** Wagon when I was in that part of life, so I can't talk much.

Credit wise, you could finance part of a cheaper vehicle even if you didn't need to, which could be a good idea to keep a bit of an emergency fund still in the bank.

Establishing some credit with a credit card can be a good idea ONLY IF you have the discipline to pay the entire balance every month.

dieselJon

I do not want to get a loan on something that once I get the money for the truck I want, I will be selling the old one right away. Does that make sense?

No college in the near future. I do have a mutual fund right now that is socked away for college.

Just planning and saving right now.

I only want to get a car loan once and be done with it. I know I will hate getting one but I do need the credit.

I do not even want the temptation of a credit card.

On the side note, whats the mileage of a MB 300D? I see them going for about $1500-$2000 on fleabay.

Jon

wannadiesel

A 300D will get mid to high 20's in town, low to mid 30's on the highway. I'm picking up an '84 300CD (turbodiesel coupe) this weekend to replace the Suburban. That thing is a diesel pig.

I would not take out a loan to buy a car.