Re: Dream turned nightmare

["therealdmcvegas <DMCVegas@xxxx>" <DMCVegas@xxxx>]

Note: I was going to send this response directly via e-mail, but change my 
mind as I believe it's information that should be shared with all of the younger 
members of the DML who are starting out.

Pretty much everything that all of the other DML'ers here have told you is right 
on the mark. Since you are just starting out here both credit and automobile 
wise, then the DeLorean is probably not right for you just yet. One thing to 
consider is what kind of automotive knowlege do you have? Many youg 
people getting DeLoreans isn't really too uncommon. Although people who 
are getting a DeLorean as a first car with no automotive background 
experience is rare. Even I studied the workshop manual and parts guide for 
over 3 years, and still wasn't fully prepared. So if you currently own a vehicle 
that you work on, then you will gain a great amount of experience there. 
believe me, you do NOT want to learn car repair on your dream car.

Credit is going to be the next issue. While lenders will charge more interest for 
a first time buyer, they will be more willing to lend. This is what literally lays 
the foundation for the rest of your credit. If you make all of your payments on 
time (VERY critical!), then you will certainly boost your credit score in no time. 
It shows all future creditors that you were responsible right from the begining. 
In addition, I would reccomend getting a dependable, used car that will only 
have a loan for about 3-4 years. This will give you a great chance to wrap up 
the loan quickly, and to keep your payments down.

Now, if you want to raise you credit score further, wait until you have about 8-
10 months of ontime payments under your belt. Then apply for a department 
store charge card, NOT a credit card (department stores are more eager then 
credit card companies, and will probably get it). Get somthing with about 
$150-200 credit limit, and neve charge over $50 a month to it. Now you've got 
2 lines of credit that are running in your favor. Then wait until you've got about 
13+ months of ontime payments on your car, and then refinance it. When you 
get the new loan, then old one will not just be paid in full, but will show on 
your credit as an entire car loan that was paid in full, and early at that! Time 
passes quickly, and in about a year and a half, you'll have gone from no 
credit, to immaculate credit! If you need a credit card in the mean time, just 
get a Visa Debit Card from your bank. (it will help to keep your finances in 
check) IMO, credit cards are good tools to help you out when you want to 
budget large purchases that you *need* into you finances, but they shouldn't 
be relied upon in any fashion. Aside from that, they only time I've ever been 
told that I absolutely needed a credit card was for a car rental. And if it's for a 
business related purpose such as a company trip, they'll waive the age 
restrictions, and will accept a VDC. Besides that, once your credit is 
estabished, you'll then be elegible for an unsecured card, and won't need to 
put up and cash to get it.

And if your're worried about paying for education, attend a couple of job faires 
to find out what companies are in your field of work you'd like to go into. There 
are a few corporations out there that will pay for your college degree as long 
as the degree you're going for pertain to you job and/or future with the 
company.

The best part of all this is you'll be in charge the next time you approach a 
lender. While lenders have no shortage of people applying for loans, they do 
have quite a shortage of people with excellent credit that are willing to take 
out loans from them. Someone with a great/conservative credit history, and a 
good job will quickly sway the minds of a loan officer. BUT, be pickey about 
which financial institutions you approach. Credit Unions are typicly more 
willing lenders than a regular bank. However, that doesn't make any one of 
them a sure thing. The more exclusive a CU, the more willing they are to work 
with, and help out their members. Plus it also depends upon those people that 
happen to work there at the time. Example: I'm currently a member of a CU 
here in Vegas that was at one time exclusive to certain employers, but has 
now let alomst everyone under the sun become a member. So while that's 
good for them in the sense they can generate more revenue, it's bad for me as 
a consumer as everyting from loan acceptance, to interest rates for loans and 
savings have really tumbled. So be very choosy as to who you want to go 
with. Hell, even I've been turned down for a loan. And I already had the damn 
car! I wanted a small $5K loan on my D to complete the cosmetics on it. I went 
in with the title, a price list of what I wanted done, and even an appraisal of 
$17.5K on my car that was less than 2 months old. And even I got turned 
down! And I would have already been $12.5K right side up on that loan! 
Some places just will not finance DeLoreans. And in all fairness, maybe it's 
not anything against DeLoreans, perhaps the loan officers just don't know 
anything about classic cars in general. After all, in all my dealings with loan 
offiers at banks, I've yet to find one that knows what a NADA book is. Nor have 
I ever heard of anyone who has ever applied for any kind of a classic car loan 
at all.

In the end, your best option is to either save up the cash to buy a D outright, or 
to build you credit up, and eventually qualify for a classic car loan. Although 
depending upon how frugal you are with your finances, saving up may just 
get you one alot sooner. Now granted, I was raised with a "Cash and Carry" 
outlook on finances, but I'm also a firm believer in making the system work for 
you. I purchased my first car brand-new off the lot with no drivers licence. So 
my trip to the DMV a couple of weeks later entailed me taking a driving test 
outside, and then going inside to pick up my license and my new plates. So 
just learn how things work, and you can make them work for you. Trust me! :)

-Robert
vin 6585 "X"