I need help with getting a loan..

[G0ldengirl68]

..for a Van.

I am considered low-income, but have a good credit rating, 748 I think is in the good range.  I know a lot is takin into consideration, but I am wondering if I should divulge that I plan my Van to be my full-time home?  That would allow them to see that my rent will go away (half price for seniors in certain parks), and be replaced by staying in campgrounds in Summer weather, and the same in Winter (although in the Southern States, AZ, TX, NM).

I have so few "other" expenses that it leaves me with more than enough for a car-payment, and extra for insurance, all backed up with emergency funds.  I've got that all covered, leaving me enough for food, and toilet paper Seriously though, the way I manage my money is quite good, but I don't want to sit back here in this apartment for years saving up enough for a Van.

Can anyone tell me if my bank doesn't come through with a loan, if trying financing through a car dealership is my next best option?  I just know I need at least a Van, my truck is just not going to work for me.

I did call Sole Savers (it was recommend by a friend) in Eureka.  I can't buy anything without them allowing me to have it checked out my my mechanics at Georges Auto.  I also can trade my truck in, plus a good-size amount of cash for downpayment.  I want to go so bad because I am sick of living in government housing.  I feel closterphobic, and felt that way long before Covid hit, it's just much worse now, but it is lifting some.  Many places are not demanding we wear masks if we had our vaccine.  Although, no one asks to see our card, lol!!

 

[bullfrog]

Me personally I would avoid borrowing at all costs. If living in government housing is bad for you, having a large car/insurance payment, could turn you into a financial slave which is much worse than the other alternatives that are out there. There are lots of living situations out there that don't require a van. There are several older people with health problems working as shuttle drivers, store clerks or night audits living in furnished housing or older RVs pulled by older vehicles saving to get something better while living in a National Park, Lodge or private campground. I would do the best I could with what you have. Do short local trips to see what you really can get by with. Fix what you can. At least if it doesn't work you have someplace to sleep in your government apartment. Everyone who uses money to make money will try to take advantage of you. Keep looking, Money lenders want someone with a physical address they can find, if you are living in a van you won't be someone thay want to lend money to.

 

[john*thomas]

Quit worrying about things you don't have to worry about yet. There is the argument about whether or not you want to get a loan at all but lets just address that you were going to. Quit fretting over what if until you find out you need to. You do have a good credit rating so if the bank would give you money the rest is moot.

Just a couple things.........dealers go through banks also. There are a few that will finance but you are going to pay far more with them. On occasion a dealer can get you approved. They present 10 really strong customers to the bank and convince the bank to take the one borderline one also. I also wouldn't mention living "out of state". If I was a banker and you were borderline and I thought the vehicle was going to be across the country that might lead me to reject.

 

[Morgana]

This might be a hard pitch to make to a bank, but if your heart is set on it, why not work up a detailed proposal/application? Find out what the bank’s requirements are, and then figure out in detail whether and how you can meet them.

Don’t tell us, but do figure it out for yourself and the bank: What is your target vehicle likely to cost? How much can you trade in your truck for? How much is your car payment likely to be? Your insurance? How much should you set aside for car emergencies? health emergencies? other unexpected challenges? Have you identified a substantial number of specific campgrounds and costed out your stays? Do you know how Covid has affected these (from closures to overcrowding to price changes)? These are just a few of the things that a lender would ask — and that you should know for yourself before you risk your future and your credit score on this venture.

Take your general “this oughtta work” ideas and turn them into highly specific dollars-and-cents statements. And then express them in a way that would impress a banker who is not necessarily sold on cheapRVliving the way we are.

If your goal is workable, then doing your homework down to the nitty-gritty will give you confidence; if it’s not, this is the least traumatic way to find that out.

I’m guessing that a dealer loan would be risky and expensive. I’m not familiar with Sole Savers, but getting a vehicle checked out by a reputable mechanic is absolutely essential and the fact that they’re requiring this is a plus, not a minus. I’m sure a bank will require the same.

I wonder if there are resources — geared to low-income people and/or seniors — to help you work through the finances of this. We seniors have a reputation, deserved or not, for lack of financial savvy. Sometimes there are services geared to helping us with that.

Being desperate to get out of where you are is not a great frame of mind for making a decision this big. Force yourself to do this with a cool head. It will require an s-ton of research — on the vehicle, car-shopping techniques, financing, even identifying a mechanic who’s reliable enough to trust him with your whole future. Fortunately, there’s a lot of help available online. I did this last summer myself, and it was h3ll, but I knew I’d be living with my choice for a long time.

Use any help that’s available to you. And for heaven’s sake do get any vehicle you might buy checked by a reputable mechanic first. Good luck!

PS
If an apartment leaves you claustrophobic, are you sure you'd be comfortable living in a vehicle? Have you tried this out at all yet? Are you sure your current truck won't cut it, even to start out with? Again, these are not questions you need to answer here, but you should be really sure of them yourself before you put your hard-won assets at risk. The answers could be important to a lender, too.

 

[Morgana]

Another thought: vehicle prices, including used, are through the roof right now; this /might/ change for the better once the economy shakes out its post-lockdown ((wish I could say post-COVID, take care of yourselves people)) kinks. Another reason to approach this cautiously and take the time to really do your research.

 

[nature lover]

The Bible said it thousands of years ago and it’s true. The borrower is servant to the lender. It took me many years to figure out that credit is a scam. I carry a debit card and I have very little reserves but I don’t pay interest and I’m not interested in paying interest. I may be forced to someday but I hope not. It is Still your decision.

 

[Cammalu]

If you have been able to keep a good credit score then you are responsible enough to figure out how to pay and what you need to do.

I know a lot poo poo buying on credit but I do it all the time. My score stays really good and I sure wouldn’t be able to afford houses and rental properties if I hadn’t borrowed. I don’t pay the mortgages on any of them. The income received from them pays it.

The only bills I have coming out of my pocket is a small elec bill when I hook up the camper to power in the summer and the regular insurance, gas, etc that I use. Credit can work for you if you are responsible.

If you aren’t you can really screw yourself up.

Figure what you can pay and look at it. I wouldn’t stay home if I didn’t have to if I were you. You can stay where you are miserable and scrimping to save forever or get out and hit the road and the money you will be saving on rent and utilities you can make extra payments with. You already know how with your credit score.

 

[WanderingRose]

You might try a credit union, but since you asked I will just say that I would not let your passion for getting out on the road as quickly as possible lead you into a loan you have to beg for.

Perhaps consider a part time job, to at least help get a sizable down payment together and put you in a better position from the lenders point of view.

If it is difficult to find someone to lend you the amount you need for a decent vehicle, consider whether it is a sign from the universe and/or your guardian angels that this is not the path you should take.

Remember, too, that traveling means maintenance and upkeep on this vehicle, and sometimes costly repairs.

You need to have a good cushion of savings and a means to replenish it, so that you don’t find yourself stranded somewhere out of funds.

Get to saving, maybe add a part time job, and see what opportunities present themselves.

If it is meant to be, it will happen.

Good luck.

 

[Sofisintown]

Save instead of borrowing.
The bank wants guarantees that you will pay on time, and telling them that you will be roaming in a van somewhere will give them the hibbie- jibbies.
Regardless of your good credit, a personal (unsecured) loan comes with high interest.

 

[flying kurbmaster]

Hi just curious why your truck won’t work?

 

[G0ldengirl68]

If you have been able to keep a good credit score then you are responsible enough to figure out how to pay and what you need to do...
Figure what you can pay and look at it. I wouldn’t stay home if I didn’t have to if I were you. You can stay where you are miserable and scrimping to save forever or get out and hit the road and the money you will be saving on rent and utilities you can make extra payments with. You already know how with your credit score.

This is the way I'm going, pretty much decided before I realized I had all this feedback, and I appreciate seeing someone that has done it that way.  Thanks Cammalu

 

[G0ldengirl68]

I am not subscribed to my own post. I thought that happened automatically.

Anyway, I will answer the rest of these posts tomorrow, I'm too tired this evening to do that. I appreciate everyone's input so at least wanted to say that tonight.

 

[G0ldengirl68]

Ok, I got some good feedback on my questions, and want to thank everyone again

The main things I got out of the thread are that:

1. definitely don't want to let a lender know what my plans are as far as home-base (address).

2. go with bank, or maybe get with a Credit Union. Friends have mentioned loving their Credit Union.

3. Borrowing for me, using credit would work fine.

Just to clear a few things up, I pretty much knew the way I was going to go if I run across a Van that will work for me. For me it always helps to ask people, even questions I've answered for myself because I feel more secure with what I've been thinking about.

 

[G0ldengirl68]

All good info Morgana, although I'm not desperate, sorry if my writing came off that way.  I have choices today, and have been close to desperate in my life, so no, I'm no longer there.  What I meant by claustrophobic in that I long to live out of town, and be able to step out into some open spaces/nature. Van Life won't be easy, I don't have any false conceptions about that.  I love moving around, and seeing new places and faces.  Everything has to line up, for me, before I'll take that step.  I've learned a lot from past mistakes and don't plan to repeat them.  This would be the biggest step I've taken since I turned 50

 

[G0ldengirl68]

Me personally I would avoid borrowing at all costs. If living in government housing is bad for you, having a large car/insurance payment, could turn you into a financial slave which is much worse than  the other alternatives that are out there. There are lots of living situations out there that don't require a van. There are several older people with health problems working as shuttle drivers, store clerks or night audits living in furnished housing or older RVs pulled by older vehicles saving to get something better while living in a National Park, Lodge or private campground. I would do the best I could with what you have. Do short local trips to see what you really can get by with. Fix what you can. At least if it doesn't work you have someplace to sleep in your government apartment. Everyone who uses money to make money will try to take advantage of you. Keep looking, Money lenders want someone with a physical address they can find, if you are living in a van you won't be someone thay want to lend money to.

that is great, not borrowing or using credit.  I'm mostly about paying cash for what I want, but I like having that credit, and keep at least a small balance in my accounts (I just have 2 ) Shuttle driving is an option if I find one on my job search.  Been using Coolworks/Older and Bolder again.  I've landed 2, Summer jobs with them, but both had housing and I have a teeny dog now so not quite so easy

Right on the trying to borrow living on the road :thumbsup:

 

[G0ldengirl68]

Quit worrying about things you don't have to worry about yet. There is the argument about whether or not you want to get a loan at all but lets just address that you were going to. Quit fretting over what if until you find out you need to. You do have a good credit rating so if the bank would give you money the rest is moot.

Just a couple things.........dealers go through banks also. There are a few that will finance but you are going to pay far more with them. On occasion a dealer can get you approved. They present 10 really strong customers to the bank and convince the bank to take the one borderline one also. I also wouldn't mention living "out of state". If I was a banker and you were borderline and I thought the vehicle was going to be across the country that might lead me to reject.

That's interesting about how the dealers work, never heard that before.  No, I won't be mentioning my plans, that was kind of a stupid thought but I wondered, I admit.

 

[G0ldengirl68]

The Bible said it thousands of years ago and it’s true. The borrower is servant to the lender. It took me many years to figure out that credit is a scam. I carry a debit card and I have very little reserves but I don’t pay interest and I’m not interested in paying interest. I may be forced to someday but I hope not. It is Still your decision.

Yes, it wouldn't be an easy decision and I will take my time.  I like running thing by someone, and I think this is the best place since people have either been there, or are there with the life-style

 

[G0ldengirl68]

You might try a credit union, but since you asked I will just say that I would not let your passion for getting out on the road as quickly as possible lead you into a loan you have to beg for.

Perhaps consider a part time job, to at least help get a sizable down payment together and put you in a better position from the lenders point of view.


Good luck.

I've been scoping out seasonal jobs but most don't have housing.  That's mostly where the Van thing came into play.  Depending on total cost of Van, I do have a pretty good down payment.  Because I can afford more, I am hoping to find something for less money.  I'm looking at owners selling, not dealers when I search online. I have a little dog to think about too, which I knew when I agreed to take her that it was to be a big responsibility. My last pup died in 2006 but we had a wonderful, 15 years of travel.  Much easier to find jobs back then, through temp agencies.  Didn't do much for a resume though ;(

 

[G0ldengirl68]

Save instead of borrowing.
The bank wants guarantees that you will pay on time, and telling them that you will be roaming in a van somewhere will give them the hibbie- jibbies.
Regardless of your good credit, a personal (unsecured) loan comes with high interest.

yes, I do get that now, I realize it was a silly question.  I don't think borrowing is out of the question for me though, if I find a good deal.

 

[G0ldengirl68]

Hi just curious why your truck won’t work?

My truck is still an option, I think it's too small, and it is a '94 with high mileage.  I just don't feel as secure in it as I think I would in a newer rig.  But it is definitely still an option and it would be hard to give it up.