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Thread: Help!!!??

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    Senior Member Cupid213's Avatar
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    Angry Help!!!??

    I have a question ladies............I want a 2003 car of some kind maybe a lexus or something cute but everytime I go to try to get a car Its hard because I have no pay stub or co signer no credit What is a girl to do I NEED a car a.s.a.p!!
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    Veteran Member Yea's Avatar
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    Default Re: Help!!!??

    I got mine with a letter of employment stating I make $$$ per year (don’t over do it!) and worked there 4 yrs.

    Do you have good credit?


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    Default Re: Help!!!??

    Wow Yea I didnt know that was possible...as I am looking to get a new car in the next year or so.
    you live like an ivy vine
    you can only survive by clinging onto trees
    that's your flaw
    put down some roots so you can stand on your own
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    God/dess VenusGoddess's Avatar
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    Default Re: Help!!!??

    Quote Originally Posted by Cupid213
    I have a question ladies............I want a 2003 car of some kind maybe a lexus or something cute but everytime I go to try to get a car Its hard because I have no pay stub or co signer no credit What is a girl to do I NEED a car a.s.a.p!!
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    No credit history, no paystubs...no co-signer. I say kiss financing a car good-bye. Sure, most dealers can usually finance people...but with nothing to go off of...no way.

    Of course, if you file your taxes (like a good little girl ) then you can use your tax statement (a copy of your 1040). If you have money saved up, bring copies of your bank statements (showing enough reserves).

    If this is not possible, then you are going to be stuck with purchasing a car that you can pay cash for. It's most likely, not going to be a new car. Especially if you are not filing taxes. Not filing taxes and then purchasing a $25,000+ car would be a big red flag for the IRS.

    Hope this helps!

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    Banned Melonie's Avatar
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    Default Re: Help!!!??

    Of course, if you file your taxes (like a good little girl ) then you can use your tax statement (a copy of your 1040). If you have money saved up, bring copies of your bank statements (showing enough reserves).

    If this is not possible, then you are going to be stuck with purchasing a car that you can pay cash for. It's most likely, not going to be a new car. Especially if you are not filing taxes. Not filing taxes and then purchasing a $25,000+ car would be a big red flag for the IRS.
    Venus is absolutely right that buying a nice car is probably the biggest risk for dancers who don't have a 'tax history', because of all of the automatic reporting mechanisms which the IRS has in place. For starters, in every state if a person spends $10,000 or more in cash to buy anything (the reporting threshold is even lower in some states ... NY=$3000), the seller is required to fill out and send to the IRS and state tax agency a 'cash transaction' report. And with a car, once the buyer goes to obtain the title and license plates, the state Motor Vehicle Title Dep't will also issue a report to the IRS and state tax agency. Both of these reports will include the buyer's real name, address and SS#, and the amount of the transaction. The Motor Vehicle Title report will also include the name of the bank/finance company holding the car loan/lease, the car's 'purchase' price, and the amount financed (thus telling the IRS or allowing them to calculate the down payment and amount of the monthly payments).

    Once the IRS has info that a particular person just spent/put down $XX,000 cash, plus assumed monthly payments of $XYZ for the next 3-5 years, it's a simple matter for their computers to cross-check that the same person has in fact filed tax returns in the past. It's also a fairly simple matter to check what the average cost of living is in that person's zip code, and to compare the amount of income that person reported on their tax returns against the amount of the car payments plus the average amount that person would spend for basic cost of living items. Obviously if no tax returns can be found, or if the amount of income reported on those tax returns is not sufficient to explain how that person could afford to plunk down $XX,000 plus make an $XYZ monthly car payment on top of average costs of living in their zip code, the IRS is likely to investigate further.

    If you do not have a 'tax history', then it's pretty much guaranteed that if you buy a car worth more than $9,000 (i.e. total cost with tax and license exceeds $10,000) that IRS and state tax agency attention is going to soon point in your direction. Of course if you have been filing and paying taxes for the last couple of years, and declaring enough income to explain how you were able to save up a $10,000 down payment plus cover a $500-$700 a month car payment on a late model Lexus while still being able to afford the average cost of living in your zip code, then there's nothing to worry about. But if this isn't the case, then you're limited to shopping for cars which are probably 2000 or older and worth less than $9,000. And if your state has a lower cash reporting threshold, you're basically limited to shopping for a 'shit-box'.

    It should also be noted that if the buyer has filled out a car dealer purchase agreement or a car loan application or a lease agreement stating that their annual income is $XX,000, but the buyer has failed to file tax returns or has claimed substantially less than $XX,000 in annual income on their tax returns, that this essentially constitutes legal proof the buyer has commited tax evasion. It certainly constitutes sufficient probable cause for the IRS and/or state tax agency to investigate the buyer's bank accounts, safety deposit box contents, credit card records etc.

    This can in turn potentially lead to a whole Pandora's box full of income tax problems for the buyer, as the IRS can easily attempt to 'reconstruct' the buyer's actual income over the past 3 years or more once it scrutinizes the buyers bank account and credit card statements, and then send the buyer a bill for the taxes due on that 'reconstructed' income (plus penalties and interest). Thus if a person with no 'tax history' were to buy a $30,000 late model Lexus, and the IRS conducts an audit as a result, it's very possible that not only could the IRS confiscate the Lexus and any bank account balances to partially satisfy unpaid income taxes, but also send the buyer a bill for an additional $30,000 in unpaid back taxes which would have to be paid out of future earnings !

    Please understand that my intent in posting these details is not to scare anybody. However, anybody who does not have a 'tax history' needs to be aware of the facts regarding the consequences of attempting to spend large amounts of money which, according to their 'tax history', they never earned in the first place.

    ~
    Last edited by Melonie; 04-08-2005 at 03:53 AM.

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    God/dess Bunny's Avatar
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    Default Re: Help!!!??

    Whatever you do, don't get hooked by one of those "bad credit financing" deals. If your credit is not good or not enough credit take some time to build up your credit scores so you get a decent interest rate. In the mean time, I'd just buy an older car with cash so you have something or if you HAVE to finance it a cheap one. My boyfriend is paying 28% interest on a car loan and I almost threw up when I found that out. You'll end up paying for twice what the car is worth. Also, I've heard if you have more of a down payment they are more willing to finance you because basically you'll have equity as soon as you buy the car. Also, the tax stuff is something you should worry about becuase you don't want to end up audited if you buy an expensive car and aren't paying your taxes. So the smartest thing to do I would say is save, save, save your money and accept the fact you may not be able to get a great car now but in a year or so maybe you can and you'll be so happy you waited so you're not paying 20% interest on a $30k car for five years and kicking yourself because it depreceiates faster than you can pay it off.

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    Member Mighty Aphrodite's Avatar
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    Default Re: Help!!!??

    My cousin is stuck with a crappy car and a huge interest rate right now. She has already paid more than the value of the car. Worse, the thing is about to shit out and she still has a balance because of all the interest that has accrued!
    Mighty Aphrodite

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    Banned Melonie's Avatar
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    Default Re: Help!!!??

    Quote Originally Posted by Mighty Aphrodite
    My cousin is stuck with a crappy car and a huge interest rate right now. She has already paid more than the value of the car. Worse, the thing is about to shit out and she still has a balance because of all the interest that has accrued!
    No offense intended Aphrodite, but it sounds like your cousin is probably just 'reaping what she sewed' financially speaking. Today's easy auto lending practices make this situation all too likely.

    A. Vehicles depreciate very rapidly i.e. after one year a new vehicle will typically lose at least 20% of its original retail value. Therefore if the buyer does not put down something like a 15% down payment on a 'clean' purchase, it is guaranteed that the loan will be 'underwater' i.e. the buyer will owe more than the current resale value, for some portion of the life of the loan. The depreciation factor can be even higher for used vehicles at certain ages, given the differential between 'high book value' at time of purchase and 'low book value' at time of resale.

    B. Adding other items to the amount financed, i.e. sales tax, extended warrantee, 'negative equity' from the traded-in vehicle loan, etc. push the loan further 'underwater' since these thing have no resale value whatsoever. To avoid being 'underwater' with these sort of items included in the amount financed, something like a 20% down payment is necessary.

    C. Vehicle loans for people with marginal/bad credit can be expensive. Even a $25,000 loan for 5 years at 7% interest results in almost $5,000 in interest payments if every payment is made on time and no late fees/penalties are added

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