Nissan Versa.. is it good? financing under no credit?

Bad idea or not. I got approved with my own name for a car. The 2008 Nissan Versa. The car looks small and not cute. Is it a good idea to finance that for now.. and then after a year possibly be able to upgrade? I want to build my credit. Just wanting to know if I should suffer for a year with a car i don%26#039;t like just so i can get a good one later?

Nissan Versa.. is it good? financing under no credit?

What is your interest rate you were approved for and how long are you financing your car? This will put your situation in better perspective.

Unless you are going to put a huge amount down on the Versa, I would wait that year until you can afford the car you really want, if you can. The other option would be to buy something used to last you for a year.

All new cars depreciate the most during the first year you own it. After a year of owning the car, it will be worth about 65-70% of what you paid for it, but you will owe about 80-90% of what you paid for it. This is known as negative equity. You can roll negative equity into a future loan, but it just means that your next car will be more expensive.

In order to break even (to avoid negative equity), you will typically need to keep your car between 30 and 42 months, take care of the car, and drive avg. miles (12,000 miles per year).

You can build your credit getting a used car as long as you are financing through a reputable institution. Beware of %26#039;buy here, pay here%26#039; places, as they often will not credit you for making payments but the will penalize you if you miss one.

***EDIT - The problem is that you will still have negative equity on the Versa if you trade it in after a year. The $2000 down payment will help, but you will basically lose that money to depreciation.

I understand you situation. The smart move is to wait until you can afford what you want or buy something a few years old to avoid the depreciation hit.

However, if you are ok with losing your $2,000 and want to drive a car you don%26#039;t like for a year to build your credit, then that is your call.

Personally, I would look for a 2004 or 2005 model of something you do like, finance that, and then build up your credit that way. That way, you can drive something you like, take less of a hit on depreciation, and drive something you think is cool until you can afford your new car you really want.

Good luck.