Don't buy a BMW you can't afford. Buy a $4000 Civic with your cash, then save the monthly payment you would have had in an account. With the interest rate you'll get that will be over $20k.

 

if you would happen to still go for a loan and can only get a high interest rate loan try to pay it off very quickly. like no more than a year. if you keep it the loan open for a year and then pay it off you should be good to go. it's awesome what a year of installment loan payments do for your credit

 

No, you do have business buying a car on credit at some ridiculously high interest rate.

 

The logic here is a little bit backwards. One of the finer points of good credit is that it can save you a lot of money when making big purchases (such as cars).

21% is absolutely nutz. There are other ways to fix credit that come free or at a much lower cost than 21% for an auto loan.

As others have mentioned, proper use of a credit card can go a long way toward proving you can handle credit.

The key with ANY credit (and particularly with credit cards) is to only buy what you have cash for (with VERY few exceptions). In generally, the only exceptions (for the average consumer) would be purchasing property (and of course due diligence is necessary to ensure the property is worth the price paid and is expected to hold/appreciate value), and possibly when purchasing a needed vehicle.

1) You have already established that you don't have the cash to purchase this particular car.
2) As you already have a car, the BMW is not needed.
3) Furthermore, if your goal is to keep miles off of the S, there are most likely other cars available that are more reliable and certainly cheaper than a BMW that would achieve the same goal.

We certainly don't know all the aspects of your financial situation, but taking a high-interest loan on a second vehicle (read: depreciating asset) because there is limited cash in hand has the potential to be considered a poor financial situation later on.