OK I am seeking to buy a fair condition vintage VW. I'm looking to pay $5000-10,000 for it and I really would like to get one by sometime this summer. There are not many of these left and the longer I wait/procrastinate, the less likely I will be to find one that I want and in my price range. I have been thinking about possibly taking out a used car loan so that I can get the VW I want before it gets sold to someone else, and then I can pay off the loan early(a few months from now).
But here's the deal:
a) I just got a new car 6months ago with a loan for $26,000(I put $6,000 down), and although I pay more than the minimum payment EVERY month(we're talking $1500/month for a car loan with a $490/month payment!!), it is my first car loan so I'm not sure if that'd hurt my chances of getting a second(but significantly smaller) car loan. I do make enough money, about $1500/week, but I am self-employed so I do not readily have paystubs.
b) My credit is mediocre at best. I generally pay all my bills on time, for over a year now they'd ALWAYS been paid on time and IN FULL(I never pay interest on credit cards, always pay more than min payments each month on my loans). However, in January 2005 I was unemployed so I had 4 30day lates go on my credit report and a charge-off with Amex that really wasn't a chargeoff so I'm disputing that inaccuracy now. In 2002, some a$$hole didn't pay his share of the rent and that resulted in a judgment against us, but I paid that in full only months after the judgment was rendered(later I sued the 2$$hole for his share of the rent money that I had to pay for him, and put the lawsuit money towards my new car!!). Overall I'd say my credit score is in the low 600s.
Is there any chance that anyone would give me a second loan? Esp if it's of a much smaller value? I'm thinking that maybe I'd only get a loan for $5,000 and pay for the rest of the cost in cash out of pocket. My credit union says they require an Experian FICO score of 600 or better to get a loan, but is there a chance that they might use their "own" credit scoring system(as car dealers do) and say my score is lower than my FICO? Or could they say that I have the required credit score, but the paid judgment or new car loan hurts my chances of getting the loan? Also, are there any lenders that give out loans easily iwth barely any credit requirements?(i.e., subprime lenders) NOTE: I'd be paying off this small car loan within 6 months, so interest rate isn't really much of an issue. Thanks for all your help!