Car Loan?

Hi
Just letting ya know you wernt hijacking my thread. I think those with an opinion have spoken and Im all for threads going in whatever direction they get taken. I think according to some we are supposed to just keep fixing up the car we have and hope for the best or possibly throw a heft chunk of cash into another low priced used car and hope for the best. Some can be found, but i think in the 3-5K range that 75+% of the used cars you will find will soon have a problem. Not that you dont stand a chance of buying a 10-12K lemon, but the odds go more in your favor with something reasonably low mile and still has some solid value left in it. a $3-4K car is a basic crap shoot. you can come out smelling like a rose, or smelling like..well, you get the point. I wouldnt hold a dealer accountable for selling me a 4K car and it broke down 6 months later. you get what you pay for. Some people luck out. I suspect many others don't.
There are many tales of how people with fairly low credit scores get bought. But obviously whats on your file makes a lot of difference. My clear interpretation is,,, low score and high risk factors (multiple charge offs, repo, etc) you will most likely have to buy your way into any decent car. I think the severity of the past derogs plays the huge roll. or at least gives the finance company justification to say Shame on you for getting a repo, now we must rape you for it. But as long as they are reporting the rape efficiently to the CRA then that may have to be the case.
Obviously with low amounts down the problem gets big unless you have some shining auto credit on your file amongst the non attractive trades. Apparently once you pay a car off on time with Ford or such they most likely wont give a rat's behind what your file looks like in the future, as long as you have history with them and have shown payment ability then your in. If you dont have a history of car payments, then life will suck to the point its the finance company with a fair amount down or buying a car for cash. If you only have a couple grand I personally wouldnt do it because 8 out of 10 cars you buy in that range WILL have some problems. its a statistical fact.
Good luck to you!

 

hmm, dealers have always told me (and I know you have to take what they say with a grain of salt) that poorer credit scores are harder to get into a lease anyway. But never having wanted a lease it didnt really matter to me. If your GMAC has only one late out of what 60? Id say that was pretty good for GMAC purposes. they might bit, but might not since the acct is older. worth a try with them for sure though. Your lease, as long as you finish it up and trn in the car should have minimal damage. yes it has lates but disputing something that is probably quite recent probably wont get much bennefit for you. just my opinion.
Id go into a GM dealership and pick something modest and practicle and provided your income is there and a former trade with them you might be fine. try to clean up any oddball garbage in the meantime and set out for GM upon completion of your lease. be sure to go in with some documents that say your lease is done and concluded properly as mitsubishi may drah their butt getting the final payment and turn in closed report to the CRA and GM might think the trade is still open if you tun in the car on one day and try to get the new car the day after. with proper documents faxed with credit app they should be fine. Just go to a HUGE GM lot and give that your first shot.

 

tooth,

Not to burst your bubbles, but if you can afford a large down payment and hefty car notes, why were you late so often? Unless the money you're referring to is in your emergency fund, why would you want it accruing a low (if any!) interest while you pay through the nose for a new(er) car?

You didn't say you need this car right away, so perhaps you can save a few more months and buy a used car for cash. Since your husband is in the business, he probably knows which cars tend to have fewer problems. My 96 Honda Civic just passed 132K & still nothing done to it except routine maintenance & replacing worn out parts like the muffler.

 

How about a station wagon or something like the Chevy Malibu? Less gas guzzling. Sometimes you have to be creative!

 

Get out of that lease when its up and avoid them,, just my opinion. I think GMAC will help you out. New cars are not my first choice since you will be in it for the long haul and pay more.. A nice 2-3 yr old car is still quite able to be done with marginal credit. I wouldnt save up and buy with cash unless you have about ten grandl Also you will need to keep some reasonable auto trade going in order to be considered in the future.
People get late now and then,. a fact of life. Its done, your dealing with it. You aent a bad person because you were late half a dozen times any more than Im not a bad person for letting them repo my car which I owed 20 grand on. ny cost of living went up severely after I bought that car. I didnt choose to not pay it, i tried but ultimately I settled for a roof over my head before the car payment. Its done. fact of life.
The only thing wrong with the theory of bying cars for cash is that ost likely you will always have to settle for a lessor and perhaps problematic car. You will ultimately come to a point where any car auto credit history you had will fall off completely and then when you get fed up with the well used car and want to buy a newer one that requires more than 5 grand to buy you will be screwed.
You stand a very decent chance if you have a former GMAC trade that was paid on time 99% of the time. If you get them to do it the rest is in your hands. Pay it and live with it. dont pay it and live with it.
I dont care for minivans either. their value drops quick and many are used to seeing service centers. Many are also just fine. But dont buy a car that your shddering about buying before the fact. You wont be happy and you may be more inclined not to pay in a timely manner or other dissatisfaction may result. Do you have something realistic in mind?

 

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Cool! I love my Kylie, especially now that gas prices reflect the threat of war.

For your ER fund, you might want to put some of it in an ING Direct account. They consistently pay the highest savings rates in the nation. If you refer someone, they get $25 complimentary, and you get $10. The only drawback is that it takes 2 business days for your deposit to start earning interest, and 2 business day to transfer money out.

 

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I don't think you need to worry. If you have enough cash reserve to the point of 10 grand then you can get pretty creative with many places. the 6600 a month income helps enormously. Your trick of course would get Honda credit to buy you. Or just put 10 grand on a good used car. wouldnt buy a 5K car. too much risk. I dont see though for 10K down to get something done through Honda credit. GMAC may get you in a car for far less, but again if the car doesnt make you happy whats the point? unless you just find yourself in dire straights then you may have to. but if your willing to part with the ten grand then theres no reason you shouldnt get into what you want.

 

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I just started disputing. But havent gone near the two gig ones yet. If ultimately I wake wells fargo up enough to get a judgement I will tell then good luck collecting on it. If it all gets too much in the way I will chapter 7 them. Those bloodsuckers will never see another dime from me.

I see your consternation with the ten grand situation. lot of cash to throw on a down payment. I won the jackass of the year award years ago doing that. 10 grand down and sold the car 8 months later. OUCH! WHAT THE HELL WAS I ON? hahah.

my longest car trade was under 2 years. I paid it off early because I could. in 98 I bought a 96 Lincoln Continental for $12,500. had 50k miles and an extended warranty. put 6500 down and had payments of 187 per month, so I doubled and tripped them and paid off early. I still had some idiots critisizing me because I drove that particular car around! can you believe it? they thought I was the idiot who must have bought it new for $50,000 and my station in life didnt disctate that I should drive such a car. Hello? the car payment was the same to if I bought a new stripped down Ford hatchback. And that car lasted. drove like a dream. The beauty being is that American luxury cars depreciate severely so you can get into a nice one of recent year for the same youd pay for a new stripped down basic sedan for. often times these cars are certified with bumper to bumper for 100,000 miles. you can get into a lincoln continental or Cadillac STS that is about 3-4 years old with low miles for the same as a brand new basic sedan.
ANY used car will be a risk. but many that are certified carry a lessor risk as they are more thouroughly inspected and have a full warranty.
These cars are usually pretty safe bets. not great on milage which is a concern again for anyone.
The boneheads in my opinion are the ones that carry this approach further into the hazardous area. They are risking 18-28K on preowned Jaguars, BMWs and other exotics. I wouldnt touch them unless I had a long and full warranty. Years and years ago I bought a Jaguar for cash. it was 7 years old. Great ride, but you will go broke if it breaks. paid the Jag dealer $880 to put in a new water pump. Though this was the pre-Ford Jag period. Still the exotics are a risk and not worth it to me. I dont need one. They drive the prices of the Caddys and Lincolns down. Which as I said are often good deals for certified pre owned. You can obviously beat the Hell out of the Hondas and the like. Just wouldnt ever buy one because my family has roots in the unions and thats a big no-no. not worth having my parents disown me for.
If your husband is able to fix the Hondas and like,, perhaps a used one is feasible. the main reason Id avoid cheaper used cars is because I dont want to get raked over the coals in spontaneous repairs. not worth it to me, but you have an advantage there. You have many options. Keep in mind that though GM cars are apparently not your first choice,, IF GMAC can put you in one for low points because they have you as paying one of their notes before, it may be worth while. Get it with an extended bumper to bumper for 70-100k miles and the nominal amount you get charged extra should still be saved in the face of the lower interest they would likely give you. If GMAC offers to get you into something for 10 points, that is likely going to be far less than any finance company. If you carry Anything, even with ten grand down and poor credit the finance compay will rape. GM makes some nice cars. Not the finest things on this earth, but if I had your stats I could get them to give me something sweet for a fair deal.

 

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tooth,

You take home a decent amount, but your ER fund isn't even enough to replace 3 months of income...You're sure you want to blow it & have to start all over again?

With 3 young kids who aren't anywhere near being old enough to contribute their own pocket money, you can burn through $10K very quickly.

 

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I recently posted this info in another thread, but let me chime in here.

I have a jeep lease that is up in April and I was in the same situation as you, bad credit and needing a car.

This week, my wife and I got into a Chevy Venture lease with GMAC's credit rebuilder plan. Our payments are $359, no money down, just first months payments.

They did require that I pay off my Jeep lease first. I had to bring a copy of my final bill for the jeep which had all remaining payments listed on it, and I had to bring a bank draft to cover the final payments on the Jeep. They photocopied copied the bill and my bank draft to satisfy the lender.

GMAC pulled my Equifax which was 546 on the day they pulled it.

Luke

 

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Luke, may I ask the details?? What year, interest, etc etc....We are looking at a Venture and not even w/ the best scenario do I get my payments down that low!!! (man I miss the states!)