Help Car Loan Advice

Discussion in 'Credit Talk' started by amdanielle, Jul 30, 2009.

  1. amdanielle

    amdanielle New Member

    I currently have a 2000 Lincoln LS (which has been giving me problems since i've bought it) I've had the car 3yrs now, and have put about 5K in it to fix varoius things. Currently there is the "Cash for Clunkers" program going on and I am DESPERATE to take advantage of it!! KBB trade in on my car is like $1200.00 and with this program I'd get $4500.00. I currently owe 6K on my car loan so I'd still be rolling over about $1500.00 on the new loan. My credit score isnt so hot right now, 610, due to a late fee on a cc and having high balances on my cc's. In order to take advantage of this clunkers program you have to purchase a new vehicle, and I'm trying to be modest here and purchase a new Kia. Maybe a forte, or a Soul. im worried about what type of apr im going to qualify for, obvoiusly something in the teens? My fiance is willing to co-sign on the loan for me but im not sure if that will even help. His credit score is about 665 (not to good ether). Im looking for advice on what to do... I've been trying to ride out my loan in this lincoln because that is what everyone says I should do, but in the meantime I'm pouring all my money into repairing it. Plus I'll NEVER get $4500.00 for a trade in on it ever again, so I NEED to take advantage of this clunker program.. I really dont want to get into a loan on a new car with a high APR, because I won't be able to afford the monthly payment. My car payments now are about $367.0and I don't want to go any higher than $400.00 (which is already pushin it) I need advice as to what to do. Should I look for a loan myslef through like a credit union first or let the dealership look for me. I dont want alot of places running my credit because OBVOIUSLY I cant afford the impact on my credit score =) Just stuck in a tight place rightnow, and i have to think fast because once this clunkers program is over, Im stuck with 5K of neg equity ina car that I REFUSE to fix anything else on.
  2. cathyG

    cathyG Well-Known Member

    my local credit union is offering auto rates between 4.99 and 18.99. go to yours and ask them to give you an estimate based on your credit score without running your credit. then at least youll have that number with you when u go to the dealership. dealerships are desperate to sell, so just go prepared with a rate. also, banks are ridiculous right now. i have a friend who has a high credit score and was denied by a large bank for a $10,000 auto loan even tho he has more than $10,000 in the bank and a solid job. in this market, i really don't think anything can be expected.
  3. cathyG

    cathyG Well-Known Member

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