I have a 95 SUV w/85,000 miles, paid off. I find myself in a situation where I am putting down 300-500$ every 3-4 months for repairs. I have recently been re-assigned to a position that will require substantial commuting-~150 miles 3 times a week above and beyond my usual. I have 2 paid car loans. Last one has multiple lates, from 1998-2000. Prior one paid 1995-it is on some reports, not on others. Anyhow, most recent one I have disputed, comes back verified, even though some don't have months associated w/ year. Here is my dillema: should I get a new car? I am thinking about a Jetta or Passat, I don't have much other than my trade in in terms of downpayment. Here are my scores: EQ: 575 (one incorrect status as 90 days late, one unpaid collection) EX: 612 (No collections, all accounts current) TU: 688 (Ditto EX) Do I have any chance of a car loan that isn't associated w/ a sky high interest rate? Thanks.
apply for a auto loan with chase manhattan auto finance. They pull TU only I had 579 TU score they approved me for Audi A4 loan at 7% with 10% (total loan price) down
$3500 cash downpayment on $30K (total financed roughly) loan. $3K and up seems to be the magic number financiers like to see.
Thanks Sam. My problem is I can only cough up about 1500, if that. Did you have a trade in? My blue book is about 5G...but we all know that that is quite subjective to the dealer. Also, what were your reports like at the time? I have 7 negs 15 positive accounts. I do have a rather pricey student loan (balance over 40G) that is listed as deferred, even though it isn't.
Thanks Sam. My problem is I can only cough up about 1500, if that. Did you have a trade in? My blue book is about 5G...but we all know that that is quite subjective to the dealer. THe downpayment requirement is not specific to cash or trade in. They want to see a 90% or lower loan to value ratio. You should be home free with a 5k trade in. I say this all the time, but I'll post it one more time for fun... You will almost always get a better deal from a decent F&I guy at a dealership than you will with an on line deal like peoplefirst or cap one. Note that dealers are allowed to mark up the finance rate, so you can usually haggle down up to three points. If they tell you the best they can do is 9%, say you have an offer for 6% somewhere else, and they will more than likely try to beat it. The dealer will have access to 10 or more banks so they can shop your score to get the best deal. Note that less popular brands will work harder to get your business. You won't get a toyota or honda dealer to go the extra mile to get your deal done.
I was willing to put down $3,500 on a total $12K financed Kia and the STILL wanted to charge me 18.99 percent interest. Naturally I decided to wait until I had corrected more errors. :::sigh::: I would have put $4,500 down if they would have given me a better rate. L
Are you thinking about keeping the suv for awhile? You are paying around $100 a month for maintenance and that is less than another car payment will be. The difference will help offset the increased gas cost. If you can budget the amount you think you will need for a new car loan to pay for maintance and gas for several months, saving any difference, you will do better in my opinion. John
Honestly, I would like to, and the maintenance costs are one thing, but its reliability as well. The vehicle is being very undependable, and even when I think that I have been doing proactive, preventative stuff, I still get major and minor stuff arise. I don't want to be in the middle of nowhere w/ a broken down car. Of course, I may not have a choice.
dealers will stack your application too. Think about it most peeps that come in an buy an audi are rich ofo's that have great credit. Given that 9 out of 10 apps say have 700+ score the guy can stack one bad one in to get a good rate.. If you go to a kia dealer, you might have more trouble since its likely more folks with bad credit are trying to get a car the ratio for them to stack isn't as great. definitely put all your baddies in dispute before going in too. You never know
KelTexx, Are you a member of a credit union? I suggest going that route for financing because their interest rates are better and you only get one inquiry. CardKid
I'm back. One the loan to value question, unlike cc's this is a secured debt, so the risk goes down quite a bit as your downpayment or trade in value goes up. A 5k down payment is exactly the same as a 5k trade in. The net result is that you only need to finance 25k on a 30k vehicle. The lender only looks at their exposure, the higher the dp the less the exposure for them. If you put 20% down and they have to repo the car in a year, they can probably get out close to even. On another note, if you go to a Kia or Hyundai dealer you're not going to get the best deal. They are used to dealing with bad credit, crappy rates and people who won't complain because they just want to get a car. Try the big domestics for the best deal, Ford, Chevrolet, Chrysler etc... Before they pull your credit, ask which CRA they are going to check. It looks like you only have one really bad report. As long as they don't check that one, you should be able to get a decent rate.
Thanks everyone for your replies. The dealer loan issue, the problem is that nearly all dealers here pull EQ, my worst. I know for a fact that GM and Ford do here at several dealers, and Toyota too. I'm here in Houston w/CSC (lucky me). I looked at TU a bit closer-looks like GM has me as still owing 1200-they never updated! I am definitely gonna dispute that.
