Anyone know of any bad credit lenders? Car went on to final resting place today :-(

[MizzB]

Well I've been trying to drag this process out as long as possible and avoid buying a car, but my car actually stopped working in the middle of the road today (Transmission). It also leaking oil with a very pricey engine repair job. Considering that I've had the car for eight years, I think its time to let it go.

Anyone know of any lenders for individuals with bad credit? My scores are below. No CC debt, but some past charge-offs/collections holding my score down. Income is 48800 if that matters. I'm not desperate to find a car. I work 30 miles away and need a car ASAP.

P.S. tried Capital One and they said no.

[moondog7324]

Have you tried roadloans? If they say no, I suggest one of those 'buy here,pay here' lots. To be honest, with those scores your just wasting inquiries.

[MizzB]

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@moondog7324 wrote:
Have you tried roadloans? If they say no, I suggest one of those 'buy here,pay here' lots. To be honest, with those scores your just wasting inquiries.

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Thanks! I just tried RoadLoans and they approved, but at a high interest rate (14%). I guess someone in my situation can't be picky. Anyone else have any suggestions for lenders? Probably wont do much better buts its worth a try.

[moondog7324]

14 % isn't too bad for a poor credit loan. . It's a buyers market. Just a few suggestions:

1) Research www.edmunds.com is a great source- reviews and what people are actually paying for cars. And advice on negotiating.

2) Consider a base model car- one with few options- I think you get best value that way- especially if you plan on keeping the car. I laugh at people who buy a 14,000 car and get 17,000 worth of accessories/options. The automatic transmission may be a must- but besides that- keep it simple.

3) When you go to a dealer- since you have bad credit- DO NOT LET THEM RUN YOUR CREDIT! - tell them you have financing in place- DO NOT TELL THEM IT IS WITH ROADLOANS- they will know you are subprime.

4) Be prepared to walk- if they call you back there is room to negotiate- If they don't - you've probablly got the best deal

5) After a price is agreed upon, and one you can live with at 14%- ask the dealer to try to arrange financing- It's worth a shot.

Just curious- what make and model do you have in mind?

Message Edited by moondog7324 on 05-18-2009 06:29 PM

[moondog7324]

And another thing- In six months, if you clean up your credit some more and make on time payments- you may be able to re-finance through a bank at a better rate.

[Anonymous]

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@MizzB wrote:

Well I've been trying to drag this process out as long as possible and avoid buying a car, but my car actually stopped working in the middle of the road today (Transmission). It also leaking oil with a very pricey engine repair job. Considering that I've had the car for eight years, I think its time to let it go.

Anyone know of any lenders for individuals with bad credit? My scores are below. No CC debt, but some past charge-offs/collections holding my score down. Income is 48800 if that matters. I'm not desperate to find a car. I work 30 miles away and need a car ASAP.

P.S. tried Capital One and they said no.

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www.drivetime.com

I have no personal experience with this company, but they advertise a lot for the credit challenged, including lates, charge offs, previous repos and bankruptcy.  It appears they are one of the "your job is your credit" situations:

You have to buy from their dealerships, so they kind of present themselves as a CarMax for bad credit.  But I have no idea what the terms and rates are.  You can search their website for more info.

Message Edited by txjohn on 05-18-2009 06:44 PM

[MizzB]

Kudos to you for all the great advice. Thanks!

[moondog7324]

Another thing, learn how to use a loan calculator- That way you can understand how much the monthly payments are going to be- You know what you can afford- DO NOT SHARE THIS WITH THE DEALER- negotiate the trade-in seperate from the purchase of the new car.

[Anonymous]

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@moondog7324 wrote:
negotiate the trade-in seperate from the purchase of the new car.

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Do not expect much trade in on a dead car with a dead transmission.

14% is a great rate for bad credit, What do you expect? You should find if you qualify for a friendly CU to refi with later on.

You may be able to secure cheaper financing at a dealership, you should go in with the guarantee, see what the dealership can do and go with the best deal.

I have no idea why you would not let a dealership run your credit. I would only do it when you have researched your options and have come near a decision, but if they can get you better financing take it, if not you have your pre approval.

Buying a base model helps you with price a LOT, will kill you on a trade in. Just keep that in mind.

Are you considering new or used or what?

Do not jump at the first car as you are deperate and are in a similar situation as someone going grocery shopping when hungry.

[moondog7324]

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@Anonymous wrote:

I have no idea why you would not let a dealership run your credit. I would only do it when you have researched your options and have come near a decision, but if they can get you better financing take it, if not you have your pre approval.

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I would not let them run your credit before negotiating- If you are subprime. I would wait until your deal is negotiated. et them beat your interest rate - after you negotiate.

A car deal is three sepreate negotiations:

1) Price of new car

2) Trade in (in this case not much)

3) Financing (disadvantage in this case)

An uninformed buyer sometimes goes in blindly thinking about monthly payments.

Message Edited by moondog7324 on 05-18-2009 07:29 PM