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Member
JessicaLynn1117
Posts: 6
Registered: ‎06-06-2008

Auto Financing Dilemma

OK...My dilemma is (has been for the past year)...that I WANT a new car more than I really NEED one. The thing is my car is pushing 100,000 miles and I dont expect to last to much longer without me having to put alot of money into it. (Plus, knowing Im already going to get screwed in the trade-in deal I want to get rid of it before it hits 100,000 miles) I have a repossession from 2005 on my credit reports (ONLY SHOWS on TU and EX) . A year ago the only place a could get financed was at this very seemingly, shady dealer and through a company called Credit Acceptance. I know my interest is around 20%, ouch! I have had that loan for actually 1 year and 2 months-perfect payment history-all "oks". (Also only shows on TU and EX)
 
The dilemma-wanting a newer used car-specifically one thats around $35,000.00. Call me crazy but I want this car. Anywho, knowing what on my credit reports as far as the repo and "good" payment history on current loans, what do I do, to attempt to get another car??
 
I was thinking of finding a place that only pulls Equifax (highest score- 621)-BUT that wont show my payment history for my current auto loan.
 
ALSO-in a past life i had excellent credit (with ex-h) I have several (5) auto loans-showing currently on my credit reports showing "current-paid" but i was only the co-signer. (another reason why I dont have much individual established credit)
 
What can a girl do about all this?
 
ALSO-it seems that I get this new car thing fire underneath me, every couple of months or so.
I have SIXTY or so INQUIRY hits from ONLY AUTO FINANCING lenders (ALL DENIED) since 2006.
 
I have been working on my scores and credit for about a year now, so I know that my scores are alot better than they were then. Im thinking that I have a chance to get financed SOMEWHERE-But who do I trust to run my credit and do me good??
 
Ive seen ALOT of people on here get approved for the Cap1 blank check deal and\or going through a Credit Union(which I do not have yet, but I will, if need be)...
 
My only fear is, is that, CAP1 Auto Financing has denied me, several times, every other time I applied with them (someone from a dealership, did, i think)
 
Does it make any difference if I apply myself?
 
I just need some answers\help as you can see.
 
I am a little all over the place.
 
OH! And what can I do about getting all those inquiries rolled into only a couple? I saw a dispute letter format somewhere, now Im not sure where I saw that.
 
And what if I dispute something and I havent heard anything back about it, for months?
 
Thanks SOOOOOOOOOOOOO Much-I need to stop now!!
 
I appreciate ANYONES help....
 
 
(Worst case scenario, if I have to refi, who should I try?-are the odds the same as getting approved for a loan)
Had to sneek a few more in there.
Quite literally obsessed with getting my score up!
I do check it every day...
FAKO SCORES: 6/09/08-TU 583-EX 575-EQ 621
Valued Contributor
1111mel
Posts: 1,060
Registered: ‎02-13-2008

Re: Auto Financing Dilemma

Question 1:  How much do you owe on your car?  Do you owe more than it is worth?
 
Question 2:  Are those car loans you Co-Signed for Paid IN Full or still open?
 
Question 3:  What is your income that you want a $35K USED Car?
 
You mention tons of Auto Inquiries....They display each and every one on your report, but count as 1 (as far as a ding on your credit) for all pulled within 14 day period.  So if you apply for a bunch wait a month then do it again over and over they are separate pulls. 
 
Stop applying for auto loans.  All of those inquiries are legit and anyone who pulls your report sees each and everyone of them.  They won't loan you $$ because those pulls make you look very high risk.
 
Chances of you getting refinancing on a car with 100K miles is slim.  Chances of getting a $35K used auto loan with other open auto loans on your credit report is also slim.
 
I don't want to get you mad, but can you really afford a $35K car? I speak from experience as I bought a $30K car on $50K income and I couldn't afford it, had to learn the hard way....
 
Your car shouldn't cost more than 20% of your take home pay.  Don't fall into the I want trap (yes, I learned the hard way there too)
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
New Contributor
Rocket
Posts: 53
Registered: ‎06-25-2007

Re: Auto Financing Dilemma

I have to agree with 1111mel. Sadly it sounds like you're not in a great position to do this at the moment. I could be wrong, so let me go over a few things in addition to 1111mel's questions:

- How much do you have available that you could put as a down payment?
- How much verifiable income do you have, and what is your DTI? How will that change with the new payment?
- How much are you expecting to receive on your current vehicle as a trade? Will it pay off the vehicle?

And here's the kicker... What kind of payment schedule are you looking at?

Let's just say you got an APR of 10% on your 35K car (and let's add in a thousand for tax, tags, fees, etc). So you have a loan for 36K at 10%. Here's the numbers:

72 mos (not likely with used): $667/mo with a total of 12K in interest paid.
66 mos: $711/mo with a total of 11K in interest paid.
60 mos: $765/mo with a total of 10K in interest paid.

Can you afford that monthly payment plus insurance and fuel? I drove several cars past 100,000 miles and the absolute most I had to pay for a repair was $2,500 for a rebuilt transmission. Under the best circumstances, that's only 4 months of payment on this new car.

Of course, you're also looking at a used car. A used car may or may not have much warranty left, and then you're in the same boat as your current car. If something breaks, you've got to pay for repairs AND the car payment.

If you're still heart set on the car, and you know that you've got the finances taken care of, I'd suggest a credit union and as much income verification as possible. Make sure they know that you've got it covered. Good luck!
TU - 688 | EQ - 664
Member
JessicaLynn1117
Posts: 6
Registered: ‎06-06-2008

Re: Auto Financing Dilemma

Thanks to both of you for answering some of my questions.
 
Now to answer yours.
 
I owe about 5000.00 more than its worth. SO yeah, that sucks. I know, how that works.
 
All the loans that I was on are Closed (Paid) except one shows- Open (Paid) -the open\paid only shows that on Equifax.
 
My DTI is 30%-so not bad. All I pay each month is my car payment and insurance.
 
Now, the verifiable income would be an issue, as I just started my new job last month. (I was already imagining I would have to wait at least six month to show work history)
 
I wouldnt try to get a loan on top of the one I have now. I do not need nor want two loans\cars.
 
Can I afford it? Yes. Would I be able to afford much else? Probably not.
 
Lets say I wanted a 20000.00 car or 15000.00-The point is...I need to get financed.
 
Thanks for your help and input 1111mel =)
 
 
Quite literally obsessed with getting my score up!
I do check it every day...
FAKO SCORES: 6/09/08-TU 583-EX 575-EQ 621
Member
JessicaLynn1117
Posts: 6
Registered: ‎06-06-2008

Re: Auto Financing Dilemma

[ Edited ]
At this point I do not have a down payment. I plan on saving for about 6 months (along with establishing my work history and getting away from those darn inquiries-by not inquiring until then).
 
About the DTI I can add $200 to my current payment and my DTI is still good. In the 30%s
 
I will be up side down at least 5000.00 on my current vehicle-so add that on to the one Im going to get.
(Hopfully.)
 
I dont care about the payment schedule. The Interest wont be ANY WORSE than what Im paying now on a freaking Dodge Neon for crying out loud. IF im going to pay all that interest either way, why not do it on a car I like???
 
So realistically, I know I am going to have to wait about 6 months to save up the down payment, establish a work history and hopefully 6 months of no auto loan inquiries will look better than if they were more recent.
 
Like I said, say, the vehicle was 15000.00 or even less. Who should I apply with for the loan, was the ultimate question?
 
Im thinking credit union(thx Rocket) and possibly that blank check program.
 
Hopefully in 6 months my score will be even HIGHER. Lets hope.
 
About those inquiries-Anyway to get them off??
 
Thanks Guys =)


Message Edited by JessicaLynn1117 on 06-10-2008 03:01 PM

Message Edited by JessicaLynn1117 on 06-10-2008 03:01 PM

Message Edited by JessicaLynn1117 on 06-10-2008 03:02 PM
Quite literally obsessed with getting my score up!
I do check it every day...
FAKO SCORES: 6/09/08-TU 583-EX 575-EQ 621
Valued Contributor
1111mel
Posts: 1,060
Registered: ‎02-13-2008

Re: Auto Financing Dilemma

If you don't already have an account with a Credit Union....join one that will be your best hope.
 
I know how badly you want a better car, but trust me when I say this.....  Buying the car you have your heart set on and then no longer being able to afford much else (your words) you will eventually end up hating the car.
 
Since you are $5K upside down rolling that in to a new loan will result in a higher interest rate.
 
My only suggestion don't buy a car for more than $15K then roll the $5K to make a max loan of $20K.  Get something a year old that still has some factory warranty on it, then buy an extended when it runs out.
 
I understand your issues with the Neon!  Good Luck!
 
On a side note, my dream car (or so I thought) was a 2007 Mitsubishi Eclipse GT in the orangy color, cost me $30K with $620 a month in car payments....I traded her in 11 months later (after I had paid 1/4 of my loan off) rolled in $5K and put $1,500 down on my new car.  Now my car payments are 1/2 and the cheaper car ended up being my dream truck!
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Member
JessicaLynn1117
Posts: 6
Registered: ‎06-06-2008

Re: Auto Financing Dilemma

Thanks 111mel!
 
To be able to get any car (and one that is only 1 year old) with my credit would be a dream come true. I just want a nice car for once--you know. Im almost getting there. Thanks for all your help and Ill let you know what I end up doing, either way.
 
YOU GUYS ROCK!
 
=)
 
I love this Forum!
 
 
Quite literally obsessed with getting my score up!
I do check it every day...
FAKO SCORES: 6/09/08-TU 583-EX 575-EQ 621
New Contributor
Rocket
Posts: 53
Registered: ‎06-25-2007

Re: Auto Financing Dilemma

Your plan sounds pretty good. Stick to it, and save save save. If anything, after six months, check with your credit union to see if you qualify for a loan. If they say no, wait three months and try again. Just stick to your savings at the same time. As you save more, you'll have less to finance. At some point (and I'm sure it'll be soon), you'll cross that threshold where the credit union knows you've got the steady income, your loan amount will be low enough, and your credit history will look better. That's when you'll hear those words: "Go find your car" :smileyhappy:

The patience is the hardest part. Once again, best of luck!
TU - 688 | EQ - 664

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