Auto loan with horrible scores?

furkidz3 · ‎10-11-2007

Ok, here's my dilemma:

My scores: TU 490

Ex 485

EQ 479

I have about 5 accts in collections, 2 charge offs, and several late payments (all covering a period over the last year)

I got in this trouble due to a medical condition, trying to keep my 10yr old car on the road and out of the repair shop, and from a bad shopping addiction (which I am in counseling for and on meds at the present time). Sorry if that's too much information.

So now, my car engine finally gave up the ghost and I am currently renting a car and need a car of my own ASAP. I have no family to borrow money from. With no real money to put down on a car and these HORRENDOUS credit scores, what are my expectations when it comes to getting a loan for a car?

I do not want anything fancy, just a car that gets me around, with an AC and radio that I can pay off (Make ontime payments) over a few years and then get what I really want .(when my scores are hopefully better) Anyone have any answers or suggestions? The one good thing is the last auto loan I did get was in 1988 and I paid 5 yrs with no late payments. Does that help me at all?

Anonymous · ‎10-11-2007

furkidz3 wrote:
Ok, here's my dilemma:
My scores: TU 490
                    Ex 485
                    EQ 479

I have about 5 accts in collections, 2 charge offs, and several late payments (all covering a period over the last year)
I got in this trouble due to a medical condition, trying to keep my 10yr old car on the road and out of the repair shop, and from a bad shopping addiction (which I am in counseling for and on meds at the present time). Sorry if that's too much information.
So now, my car engine finally gave up the ghost and I am currently renting a car and need a car of my own ASAP. I have no family to borrow money from. With no real money to put down on a car and these HORRENDOUS credit scores, what are my expectations when it comes to getting a loan for a car?
I do not want anything fancy, just a car that gets me around, with an AC and radio that I can pay off (Make ontime payments) over a few years and then get what I really want .(when my scores are hopefully better)    Anyone have any answers or suggestions? The one good thing is the last auto loan I did get was in 1988 and I paid 5 yrs with no late payments. Does that help me at all?

I really dont think you can get a car loan with no money down. When my scores were comparable to your scores I got a loan from a Ford dealership but I had to put $3000 down. They guaranteed financing for everyone. I was financed through Drive Finance with a 24% interest rate. The only thing I can suggest is going to a dealer where all of the financing is in house. My other car that I bought previously was through one of these places. I had to put $1000 down. $200 a month for a 1992 vehicle that still drives excellent today. I guess I got lucky. Make sure that you have a mechanic look over the car before buying, because if it breaks down, you still have to pay. And dont ever be late. They will take the car back in an instant and resell it. You will lose everything you put in it.

furkidz3 · ‎10-11-2007

Thanks for replying monro411.

I just got approval for financing by Drive Financial through the online site at Carmax.com at an interest rate of 18% but I need $ 3,626 down for the $15,000 vehicle I am interested in.

I know my options are not good, but I am going to try Capital One and a few other sites just to see if I can save a % point on the interest or lessen the amt that I have to put down. I also have a friend that works at a Ford dealership, so I may see what he can do for me. The guy at Carmax said I could pay on time ($355/mth) for 12 mths then refinance to see if I get a better interest rate. I would jump on their offer (because I know I have screwed up my credit) and just suck it up and pay, but the down payment I won't be able to come up with for a couple of months (I'm living paycheck to paycheck right now) Uggggh!! Why do I always have to learn the HARD WAY!!! Okay, sorry for the outburst.

Any one else have any suggestions?

CreditDrama85 · ‎10-11-2007

i will be interested to see what kind of rate capital one auto finance offers you.

furkidz3 · ‎10-12-2007

Capital one declined me. I shouldn't have even tried since I have 2 Capital One credit cards behind 30 days. Shoot!! Oh well, I'll keep plugging ahead. I have also tried HSBC and Roadloans and they turned me down. I may have to stay in the rental car until I have enough for the down payment. That's costing me $550 a month plus insurance. Oh well, you live and you learn. And Boy, am I learning!!!

Anonymous · ‎10-12-2007

Yeah, I'm gonna start putting in applications in the next several weeks. Not even going to Capital One cause I have 2 CC's with them that I'm now paying through debt consolidation. So not going to waste the ding on my credit with them.

. I've had credit card problems, but the car loans I've had in the past have been good, so I'm hoping that will help my situation. The job I have now is 35K and been at the same residence for 6 years now. So hopefully I'll get some approvals. Let us know how you fair with HSBC and Roadloans, I was thinking of trying them both. I actually had HSBC with the car that I own now and Wachovia on another one that was paid in full, so I'm gonna try them. Good luck to you and keep your chin up.

Boswd · ‎10-12-2007

furkidz3 wrote:
Capital one declined me. I shouldn't have even tried since I have 2 Capital One credit cards behind 30 days. Shoot!! Oh well, I'll keep plugging ahead. I have also tried HSBC and Roadloans and they turned me down. I may have to stay in the rental car until I have enough for the down payment. That's costing me $550 a month plus insurance. Oh well, you live and you learn. And Boy, am I learning!!!

That's alot to pay each month for transportation, where do you live? Is there any public transportation available. Are there any bus lines that go to and from your area such as Greyhound or Trailways see if they offer a commuter plan. I live in the greater Boston area and there is a bus line called the Plymouth and Brockton bus. It's not a public transp. bus but a normal bus line that gives discounts to commuters. Also look into your local cab company and see if they offer and type of frequent user plans or payment vouchers etc.

Yeah I hate to say it but with those scores and getting an auto loan with no money down is going to be next to impossible.

CreditDrama85 · ‎10-12-2007

why did you even apply to cap one then! it says on their website that any other accounts with them must be current, and under the credit line!

you could have saved urself an inquiry by reading the fine print!

furkidz3 · ‎10-12-2007

I know, I know. I applied first and then after the application was submitted, I came to the page where it said you must be current on all other debts with Capital One. I have to be "kicked upside the head sometimes" before I learn anything.

I live in Texas. Public transportation sucks around here!! We are not advanced in modes of public transportation like in other cities. Due to the hours and nature of my job (I work from 645am to 8pm 4 days a week, including weekends) the buses,etc aren't very convenient for the times that I need to catch them. 2 pick up times, that's it 730pm and 10pm after work. And I work in the downtown hospital district so it's not especially safe to be waiting for the bus at night. So I guess I have to keep paying.

Anonymous · ‎10-12-2007

So you cant even carpool with co-workers till you get on your feet?