Can Down payment override low income and credit score

[Ragelog]

I just realized the 520 score. If that is or is close to what you would have at the time of applying for a loan. 1 I don't think you would qualify and if you did it would be for like 25% APR. Which makes no sense at all when you have cash sitting in the bank to give you an idea if you ended up financing 12K at that rate for 60 months you would pay $352.22 per month. For a total of $21,133.20 or 9133.20 in interest to borrow money you already have.

This would turn a 22k vehicle with 10k down into a $31,133.20 purchase.

It would actually be a smarter idea to pay cash and throw 5k out the window while driving off the lot then doing a deal like this.

So my advice in order of best idea to worse

1. Buy an affordable used vehicle pay 100% cash. Set aside the difference between it and the new Camry tax and all into so sort of savings.

2. Buy the new car 100% cash

3. Buy a affordable low mileage used car finance a small portion of it.

4. Buy a affordable low mileage used car finance a small portion of it and set a few thousand dollars on fire for entertainment purposes.

5. Buy the new camry finance half or more of it at a high APR and waste money when you have it available.

I have made the mistake of buying a new car when I shouldn't it is rarely the right choice financially as depreciation will instantly lose you money. In the first 5 years the car will be worth less than half what it was new. 

If I ever buy new again it would literally be for my dream car. The car I plan to keep until the day I leave this world.

At that point I can see some value in knowing I have been the only owner and taken car of it and if it has been abused it has been only by me.

Good luck with the choice.

Sam

[Anonymous]

You posted the questions so I will share my candid thoughts and hope you take them as a honest and well meaning effort to help.  You should not spend 22k for a car, your income is really too low to swing a car like that , I make 10 per month and bought a 25k car.  Having a settlement check coming should not be considered a primary factor in what you do with the car, the reason is a car is a depreciating asset.  Personally I would buy a car for 6 to 10k, pay cash for it, cars in that price range have depreciated a great deal and generally you can drive something like this for a couple of years and sell it for close to what you paid for it. If it breaks down you'll have the funds in the bank to pay for the repair but most likely that won't be an issue.  During that time I would work on getting your scores up and leave the settlement money alone so when you do go to spend it you are ready to do so with the best information possible.  Doing this will ensure that when you do buy a car you won't have to pay 20% interest.  I appreciate your desire to use your new found money to solve your transportation issues but new cars are a terrible investment, even the best of them lose 50% of their value in just 3 years.

Best of luck