I *NEED* a car, but my credit score is 652

[mtrsprt]

---

@Mike360 wrote:

 I decided to buy a beater to drive for 2 years and pay down all my debt then get a new car and it worked out really well for me.

---

Smart choice right there Mike. Good for you.  Takes a lot to be able to do that. 

[mtrsprt]

---

@Creditaddict wrote:

 when it's a purchase, you have 3 numbers... they can't change...

What you finance

How many months

What interest rate

That's it... you can change the numbers within but you can not have a $300 car payment on a $30k loan.... make them tell you your scores, make them tell you final price you are financing... 

---

Another smart one here....  Amount financed is the magic number. The lower the interest the better also.  Forget the monthly payment.....  They will ask you what you would like it to be.  Tell them to screw.  They will skew it in many ways to make it look affordable monthly, but by the time the note is paid off, you have paid up to $30% more than the original amount financed.  Accept the shortest term possible/affordable, and put down the most you possibly can upfront. 

[mtrsprt]

---

@fishbjc wrote:

I purchased a certified pre-owned ford for 3.9% interest.  642 score, zero down, $21000 out the door with interest.  Five years.

---

OUCH.......  Hope you plan on keeping it for 10 years. 

[Anonymous]

If your score is many high then you easily purchased the car.now you tried to get high scores.then you purchasing the car.

[Anonymous]

OK, after some research, here's what I have so far: 

-Cash for down payment: $4,000 (which will keep growing until I finally purchase)

-Looking at Corollas, but there are options: 

• Used ones (2010-2012) are running about $15K for 10-15K miles (though I've noticed some of these are former rental vechicles, not so sure about that)
• New ones (2012) run from $17-$20K. 

I'm totally fine with a slightly used car, however, these do seem to be former rental cars and I am a bit cautious about that fact. But I also know that when purchasing a used vehicle, even from  dealer, there are other thinks like warranty that has to be purchased or adjusted, adding on to the final cost. Yes, I could buy an older cash car, but my fear with that is that it's going to need some major job soon (that's what always happened with my previous car, 96 Camry). 

Of course, if I just get a new one, I won't have to worry about major jobs or warranty for a while. 

Now, getting into auto lons--I know there are 'used car' and 'new car' loans and that the used ones tend to carry a higher interest rate because of the car's risk. So, wouldn't that mean that my interest rate on a 'used car' would be much higher than a 'new car' loan? I'm basing this on my credit score + the fact that the used car loans have higher interest rates. 

I haven't applied for any loans yet becuse I don't know which one to apply for. And would there be any risk of me being flat out DENIED a car loan? (how embarassing). 

And, would it be better to apply for all these in person or online? I fugured that in person, there's more room for adjustment with whomever I'm talking to, but I could be wrong. I do plan on going to Wells Fargo, my bank, first and then a CU from there. I am in Texas, so I don't know if that has any affect on the current rates. 

That's where my head is right now; any info would help.  

[Anonymous]

Wouldn't consolidating the debt hurt my credit? I thought something like that reflected negatively. 

[Anonymous]

Well, as of now, I have $4,000 to put down. It's not a lot, but it's something. 

And, just out of curiosity, which car was your beater car--the Corolla or another one you bought?

[Robertwd82]

Seeing as you have a 652 fico, i would think that you have a very good chance as qualifying for Toyota's teir 3 which they offer the 1.9% for 60 months(at least in california they do).  Thats probably your bestbest for a low interest rate.  The 4,000 down also helps your chances quite a bit.  

with a Credit union you may have a chance at 1.9 but more likely around 5%. 

[Anonymous]

Good news is my score has gone up to 659; not a lot, but it's something. I think I have most figured out, jut need to get the loan from somebody.

[thirst305]

I would suggest that you use that 4,000 to pay down you cc.  you can easily get a 0 down loan from toyota with scores over 700, which you should at once you pay down some of those CC balances.