Please help

[hoang817]

i have bad credits around 500-550  and i need a car.

i wanted to buy a car around $2500 but couldnt find any car that driveable for that amount at all.. so iam thinking of getting a loan 

iam on the process of rebuil my credit and i dont want another pull

what do you guys suggest? 

thnks

[Anonymous]

Try Capital One Auto Navigator. You can check to see if you can get pre-qaulified on their website. It is a soft inquiry:

https://www.capitalone.com/cars/

A really good down payment goes a long way when you have subprime credit. 

[Anonymous]

This will be a tough one but not impossible, you will need a down payment for sure.  I had similar scores a few years ago had to buy a car and had to go through Santander Roadloans, got 72 months at 12.57%, had plenty of income and 5k down so that helped get me financed.  I refinanced a few months later with NFCU at 4.29% so if you end up with a subprime rate (you will) you will want to work hard to be able to refinance as soon as feisable.  The difference over the life of the loan is about 6 grand less interest so that's plenty of incentive to rebuild.  I suspect your scores are too low for Capital One but it never hurts to try.  If you go into the dealer to finance understand that they will take advantage of your lack of options and pile on points to the loan so buy carefully so you are not stuck in the loan for a prolonged period of time.  I read horror stories of folks who take the only deal they can get and then end up with too much negative equity to refinance.  Might want to try Carmax if they are in your area, they are pretty reasonable overall.

[JGGM]

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@Anonymous wrote:

This will be a tough one but not impossible, you will need a down payment for sure.  I had similar scores a few years ago had to buy a car and had to go through Santander Roadloans, got 72 months at 12.57%, had plenty of income and 5k down so that helped get me financed.  I refinanced a few months later with NFCU at 4.29% so if you end up with a subprime rate (you will) you will want to work hard to be able to refinance as soon as feisable.  The difference over the life of the loan is about 6 grand less interest so that's plenty of incentive to rebuild.  I suspect your scores are too low for Capital One but it never hurts to try.  If you go into the dealer to finance understand that they will take advantage of your lack of options and pile on points to the loan so buy carefully so you are not stuck in the loan for a prolonged period of time.  I read horror stories of folks who take the only deal they can get and then end up with too much negative equity to refinance.  Might want to try Carmax if they are in your area, they are pretty reasonable overall.

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I like the stigma of dealers taking advantage of the situation. It's comical. Most subprime lenders don't allow for rate mark up.....and they typically charge dealers to do the deal I would say the average Santander deal has a dealer fee of $400-$500 and most times it will say the buy rate must equal contract rate, meaning no rate mark up. 

[Anonymous]

Not a stigma, its fact.  You are correct that subprime lenders require dealers to kick in cash to finance the deal and they require the dealer to take some of the risk.  Dealers are not going to give their subprime customers their best prices when they are faced with these barriers.  I don't blame them, they have to make up for those lost dollars and that default risk.  We read posts all the time where the dealer is offering one interest rate (lower) if you buy a extended warranty and another (higher) if you don't.  I follow the industry closely and the interest markups are a huge area of debate and concern in the industry because the CFPB has determined that women and minorities are charged higher interest than non minoritiies, congress is trying to pass legislation to prevent CFPB from cracking down on these dealers and captive lenders who have paid millions in fines for these practices.  

[MauiMan85297]

You could do a BHPH dealer where you have some cars to choose from and when you get paid you pay the dealer directly (walk in payment)