Hi everyone, I'm here for advice, and to learn any helpful tips I can to hopefully get an auto loan with as low of an interest rate as I can. My situation is as follows: I am currently driving an old car that is on it's last legs and shopping around for a better ride. I'm not seeking a new car or anything outside of my feasible range, merely something I can drive with hopefully lower miles and that is somewhat my style of car at the same time. Probably a decent used car in the 3000-8000 range, or slightly higher assuming I could get a loan for a nicer one. I am working part-time, have been at my current job for a year, I earn about $1,000 per month. I am living back home taking care of my elderly parents and will be working full time in August or September. Currently since I'm living at home again I have no extra costs such as rent or utilities, and can easily make monthly car payments. I have to get a car asap, the one I'm driving is falling apart. I've been to a few lots, some told me my monthly income is too low, others said my credit wasn't good enough. But still others don't reject me out of hand, and are talking to me. Car Max said I was pre-approved for 500 down and an under-92k mile car. I'm trying to avoid the buy here pay here if I can, because their longer term interest rates are predatory, but I'll just have to see what my options are. Right now I'm also looking at a couple of nice used older cars that have under 60k miles on them, and they're only like 4500-6000 range. I can easily pay at least 1,000 for a down payment, possibly more if I have to. I'm hoping if I go with cash in hand to put on a down payment that will offset my credit rating. I'm currently waiting on my tax returns to come, as that will also be going towards a down payment on a car. I reached out to my bank about a loan and he said he thought my chances with them weren't good but that my chances with the car lots was much better.
My credit is not good, my scores are in the high 400s to mid-500s. I have lots of student loan debt but much of that is currently in litigation as part of a class action suit due to the college going bankrupt (it was a for-profit college). But most of those loans are now in forbearance and on my credit report they are in green and say in good standing except for one private loan. My only other recent debt is a 300 dollar clothing bill which I paid off in full last week in hopes it will help my credit scores once they report it. The older debts on my credit scores are very old medical bills from an outpatient hospital procedure I had done 5 years ago. I'm thinking of calling the collections agencies and asking to work out a small re payment plan/consolidation in hopes they can work with me and help my credit. I'm hoping once I get something to drive now in the short term, and I make my monthly payments on time, that will help my credit and down the road when I am working full time, I might be able to buy an even nicer one.
