Can I get a car loan in my situation?

Anonymous · ‎04-04-2007

I've never purchased a car before so I know nothing about this. My parents gave me their car when they decided to buy themselves and new one. It lasted me ten years until last week. The bus sucks and I don't want to wait until my debt is paid off. I've got three credit cards: Visa-$7100 credit line and $3900 balance, Mastercard-$1500 credit line and $0 balance, and another Mastercard-$1500 credit line and $0 balance. I only know two of my fico scores: Transunion is 673 and Experian is 640. I have a 30 day late and a $21 charge off from a few years ago. I had $10,000 in credit card debt about five months ago and was trying to pay it off before my car died and didn't quite make it. So can I get a car loan in my situation? I rather do it online too but I'm not sure which one to try if I'm not too bad off.

Anonymous · ‎04-05-2007

You should have NO problem getting a car, I was able to get one at a dealership without a problem and my score was substantially lower than yours at the time. As a matter of fact, paying on the car has been bringing my score UP! Good luck, and shop with confidence.

Anonymous · ‎04-05-2007

really! thanks. i thought I likely could get a loan, but wasn't really sure about it. i guess I should look into how big of a loan I can get. I was thinking something used and less than $10,000. Maybe I should see if I can actually get a loan for a new car.

creditedit · ‎04-28-2007

It may sound crazy, but it is easier to get a loan on a new car than a used car.

Anonymous · ‎04-28-2007

creditedit wrote:
It may sound crazy, but it is easier to get a loan on a new car than a used car.

True basically because the condition of a used car isn't known and most new cars come with some sort of long term warranty. Lenders are less nervous about repair bills preventing you from making car payments.

As far as the OP... Yes you can. I got a brand new car almost straight out of BK after my car died (!0 years old as well) but with your scores your interest rates should be a lot more favorable.

smallfry · ‎04-28-2007

I also got a new car three months after my BK was discharged. The best interest rate I could get was 19% or nearly twice the going rate at the time. Since my trade in had to be towed in I was grateful to get that. After paying the loan for 18 months Capital One Auto Finance gave me a refi for about 7%.

Anonymous · ‎04-29-2007

It is possible that you will get a med to high interest rate. From my own experience, make sure you are pre-approved with a loan before you set foot in the dealership. They have some great programs with people in your place. Just go to a search engine and put in "Car Loans" and see what you will get. I am not an advocate of getting dealer finance since they will try to add on more costly items to people in your place such as extended warranty, Gap Insurance, credit life insurance?. Please make sure you have a good downpayment to put down.

Tuscani · ‎04-29-2007

Check out the auto credit thread I posted.

Anonymous · ‎07-02-2007

Why buy a new car. No matter what you buy, it goes DOWN in value. Think about it this way...would you invest $30,000 in a stock that had a 100% chance of going down in value? Heck no.

Instead of buying a $30,000 car that will quickly go down in value, why not just buy a car for cash for $2000? Keep it six months and without a car payment, you can probably save the $400 a month you would have spent on payments. Then take that $2400 and trade in your $2000 car for a $4400 car. A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for.

Patience is the key here.

Any body who disagrees with me on this way of thinking??!?!?

Anonymous · ‎07-02-2007

Check out Roadloans.com They treated me very well. Got 6.49% for up to 72mo. Scores in the mid to high sixs on EX was who they pulled. Good luck!