Car Loan with 542 Credit Score?

[John060675]

I had a credit score very close to yours when I went to by my Camry in May 2012.  I did not have a BK, but I had several CO and other baddies.  I bought the car new for $27,500 (all in) and put down $7,500.  When I did this I received an interest rate of 7.25%.

They originally stated that Toyota Finance would not help me and that they could only get me 15% through another lending company.  I told them that I would not even entertain this offer.  They then left and came back with the "best offer" they could do, which was 13%.  I kindly thanked them for their time and left.

Within 2 hours I received a call stating that they found a way to have Toyota Finance handle my loan and they could do the 7.25% rate if I bought the car today.  I found this agreeable and purchased the Camry.

I know we do not have great credit scores, but we do have the power of negotiations.  Do not feel forced to buy something with high interest rates, just because we are perceived as a risk.  Walk away if you do not get a fair offer.  Trust me, they will call you. 

Good luck.

[0REDSOX7]

I feel like I have one of three options here...

1) Arrange financing prior on my own as to not fall victim to predatory lending

2) Go to the dealership I have bought my cars from over the past eight years and hope for mercy

3) Do what you did - and hope for the best

We will see what happens, I guess.

Did you end up talking to the finance manager first, or what?  I hate walking on to a car dealer lot because they are like vultures.

[John060675]

I talked to the salesperson first, and got the best deal I could.  In my opinion, if you go through everything and show a true desire to buy, then you have more leverage.  They know that all that separates a definite sale is a few interest points, thus you have negotiation leverage.

Out of the 3 senarios you listed, I would first go to your CU (if you are a member) and see what they offer.  Then I would go to the dealership that you have an established relationship with and see what they can offer.  Shop around some.

[0REDSOX7]

Here is the issue with the credit union - because, yes, I bank at one and love.  My wife works there, and all employee applications (even if I am on my own, not with her), require a manual review - and I do not want them seeing my bankruptcy knowing I filed with my wife - because that may cause some issues.

My plan really, is Capital One Auto Finance.  I hear you have to have a min 520 credit score.  Yes, the rate may be in the 13 - 15% range, but I could easily afford that for a year or so before I refinance. 

As I stated in earlier posts, I am looking for about 16/17K max with up to 1K down.

To the poster who got the Camry - did you HAVE to put that much money down?  I wish I could do that, myself, but am afraid it is gonna hurt me.  I just don't have it.

I am also worried about my hard inquiries - I have 14 over the past two years - stupid, I know, but I was drowning and needed any thing I could get to stay afloat.

[John060675]

Hmmm....tough break on the manual review at the CU. 

To be honest, I planned on putting down the $7,500 from the start, so I am not sure what the minimum amount they would have taken to get me approved.

[0REDSOX7]

Trust me, I would rather go with the CU.

Oh well, only a few more weeks until I find out.

[Chrisla2077]

After listening and reading all of this, I regret not filing a BK 5 years ago  when I plunged into the mess I'm in. I've been slowly trying to dig my way out with no avail I have scores in the 550s and i get looked at like I've lost it every time I go in.

[0REDSOX7]

Chrisla2077, do you have any luck when you go to dealerships?

Trying to figure out if they look more favorably to a BK vs a bunch of collections/charge offs or not.

I had flawless payment history prior to BK, just had waaaaay too much credit. I was addicted, and then when my wife lost her job, that was the end of it.

The only delinquencies reported now are the 30/60 days from when I retained my attorney to the time of filing. Perhaps that will drop off once this is all done.

Do depressing.

[Catasi]

I too had recent luck with Wells Fargo Dealer Services.  My current score is around 570, and I knew that I'd not be approved by everyone.  It helped that I went to a dealership that advertised "credit for everyone!".  

My loan was for around 16500 and I was given 12.99%.  My monthly payment is around $325.  While I'm grateful for what I have, I'm hoping to refi within the next couple years.  

Good luck!

[0REDSOX7]

Catasi, did you have any negatives on your CR? Any down payment?

A 12.99 rate is awesome. That's right about the loan amount I will need, maybe 1000 or so more.