Re: Auto loan advice from an Underwrite
10-21-2012 10:56 AM
Hi. My husband and I have verybad credit with scores around 560. We are behind on our mortgage and havea often been late on our payments including auto, although the auto payments are always made. Our car just died and I think we're looking at quite an expensive repair, to where we shouldconsider buying a new/new used car instead. Our combined yearly income is about $160,000/year. We'd be looking at a loan of about $23,000. Do you think we can get a loan? We might be able to put some $$ down, like $3,000 or so. Any help and advice you can give would be greatly appreciated.
Based on your post, you would be better served getting a car for cash and not adding another high interest rate loan to the mix right now. F&I guys would really take you to the cleaners given your current situation as you described above. Rather than letting a finance guy hit you with a high rate, take a breather for a bit on the next vehicle.
If you are grossing $160k it shouldn't take that long to put together $10k to purchase a decent vehicle for cash for the short term (6 months to a year) while you work on getting your mortgage current and fix the existing auto loan(s). Once you get back into the habit of paying ontime, you can negotiate a much better interest rate on a future auto loan. JMO from having been there and done that ....