topic Re: Auto Loan after Repo in Auto Loans

Auto Loan after Repo

avv7c0 — Fri, 10 Feb 2012 16:30:35 GMT

Good Morning, quick question. My sister has spent the past year or so digging herself out of a sticky situation with an ex-fiance. They purchased a vehicle together (for him), and after the split, he stopped making his payments and the bank repoed the car. She had continued to make payments in an effort to keep it afloat, but wasn't able to keep up and finally had to concede to the repo.

Her car now has a failing transmission, and she would like to proactively start car shopping before she is left stranded. She has $2000-2500 to put down. What's her best course of action? I cant imagine she will get approved for a loan at this point, but she says she found a "your credit doesn't matter!" place that is willing to approve her. I gave her the usual car buying advice, like don't tell them what you are able to spend in a monthly payment, etc. etc., but I'd like to know if there's anything else I should recommend to her in this situation?

Thoughts?

Re: Auto Loan after Repo

pizzadude — Fri, 10 Feb 2012 17:09:25 GMT

How recent was the repo ?? I think it will probably be tough to get financed if it was recent.

I would advise steering her away from the Buy Here/Pay Here places, she will likely get offered a painfully high interest rate.

If she can find a used beater of a car for a couple thousand now, she should probably go that route; then once her credit has been rebuilt start car shopping again....

Re: Auto Loan after Repo

webhopper — Fri, 10 Feb 2012 17:49:52 GMT

I would advise craigslist etc and find a Kia type vehicle that might last a couple of years.

Re: Auto Loan after Repo

avv7c0 — Fri, 10 Feb 2012 18:07:33 GMT

@webhopper wrote:
I would advise craigslist etc and find a Kia type vehicle that might last a couple of years.

Interestingly enough, I was just talking to my wife about giving my sister her '03 Kia instead of trading it in on our new car. We were only expecting about $2,000 from the dealer anyway, if that...

Re: Auto Loan after Repo

webhopper — Fri, 10 Feb 2012 18:19:15 GMT

There ya go, she needs a little sedan to get her around for at least 3 yrs. I was in the same boat but luckier because my employer provided me a vehicle, after waiting the 3 yrs I switched jobs and needed a car. I ended up working with a reputable dealership a got a used Volvo which was 1 yr old with 14k miles for 19k at 18% ouch! But I financed through Volvo financial so I didn't have to deal with subprime lenders tactics. 13 months later I was able to refinance the car through chase the principle remaining was 7700 and I financed for 36 months at 5.5%. I did make a huge principle payment before I attempted to refi which I'm sure helped my situation. It's been 3 yrs since I bought that Volvo, it's paid for now, and it's still worth about 15-17k

Maybe let the sis buy the car for 1k? Make sure she takes title so that you don't get singed if she drops insurance and you aren't liable if she has an accident with a Cadillac.

Re: Auto Loan after Repo

Anonymous — Fri, 10 Feb 2012 19:05:50 GMT

@avv7c0 wrote:
@webhopper wrote:
I would advise craigslist etc and find a Kia type vehicle that might last a couple of years.
Interestingly enough, I was just talking to my wife about giving my sister her '03 Kia instead of trading it in on our new car. We were only expecting about $2,000 from the dealer anyway, if that...

Sure way to go...... Win-Win situation for both of you

She would have a car from a reliable source in place for time being and She will earn some time to come out of repo dent and buy on her own.