topic Need ideas for 2nd vehicle loan, private party purchase in Auto Loans

Need ideas for 2nd vehicle loan, private party purchase

Anonymous — Sat, 29 Aug 2015 17:10:55 GMT

Hello, we are looking for some fresh ideas on finding auto loan financing. we are in the rebuilding stage after a foreclosure 3+ years ago and a fantastic pile of medical collections. We have great jobs, solid income 75k and just were approved four months ago for a loan through Capital One Auto with scores of just 581. Purchased 2014.5 Camry @ 6.15% for $315 per month (income not an issue). The issue is, my husbands car has failed him and we need a 2nd vehicle ASAP. Did not want two car payments, but to get something reliable need to look closer to 5-8k for a vehicle. Have found some great used car bargains from private parties, don't want to risk a denial on our credit by randomly applying. We can put 2k down. Should we try Desert Schools? DCU? Roadloans? Car we are looking at is 2005 4Runner with 144k miles, $7200. Have found some lower mileage options as well. Greatly appreciate your thoughts, just need a place to start. Thanks!

Re: Need ideas for 2nd vehicle loan, private party purchase

Gmood1 — Sat, 29 Aug 2015 17:52:48 GMT

Most compaines won't finance unless it's $7500 or more. Personally, I would go for a newer vehicle. It's easier to get financing on a newer vehicle than a high mileage one.

Plus you'll most likely get a better rate. That will in turn lower the payments. Go no frills, reliable, new and keep it under $15K purchase price. It can be done.

I refuse to pay more than $250 a month for a car note. So I either save the money and drop a large sum on it. Or I find a different vehicle.

Re: Need ideas for 2nd vehicle loan, private party purchase

Anonymous — Sat, 29 Aug 2015 23:12:01 GMT

Welcome to the forums!

A 581 score will pose a problem with another auto loan, under most lenders.

I would suggest starting with a lender that you have a relationship with. I have been told that auto lenders look for problems with auto loans and dont look first at other types, so a home foreclosure would matter most to another mortgage lender, but it would still be noticed by other creditors.

Maybe a CU could help, if you had a past relationship that was good, or at least lengthy.

I would agree that a 4Runner could be a good purchase, and might be a good value, but being that it is older with 140k+ miles means more risky as collateral. I had to get a very mature, very ugly, transportation special for 1.5k jsut to get by for awhile till my scores improve. Yep, high repair costs, but after I got it sorted out, it is still rolling now.

You might have to settle for something more expensive and newer, with less miles, to get financed. It definitely seems counter intuitive, but they do look at it that way.

Be wary of the Road Loans and things with really high interest rates. Sometimes I think they prefer that borrowers have problems so they can lump on the fees and collect more.