65k income, 1 auto charge off need loan asap

Anonymous · ‎08-06-2017

Hi everyone,
My issue is I made a huge mistake in 2015 signing for a car loan. The car was paid on time each month because I had to take over payments. The car was abandoned and then towed to an impound and then resold.

I'm left with a 8k charge off by ALLY Auto. Northstar is now handling the account. I pay $150 per month on it.

On the other hand
I have a current car loan in good standing through BofA with only one late since 2013 (350 dollar payments) . This car has been totaled and I need a used auto loan ASAP.

Also in the past I had another car loan through BofA which was in good standing no Lates Paid as agreed.

My question: how likely will It be able to get a used car loan with the 8k charge off in which I'm paying $150 on ?
what would the probable interest rate be? What lenders will work with me?

Remember, I also have a BofA loan which is in good standing with me paying 350 a month

Myfico main overall score is 641
Auto scores are:
Fico 8 : 605
Fico 5 : 608

I need a loan about 24k. What are my chances and rates?

Thank you for reading . Please give me some sound advice.

Anonymous · ‎08-06-2017

Also I have 5k to put down on the auto loan, I'm considering using putting 3k on the charge off account just to get it out of my hair.

What are your thoughts.

Anonymous · ‎08-06-2017

Edited. I see the income in the headline.

Anonymous · ‎08-06-2017

Thank you @firemediii ... any thoughts on the matter??

Anonymous · ‎08-06-2017

My personal thoughts are you should clear up this chargeoff if possible as you will suffer on every credit decision with this hanging over your head. Higher interest or flat denials. As a leasing agent I have seen some situations go very bad in a very short time from people not following through on their contractual obligations and hurting their co-signer/co-applicants.

A new(er) car is a want not a need and I would again suggest cleaning up your credit as much as possible before any further credit activity. A cash buy car in the 5000.00 range can buy you time to get this sorted if you really need something more reliable in meantime.

Anonymous · ‎08-06-2017

Also the dealership/ financing offices won't see the "story" they will just see that a car in your name was charged off making you high risk. A credit union may care about the story but most big banks don't.

Anonymous · ‎08-06-2017

You have two auto loans on your report, one of which you are in default on, and the other of which you have previously been in default on. At your current rate of payments on the Ally deficiency balance, you won't have that cleared up for *years* to come.

You don't need a $24,000 new car while you can't even pay off the deficiency balance on your last loan. If you go forward with this, you can expect double-digit interest rates and other subrprime terms. On a car that expensive, you will pay probably $3000 the first year in interest alone. You'll end up upside down in a hurry.

Rethink this plan. NFCU would likely finance you, and so would some banks, such as Wells Fargo Dealer Services. But just because you "can" get financed at bad terms, doesn't mean you should.

Anonymous · ‎08-06-2017

Thanks for your insight. My bofa loan is in good standing just one late of 30 days. It is not in "default".

I say 24k to cover taxes and title. Overall I would like my loan to be between 18-20k. I am a driver , a midsize sedan is what I need , something reliable Toyota or Honda most likely.

Anonymous · ‎08-06-2017

Would a settlement on the ALLY auto loan make sense in this case? I have 10k saved up in general but now a portion of that needs to go toward a down payment toward the next vehicle.
Im thinking to use the other portion to possibly settle the account.

Also the BofA loan will be closing very soon due to total loss.

StartingOver10 · ‎08-06-2017

@Anonymous wrote:
Would a settlement on the ALLY auto loan make sense in this case? I have 10k saved up in general but now a portion of that needs to go toward a down payment toward the next vehicle.
Im thinking to use the other portion to possibly settle the account.

Also the BofA loan will be closing very soon due to total loss.

^^Insurance is paying of the BOA loan? If so, wait until it is completely paid off.

Definitely pay off the loan on which you are currently paying $150 per month. Get that one out of your hair. If possible, get the creditor to do a PFD. If not, at least show the TL as paid in full.

You have had quite a few auto loan issues is a short period of time. Clean up the TL's so you appear more reliable on your CR and can get a better loan. In the meantime, either get a cash car or rent* something. Don't add to your problems by getting another bad loan.

*I assume you are able to clear up the repo deficiency right away so I am talking about a short term rental, not a lease.