This is my first post and I'm just looking to get a little guidance and/or reality check, this is uncharted territory for me!
I'm in a position where I need to get a new car, I have 160k miles on my TL. Now the tough part, I have a FICO of 550 but, I own my home with a $2450 a month mortgage and only have 2 credit cards with about a 3k limit and a 120 balance between all three. From 2009-10 I went through some personal things that caused a lot of financial strain (two households in the DC area) that caused things to fall behind big time. I have 4 public records all of which are paid. My current loan on my TL which closes out next month is current along with my mortgage. I still have one lingering collection that has not been updated/removed yet. I paid off my second mortgage last August so that's paid and closed.
I have a strong income (high six figures) for the last 5-7 years or so and at least 20k to put down along with 2 previous car loans. The cost of the 2010 suv is 37k. I don't want to pay cash in full. So I'm looking to get into the car make the payments for a year, then refi, then maybe pay it off later once I get some solid car history.
Any information would be greatly appreciated…
With that amount down and with proof of income, you shouldnt have any trouble at all. You said you have had 2 prior loans, have you ever been late on them?
If not you should have a higher auto enhanced Fico.
Thanks for the information Robertwd82. I was late on my current car during the tough times. Not within the last year or so...
So just to make sure I can get something, I applied at roadloans, they gave me a 12% on 20K with 1k down and a 36 month term, payment is 600 a month. Not too bad for my score and only a 36 month loan. I wonder if the dealer can do better? So at least I know with my down payment and this loan I can get into something that I'm looking at and not be upside down on the car.
Thats a good interest rate for your fico score. I would apply at the dealership, but dont let them know of your approval until you see their financing terms. Also now is the time to apply at a few other places while you are in that 2week inq window.
I got a car loan with Ford Motor Credit for a brand new Ford Focus SE couple months ago with no credit history other than a $300 secured credit card with 11 month history at the time and I put down 10k and the car was 19k. They financed me when no one else would. My apr is 9.19 for 72 months and my monthly payments are only $152.
EDIT: Almost forgot they pulled Equifax and my FICO was 663 at the time non auto enhanced.
Other dealers with the same vehicle, capital one auto finance, show your fico score and credit reports to your local credit union and see if they would be able to help you.
Your best shot might be at the dealers though.