Auto Loan Likelihood

[Anonymous]

I am 30 years old and looking at getting a new car this summer.  (my son has outgrown the back seat)  I have a repo on my report currently but I GW the creditor and they agreed to change it to "paid in full" instead of "repo" since I (my parents) got a new loan and bought the car back in less than a week.    I pulled my TU and EQ on here and they have me as a 646 and 633 respectively.   I have collection accounts on my report but all but 2 are paid off.   One is going through a DV and if they send proof then I'll do PFD or PIF since I doubt they will delete.   The other is going to be paid off next week.  They already said no to a PFD.

Assuming that the collections stay on but show as PIF and my score doesnt change (worst case scenario) but the repo gets updated to Paid in full but the lates stay on... do I have a decent shot of getting a $20k loan that doesn't have 12% interest?  All my other car loans (3 others in the past 10 years) showed paid as agreed in full.

My current accounts are all up to date.  My last late was 2 years ago when I was out of work  some of the collections have been reported since then but the DOLD was 2 years ago.   They are all paid off.   I have been at my current job a year (will be almost a year and a half when I go to apply for the loan) and I take home 2k a month not including child support.   My monthly contractual expenses are low. I do rent from my parents but there is no lease.  I do have a credit card which I pay in full each month (usually prior to them reporting it).

I plan to trade in my car which is currently black book appraised at about $5800 and I owe $4800 and I plan on having $2k to put down.

[Anonymous]

Getting the repo changed should give you a decent boost and make your AUTO enhanced FICO look much better to the lenders.  I would epect to need about 20% down when you consider taxes and registration, etc.  So say 10% down plus all taxes/fees.

As far as interest rate, you may not like what you get.  Even with the most repo being removed, from what I gather, your most recent car loan had alot of lates on it.  that will hurt your interest rate I would bet.  (unless the GW also includes removing the late marks as well...)

The trade in will probably be a wash.  If it blue books for 5800, they are probably going to give you 3500 for it at best... They may show you more in the paperwork, but it will come out of your deal somewhere....  Better off to sell it on your own and then use the cash to pay it off.

As far as the rate/down paymet, etc.....Alot of it will be determined by exactly what your report looks like when the repo updates.  If there is still a negative history showing you will probably be in a position of paying a higher interest rate (10-15 %)  If it all shows clear then you should be good to go...

[Anonymous]

I'll hope for the best.  I don't know if he is going to remove the lates or not.  I'll find out down the road, I guess.  The car that I am looking at is going to cost around 24k.  I am hoping that it has 2k incentives (it's a 2010 so I may need to wait for a better deal, which is fine)   The longer I wait, the more i have to put down.   My car's  trade in blue book is 4800 to 7200.   The black book appraisal I got from a dealer is 5800.   Delaware tax, title, blah should be about 900. 

Here's to hoping!    thanks for your input!