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Auto loan help??

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Anonymous
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Auto loan help??

So I would like to get an auto loan to buy a car that my dad bought for me through a buy here pay here lot. Yes yes I know horrible decision but he put a down payment for me on it last year before college when I had zero verifiable income and the interest is outragous and he couldn't get financing himself since his credit is horrible. My question is how can I go about  doing this if I wanted to? The loan amount is small at $6000 left from a previous $8000 so any advice would help. 

My Fico 8 scores are: Ex 727 TU 731 EQ 720

Inq: EX 4 TU 8 EQ 6

I am a college student who makes roughly $550 every two weeks so not a lot but still verifiable income and I don't have any rent paymenets since I live at home with my mom. I am even starting a new job in a week that will start me off at $10 and once I'm done with training they will make me full time and pay me $12.50/hr. So any advice in regards to my quesion will help a lot since I really don't wanna pay like 3-4k in interest on such a small amount for a loan :/

Message 1 of 19
18 REPLIES 18
Anonymous
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Re: Auto loan help??

Most likely the car is underwater, meaning you owe more on it than it is currently worth. 

 

What you will have to do is save enough money to pay off the difference first, so steps are find out what that number is, figure out how long it will take you to save that (Obviously while making payments). I would sign up for a credit union that is local to you, and deposit the money there. Talk to a loan officer about it and explain your situation, they often can tell you exactly how much they would lend you in that kind of situation (if they will). 

 

If for some reason you can't get a loan, just pay off the car as quickly as possible, and either use that car as a down payment on another cheap car with a small loan so you can build up your car credit, or just keep drive it until it dies if you like it at all while you save up money for your first awesome car. 

 

Good for you being responsible and wanting to do something about it, I just can't guarantee that you will be able to. 

 

Is it actually a loan with an APR, or is it just a flat fee baked into the payments, so even if you pay it off early it's the same amount? 

 

Message 2 of 19
Anonymous
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Re: Auto loan help??

Yeah not a smart decision on my end but I really needed a car last year and it was a tough time(parents got divoreced) so money was tight. But if it helps my mom said she would co-sign for me since she can see that I've really matured over the past year in terms of credit (have 15k in CC Limits) and personal finances. She has like an 800 credit score, perfect credit, no baddies, 20+ years history, 75k income...etc etc. I also have 1.2k as a deposit if needed? But the car is on some type of loan. All i know is that if i pay it off fast it'll be cheaper and less interest charges. Also I already have a local credit union that I've banked with since I was 16 so that should help. But man I feel like I'm in such a big hole I'll never get out? Smiley Sad
Message 3 of 19
Anonymous
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Re: Auto loan help??

Also I looked up my KBB value and it says my vehicle is worth around 7k? So would this help my situation any better?
My car is a 2009 chevy cobalt coupe LT 2DR w/premium wheels, rear spoiler and 92k miles currently. So in all honestly I don't see why a bank wouldn't loan me the money if the car is worth more than the loan? Also like I said above I'd be willing to put 1.2k down AND I have collateral. Forgot to mention this above but I own a 2000 pontiac grand prix which runs perfectly fine at 116k miles. Not much but it is collateral in case a bank wants more security.
Message 4 of 19
Anonymous
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Re: Auto loan help??

Call whoever holds your loan, ask them for a "payoff amount". Then go to the credit union. With your limited history it's hard to say what they will do, a lot of times they do 90% loan to value, meaning they will loan you 90% of what they think the car is worth. You are responsible for the rest. 

 

Car loans are secured loans, they don't care about any other assets really, it's all about the value of the vehicle you are buying. A lot of CUs use the NADA guide, so look up the value there as well. 

 

Like I said, it's hard to say what they will do, take all the information you have and make an appointment. Let us know what happens! 

Message 5 of 19
Anonymous
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Re: Auto loan help??

Hmm okay. Well even if its only 90% I have the last 10% in cash so that woulf help. Are there any major banks you'd recommend or just local CU's? Also on the nada guide what do the CU's go by? The trade in or clean retail value? But alright I'll go sometime this week or next week with my mom. She has a few banks picked out who gave her bf really good rates.
Message 6 of 19
Anonymous
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Re: Auto loan help??

Verifiable income when it comes to autoloans isn't very needed at least here in upstate NY. In my whole familys car adventures a dealer has never once asked for a verification for income, just if you have any. This goes the same way with local banks and credit unions.

Message 7 of 19
Anonymous
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Re: Auto loan help??

@ZackHere about how much could i fudge up my income than if on my pay stubs it shows 1.2k/month? Could I get away with maybe 1.4k?
Message 8 of 19
Anonymous
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Re: Auto loan help??


@Anonymous wrote:
@Anonymous about how much could i fudge up my income than if on my pay stubs it shows 1.2k/month? Could I get away with maybe 1.4k?

Never do this. It's unnecessary and unethical. 

 

 

Message 9 of 19
Anonymous
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Re: Auto loan help??

Last year when I applied and got denied for a car loan the dealers all increased my unverified (contruction) income by like $200-$300? Sorry I didn't mean to offend anybody I'm just trying to get this car in my name and start my auto credit history Smiley Sad
Message 10 of 19
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