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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 :/
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?
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!
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.
@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.