Auto loan soon, Need advice please.

[Anonymous]

I am applying for an auto loan in about 1 month or a month and a half. I was looking to get a loan amount of something around 17.5k-20k. This would be my first auto loan.  In anticipation of me applying for this loan I have built a down payment of $3000, and I also have a trade-in vehicle (possible privately selling) worth about $3500.

The question I am asking is what should I do in this time period before applying for the loan to help me save money, and get a lower interest rate on the loan. Also, where should I apply for the loan given my credit score and financial situation. Thanks!

My credit scores via CKT 08/15:
EX: 575
TU: 591
EQ: 594

I have 13 Accounts in collections. 12 of which are all medical bills of low amounts ($50-$250), and all are owned by the same credit company.
I have 1 account in collection from 3 years ago and it is a tuition bill I did not pay.
I have student loand that are in defferment until 2017 totalling $20,000

My credit card is a secured card I have from Capital One ($560 limit), which I was keeping at a 49% untilization until recently; it is now at 20%. This card has been open for 10 months.
My longest credit history is 9 years, and I have no credit card debt or late payments.

[Anonymous]

Question 1: 

Why are you applying for an auto loan when you have that many unpaid debts. Why don't you take the down payment money and do pay for deletes if they are all small? 

Question 2: What is your income? 

Question 3: What are your other expenses? 

Question 4: Do you own your current car? Why do you need a new one? 

[Anonymous]

I guess I forgot to mention that I am currently attempting PFD's on all of my collection accounts. I also have a few on dispute that I do not recognize the origin of, however this does not affect my down payment.

My income is currently 38k annually. I am also a college senior.

I have around $750 of disposable income each month as my bills do not amount to that much. (Rent is low, car insurance, a few utilities and phone bills)

I own the car I have currently (paid cash), however it has become a money pit in the last year and even worst this summer. I am literally fixing something every month, It is a fun car to drive, but a very unreliable daily driver.

Thanks

[Anonymous]

I know this is myfico and not a different site that I hang out on, but you could buy a pretty nice small used reliable vehicle for 6500 bucks that will last you while you get your credit cleaned up. The difference between sub 600 and mid 600s in interest rates is absolutely ridiculous. I mean, I bought a 15 year old acura for 2500 bucks that I can put at least 60K on before it will die, and I'm not even very handy. 

If you buy a 20K car right now, you will be totally underwater due to getting a lousy interest rate. Instead you could continue saving the money you would be putting into a car payment, get something cheap but reliable (and less fun) for another 6 months while your credit repairs, and come in in a MUCH stronger position.

That's just my 2 cents as someone who has been in that kind of situation when I was younger.