Auto loan with horrible scores?

[furkidz3]

I have heard good things about Kia. I'll put that on my list to check out. Thanks.

The hesitation I have about buying a really cheap used car is the reliability factor (and no warranty)

I am paranoid about sinking more money into an old car that might break down again and get me stranded somewhere. (Can you tell I have broken down quite often?) 

[Anonymous]

I understand where you are coming from because before I bought my car new I have a bunch of old cars that had many problems and made driving like Russian Roulette. 

You can get a decent used car with a warranty if you buy it from a used car dealership that provides them.  Also, many car dealerships like Ford, Chevy, GM, etc. offer used cars that were bought new from them and bought back as a trade-in and provide warranties on them.  I know Nissan is big on that.  You can always call around and see if they have any of those cars around. 

[Anonymous]

You should be able to find a 2002-2003 kia between 3-5K $ with lower milage 50-60K . They also come with 10 years powertrain warranty from the manifacturer.

Given your credit situation, which is very similar to mine, would be very hard to get fininced with 0 money down for the following reasons:

1- If you purchase a used car, the bank will finance at the most the whosale price. Most dealer sell cars well over whosale, plus you will have to add tax and licence cost.

2- Most of the secondary financing company will charge the dealer a bank fee as much as 30% x each 1000 $ you finance. So if you lucky to find a dealer that is willing to sell you a low milage car for whosale, you will still have to come up with the bank fees.

3 - The interest rate you got at 19% with 3000$ down appears to be very good for your credit score based on my experince (no credit expert by any mean, but sold/puchased many cars).

4- Most of the dealer that I dealt with that provide in house finincing will require 30-50% down and charge between 21-29% interest rate.

Your best bet is to find a side-lot. Buy a 2002 or newer Kia/Hunday/Ford with low milage at whosale price. Check Kelly  Blue Book and N.A.D.A trade in value. You should offer very close to that. Note: Most dealer won't accept that low of an offer but it will happen if you do not give up. Done many times..

One more thing. Try not to run your credit a lot, it will lower your score an chances to get a loan (too many inquires). Best option get a copy of your credit report and take it to the dealer so the can see what your credit looks like.

Good luck,.

[furkidz3]

Wow, thanks for the continued responses to my dilemma.

I feel very overwhelmed about my situation, but I will take everyone's thoughts into consideration.

[Anonymous]

My Brother was in a similar situation -
Found a car on craigslist - wanted $1200 paid $700 cash (had some body damage)

[stpn2me]

Stay motivated and dont let your situation get you down. I used to be in your shoes, so I know how you feel, but now you have knowledge, and you know how to get out of your situation! It will get better, just keep plugging away at those debts. Settle the charge offs and stay on top of the other's...Good luck..

Stpn2me

[Anonymous]

Have you tried a buy here pay here car lot. I know its not always the newest cars but they will garuntee financing and usually with minimal down payments my credit scores were only a little higher than yours low 500s and I went through two different buy here pay heres for my last three cars until the one I bought now.

I went to Pro Car Auto group for my second car and I loved it. The car was only about 5 years old if that and the payments were split up to be due on my paydays so it was twice a month instead of 300 out of one check .

just and idea but not all the buy here pay here cars are bad

[furkidz3]

Yes, I have thought about the buy here, pay here lots but do they report to the credit agencies?

Should I not worry about that now and just get a set of wheels?

What about the reliability factor (no warranty, etc) ?

Remember, I am paranoid about cars breaking down.

I went to see my friend at a Ford dealership on Friday. He took all my info and is supposed to let me know something on Monday. I have heard that Ford Motor Credit is pretty lenient when it comes to getting approval and it shows very well on the 3 CR (with ON TIME payments that is) !!

[UnderEstimated]

First of all, I know many lenders do not finance Kia/Hyundai vehicles because of their past reliability.  It's something you'll find out when you read the fine print for many of the big time lenders.  For scores like that, look at local dealerships that say "We'll finance anybody!"  Ford dealerships do use a large list of lenders and they should be able to finance you with someone, but as you may know, your interest rate will probably 22%+.

You could probably get yourself in a Ford Focus ZX3 for your price range and they're very reliable, fuel efficient vehicles.

[Anonymous]

If your currently behind on your bills now I dont think adding a car note is going to help.  I would save up and buy a reliable used car off Craigslist (like an Accord or Camry).  Use it for a couple years until you get your credit/bills taken care of, then find something you want.  My brother has a '96 accord with over 200k miles and it still runs good.