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Car loans for bad credit.

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Anonymous
Not applicable

Car loans for bad credit.

It amazes me how many companies, banks and dealers that claim they can finance anyone and don't!
All it takes is an illness (such as what I have been dealing with for years) or an injury and then you have to choose what gets paid and putting food on the table. Then your car dies so now you can't get back to work to clean up the credit. So now you have a job you can't get to, can't get to work can't pay the bills. Yes there are people who scam, lie, cheat and don't pay their bills even after second chance but not everyone is like that.
If they don't pay their car payment then repo the car but making it harder on the people that really are trying to do right isn't going to stop those that don't pay their bills. And people who haven't had to struggle all their lives put those that have in a different category and put us down. I really thought maybe this country was going to change and give others the chance to get ahead but I don't ever see that happening! It's a vicious circle for the poor and some middle class! It's true the rich keep getting rich and the poor keep getting poor and there really isn't many out there that care.
Message 1 of 20
19 REPLIES 19
Anonymous
Not applicable

Re: Car loans for bad credit.

My credit was about the worst you can possibly imagine (lots of fraud and merged credit file issues) and I got a loan through DriveTime (now Bridgecrest).

 

However, my income is significant and I had a large downpayment. I also sincerely regret doing this. I am getting close to two years now of payments and am having trouble finding someone that will refi - because of the ridiculously high interest rate, the DTV keeps getting worse and worse BY THE DAY. 

 

I do NOT recommend getting a high interest auto loan unless you can pay it off in the first year. 

 

Take whatever downpayment you have saved and buy something that can get you through your credit building days. There are many, many local and private sellers in need of cash and selling perfectly reliable cars that can last a few years.

Message 2 of 20
Anonymous
Not applicable

Re: Car loans for bad credit.

Bad things can happen to good people, I have been there, out of work for 2 years from a work injury but the financial situation I was in was largely my fault from living beyond my means and not having any cushion for when life happens.  OP I get your frustration but no bank can finance "anyone"  you have to do your part to make it possible for them to provide you with a loan.  It isn't as simple as "repo the car if you don't pay", banks consistantly lose money on repossessions because cars are depreciating assets and it costs them money to repo a car.

 

If your looking for help finding options provide us some information and I am sure we can help.  Many of us have had our backs against the wall and have figured out how to make it work or have been fortunate to have the help of the great folks here to get what we need or at least work towards it.  

 

 

Message 3 of 20
sparklerd34
Established Contributor

Re: Car loans for bad credit.

I had the same issues as all of you mention had to get a Drive Time car and I couldn't refinance it either it was too old. It would have been too much of a risk matter of fact when you purchase those cars they are already too old and a risk. I traded mine in last month I too had some issues from my ex ruining my credit and today I'm back in a normal lender over half the interest. Hang in there but yes they are horrible





Message 4 of 20
JGGM
Frequent Contributor

Re: Car loans for bad credit.


@Anonymous wrote:
It amazes me how many companies, banks and dealers that claim they can finance anyone and don't!
All it takes is an illness (such as what I have been dealing with for years) or an injury and then you have to choose what gets paid and putting food on the table. Then your car dies so now you can't get back to work to clean up the credit. So now you have a job you can't get to, can't get to work can't pay the bills. Yes there are people who scam, lie, cheat and don't pay their bills even after second chance but not everyone is like that.
If they don't pay their car payment then repo the car but making it harder on the people that really are trying to do right isn't going to stop those that don't pay their bills. And people who haven't had to struggle all their lives put those that have in a different category and put us down. I really thought maybe this country was going to change and give others the chance to get ahead but I don't ever see that happening! It's a vicious circle for the poor and some middle class! It's true the rich keep getting rich and the poor keep getting poor and there really isn't many out there that care.

With the right amount of money down, I'd say almost anyone can get financed. (I.e. Someone with a 490 score could probably find a bank to approve a $15,000 car loan with 60% down).  I'm not really sure what a car loan has to do with the country changing....so what are we supposed to just have government guaranteed car loans for everyone now?? I'll pass on that. 

 

Back to buying a car with bad credit, nothing says you have to buy a car with a loan....you could buy a $1,000 cash car. Or, you could go to a "buy here pay here" lot, they typically don't require much down and make risky loans. Yes, you'll pay more than the vehicle is worth, but it's a mode of transportation. 

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Message 5 of 20
Anonymous
Not applicable

Re: Car loans for bad credit.


@sparklerd34 wrote:
I had the same issues as all of you mention had to get a Drive Time car and I couldn't refinance it either it was too old. It would have been too much of a risk matter of fact when you purchase those cars they are already too old and a risk. I traded mine in last month I too had some issues from my ex ruining my credit and today I'm back in a normal lender over half the interest. Hang in there but yes they are horrible

My car is a 2015, and had under 60,000 miles... but I owe more than it's worth, so yea. It's pretty terrible.

Message 6 of 20
Anonymous
Not applicable

Re: Car loans for bad credit.

I also recommend not getting a car loan with high interest rate. 

 

Three years ago, I was in a position where I NEEDED a car, and wanted to see what I could do on my own without a co-signer. I went to the dealership and got a car for $17K with a whopping 24% interest, $2,500 downpayment and still needed a co-signer. My monthly payment was $550 and interest was almost $14 a day! The car was a 2011 and it had 40K miles on it at the time of purchase. 

 

Tried refinancing at the 6mo-1yr mark, and no success because I was upside down on the payments. I searched high and low for a dealer where I could trade the car in because I needed to get out of that loan. 

 

Last year, I went to a regular name-brand dealer and traded the car in. My payments are still the same but for a newer car(2yrs old), less miles(16K), and it's exactly what I need for my family. 

Message 7 of 20
CowboyRay
New Member

Re: Car loans for bad credit.

The reason nobody will refinance or take a Bridgecrest car in on trade is because of the 185% average LTV on their loans according to their annual report.

 

Look at any DTAG car's price before fees, taxes and interest and they are usually double the fair market value of the vehicle.

 

The worst part is that they do this to skirt usury rates as if someone financed a car at about 25% at their inflated non-negotiable retail price, you would be paying roughly double the APR if you bought the car at fair market value.

 

Not to mention that most of these cars are former ragged out rental cars that were bought, driven the piss out of and traded in before they even hit Drivetime's lot.  No wonder why consumer complaints usually involve the keyword transmission.

Message 8 of 20
Anonymous
Not applicable

Re: Car loans for bad credit.


@Anonymous wrote:

My credit was about the worst you can possibly imagine (lots of fraud and merged credit file issues) and I got a loan through DriveTime (now Bridgecrest).

 

However, my income is significant and I had a large downpayment. I also sincerely regret doing this. I am getting close to two years now of payments and am having trouble finding someone that will refi - because of the ridiculously high interest rate, the DTV keeps getting worse and worse BY THE DAY. 

 

I do NOT recommend getting a high interest auto loan unless you can pay it off in the first year. 

 

Take whatever downpayment you have saved and buy something that can get you through your credit building days. There are many, many local and private sellers in need of cash and selling perfectly reliable cars that can last a few years.


ALL OF THIS.

 

It's a terrible trap that happens to good people.

 

Buy a cheap car for cash. Some years you spend on repairs instead of car payments. Some years you don't and save $$$. 

 

I basically consider my cars just getting broken in at 100k miles. LOL.

Message 9 of 20
Anonymous
Not applicable

Re: Car loans for bad credit.

What do youi guys define as int rate that is too high? 14 %? 

Message 10 of 20
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