Ford Credit during rebuild?

[Anonymous]

Hello!

So, long story short, I had 2 open auto loans and the $42K (650/mo) loan I had with Hyundai Finance was reposessed 2 months ago.  I could not swing 2 car payments, and I was $20K upside down in the loan.  The auto loan I have with my credit union is current and has been for the past 6 months with a balance of $15,5 (360/mo).

I plan on putting 5K down on a car I am getting 12K off of.  I have a previously perfectly paid auto loan with Ford Credit.  Fico scores around 500-510.  Do you think with an LTV of 75-80%(of MSRP) with my down payment and a loan amount of 29K would be out of the realm for approvable with Ford Credit if I trade in my current auto loan?

Thank you!

[Anonymous]

Well you stated you couldn't handle two auto loans before and you're getting another car for around 32k out the door which will leave you with a payment in the 600s as well because you will most likely get a high interest rate with your score. You should take that 5k down payment, buy a clunker, wait for your scores to climb, and then try to get something you can actually afford. 

[Appleman]

With a repossesion (recent) and current scores, I do not see financing being made available. Others can chiime in...

[Anonymous]

I think your chances are pretty slim with a recent repossession and very low scores.  I follow the industry closely and all of the lenders have said they are pulling back on subprime loans because of default risk, you have recently defaulted so the liklihood of another lender being willing to take a risk on you is pretty slim.  Even if you have a LTV ratio of 75% chances are if they repo the car they would lose money so you are not offering them very much in terms of protection against default.  Why don't you simply keep the car you have, make on time payments and let the repossesion age and do some rebuilding and then when your ready do something else? 

[Anonymous]

Also be prepared for Hyundai to come after you for the 20k plus you owe them versus what they will sell that car for at auction.  In most states it will be easy for them to get a judgement against you.  Repossessions are a double edged sword in you lose the car and still end up paying the difference plus fees.  Honestly the last thing you should be doing is shopping for a new car.

[JGGM]

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@Anonymous wrote:

Also be prepared for Hyundai to come after you for the 20k plus you owe them versus what they will sell that car for at auction.  In most states it will be easy for them to get a judgement against you.  Repossessions are a double edged sword in you lose the car and still end up paying the difference plus fees.  Honestly the last thing you should be doing is shopping for a new car.

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^^^ what workingfor850 said......especially the last sentence