HELP !!

[Trod1025]

OK so my husband and I were in a accident and we still had a few more years on our vehicle ,insurance totaled the car and is paying off our loan. My question is we dont have the best credit right now ,the pandemic maxed us out and we have been trying to recover. We need a new vehicle how do we go about it in our current situation?? We live in state where not having a car is a option?Any advice would be helpful ,please be kind. thanks in advance.

[Linnaea]

Whatever you do.... DONT do any buy here pay here places.  

I believe you should pull up your credit report first so you know what is on it and if there is anything you can dispute ASAP. 

Do you have a relationship with a credit union? They generally are more forgiving.  

Then I would not let any dealerships pull your credit.   Usually they can assess what lender can work with you. They generally have several banks.   

I know Capital One Auto and Ally work with subprime scores.   

I ɓelieve the forum could be more helpful with more data.   Like where are your scores at... do you have any down payment.... did you file bancruptcy.... what kind of debt... what baddies....  do you own your home....  

It's possible to get a car with not so good and even poor credit.   But the interest rate may hurt... however if you pay more monthly you can reduce that interest or you can bite the bullet.. work on your credit and refinance the car?  

I am sure there are many that can offer advice but they need a little more data. 

[Brian_Earl_Spilner]

Problem with needing a new car immediately is there's not much you can do to your credit to boost your score quickly. If you're able to hold off a month, you have options. Look at your balances and see what you can pay to get them below utilization thresholds. At minimum they should all be at 85% or lower. Then I would prequalify with cap1 and carvana to see what you're dealing with. It will give you a rough idea of what interest rates you'll be looking at.

[Namaste7]

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@Trod1025 wrote:

OK so my husband and I were in a accident and we still had a few more years on our vehicle ,insurance totaled the car and is paying off our loan. My question is we dont have the best credit right now ,the pandemic maxed us out and we have been trying to recover. We need a new vehicle how do we go about it in our current situation?? We live in state where not having a car is a option?Any advice would be helpful ,please be kind. thanks in advance.

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OP, sorry you're facing a hard time. It might be hard for others to provide specific advice without more details. 

In the short-term, it might be helpful to buy a 3B myFICO report so you can review your current credit history and see your FICO 8, FICO 9, and auto scores. Next, contact your auto loan company for the payoff and contact the insurance company for the insurance payout. Hopefully, the insurance payoff is high enough to get a refund after the loan is paid. 

The other item is to address short-term transportation needs. If your family does not have a vehicle, is it possible to borrow one from family or friends for a few weeks? Alternatively, would it be cost prohibitive to ride-share with co-workers or family members for a few weeks? The other option is to check short-term rental rates with a local rental car company or Turo. 

As you wait for your current load to be paid off and reflected on your credit reports, now is a good time to start car shopping. If you're a Costco member, you may want to check out the car purchasing service. If you have a history with a manufacturer's captive financing company (i.e., Ford Motor Credit, Toyota Financial Services, etc.), then you may qualify for preferred pricing based on your prior purchase / loan history.

If you're buying new, try to find cars that offer the best combination of lower total cost of ownership along with decent financed rates (sub 4.9%) and pricing at or below sticker without dealer and manufacturer add-ons. 

If you're buying used, get/review the Carfax, take the vehicle to a third-party repair shop for a pre-purchase inspection, and get an estimate on the tire tread's remaining life.