I really need a new car. How is my credit profile?

[SoundoftheSuburbs]

My utilization is about 70%, but it is about 82% in my most recent report.

The simulators don't show any dings for the 30 days late. I've written Barclaycard a half dozen times and have received at least two letters denying a goodwill adjustment. 

I'm not familiar with AZEO. My goal is to wipe out my credit card balances and put some money into either auto repairs or paying down the loan balance.

[Asilomar]

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@SoundoftheSuburbs wrote:

My utilization is about 70%, but it is about 82% in my most recent report.

The simulators don't show any dings for the 30 days late. I've written Barclaycard a half dozen times and have received at least two letters denying a goodwill adjustment. 

I'm not familiar with AZEO. My goal is to wipe out my credit card balances and put some money into either auto repairs or paying down the loan balance.

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Yeah, that's basically maxed out so your utl alone is costing you big time.  But of course you know that.  So getting your cards to AZEO and paying down your loan balances will get you at least half the points you need.  

Just put AZEO in the search and you'll find lots of great threads on it.  In a nutshell AZEO is an acronym for All Zero Except One.  There are quite a lot of data points indicating that if all revolving accounts are reporting a zero balance there is a scoring penalty -- somewhere in the neighborhood of 10-15 points.  So, the idea is to manipulate scoring by having one card report a small balance of 1%.  Under normal circumstances there's no need to be so anal but for someone about to make a big purchase and who's trying to reach a score threshold where every point counts... Then AZEO can be just the ticket. 

As for goodwilling Barclays, I know it's tough.  I also have one 30 day late as my only derrog and I've already sent CapOne Auto over 40 letters/emails.  If you look up BrutalBodyShots' thread on the subject he says he had to send 300 letters before getting all his derrogs cleared.  So keep trying, don't give up.  You have absolutely nothing to lose and everything to gain.  

You seem to not want to believe that the score simulators, whichever site they come from, are trash.  Best way to convince yourself is to search the forum.  You should find more than enough evidece that they're fool's gold.  

[Anonymous]

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@SoundoftheSuburbs wrote:

I have no plans to apply until I am over 700. My scores are low because my balances are too high. They are way high. I got sucked into zero interest offers.

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Don't go looking until you are actually over 700. Because you're going to tempt yourself into doing something against your interests. You still have to be able to get to over 700. Think to yourself if you really do need a new car. And if it really is unsafe. If it is safe, keep driving it and work on getting your balances low. I would be careful with opening new cards to get your utilization lower though. Because you could easily get sucked back into having more debt and significant DTI.

"I have the ability to pay the upside-down balance and for repairs. I think the latter is irresponsible, and both a dealer and an independent mechanic have told me as much.". 

I think it would be the opposite of irresponsible.  You're delaying gratification which is a big part of being financially responsible and a good lesson. I think you'll end up tempting yourself with wanting a new Land Rover if you make your decisions based on that. But ultimately, it's your decision. Good luck.

[SoundoftheSuburbs]

I want to keep this car so badly. I love this car. It was the first car I ever purchased. However, this Mercedes-Benz needs more than $9k worth of repairs. Don't lecture me about the reliability of Mercedes-Benzes. I grew up with these cars. Some chassis and powertrains are bulletproof, others not so much. I was prepared to spend $1-2k per year on maintenance and repairs. This car took it to a new level.

The timing chain is stretched. It leaks oil all over. Its diesel emissions system faults cause the CEL to stay illuminated permanently. There might be an electrical problem in the tailgate area. Someone hit the car in Chicago and their insurance denies liability. Their insurance company stopped answering my emails after requesting additional evidence, which I provided, from me. That means that it is $500 out of my pocket if I get it fixed through my insurance that has already found me not at fault. Now, the air suspension is starting to go. It also needs rear brakes. A new engine is $21k. A diesel particulate filter is $4.5k. Replacing the timing chain and oil cooler seals is $5k alone, and there is no guarantee that those powertrain repairs will last me the next three years I would need them to.

If I don't fix this car, it is going to blow, and I am going to have a huge problem. I am on my knees praying that it will last another 4-5 months. I am trying to figure out less expensive ways to get it repaired, but it's turning out to be impossible. The emissions and suspension parts alone are sky high.

[Kevin5974]

Sounds like you might qualify for a second auto. Your story is actually the most common repossession story around. Best of luck to all.

[Anonymous]

Well I would have to say that if you feel that it is going to cost you that much to repair and need to get rid of it or repair it quickly, then the sensible thing to do is get rid of it and pay whatever you are upside down as you said you have it. 

I understand you have a desire to drive expensive flashy cars, but know that comes at a premium. You can get that lease of one of those higher end cars to keep payments down, but you don't have the scores to get the better rates. So that'll cost more than you want most likely. Personally I would recommend to dump it and get a cheaper car until you get your scores up to the level that'll get you into the car you want at the rate you want. We all have had to sacrifice at one time or another, whether we wanted to or not.

Just my two cents.

[SoundoftheSuburbs]

I already own another Mercedes outright. That car is too sentimental for me to drive, and does not have space for my dog.

It's not about being flashy. I am used to the comfort, safety, and performance of luxury vehicles. I talked to some other people about repairs and everyone has about the same pricing. It's too much for how much the car is worth. I got it filled up with some more oil. I am going to try to drive it sparingly and hope it lasts until I pay down my balances. My scores have gone up since I started this thread.

[Anonymous]

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@SoundoftheSuburbs wrote:

I already own another Mercedes outright. That car is too sentimental for me to drive, and does not have space for my dog.

It's not about being flashy. I am used to the comfort, safety, and performance of luxury vehicles. I talked to some other people about repairs and everyone has about the same pricing. It's too much for how much the car is worth. I got it filled up with some more oil. I am going to try to drive it sparingly and hope it lasts until I pay down my balances. My scores have gone up since I started this thread.

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You can get all of those features in a non luxury vehicle. And I really think you should think this through. It seems like you may be closing off all of your options to get to a point to get this vehicle that may not be the best thing for you. You're in a bind. You current vehicle needs repairs that you don't want to put money into. But you still have someone else tied into it. And you said you have another mercedez but don't want to drive it for sentimental reasons and because you can't keep your dog in it. I think you should reconsider that stance. It will pay off in the long run for you to just drive that until you can get everything else straightened out. 

And if you absolutely need to get a new vehicle, I think you'd definitely benefit from bringing your sites down some. There are plenty of safe, reliable and comfortable Hondas, Toyotas, etc. Think about it. Don't trap yourself into desire. Staying within your means will always pay off. Good luck.

[Kevin5974]

This is a repo in 4 to 6 months. Sad. But we have heard this story before. As an FnI Mgr, I laugh at people financing cars for 5, 6 or even 7 years but decline the warranty. Most common reason for repo is the car broke down.

No offense but this is where this one is going. If you were smart, you'd sell this vehicle that "doesn't fit your dog" and get your cosigner out from this mess. Lease a Kia or cheap car for a bit. You obviously aren't in control if you're in this terrible situation.

[Brian_Earl_Spilner]

Everything hinges on you making up your mind on keeping the car. The options I see are:

1) pay down the Benz, sell or trade it, take a lower tier now

2) repair the Benz while you get your scores up and either keep it, or get rid of it when you qualify for the tier you want. You'll have an unreliable and unsafe car until the repairs start getting done.

3) buy a beater while you repair the Benz. Once the Benz is reliable and safe enough, sell the beater.

If I was in your situation (and almost was prior to buying my Mazda) and wanted to keep the car, I would buy a late 90s to early 00s Lexus for $5k or less so that I could repair and fix up the Benz at my leisure.