I am looking to buy a car as I've been without for almost 3 years now, I've been Ubering, taking public transit etc to save money, but I am ready to have my own car again. Can anyone recommend a credit union that may be willing to finance with my scores?
I received preapprovals from Carvana (Bridgecrest) and New Roads Auto. I was able to get a Cap One pre approval last year, when my scores were much lower - but I cannot get them to give me one this time, when I am actually ready to buy. The Bridgecrest APR is insane at 25% and New Roads Auto is at 15%. I've read terrible reviews about both which is making me uneasy - I've found a 2016 Mini Cooper that I'd like to purchase with very low miles (19K) and 1 owner history with no accidents. Selling for 16,000$. They're offering me at 475$ a month for 69 months, which I could refi in 6-8 months.
For work and personal, I need a car. But I don't want to have a crazy high APR that I can never pay off. Would anyone suggest taking the financing for 6 months or so and then seeing if I can get a refiance offer? My biggest concern is not being able to get a refi off if the car is worth less than what is owed, and being stuck paying such high interest. If anyone can recommend a CU or ANY other options, my scores are not terrible. I had a repo back in 2014 that has fallen off all reports except Experian (falls of June 2021) - wondering if that is causing these high interest offers?
Current Auto 5 Scores: EQ (622) TU (582) EX (608)
Current Auto 8 Scores: EQ (603) TU (603) EX (606)
Any advice is greatly appreciated!
Forgot to add. Income is 75K and I've been with the same employer for 2.5 years. Current overall UTL is 35%
I would recommend PenFed, DCU, local, etc. For PenFed, I know they favor EQ9 for credit cards but unsure on the auto application. DCU will pull EQ5 mortgage.
@AllZero thanks! I am a member of PenFed but was denied for a CC with them, so a little nervous to apply. Patelco also shot me down. I'm surprised at the high interest being offered to me, my derogs are limited / small amounts.
You're getting sub-prime offers because you have sub-prime scores. Unless there's a reason your scores will jump 60-70 points in 6 months, a refi is probably out of the question.
You could try DCU, or if military affiliated, nfcu and penfed.
PenFed also denied me a few weeks ago when I was shopping around, prior to finding a car I wanted. Hmph.
@Brian_Earl_Spilner my Fico 8 Credit scores are 640 and 665. I've also paid off 2 small derogs (medical bills) that will report in April. So its not far off to say my scores will jump. Feel free to look at my previous posts of credit history - as I've explained many times.
@Brian_Earl_Spilner It doesnt have to be a refi in 6 months, it could be a year. Once I start making auto payments - that would help my score as well. If you're saying I don't have many options until I get the scores higher, maybe I'm out of luck. I've been rebuilding for the past year and started in low 500's, so having a 670 in 8 months to a year is not impossible, especially with there being only 1 collection item I still need to resolve.
From a purely financial viewpoint, you may want to buy a cheap car in cash and use that for 4 to 6 months until negative items fall off your report and your scores improve. Getting a large loan now, *just* before your scores jump, doesn't make sense.
@quantum001 thank you. I can continue to use public transit options until I get my scores up further - hopefully in the next 6 months.