Need a little auto loan help

[Stugotsv10]

So a friend of mine asked me to help her go through the car buying process for several reasons, Knowledge of credit, finance, loans etc but also Automotive knowledge / warranties etc.

So here is my question.

She has a 574, 576, 571 score, no open active credit cards, paid off an auto loan (with cap one auto finance) 7 months ago, current student loans, 1 small collection.  Cap one already declined her.

shes not currently part of a credit union.

Where would you guys/gals suggest she try to apply for the best chance of being approved? She has a trade in and down payment.

I know the "Proper" way would be to get her a card / tradeline, pay the small collection, do maybe a self lender BUT she has children and her current car is a literal death trap, this simply can NOT wait.

Thanks in advance

[Brian_Earl_Spilner]

With those scores she could try a credit union, but she may have to go directly to the dealer and take a subprime loan and try to refinance down the road. Is buying a cheap used car out of the question? A high mileage Honda, Toyota, or Lexus can still be reliable cars.

[Stugotsv10]

not out of the question but was trying to avoid that one.

Is it still true that money talks loudest? like at 30% - 40% down she likely wont be denied? 

[Brian_Earl_Spilner]

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@Stugotsv10 wrote:

not out of the question but was trying to avoid that one.

Is it still true that money talks loudest? like at 30% - 40% down she likely wont be denied? 

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Anyone can be approved for an auto loan with enough money down, the rates just won't be great. Even people with horrible credit can be approved at a buy here, pay here dealer with 40% down. In fact, it's normally required. She can also check carvana and drivetime for pre-approvals. Drivetime is sub-prime. Carvana is owned by drivetime, but not considered sub-prime even though they'll take them due to their parent company.

[Stugotsv10]

lets say a 30k car at a non buy here pay here, just a regular Toyota dealership, 40% down what do you think her chances are? 

[Brian_Earl_Spilner]

Dealer should be able to do it. Probably Credit Acceptance Corp, Drivetime, or Santander. TFS may even take her if she's lucky.

[Stugotsv10]

We should be going today, so I'll let everyone know how we make out!!

Thanks 

[Anonymous]

Good Luck

Hope it turns out in her favor!

Just remember. refi later down the road is doable on a higher interest loan...

you can then focus on helping her credit to achieve that.

[Anonymous]

Just remember that in today's used car market try not to overpay too much for the model because with such high interest rates you could potentially be upside down much quicker than before, not to mention caue issues with a refi later on. That said, if a person puts enough down to offset all that I guess it wouldn't be quite an issue. 

Good Luck!

[Loquat]

I know the forum is typically against financing at the dealership…and for good reason. But with scores like that, even with a sizable down payment, she’s probably going to need the help of a good F&I manager at the dealership.

Her scores are just too low and something tells me with scores of such, there’s a lot of activity on her report that would be hard to cover come even if applying at a credit union.

With that being said, I always say that a good down payment can overcome a multitude of financial sins…and I believe such is possible in her situation but she still may need, even with a good down payment, the help of a finance manager at the dealership.

Best of luck to her.