Need advice

[MichiganMommy]

Hello...new to this thread. Trying to plan ahead and need some auto loan people advise.

I have a 2002 Buick Rendevous. When I did the blue book on it, it is worth about 1500. I owe 10K on it, so I am obviously upside down on my loan. I would like to buy a new car within the next three months as this car simply is not the safest to drive around in and commute to work daily. The work it needs is more than the 1500 it is worth...

Please see my scores in my siggy. I have a few unpaid collections (at least 4 years old and all medical). I have several more that should fall off anyday. Anything recent or over 500 I have paid. Approved for a mortgage of 320K (I close next week, yippeeeeeee!). Other than the home mortgage that I will have, I only have small revolving CC expenses (50 per month).

My income is over 110K. When I got my previous car loan my scores were HORRIBLE and I had to go through Drive Financial (I was pregnant and desparate when my car blew up and I had to get a new car). The APR was over 20%...and I have had it for 3 years (I know I should have refi before now, but I did not have this site to ask nice people like you what to do)....

I currently pay 430 per month (on a piece of junk). If I could get my payment down to 300 I would be happy.

I need a minivan or SUV of something of this sort for my three children and I (and hubby...). I have even considered the 2008 Buick Enclave or something....

So, where do I begin???  I just recently (in June) joined my employer credit union. I only have 10 dollars in the account to open it. I have set up my child support payments direct depoist in that account so some money (only 300 per month) will start going in there soon. I joined because everyone kept saying this is where to get the best auto deals.

Please help guide me through this (also, I expect my scores will be going up and down over the next few months, but my highest two will not likely be below 650 when I apply, maybe higher, waiting for some baddies to fall off). Also, I don't plan to put more than 1K ALONG with the 1K trade in as a down payment and don't understand how this works being upside down on the loan!!!!

[Watchmann]

You are constrained by the $10k note on your current Buick, which will have to be paid off.  If you can't pay it off directly you'll have to roll it into your new loan.  But that will make your monthly payments very high.  So if you buy a new vehicle for $30k, the total will be $30k - $1.5k tradein -$1k down payment +$10k current loan = $37.5k.  Unfortunately you are immediately upside down again on the new vehicle.  The only way to fix this is to pay off the existing loan as fast as possible once you get your new car.

[Anonymous]

You might consider leasing a vehicle for awhile if you can be approved for 95-100% leasing option.  This way you could keep your payments down and in 36-48 months be free of any vehicle.

[Anonymous]

No magic here.  You must save some cash to pay this thing down.  There are rebates out there that could help your next loan look more in line, but it's just discount that you are giving up to get in to a newer car quicker.  Besides, I don't know of any in the $8500 range.  If the car is running, you need to get busy on doubling/tripling up on payments.  This is the only "real" way out.  Any other solution is just piling up debt.  The last thing that you should do with a new house payment around the corner.

You need to research what a $300 payment can buy. Just doing rough math, it looks like a $13K vehicle.  If your binging $8500 negative to the table, then you can only buy a $4500 car.  Besides, the banks probably will not allow you to carry all of the $8500 over.

Cash, Cash, Cash -- The only real way out.