Should I finance this car???

Anonymous · ‎12-06-2015

A little about my situation: I am a leasing agent so I drive clients around the city for apartmemts. Currently I am usuing Lyft & Uber and spending about $400/month. I have a below 500 credit, student loans, about $14000 from another really bad car loan from cap one, and few smaller collections like $500 here $300 there.

I need a car for work so I started looking for financing. I went to Hertz and got an approval from West lake financial. These are the terms:

48000 miles Kia (Car): $12,128 Includes tax, title, etc and a 4 year warranty

Down Payment: $2750 Kinda a high for me but I have it

FInancing a total of: $9,378

Length of Loan 4 years

Interest Rate 25.9%

Payments $316

I need the car but really wanted to get a car to help improve my credit score. I am going through credit repair with Lex Law and only have one small loan reporting positively on my credit.

What do you'll think???

Anonymous · ‎12-06-2015

Seeing as you have credit/financial issues, I'd avoid Lexington Law as that is just another bill that could be going towards a car payment (if you choose to get one) and paying off debts. All the information needed to get you on the right path is here in these forums. I started my rebuild in April with scores around 600 and my highest FICO 8 is 734. My wife started the year at 580 and her high score is 738 after I started her rebuild in June. It's going to take some time and a LOT OF EFFORT, but you can raise your scores just like many other members have. As to your car situation, I'd avoid those terms and look to get something much cheaper. 25% interest is a very tough pill to swallow. Seeing as you already have near 3k for a DP, you should buy a cheap used car to get around for the time being. You should try to PFD those collections with the money you'd be saving in car payments and ultimately work towards doing something about that 14k loan. This is just my two cents, nothing more than that. Also, I was in a similar position in terms of needing a car after totaling one back in 2013 that I had a loan on and cost 12k. I bought a cheap 2002 Honda Accord for 4k and kept the loan for a year then paid it off so the loan could report on my credit history and it helped boost my score by adding to my credit mix. Credit repair is a marathon and requires a lot of stamina. Just gotta stay focused and keep working at it.

Anonymous · ‎12-06-2015

SE80, that is very good advice. I think I will take it. I know Lex Law is doing nothing more for me than I can do for myself, however they have gotten rid of some negative items for me. I think I will keep them for another month and get rid of that extra bill. I was thinking about PFD on the smaller ones but the $car loan one is probably the most damaging.

It's good to know that you just started in April and already saw a huge increase. Would you recommend any articles in particular? To be honest I am not good with forums and find them hard to navigate and find the information needed. I can send you my email?

Did you Finance the $4000 Honda? If so I would like to talk more about that also?

Anonymous · ‎12-07-2015

Just use the search feature to find what you need and for everything else a few Google searches should do the trick. And yes I financed a 4k Honda lol. The dealer was super reluctant to finance such a small amount and I threatened to just leave and they came out with paperwork like 10 minutes later. You gotta let them know you have all of the power and they need you a lot more than you need them.

Anonymous · ‎12-08-2015

If it's me I would go into a Toyota or Honda dealership and get a new car. I got a new civic in March of 2015 with a credit score of about 479 500. At first the Honda got me approved for 17% with 2000 down. I ended up getting a cap1 for full amount of 19400 at 12%

Anonymous · ‎12-08-2015

Wow that's impressive. I think I'm getting approved for about 17-18% but the dealerships are adding there own points to the interest making it more. The repo I have on my credit is Cap 1 doubt I can get that.

Knowing that would you still suggest going into a Honda dealership?

sccredit · ‎12-08-2015

@Anonymous wrote:
Wow that's impressive. I think I'm getting approved for about 17-18% but the dealerships are adding there own points to the interest making it more. The repo I have on my credit is Cap 1 doubt I can get that.

Knowing that would you still suggest going into a Honda dealership?

Toyota and Ford have some of the most forgiving credit standards

Anonymous · ‎12-08-2015

@Anonymous wrote:
Wow that's impressive. I think I'm getting approved for about 17-18% but the dealerships are adding there own points to the interest making it more. The repo I have on my credit is Cap 1 doubt I can get that.

Knowing that would you still suggest going into a Honda dealership?

Yes even with that information I would still give Honda a try. You didn't burn them they might finance you

Anonymous · ‎12-10-2015

I honestly didn't even know that APR was legal

Anonymous · ‎12-10-2015

Right... It shouldn't be illegal. The cap 1 loan was 27% but I was 23 at the time and did not know about interest nor did my salesperson explain anything to me. Just told me to sign and give them the money. I think I will try some of the Companies mentioned and see what I can get. Just don't want to pay more than $8000 out the door and maybe a 18% APR max.