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Thinking of trying... options?

Frequent Contributor

Thinking of trying... options?

So I will lay it out. I have been repairing and have nixed my plan to purchase a home next year... I don't really have the need to right now. So my goal is to get a new car instead... because before I started building, I got a 20+ something interest rate and I owe "too little" to refi... I know I am probably about 2000 (guessing) upside down. I owe about 6k on it still. I don't know how trading in while owing works...




Repo in Sept 2007 so it is now 5 years old

New (used) car in January 2012, with NO lates


With auto enhanced what do you think this will look like?? I have other collections but I'm hoping my 10 months of auto good payments will help override that??


The car I want is a 2013 Hyundai Accent.. just a homely cute cheap car because something new goes wrong with my Escape all the time! THANKS!!!

Goal Score: 700
Message 1 of 6
Regular Contributor

Re: Thinking of trying... options?

Upside down trading is simple...they will give you what they think it is worth, and the difference between that and what you owe is tacked on to the new car. The problem then is, can you get enough financing to cover the cost of the new car plus $2-3k more? Given your current scores, I doubt it. So now you're looking at a large down, probably 10% of purchase price, plus whatever the difference on your trade is. If you did somehow manage to get it 100% financed, you'd be starting way upside down in the new one, so you really need to be in love with it because you're going to driving it for a very long time. I did this when I was much younger with three cars in a row, and wasted thousands of dollars in the process.

Message 2 of 6
Frequent Contributor

Re: Thinking of trying... options?

Thanks for the info. I guess I was just wondering mostly if the on time payments would significantly help with an auto enhanced score. I think I may just wait and pay off the car I have now at tax time and then sell on Craigslist and THEN buy a new car... and no doubt my scores will be higher by February or March.


Thanks for making my decision easier and not wasting inquiries Smiley Happy

Goal Score: 700
Message 3 of 6
Epic Contributor

Re: Thinking of trying... options?

I had some great service and experience at Kia (pretty much same)

I would start via online "Inquiry" to them....

Do you have your current TU Fico from here?

Do not rush into the I will be right down business (I actually try not to give a phone number when I do the online thing)

For SURE do not do the pre-approval yet!

Do you want to lease or purchase?

What State/City you live in?

believe it or not (only after my recent "Lease") Purchasing NEW can be VERY hard these days with not so perfect credit, even when it's TONS less! took me some time and a great poster on here to lay out why this change because back in 2006 I couldn't get a lease for the life of me but was able to turn around and buy at the then current "Tier 1 Promo Interest Rate) and take on payments ALMOST $400 MORE than the lease... yes not typo!!

Message 4 of 6
Moderator Emeritus

Re: Thinking of trying... options?

The current repayment loan being clean on your report will help of course.  I think you can get a loan pretty easy, however the problem is getting the right interest rate.  Look around find what you need, do the research.  Good Luck!

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 5 of 6
Epic Contributor

Re: Thinking of trying... options?

I know Kia, assume Hyaundai same (thinks pelling off!) anyway will go to like 640-650 if not lower on tier 2 or most likely 3 and approve... 

Message 6 of 6