Unrealistic Expectations

[Anonymous]

Hi Im new here.  I just want to know if Im crazy 

650 TU

600 EQ

640 Experian

Is it to much to expect to get a car loan with out paying 15% interest.  I don't want too and cant pay $500 a month for a car.  But three ford dealers have pulled credit and said I'm nuts when I tell them I wont go over $400 a month. 

I know that not having a large down payment is bad.  Im only 2700 upside down in my car but with $2500 in rebates that eats must of it up.  

2 current autos on my report and the slew of starter cards.  One auto I'm trading in and my harley both paid on time for two years. 

Have one old loan that the ex was 30 days late on it for the last year of the note.  Even with divorce papers this bank will not take it off.  So this is one baddie.  A baddie from a apartment complex we are currently in litigation.  (Me starting it not them) and the exs old rooms to go account that charged off.  

Wants a 2010 Ford fusion or escape. 

Just let me know if I'm nuts.  

[MarineVietVet]

Welcome to myFICO.

As many mistakes as I've made concerning credit I would never call someone else nuts but in my opinion the title of your thread perhaps says it all.

Why don't you look at a 2-3 year old car instead of a new one? That would save you lots of money upfront. Also unless your current car is about to go belly up I would wait 6-12 months and work on getting your scores higher and also saving for as large a down payment as possible.

All these things will save you money in the long run.

Just my 2 cents.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

With those two items being the only negatives on your credit report and with those scores, its reasonably possible to get an interest rate between 9% and 15% depending on the institution. I would check with a local credit union as they usually have lower interest rates on auto loans.

[Creditaddict]

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@Anonymous wrote:

Hi Im new here.  I just want to know if Im crazy 

650 TU

600 EQ

640 Experian

Is it to much to expect to get a car loan with out paying 15% interest.  I don't want too and cant pay $500 a month for a car.  But three ford dealers have pulled credit and said I'm nuts when I tell them I wont go over $400 a month. 

I know that not having a large down payment is bad.  Im only 2700 upside down in my car but with $2500 in rebates that eats must of it up.  

2 current autos on my report and the slew of starter cards.  One auto I'm trading in and my harley both paid on time for two years. 

Have one old loan that the ex was 30 days late on it for the last year of the note.  Even with divorce papers this bank will not take it off.  So this is one baddie.  A baddie from a apartment complex we are currently in litigation.  (Me starting it not them) and the exs old rooms to go account that charged off.  

Wants a 2010 Ford fusion or escape. 

Just let me know if I'm nuts.  

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When they are telling you it's unrealistic for you to be under 400, that's because your looking at a car that's over 20k isn't it? 20k at 0% for 60 months is basically 400. you need to be looking at a car between 12-14k plus add in about 1-1300 for taxes, your negative, you will be right up around 400

[Pushto700]

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@MarineVietVet wrote:

Welcome to myFICO.

As many mistakes as I've made concerning credit I would never call someone else nuts but in my opinion the title of your thread perhaps says it all.

Why don't you look at a 2-3 year old car instead of a new one? That would save you lots of money upfront. Also unless your current car is about to go belly up I would wait 6-12 months and work on getting your scores higher and also saving for as large a down payment as possible.

All these things will save you money in the long run.

Just my 2 cents.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 8/10-772
You can do the same thing with hard work

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+1, totally agreed. My wife and I are shopping for a new car (for her) and will likely invest in a 2-3 y/o Toyota Venza rather than new. Nothing wrong with a used car, just ensure the price is what you want.

[Anonymous]

No the Vehicle is about 18K after deep discount for it being a 2010. I guess wont go over $400 is a strong word. I willing to give a little but really it all come down to the interest rate. 

[Cloudlb]

run the numbers yourself.  There are lots of auto loan calculators out there, for instance, on edmunds.com, which will let you play around with the amount financed, the interest rate, etc. Don't just focus on the monthly payment--that's where you screw yourself--look at the total amount of debt you will be incurring. 

In general, it's not a good idea to purchase a new vehicle when you are upside down on the loan. 

[Creditaddict]

18k at 10% is 382.

you should take your fico report that shows the 650 with you next time... with a 650 you should qualify for the special APR they are offering on this car IF the finance manager goes to bat for you.

[Creditaddict]

just checked 0% for 60 months at least here in CA, I'm sure you have similar where you live or 2k cashback.

[Anonymous]

Yea they have the O% or Rebate.  All three told me to use rebate to absorb neg equity.  Went into dealership's looking for a used car they all said go new.  And Since Im getting the cars at invoice at least here in texas they show them too you with Sams club pricing.  And at the one dealer below invoice on the 2010 fusion.

The car Im trading in is a chevy cobalt small car. With a baby on the way its going to be real tight fit.  But it runs and drives so Im not going to go broke or ruin my credit again with buying something I cant afford.   

I just didnot think it was going to be this hard.  Walked into a Harley dealer in 12/09 with 2k down told them my payment budget rode out 3 hours later on the bike I wanted and for the price.  With a 560 mid score. 

So I just give up.  I sold cars several years ago and 620 plus you where good to go.