Used car loan

[Anonymous]

Credit Score: Trans 639, Exquifax 640

Income: 21 K 

Lenght of Employment:retired

Previous Loan Experience: 33 years

Requested loan term ? unsure I'm looking to buy something used for under 8k. Hopefully getting at least 1k in trade in value

Down payment amount: 1 -1.5k

Co-borrower/Co-Signer:None

Other: I'm considering going through carfax to buy. I'm a home owner. Not looking for anything fancy. Any tips for where to get a realiable used car would be appreciated.. Had a car loan on my previous car which was paid off on time.

[Appleman]

Hello,

Do you have an idea of what is available in the $8,000 range? That will help the forum give you advice. 

It looks like between your trade and cash down you are looking to put down 25%, this will work in your favor. What will likely work against you is the probably year of the car you are hoping to finance, this will vary by lender. Also, your retirement income of $21,000 may be a challenge if you have too many other obligations.

I know that a local Kia dealer has an ad that if you bring home @250 a week you are approved. I am always leary of this type of advertising and the terms of an example loan are never disclosed. If reliability is a chief concern you may want to see what some of th entry level vehicles startt at from Kia (Forte), Hyundai (Accent), Chevy(Sonic?), Nissan (Sentra?) etc. Bumping up the cost of the car might get you into something new or close to it.

Hopefully others will chime in with responses. Good luck! 

[Anonymous]

I've been looking at Nissan Xtera's. 2005 - 2007. I'm fairly certain I can't afford anything newer than 2008. I'd like a SUV style car with no more than 90K.I have some wiggle room in term of how much I spend but I don't want to go over 10K.  I'm hoping the fact that I have purchased 2 previous cars and paid for them in a timely manner will also work in my favor. I don't trust the Kia programs. I get the feeling that they try to lure people of slim means and/or credit in and put them in cars beyond their means. I'm open to other cars but my current car is a Nissan and even though it's time to trade it in, at 16 years old it still runs.

I've also considered trying for prequalifying loan through CapiltalOne since I have a cc with them. I just don't want to do that yet if it might make a negative impact on my credit rating.

[Appleman]

My understanding is the Cap! pre-qual is only a soft pull. But please don't take my word for it, confirm that fact on your own. Maybe some others on the forum have used the Cap1 pre-qual?

[Anonymous]

I think I'll wait. I'm using income tax refund to make my down payment  and I plan to pay off at least one other CC next week. Once I have actual funds in hand I'll try Cap One before going into dealer. Cap 1 and/or Honda appear to be my best options. My biggest concern is actual income limiting me so I'd like to be able to show as few obligations as possible. I currently have a few CC's and a PFHA loan. 

Thanks for your responses.

[cartwrna]

Cap 1 pre-qual is a soft pull only. I have done it quite a few times just to see the variances.

[Anonymous]

Anyone ever use a HELOC to buy a car, idk what the rates would look like. It could be an option worth checking out though. 

[6speed8]

Yes, Cap One says soft pull. It's my understanding from the 5 pre qual notices a month I receive from them, that they have stipulations. Certain age, less than XXXXX miles etc.

As for Kia/Hyundai offers, they're not that shady. In fact, they have the best incentives to their dealers of any makes. If you know how to negotiate, you can get good deals - new of course. You're looking for a used car. Nissan Exterra isn't bad. I'd just stay away from any car/suv with a cvt trans.

[Anonymous]

Thanks. I don't want new because I'm trying to keep pymts low. 

[Anonymous]

I did the Cap 1 pre qualify and was approved for up to $15k with an interest rate between 1.9 -7.12% depending on what I buy. I'm going to wait another month but 2 of the dealers I was nterested in are listed as approved lenders so I think I'll be okay.