bmw>hoopty

[Anonymous]

Hi, 

I am looking to secure a used auto loan for approx $8000. I will be putting $5000 down on the vehicle (2006 bmw ci). I started a new job about six months ago which basically tripled my salary, where I make approx $5000 a month with overtime included (roughly $60k).. Without over time, I make approx 40k a year. I had some items on my credit report and paid most of them off. However I still have open collection items for about $800(mostly medical bills).  So basically my income/ability to pay for the car is not an issue. I could pay for a car in cash if I needed to, but my current vehicle is about to die any day now. I have not been late on a credit card or student loan payment in years. Its just the old items on my credit report bogging me down. My current FICO is 612 and my current EXP is 661. Does anyone thing a credit union will approve me???

[Anonymous]

1- Does the vehicle cost $8,000 or is the transaction $8,000. If the one you want costs that, then remember to add tax title and fees.

2- Many institutions do not finance under $5,000-$3,000-its juts not profitable. you may have to put less down to be initially financed.

In all honesty, if you can pay cash, do it then work in other ways to improve you credit.

[Anonymous]

the vehicle is 13000. I am trying to get a loan for 8k of that (5k down payment in cash)

[Anonymous]

I could just buy a $5000 car in cash or wait a few months I guess, but the vehicle im driving now could die any day now. I would really like to get into a car that I actually LIKE considering my new income.

[Anonymous]

---

@Anonymous wrote:

I could just buy a $5000 car in cash or wait a few months I guess, but the vehicle im driving now could die any day now. I would really like to get into a car that I actually LIKE considering my new income.

---

Not to sound mean but that is the exact wrong reason for anyone, especially someone who is recently overcoming credit problems to buy a new car.

Cars are conveyances to and from an area. Yes outside your house and job, your car may be the place you spend the most time, but still its a car.

I recommend if you want to get a car, start taking your income each month that you would be spending on the car for you to first make good on your existing collection accounts, then drive your existing car until it drops-but each month saving as much as you can so you can buy the car in cash.

Your "new" income should be used to pay existing obligations, save up a larger rainy day//emergencey fund if you do not have one now and then consider a new car.

ALSO I am reluctatant to tell anyone, credit and income challenged to get any type of  BMW (or similar car since do you know what the maintenance costs on that will be compared to a (for the same cost) a Ford Focus, Fiesta, or Fusion?

[Anonymous]

---

@Anonymous wrote:

I could just buy a $5000 car in cash or wait a few months I guess, but the vehicle im driving now could die any day now. I would really like to get into a car that I actually LIKE considering my new income.

---

Heads up! mate. nice cars or cares you LIKE are a taboo on these forums lol. tread carefully 

[Tazman81]

---

@Anonymous wrote:

---

@Anonymous wrote:

I could just buy a $5000 car in cash or wait a few months I guess, but the vehicle im driving now could die any day now. I would really like to get into a car that I actually LIKE considering my new income.

---

Heads up! mate. nice cars or cares you LIKE are a taboo on these forums lol. tread carefully 

---

No, not taboo.  I am a firm believer that if a person works hard then they deserve to have nice things, but you cannot let a want for nice things outweigh the necessities and the current obligations that you have.  If the OP came in and said she has this money down, no collections, an emergency fund, and an extra $1000 a month after paying all bills with no other debts, then yeah, everyone would have said to go for it, but that is not the case.  Just wanted to clarify that LIKEs are okay, as long as they are put AFTER the necessities are taken care of.