@Anonymous wrote:
jyoung1269
New Visitor
5:00 AM
I have a car 2013 trade in value 12000, I owe 17400 ( I only had the car six months. I want a used 2014 car with 24k miles that is being sold for 26995. No one will approve me my credit score is 590s , I make 60k a year do you have any suggestions?
Was this the amount offered for the vehicle in trade or is it NADA or KBB value?
The best way to dig yourself into a hole is to keep trading your vehicle frequently.
However, if you really want a newer vehicle and can afford the higher payments, then sell your current vehicle yourself so you aren't hit so hard with the low trade in value. Don't transfer negative equity to the new vehicle if at all possible. If you trade, the dealer will do his best to make sure you have more negative equity, so get rid of your current vehicle by selling it yourself private party before you purchase the next one. You will get much more money for it. You will need to bring the cash to deliver clear title for whatever you can't recoup in a private party sale.
Looking at your post, it looks like you are just now starting to rebuild your credit. IMO it would be prudent to work on your score now while you are paying down the neg equity before you sell off the current vehicle. Once you apply for a new vehicle loan your credit report reflects your credit standing at the time of application. Take the next few months to increase your score so you can end up with a good loan on the next vehicle. You don't give details of your report, but if you can get into the mid 600s the options for your loans improve substantially. Spend some time in the rebuilding forum, you may be surprised at how quickly you can increase your score with certain changes to your credit file.
Tip: For the next vehicle you finance, don't use the dealership financing. You are better off getting it financed through a credit union. Check the threads here on DCU or other credit unions so you can get an idea of their standards needed.
