I just pulled my FICO's and they are not the best (650; 623 respectively). I filed for BK and was discharged in May 2005, so I'm almost 3 years out. Also, I have no late payments since then on any account. I was involved in a car accident and my vehicle was totaled, but with insurance and gap coverage my current vehicle will be paid off, and I am also working on some CC debt to hopefully boost my score. My question is: How much do you think they'll make me put down and should I wait to purchase since I'm in the process of paying down my CC's and waiting for my current vehicle to be cleared off of my report? If so, how long? Thanks.
dealerships look into court records and pick you specifically to give you offers for loans.
even b4 my discharge, i was getting offers to get rid of my car and take one of theirs up to $30000.
big dealerships usually have a special financing department mainly designed for bk customers or financially challenged, lol, like me.
if you are in southern california, i would recommend the POWER dealerships.
what kind of car do you need?
do you really need a brand new one?
are you handy with basic car repair, if so, why not just buy a cheap car from a tiny dealership who can in-house finance, put a low down like $500-$1000 and finance it for like 6 months to a year, so your payment is low and you own it out right, and during this time, save money for a newer car.
what i did after the discharge, is kept my old car i bought from a mom-pops dealership i financed in house for like 1.5 years, after the discharge, i only had 2 months worth of payment till i owned it.....after that no more payments and rightnow saving up if the time comes the car completely dies on me.
but even till now, i still get offers from dealerships, and everyday, i am tempted to take them up on it, but i have to say no because i do not want a car payment at the moment.
a few years ago, i was able to drive home a brand new subcompact car fro less than $1000 down, but the APR on the 5 year loan was extrememly high, over 20%, and my credit back then was much worse than urs, maybe the mid 500's.
just call your local dealerships and ask if they have special financing programs for your case. considering hwo the auto industry is strugglling to make a sale nowadays because of the economy, they will likely bend over backwards for you.
but, i still like teh idea of buying a cheap old car so you can save for a newer car with a smaller loan.