Car loan with low Credit score

[Red Squirrel]

Save up and buy a used car, cash. You'll save a lot in the long run. You can get a half decent car below 5k. Don't expect fancy stuff like MP3 player or blue tooth but it will get you where you need to go.

 

[LegendKiller]

I'm trying to figure out why anybody would buy a used VW. Don't buy a German car. Don't buy a Korean car. Don't buy an American car. Buy a Japanese car and call it a day. Sure, you pay a bit more and you get fewer features but they have *FAR* better reliability.

You want to buy a used car? Buy a Honda or Toyota, period.

As far as a loan, there are plenty of originators out there.

1. Be aware of what your new car costs.

2. Be aware of what your current car is worth.

3. Be aware of the buy vs contract rate (dealer participation). This differential is key and is how the dealers make the most money besides the cost vs sale price of the car.

If I were you I'd buy a 2005-2009 Accord 4cyl. You can probably find one for 10-15k. It won't cost you anything in maintenance for quite some time if you can get it checked out through a trusted mechanic.

As far as interest rates, at that FICO score you should get charged nothing more than 20%. That score is about what GMFinancial or Santander Consumer would originate, or even Ally Financial.

 

[xeemzor]

I'm trying to figure out why anybody would buy a used VW. Don't buy a German car. Don't buy a Korean car. Don't buy an American car. Buy a Japanese car and call it a day. Sure, you pay a bit more and you get fewer features but they have *FAR* better reliability.

You want to buy a used car? Buy a Honda or Toyota, period.

As far as a loan, there are plenty of originators out there.

1. Be aware of what your new car costs.

2. Be aware of what your current car is worth.

3. Be aware of the buy vs contract rate (dealer participation). This differential is key and is how the dealers make the most money besides the cost vs sale price of the car.

If I were you I'd buy a 2005-2009 Accord 4cyl. You can probably find one for 10-15k. It won't cost you anything in maintenance for quite some time if you can get it checked out through a trusted mechanic.

As far as interest rates, at that FICO score you should get charged nothing more than 20%. That score is about what GMFinancial or Santander Consumer would originate, or even Ally Financial.

What's wrong with Hyundai? The Sonatas coming off the line today are pretty nice and reliable cars.

 

[LegendKiller]

What's wrong with Hyundai? The Sonatas coming off the line today are pretty nice and reliable cars.

1. Default rates are higher for a Hyundai car than they are for any other manufacturer with a roughly equivalent credit score.

2. Of the many predictors of default, a poor vehicle is a very good one.

3. There have been a *TON* of Hyundai leases in the last 3 years. They have also been putting a lot of cars into the rental channel.


Higher defaults, worse vehicles, a bunch of off-lease and defleeted vehicles = shit recovery rates and used car values.

That thing'll depreciate like a rock.

 

[xeemzor]

1. Default rates are higher for a Hyundai car than they are for any other manufacturer with a roughly equivalent credit score.

2. Of the many predictors of default, a poor vehicle is a very good one.

3. There have been a *TON* of Hyundai leases in the last 3 years. They have also been putting a lot of cars into the rental channel.


Higher defaults, worse vehicles, a bunch of off-lease and defleeted vehicles = shit recovery rates and used car values.

That thing'll depreciate like a rock.

Wouldn't the fact that you have a larger used car supply and lower pricing allow you to get a better value? Sure, you have to be careful about where you get the car but that is true with everything.

What specifically is bad about the other car brands? Build location isn't a bullet proof way of judging reliability. From my anecdotal experiences Honda and Toyota are good but not the end all be all of durable cars.

 

[LegendKiller]

Wouldn't the fact that you have a larger used car supply and lower pricing allow you to get a better value? Sure, you have to be careful about where you get the car but that is true with everything.

What specifically is bad about the other car brands? Build location isn't a bullet proof way of judging reliability. From my anecdotal experiences Honda and Toyota are good but not the end all be all of durable cars.

The values right now are high, just wait till the bulk of turned in leases and defleeted vehicles hit.

Besides you're chasing your own tail when it comes to stuff like that. Look at Ford and the Taurus.


It's a lot better than initial quality or most other measurements.

I've asked quite a few companies that actually write used car warranties which cars are best, universally they say that Honda and Toyota are far more profitable to write contracts against because they have far fewer claims.

 

[who?]

Toyota parts are more affordable than Honda parts.

 

[GagHalfrunt]

That thing'll depreciate like a rock.

No, it means it's already depreciated like a rock. There's no doubt that new Hyundai's depreciate quicker than Honda or Toyota, that makes them a good value when rentals and short term leases make their way into the used car channels. They're fairly reliable and a good choice for economical transportation.

 

[LegendKiller]

No, it means it's already depreciated like a rock. There's no doubt that new Hyundai's depreciate quicker than Honda or Toyota, that makes them a good value when rentals and short term leases make their way into the used car channels. They're fairly reliable and a good choice for economical transportation.

Incorrect. It would mean they are *ABOUT* to depreciate like a rock and, as I mentioned before, they are less reliable. I'd give it another year or so.

 

[xeemzor]

Incorrect. It would mean they are *ABOUT* to depreciate like a rock and, as I mentioned before, they are less reliable. I'd give it another year or so.

I'm not totally convinced that warranty profitability is the best indicator or reliability because manufacturer stock warranties vary wildly. For example, Sonatas come with a (summarizing) 10 year warranty while Corollas come with a 3 year year warranty. The longer warranty on the Sonata eliminates the need for most aftermarket plans and limits the range of claims seen. It's just not an apples to apples comparison.

 

[LegendKiller]

I'm not totally convinced that warranty profitability is the best indicator or reliability because manufacturer stock warranties vary wildly. For example, Sonatas come with a (summarizing) 10 year warranty while Corollas come with a 3 year year warranty. The longer warranty on the Sonata eliminates the need for most aftermarket plans and limits the range of claims seen. It's just not an apples to apples comparison.

https://www.hyundaiusa.com/assurance/america-best-warranty.aspx

"Second and/or subsequent owners have powertrain components coverage under the 5-Year/60,000-Mile New Vehicle Limited Warranty. Excludes coverage for vehicles in commercial use (e.g., taxi, route delivery, delivery service, rental, etc.)."


http://www.autonews.com/article/201...9968/hyundais-ready-for-cars-coming-off-lease

They have a pretty big maturity schedule this year and next. Their leases were already showing residual maturity losses EOY last year. Other manufacturers showed that also but mainly in the luxury segment (MB and Infinity). By way of comparison, Ally had huge residual gains.

 

[MongGrel]

It is sad a lot of places do that and take advantage of young military members. I would see it all the time. 18-19 year old kid just out of boot camp and their first steady paycheck, but zero credit history. "Hmm, I can afford 28%." And they drive off with a decent car.

Yeah that type of thing has been going on forever.

There used to be some silly thing about people selling bibles to guys straight out of bot camp at some outrageous rate once upon a time, the base general at Pendleton even issued a warning so many suckers were falling for stupid gimmicks.

I walked into an auto place at one time in 1980 just off base that were selling car stereos for credit, I had enough money at the time just to buy it outright and was almost like pulling teeth to get the radio/cassette player, amp, and speakers I wanted for cash, but was the only place I had seen them and why I went there.

After about a half hour of messing around finally got em for cash.

Personally if I were the OP I might talk to a Bank or Credit union and see about getting a pre qualified type of a loan at the lowest interest rate they would approve, then start shopping based on that.

They might have to have it inspected, but you're all ready armed to buy it then without having to haggle with the sellers in house guys looking to hook you on a high interest rate.

The last car I bought I had the finance guy try to do that to me, he started making up paper work and threw out an interest rate and I said "You're not serious right?"

We had the means to transfer it to another one shortly thereafter and pay it quickly, but he went through about three different speils before I told him put some real numbers out there or I'm not buying the thing.

 

[Blanky]

My credit is low mostly because lack there of credit, but I do have a few late payments that helped to lower it

Yeah, just to be clear it's actually low because of the late payments, not the lack of history. I went from a nonexistent credit score to 700+ in no time at all when I started building credit because I never had, never have missed a payment.

If you are as hard up as you say in your first post you need to stop buying things like Passats. Those are cars for people who are not barely making ends meet with their car. You need a civic or a sentra or a corolla. Something totally entry level bare bones. You bought a passat in part because it has some marginal stature and that costs you something you cannot currently afford. $5k gets an entry level that won't cost you an arm and a leg in repairs. Also, a 590 credit score guarantees your interest rate is going to rape you ever month, so get a cheaper car. If you're actually going to spend $15k, which I don't think you should, get a new entry level from a Japanese brand and not worry about it for the next decade.

 

[Gerle]

They've banned a lot of places from being around bases, right? And the military needs to step up, if they aren't, and give these people some financial counseling. But then again, no one gives young people financial counseling unless their parents do.

The military does just that. Do you demand that other employers educate their employees? The military does more preventive education and more to fix the problems once they occur than other employers.

 

[highland145]

The military does just that. Do you demand that other employers educate their employees? The military does more preventive education and more to fix the problems once they occur than other employers.

GTFO

I expect PARENTS to educate their kids.

Otherwise, do I demand of employers? No, I'm not a liberal POS.

Did I mention GTFO?

Dumb ass.

 

[Gerle]

And the military needs to step up, if they aren't, and give these people some financial counseling. But then again, no one gives young people financial counseling unless their parents do.

That's what you said.

Then you said "GTFO" and "Dumb ass". You have issues. I bet you are quite the bad ass in real life.

 

[highland145]

That's what you said.

Then you said "GTFO" and "Dumb ass". You have issues.

True but less than yours.

Dumb ass.

Aside, could I, as an employer, demand that you not be a dumb ass? America could prosper.

Snap: Your ninja edit.

 

[Gerle]

True but less than yours.

Dumb ass.

Aside, could I, as an employer, demand that you not be a dumb ass? America could prosper.

What's your problem? I'm not saying you are a fucking dipshit, but you don't seem to know how to act.

 

[highland145]

I bet you are quite the bad ass in real life.

I, uh, work. I, uh, pay my taxes.

Bad ass found because you're aren't.

 

[highland145]

What's your problem? I'm not saying you are a fucking dipshit, but you don't seem to know how to act.

So you can't get a car loan?

 

[Gerle]

I, uh, work. I, uh, pay my taxes.

Bad ass found because you're aren't.

Congratulations. Taxpayer here too, and definitely not a bad ass, I'm just another guy.

 

[Dr. Zaus]

You don't need a new car. Thats your first step to understanding how to live life and be financially well-off. Take care of your car until the wheels fall off or you start making six figures.

We have plenty of money, yet I find no reason to upgrade my 06 Acura. It gets me from point A to point B and I take care of it with usual maintenance.

DONT. MAKE. ANOTHER. MISTAKE.

Or do it and never learn from your mistakes. You're still paying off student loans so I guess you have the excuse of still being retarded.

Jesus Christ THIS!

They don't understand what a simple $150 car repair can end up costing in time and inconvenience.

I do. I've been poor, I've been POOR!

And let me assure you, the 'peace of mind' purchased by that car payment is ephemeral: new cars break down, used cars break down.

Get a used car and pay cash. You're likely already a screw-up with money given the credit score Turn your behavior around and stop screwing up.

again

$5k gets an entry level that won't cost you an arm and a leg in repairs. Also, a 590 credit score guarantees your interest rate is going to rape you ever month, so get a cheaper car. If you're actually going to spend $15k, which I don't think you should, get a new entry level from a Japanese brand and not worry about it for the next decade.

THIS!


Alternatively, if you were just absent minded and are OK with money, I can offer good advice. Please list your:

Take Home / Month
Total debt on credit cards
Total debt on cars
Total debt on house
Any other debt (i.e. student loans, alimony, crack habit)
Home payment

 

[Gerle]

So you can't get a car loan?

Don't need one, all vehicles paid off and well maintained.

 

[Gerle]

Snap: Your ninja edit.

Posting from a phone, messed up a little and had to fix it.

 

[highland145]

Congratulations. Taxpayer here too, and definitely not a bad ass, I'm just another guy.

Nope

Do you demand that other employers educate their employees?

That's your fail. Maybe the military can help with that.


So...have a nice day.


Or not, IDGAD.