Bad credit car loans???

[ashlynn_j_m]

My friend is in a bad way right now, she needs a car, but going to the local dealerships nobody will approve her. She has money to put down, but they say NO...the car she has now, is going to die any day. She's not looking for an expensive car but something under 10,000. Anyone ever been through this? Where does she go, I know people with bad credit get car loans every day, just don't know where to look. we live in a very small area, so there are not many dealerships around. Thanks.

 

[Toby'sFriend]

I know it sounds harsh, but if her credit and financial life are so bad that she can't get approved at the dealerships, about the last thing in the world she needs to do right now is buy a $10,000 car.


she needs to save every penny she can save until the car she has actually does die and then go and try to find a replacement with the money she has saved.

 

[ashlynn_j_m]

I know it sounds harsh, but if her credit and financial life are so bad that she can't get approved at the dealerships, about the last thing in the world she needs to do right now is buy a $10,000 car.


she needs to save every penny she can save until the car she has actually does die and then go and try to find a replacement with the money she has saved.

You can say it's pretty much dead, the drivers door don't work, and the window is broke, so she has plastic on the door, and she can't open the door so she has to climb out the passangers side. which if there was ever an emergency she would be in trouble. All the bad credit is from years ago, they said it's all old, but it's bringing her score down. she has no loans at the moment. she has no payments on anything at the moment.

 

[The Mystery Machine]

Your friend needs to take her "down payment" and go and buy a used car.
It is a buyers market out there.

Go to your local gas station and look up cars in Auto Trader. Or you can look online.
http://www.autotrader.com/research/research.jsp?restype=used

 

[MushyMushy]

I'll second the used car. Also there are some used car dealers who don't even do a credit check -- but the monthly payments are criminally steep.

 

[Toby'sFriend]

car dealers can finance almost anybody who has a paycheck stub. If she is getting turned down there, anybody who will give her a loan is going to MURDER her with interest rates.

Tell her to save up $1000 or so as quick as she can. If she has no other debt, she should be able to do that fairly quickly. Take the $1,000 and the rolling pile of junk into a used car dealer to trade up.

Then she can take the $400 or so a month that she is going to be paying in car payments on a loan shark loan, pay that into a savings account, and within a year --- with the trade of of her new-old car --- she'll be able to get something quite dependable.

 

[ashlynn_j_m]

She wanted to put down 2000...but they still said no. she wanted to do a loan to help rebuild her credit. she'll probably just end up buying a $2000 car.

 

[mommiepoppins]

my friend had bad credit and she got a loan with 22% intrest

 

[ducklite]

The first questions is--are the old dings on her credit sloppy pays that are now paid off, or are they open collection accounts and judgements?

If they are the first, then take whatever loan she can get on a $5000 used car with her $2000 down, financing $3000. After a year of making those ridiculous payments, she's now got reestablished credit and can refi, or potentially pay it off.

If the credit is bad because of outstanding collection accounts and judgements, she needs to get her door fixed with $300 of the money she's got saved, and put the rest towards her debts. Even if she pays off a car loan in a timely manner, those other debts aren't just going away.

Anne

 

[Aidensmom]

She doesn't still owe anything on the current car does she? Even people with bad credit can usually get a car loan, especially with a $2000 down payment, they just get a very high interest rate. If they will be upside down on their loan though, many places won't consider giving the loan, but they still are not impossible to find. It is not the dealerships that approve the loans, it is the lenders.

 

[The Mystery Machine]

She wanted to put down 2000...but they still said no. she wanted to do a loan to help rebuild her credit. she'll probably just end up buying a $2000 car.

Probably wise. Get this car, save some more $$$$, sell the car, buy another used car that is better and so on....
That is what we did to leap frog when we were young.

Heck we always buy used. Even now. In fact dh is going to buy Jet Ski's....used of course. Craig's List is his addiction.