How do you get a car with bad credit?

Question

I am trying to purchase a car my credit is pretty low...I tried and I couldn't even get a $20,000 car, the bank was only willing to give me $8,000. The reason is I have a charge off on my credit from my VERY first car. I still owe that company 4k. The car doesn't work and is worth nothing. So I'm stuck with it. I was a different person then and at a different point in my life. I have a steady income now, but I feel like this charge off is a scarlet letter! What can I do???

Answer 1

You can try www.capitalone.com My boyfriend got a car loan and his credit is TERRIBLE. You'll probably have a very high interest rate and high payments. Don't feel bad though, I think we all suffer for some of the stupid things we do when we are young. Given time the charge off should come off your report.

Answer 2

I just recently purchased a 2005 Dodge Stratus. Now, this is not my dream car, but it gets me from point A to point B and it is really nice. If you want the car of your choice, you will need a higher down payment. I have two cars on my credit, which is poor. I am financed through a company called CPS - consumer portfolio services. This company works with people with bad credit. You may want to check out their website and see if they can help. Other than that, you may have to find a company that does their own financing. Good Luck!

Answer 3

There are some dealers who can find financing for you out there. It will be of high interest rate though, but if you really want to reestablish yourself you gotta do what you gotta do. Once I blew the engine in a car and they took it as trade, came out with a wrecker and picked it up. It can be done. Meanwhile too, I would make some kind of arrangement to pay that one note off. From what you wrote you still have the car, stating you're stuck with it. Why haven't you tried getting it fixed? Some states will allow more than one lienholder on a title, meaning get a repair loan using the car as collateral, get it fixed, pay the notes on both vehicles, then trade it in.

Answer 4

Here's a secret: I would open 3 new bank accounts/credit unions such as Bank of America, Wells Fargo, US Bank, Golden1 Credit Union, etc. and then borrow money for each of the banks!

Then you can buy your new car with the help from the loans and have a very good credit. Be sure to pay your bills!

Answer 5

TIME OUT!!!! Why do you feel you dont owe the 4k, just because the car is junk?
Is it really junk, or can it be repaired..or do you just not like it????
Think hard about why you have jacked up credit right now. 4k Is a llot of money to forget about so you can wait 7 years for this episode to pass....or....
look for one of those cooky commercials that come on late at night where the dude says they can help anyone....REALIZE you will be paying threw the nose, like a credit card, like 30% interest....the payments may be pretty harsh and end up putting you back in the credit hole.....

Answer 6

Buy a used car that costs less than $8000. Or steal a car. Or steal enough money to buy the $20,000 car. Or sell enough of your other possessions to raise the money to buy a car. Or borrow from a friend or family member. I can't think of any other options right now. I'm not advocating any of these except the first one, by the way.

Answer 7

With a solid co-signer (someone with good credit who trusts you), you should have no problem. Alternatively, you may have to claim bankruptcy to clear that debt, or wait out the rest of the time period for debt erasure (in most cases, 7 years). Beyond that, you may have to find a buy-here-pay-here dealership that reports to credit agencies, so that when you pay that car off, you will be able to buy a new one.

Answer 8

YOUR FIRST ISSUE working against you is "You don't need a $20,000 car " You are getting in trouble (like the rest of the country) buy over-spending . There are lots of great cars out there for $3500 to $5500 that will be dependable . You must shop for these not at NEW CAR DEALERSHIPS ( such as Ford , Nissan , Chrysler) , but instead start shopping at dealers who only sell used cars .You are headed for bankruptcy in the direction you are currently going .

Answer 9

They are always willing to screw over someone who has good/bad, almost no credit. You will just have a tremendously high interest rate, and you can forget about getting a $20,000 car. Maybe ten if you are lucky.

Answer 10

There are car lots that will lease a car to you for regular payments or finance it for you with a payment at the end for "purchase" rights. Check you paper. Many times, these businesses will work with people with poor credit, as long as they have a regular sufficient income.