If you have poor credit can you still get a new car?

Question

I will be graduating in December and getting a better paying job. I'm wanting to trade my car in. The thing is that I have very poor credit. I am wanting to get a Mercedez Benz. Now I know you are thinking that is very far fetched to want somthing that expensive with bad credit. I know and understand. But I will be able to afford it. I hate it that my credit is so bad. I had to make lots of sacrafices going to school. Now that I am back on my feet again I want to try and better things. Is there any way I can get the car of my dreams with having bad credit and not having a cosigner? What if I had $6-7 thousand dollars to put down on the vehicle? Would they say okay, but with a high intrest rate? How much would I have to put down in order for them to finance me with bad credit? Thanks

Answer 1

You should be able to find a lender.. yes probably with a higher interest rate. Why dont you buy something cheap.... re-establish some of your credit and make it your goal to get the Benz in the next couple of years :-)

Answer 2

I hate to say it, don't get a mercedes. I don't care if you can afford it. If I wanted to, I could by a car. I'm fifteen. I can afford it. I earn about 150 dollars a month. But I'm saving my money. Buy a Honda Civic or something. A cheaper car has a better chance of raising your credit. You'll be able to pay for it easier. Work your way up to a Mercedes when you have a steady job and a steady income. If you buy a $40,000 car with $7000 down, with bad credit, you're talking a high interest rate. You'd end up paying $1000 a month. Not smart. Save your money for a house or emergencies. A saved dollar is more worthwile than a spent dollar. Even if you would rather have a Mercedes than a Honda Civic, that extra $30,000 in your pocket can do a lot.

Answer 3

The FASTEST WAY to repair your credit is to add a car loan and successfully pay it off on time and/or even ahead of schedule. With a BIG loan and big interest, I doubt paying off the Merc will happen that quickly. Also, a KEY component to your credit score is evaluating how much credit debt you are currently obligated to. If you have a BIG credit debt (a la Merc), you'll have far LESS ability to get credit for other things and your credit repair will take far LONGER to happen. Remember: this is about time and making payments. My suggestion: buy a cheap car with a two-year (lousy high interest) credit agreement. Pay it off on time (or slightly ahead of time) and walk away with a 200-point credit score increase. THEN you'll have the salary history and the credit to buy the Merc at a reasonable rate. FYI - I've owned two late-model Mercs and they BOTH spent more time in dealer service than in my driveway. I now own a BMW, which is only marginally better and my next car is going to be a (realtively) inexpensive japanese car. I earn a lot of money and even though I can "afford" it, I can't shake the reality that there's just soooo many better ways to spend it (ie: investing so I don't *have* to *earn* it anymore - which IMO is a far better place to be than behind the wheel of a nice car).

Answer 4

save some more up for it and then you don't have to worry about a loan. If you are getting a better job with higher pay then it shouldn't take you no time to get it saved up. Pretend that you have a car loan of about $500 a month and each month put that in the bank. In several months you should have enough money for cash outright. Don't go back into the whole over a car. A piece of metal with 4 wheels. Is that how you want to be defined in life by a car? Isn't there more important things in life?

Answer 5

from experience....my girlfriend just bought a car with bad credit (a bankrupcy) with NO co-signer....

poor credit CAN get you a new car, however your interest rate will be much higher resulting in a higher monthy bill. Also, you may not be able to borrow as much from the bank.

poor credit can also rsult in having higher monthly car insurance bills as well. Most insurance companies run a credit check, so even if you get a really nice car, watch out for your insurance bill! You should check to see how much insurance would be BEFORE buying the car!

The more money you put down, will result in you borrowing less. When you get approved for the loan, it would help if youj pay back MORE than your monthly car payment.

Oh yeah, beware of those instant car loan with bad credit mailings that get sent out! I'm not sure how many of them are actually beneficial to you...

Answer 6

i think u should save ur $ to pay on ur old debts. instead of buying a mercedes, get something cheaper until u can get ur credit score up to have a lower interest rate and not need a cosigner. how do u know what job ur getting? if it is already lined up, thats great--if not, dont depend on it! things happen, u dont wanna have car payment u cant afford! then ur credit score will be worse than b4! take ur time--make sure all ur ducks r in a row b4 buying an expensive car. u may think u can afford it but what about maintenance, insurance and gas in addition to what bills u already have and the actual car payment!

**overall this is what i think u should do!
1.graduate
2. find a job (if u dont already have one)
3. pay on old debts (find ways to increase ur credit score)
4. buy a used car (w/ cheaper payments)
5. save, save, save!
6. put $ up for an emergency
7. in a few yrs, buy the most expensive mercedes u can afford!

Answer 7

All depends on the lender, and what their qualifications are for the loan. You will definitely have to pay a higher interest rate, if you even get the loan. Alot of places will more than likely require a co signer, and be prepared for that if they do. The fact that you have that much to put down may show them good faith in repaying the loan, and may be more favorable for you to get it on your own. Good luck!! It's good that you are trying to better yourself, and the fact that you didn't file bankrupt will help also. That would definitely make you a no go.

Answer 8

You have a couple of problems. One: bad credit. Two: You won't have a stable work history at your new, high paying job. Three: You'll need much more of a down payment ... closer to 15k.

My advice... wait for the car, fix your credit and save some money.

You will have to pay SO MUCH in interest... in the long run you will be kicking yourself in the butt.

Answer 9

You can probably get a loan for your new car especially if you have a large downpayment. However, watch out for the interest rate as it will be high. Check out your credit report for it's score. Credit companies, insurance companies, and others will often charge higher or lower rates based on this credit score.

Answer 10

It would really all depend on the total cost of the car. I would be prepared to put down between 15-20% of the cust if the credit is real bad. If you get there with 7k and they still turn you down...ask them what It would take to seal the deal with them....be wary of that interest rate too...with a high down paymnt, your interest rate should go down too!