Do you think I will be able to get a new car? See details?

Question

I am 21 with a credit score of 605 (I know its bad)(but I have no negative credit just a quite a few CC's that I always pay but are still high balance around 5500 total, I also have student loans but those are deferred).... I already have a car but its an 02 I want something like an 05-06... a small SUV around 14-16000.... My current car is being financed and I've only had it for a year and a half... The blue book value for my car in its condition is 4-5000. I should have at least 2-3000 also(tax time)... and I can afford an extra 50-100 bucks a month...
Do you think I will be able to get it(under financing)? How does this work if I am financing my current car? Do they consider it a trade-in?
Basically I want to know if its worth my time to research(I dont wanna waste time if I can't get it ya know...) If so the place I purchased the car and also the maker of the car always sends me advertisement, coupons, and etc. are any of these good to act upon? Would it be easier to go w/ either

Also, I hate my car now, and it has at least 1000 in repairs... new rear tires, new brakes, alignment, axel thingies(300), it has a pretty bad dent/scratch, rear wheel cylanders, and who else knows??

Answer 1

O.K. How this actually works is....let's say you owe $10,000 on your current car loan. The dealer where you purchase a "newer" car will pay off that loan in full and then that balance will be rolled up into the new loan. SO...Your old loan is $10,000 PLUS the cost of the new car loan is let's say another $10,000. You are financing now $20,000. Your payments will more than likely go up.(Makes sense doesn't it because you are paying for more now) You may actually end up what is kown as "upside down" . This all depends on how much your car is worth now and how much is owed. For instance:....The book value on your current car is as you say $5,000. NO dealer will give you that much even on a trade because they have to make something on the sale. When you look at book prices, look in the column that says trade in value. ANYWAY, back to the point. If your current car is worth $5,000 BUT YOU OWE $7,000 you are upside down already. It would NOT be worth your while to trade it in on a newer one unless you make one helluva deal. You may be able to sell it outright for enough to pay the loan off and then just put that extra (if any) into a down payment. Some finance companies will look (ALL WILL) at your income and how much your monthly payments are allready on everything and decide you can't afford another loan. ALSO, the lower your credit score the higher interest rate you will pay, thus forcing the payments to go up. I would just keep the current car if it is in decent shape mechanically, although it is nice to get a new one and pay it or something off first and use the tax return to lower the credit cards or pay on the car loan you allready have to not be "upside down" when you do buy a new car. DO NOT dig yourself into a hole so deep you cannot get out of with credit. You should put all those credit cards away for a time and pay casah. When making a purchase, do you NEED or WANT something. There is a difference. If you have NO food in the house you NEED and if you are buying a new cute outfit when you have 20 outfits allready to wear that are good, you WANT.

Answer 2

Could you? Probably. Should you? Probably not.

If you're upside down on your current note the balance will be added on top of the loan on the new vehicle. From purely a financial persepctive this is NOT a wise idea.

I'd be paying down my CC debt. $5.5k is too much for your situation. You should also not be taking on any added debt until you have at least 6 months salary in the bank as a hedge against job loss or unexpected expenses.

Answer 3

I would suggest using that extra 50-100 per month to pay down on your credit cards in order to improve your credit score. You'll get a better interest rate that way. Your current car will be considered a trade-in, but they won't give you what you owe on it. So you'll basically end up financing the price of the new car, plus the difference between what you owe on your car and what they give you. (Example: New car is 15,000. You owe 8,000, they give you 5,000. So now you finance 18,000 for a 15,000 car.) You should be able to accomplish what you want, but looking ahead, it will benefit you more to wait.

Answer 4

its best if you just continue to drive your current vehicle and use your tax refund to pay down your 5500 balance. by going out and buying another vehicle at this point would rob your future at buying anything nicer and newer.

any dealer would love to finance you at much higher rate than normal rate cuz of credit rating and outstanding IOU.

Basically, if your car now take you around fine then keep driving it and pay off your bills instead of delaying of paying it off. More you delay it, future get delay, limited option, etc etc..

Answer 5

element a motor vehicle for $30??????????? you is merely not in employer very long. you're charging way too lots for a motor vehicle wash and not adequate to do a element. besides which you do not have the kit the two. the terrific thank you to start is to get a job a motor vehicle broking doing new motor vehicle sparkling-up, After that pass as much as used motor vehicle sparkling-up. That way you would be paid to benefit the employer. I did that whilst i replaced into in the army for a whilst. had to stop whilst the deliver pulled out. you may %. up the education and the money. stable success.

Answer 6

trade in, get a co-signer, dealers that send coupons, saying that they will give you so much for your trade no matter what the condition, have adjusted there price to make the difference.

Answer 7

I think you'll be able to find financing, but if your car is running well, maybe you should stick out so you don't add more debt.

Answer 8

you should find some dope to give you credit but think....u r already over your head in debt and you want to make it worse...