need auto financing, have bad credit?

Question

i am trying to find auto financing, last year has been horrible for me. I went through bread cancer treatment and thank God I am alive, my financial creditentials went down the tubes. I was out of work for 8 months. I have the income $50,000/year and I have been at my job for 10 years. Can anyone help

Answer 1

You CAN get a decent car loan, even with bad credit. I've done it, but you'll have to look around. That's one of the BIG mistakes people make...just taking the first offer that's given to them when they go to the dealer. Be smarter than that.

WARNING: DON'T GO TO BUY A CAR WITHOUT HAVING THE LOAN FIRST. The auto dealers will eat you alive and give you a crappy rate. Shop around with lenders who specialize in bad credit car loans. It's a better option, you don't have to take what they're offering if you don't want it, and it's better than dealing with the car dealer's people.

There are usually some nationally based car loan companies who specialize in bad credit car loans who advertise on the page linked below...

http://www.axalda.info/bad-credit-car-loans.html

Answer 2

You should first go to http://www.annualcreditreport.com and pull your credit reports. You are allowed 1 free from each of the 3 agencies each year. Make sure that everything on your report is accurate. If not you have the right to dispute it and have it corrected. Once you are sure your credit report is correct you should get your score. The most common score is the FICO score and you can go to http://www.myfico.com. This will cost about $45 for all 3 but will give you a good idea of actually how much down the tubes you are.

The lower your score the higher the interest rate and down payment you will need. Better rates start at about the 620-650 range, with the best rates at the 700+ range.

If your score is really low then unless you can pay cash for a less expensive car, you should hold off a few months. This way you can work on any items that are bringing your score down. If you have any accounts past due, get them current. Then stay current with them. Payment history accounts for 35% of your score so doing this will help you the most.

The second is your credit utilization. This is the amount of total credit vs. your balance. Ideally you should keep this under 30% for the best scores. For example if you have total credit limits on your cards of $2,000 you should not have a total balance of over $600 dollars.

Answer 3

Actually your bank probably has the best auto financing available. Ask them directly how to get financing with your terrible credit rating. I know the Bank of America will give you some very good rates if you put down 20% or more.

Some car dealers have special programs for people with bad credit but are now back earning a significant salary like you. Ask the dealer directly.

Also go online a do a search for auto loans. I have listed one for you.

How is the breast cancer? Are you ok and mostly over it?

Good luck,

fred

Answer 4

Sorry for your tribulations, I sounds like things are turning around.
The problem I believe you will encounter is that not only does the interest rate go up, but the price of the car goes up and the quality might not be the best.
Then you end up with payments and still have to make repairs. Do you know your credit score? If you have applied at a dealership, they will have it. They can not give you your credit report, but can tell you your score.
So you might end up better off to try basic transportation for cash. I think a 5-8 year old Buick is a good start to look at. Maybe you can find a one owner private sale.

Answer 5

You can get approved for a lease at Hyundai with that type of credit. I am 19, and only make 1580 before taxes and was approved for a sonata lease with hyundai. I turned it down because I was there to buy the car, which I financed with my credit union with an 8.9 percent interest rate. Hyundai, VW, and other dealers have first time buyer programs, and it would make more sense for you to buy a certified or pre-owned car with low miles that you can sell in a couple of years after you build your credit.

Answer 6

Auto finance is what I do for a living and you should have no problem.

First try on line at Capital-One, H.S.B.C., Wells Fargo and Citifinancial Auto.

If all of these turn you down, find a dealership that advertises Special Finance And go see the Manager. Do not talk to anyone but the Manager, they will be able to help you.

Answer 7

If I were you, I'd pay cash for a cheaper car and work on the credit in the mean time, if you get a loan on bad credit, it will cost you alot of money in finance charges. I know I've done this and I ended up paying like$25000 for a truck that was worth only $15000 at the time of purchase! all that was interest and finance charges!!!

Answer 8

Shopping online for bad credit auto loans is the smartest thing to do, as it’ll save your time and money. Even if you fail to get your bad credit auto loan from any online lender, your knowledge will improve. As they say knowledge is power, so you will get an idea of the interest rates for bad credit auto loans.
http://www.complete-debt-info.com/category/Bad-Credit-Auto-Loan.html

Answer 9

Below link might help you. See Auto loan section