Can I get a 2nd auto loan?

[kmichelle]

Hi everyone. I'm an avid reader and have learned so much. I'm in the process of cleaning up my credit after a divorce. Here's where I'm at ... clean reports except a First Premier charge off from March 2008 that I'm working hard to get removed.

My scores are 565 Equifax and 548 Transunion. I have a car loan that I've paid on time for the last 18 months and a paid off car loan never late from 2002 still on reports.

I still owe about $5,000 on my latest car loan, but my transmission has given out.

I've talked to finance managers at dealerships and no one's willing to take on that negative equity.

What do you experts think of my chances of getting a second car loan, say around $8,000-$10,000? I make $47,000 a year, my rent's $1,200 and my car payment's $300.

Any chance? I don't have more than $1,000 to $1,500 to put down.

[Chad3304]

If it could be done I would guess go to a local CU or a dealership, I went to trade in my corvette the other day and they did not want to give me what I wanted so I declined, and they said my score would support 2 car loans and I'm only 21 and it was a 33k truck, and my roommate who is 22 has 2 car loans through a local CU but YMMV.

[MarvBear]

In my opinion, when the credit file is less than pristine, then most lenders will not finance the second vehicle.

[kmichelle]

Looks like you're absolutely right Marv. I've had a couple dealers suggest "hiding" my negative equity in a brand new car loan. I might have to go that route, or not be able to get to work.

[MarvBear]

It has become increasingly difficult to carry any negative equity on subprime automotive product loans.

 

Those type banks make very narrow approval LTV bands.

[kmichelle]

Again you are right. I appear to be stuck with a car that barely drives and unable to get another one. If you have any advice at all, I'd be forever grateful. I don't have any potential co-signers or opportunity for more money down. Think I'm screwed.

[MarvBear]

on certain types of "foreign" automobiles I understand Drive Financial is somewhat more lenient with advance.

 

but you'll still be faced with sticking within a PTI band and probably more money down that you currently state.

 

I'd assume you can be approved, but the terms may not be palatable.

[kmichelle]

Thanks for your help. I have been approved for two loans, but I don't have the down payment required. I'm hoping something good happens before the transmission on my old Volvo shuts down entirely. I may try our local VW/Acura dealer tomorrow. They're listed as a Drive Financial dealer. Thanks again.

[MarvBear]

good luck!!!!!!!!!!!!!!

[kmichelle]

Hey Marv! I'm now the owner of a spanking new Kia Optima. Dealership had a $2,500 rebate, I put $1,500 down and they gave me $1,000 for the ailing old Volvo. Negative equity gone! Financed by Regional Acceptance at 16 percent (ugh!) I can refinance at some point, I hope.

[MarvBear]

CONGRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRATS

 

I use that bank a lot.