Here's our situation:

We have an '03 Elantra financed through Triad/Roadloans @ 18%. We're about 2 years in on a 66 month loan (we know it's horrible, but hey, we didn't know at the time).

Our "second car" is about to give up it's ghost. It's an '85 Mustang and it leaks transmission fluid like it has a shotgun hole in the pan, among other problems.

So, we need a 2nd car, bottom line. My MCK fakos are in my sig., and I'm an everyday reader in the Credit Forum. So our scores are going UP. DW's scores are moving up faster than mine (she had fewer total TL's, and fewerd baddies). But we're 12-18 months away from "good credit" in my estimate, and this car isn't going to last that long. Nowehere near.

In a perfect world, I'd be able to put down about $1k and get $2-3k financed, with a payment in the neighborhood of $200/month, and it would report to all 3 CRA's. Does this exist or am I going to be stuck at the "buy here, pay here" places?

Thanks for any opinions!!!

Just out of curiosity, what is the diagnosis on the leak? Depending on how long it has been since it was serviced, you might get that problem taken care of in the driveway with a wrench and a new pan gasket...beats the daylights out of a new note

Not sure how much life you could expect out of it since I never owned an automatic Mustang, but I got 400K miles out of my 90 LX5.0 before I sold it. Last I heard it was still registered elsewhere in the State.

If you are insistent on a replacement vehicle, I would suggest talking with the small local bank that by now I know you will have heeded my advice to establish a good relationship with

the Mustang is an '85, so I've been on borrowed time since I got it as a last resort type of vehicle.

edited to add: the leak in the front tranny seal. way more than I'm wanting/willing to invest in a 20 year old Ford.

As for a relationship with a local bank, we have accounts w/2 major banks (1 regional and 1 national), and I'm an employee at 1 with horrible credit. I've banked with them for 5 years, and been an employee for just over 1 with the Mortgage affiliate of the bank.

So, my major question is, after thinking about it more is: what are the min. requirements for a used car loan as far as dollar amounts and age and credit score?

It all depends on the bank...what a mega-bank won't write, a small bank may very well be willing to sign off on. If you don't ask them, you won't know. My small credit union that doesn't report to the bureaus just signed off on the unsecured $10K loan I was looking for...non-vehicle purpose of proceeds though.

gotcha'.

thanks for the advice. I just wish there were a magic button that says "I was stupid and now I'm not and I promise you I'll pay my bills". It'd make things a lot easier!

That is precisely where the small lenders come in the most useful...they still make a lot of decisions based on character as opposed to a bunch of numbers and letters on a piece of computer rubbish (as one SrVP commented a few years back).

There are any number of "hometown banks" in my area. If we were to start up a relationship with one, what would help us to grease those wheels to get an approval?

A downpayment? Possibly open up a CD as some sort of collateral (but the loan would have to be for more than 100% of the amount)?

I would recommend a smaller bank or a Credit Union.

I would believe since you currently have an open car loan, provided the income is there you should qualify for a second vehicle.

Hard to say what they might want...try and get a period of time to speak with one of the loan officers and let them know exactly what you are trying to do. They may want a down payment or they may lend the full amount as long as the vehicle was within their lending standards.

I would also suggest moseying up to the personal lending loan officer with the bank where you work and see what they could do for you. Since you work for them, they may even be able to set up a payroll deduction that saves a quarter-point, not unlike the lenders that cut 1/4-1/2 point with direct debit from the account.

You can buy a lot of transmission fluid for what it would cost to fix the leak or buy another car. Try to keep the Mustang running as long as you can without spending big money on it. Meanwhile save up money for a larger down payment or to buy another car outright. In the $2000 car market, you often have to look for a long time to find a good one.

Loans this small are the exception rather than the rule so it's really best to talk face to face to the person approving the loan. This would mean a CU or local bank.