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Auto Loans for Bad Credit?


The last post in this topic was posted 4284 days ago. 


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This is my first post here.


Last year was a very bad year for our family. To make a long story short, my credit was severely damaged and we now have a repo on our credit report.


I need to buy a dependable car and was approved by RoadLoans for $23K at 16%, but found in the small print that I could not have an existing auto financed with Santander (which I do). I want to keep the vehicle we have financed with Santander and get another vehicle.


Also, we did try buying a beater for a little over $1K. I'm finding myself spending a lot of time working on it and we can't depend on it. Right now, it's just sitting in our driveway.


What finance companies should I trust? I was looking at Drivetime, but found a ton of complaints about them on the internet and not sure about them. I can put about $1K down and I'm just looking for a car/SUV 2003-2007 that is dependable. Any suggestions?


As a last resort I will ask my father to co-sign, but I'm a believer in not saddling others with MY problems. I'd rather avoid that if I can.


Thanks in advance!

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One car per person tends to be the rule in subprime. So if you're going to have 2 car loans open, you will need some sort of cosigner on the new one. Even your spouse with bad credit could work. Also cash down will almost certainly be stipulated. Shopping for loans yourself with bad credit tends to be counterproductive. It's better to go to a dealer, find a suitable car and negotiate the price, then have them try to get financing.


Also Santander charges dealers a fee (they don't get paid the face value of the loan for the deal), so the're often going to tell you they can't use them. The dealer would lose money unless they can really overprice the car and get a large down payment, making it a bad deal for you.

Edited by mk_378
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Thanks for everyone's replies.


Marv, let me give you a few more details. I have a target vehicle picked out at Carmax. The reason I even started looking at Carmax was because it was one of the RoadLoans approved dealers, and they had the largest selection of used vehicles. Also, let me reiterate that we have tried going the beater route -- the experiment worked for a while, but now the vehicle isn't really roadworthy. I'd rather put my next $1K toward a more dependable vehicle and keep my payments below $400/month.


My existing loan with Santander is in my name only. When I got approved for the RoadLoans loan (before I knew about the Santander limitation), I had applied using my wife as the co-applicant. Not sure if this has any affects on their "1 loan" rule. I could also apply with her as the primary and myself as the co-applicant if that would work better.


I'm not saying this because I'm stuck on using RoadLoans - I'm not. It was just nice to have an "approval" up front for $750 down payment on a $23K loan without going thru the paperwork at the dealership first only to find out that either that I'm not approved or need to put $5K down (not possible).


Marv, what are your recommendations on how to proceed? Is it necessary to go to the dealership and apply to find out what the options are, or do you think I can get most of it done remotely? I don't have a lot of time during the week and need to resolve this as efficiently as I can.


Thanks again.

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Drive Financial=Santander=RoadLoans.........they won't let you have two vehicles afaik. I've never been able to convince them on a rehash.


You probably should apply at a local dealership with your wife for a joint loan. If you go early enough in the day, they can probably work out the details so you can take the vehicle home if you, the dealer, and the lender can come to terms.


The people that get my utmost attention are those that are in front of me. I'd assume most F&I people are of my same opinion when it comes to that.


I'm kinda smiling at your remote suggestion and wincing at the same time.

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  • 2 months later...

Hey Marv, I've got a question you might have some insight in to. I got back on my feet about 4 1/2 years back when CFS bought my subprime loan on a new Nissan truck while I was stationed in Hawaii. I refi'd the loan about two years later, then sold it a year ago and paid that loan off. Now I sit with no auto loans, but bought a foreclosure just over a year ago and have racked up better than 40k in revolving and 40k in installments to repair the house. So my scores are very low 600's, and I now need a new vehicle. Even though I have 100% perfect payment history, does the heavy debt load kill my chances for an approval at the dealership? Should I be looking at subprime outlets like a Drive?



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