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Best auto financing co for bad credit, best scenario for me


2nzigo
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The last post in this topic was posted 3677 days ago. 

 

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I have Capital One at 16.3% for up to $24k (not looking to spend any more than that - probably more like $17k or less). Any other companies that would provide a better rate?

 

Also, I have a ton of credit card debt ($6000 or more with interest rate at 20%) and $4k cash.

 

I currently have a car worth about $16 and I owe about that. Private selling is always best but since it has 84K miles on it, that's a little difficult since most companies won't finance. If I trade-in, I do get a tax break, don't I? Can't really remember this part. At $560 a month, I'm wondering how long I should try to private sell the car (particularly at this time of year) or would I be best to trade in? Wish I could figure out the tax saving involved. I have had the car on Auto Trader for a week and not a single call.

 

The second part is:

 

Should I just buy a $4k car cash and have no payment (not my favorite choice) or put the $4k I have towards the high interest cards and finance using the Capital One blank check I received? That would save at least some in interest but probably not the best choice in the long run.

 

I am so grateful for any advice bc I'm lost!

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In the reading & resource section of this forum, there is a topic for Sales Tax by state, which I believe would still be accurate, if not ratewise, certainly accurate as to whether your state provides a sales tax credit for your trade vehicle or not.

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I'd go for the private sale on your current car and buy a $4k car outright. Use the old car payment to blow away the CC balances.

You can't "trade down" and win at the dealership. Besides, most dealerships willing to take a $16K car in on trade don't typically have $4k cars for sale, at least not around here anyways...

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I'd go for the private sale on your current car and buy a $4k car outright. Use the old car payment to blow away the CC balances.

 

 

That option will leave you in the best position down the road. Paying down the CC's will improve your score, which will improve the interest rates you qualify for. You should be able to get something serviceable for $4k, drive it for a couple of years while applying the "car payment" to the card balances. Then go buy something you like...and pay a lot less for it. :good:

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I have Capital One at 16.3% for up to $24k (not looking to spend any more than that - probably more like $17k or less). Any other companies that would provide a better rate?

 

Also, I have a ton of credit card debt ($6000 or more with interest rate at 20%) and $4k cash.

 

I currently have a car worth about $16 and I owe about that. Private selling is always best but since it has 84K miles on it, that's a little difficult since most companies won't finance. If I trade-in, I do get a tax break, don't I? Can't really remember this part. At $560 a month, I'm wondering how long I should try to private sell the car (particularly at this time of year) or would I be best to trade in? Wish I could figure out the tax saving involved. I have had the car on Auto Trader for a week and not a single call.

 

The second part is:

 

Should I just buy a $4k car cash and have no payment (not my favorite choice) or put the $4k I have towards the high interest cards and finance using the Capital One blank check I received? That would save at least some in interest but probably not the best choice in the long run.

 

I am so grateful for any advice bc I'm lost!

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I have Capital One at 16.3% for up to $24k (not looking to spend any more than that - probably more like $17k or less). Any other companies that would provide a better rate?

 

Also, I have a ton of credit card debt ($6000 or more with interest rate at 20%) and $4k cash.

 

I currently have a car worth about $16 and I owe about that. Private selling is always best but since it has 84K miles on it, that's a little difficult since most companies won't finance. If I trade-in, I do get a tax break, don't I? Can't really remember this part. At $560 a month, I'm wondering how long I should try to private sell the car (particularly at this time of year) or would I be best to trade in? Wish I could figure out the tax saving involved. I have had the car on Auto Trader for a week and not a single call.

 

The second part is:

 

Should I just buy a $4k car cash and have no payment (not my favorite choice) or put the $4k I have towards the high interest cards and finance using the Capital One blank check I received? That would save at least some in interest but probably not the best choice in the long run.

 

I am so grateful for any advice bc I'm lost!

 

 

Use the 4k for a down payment and trade your car in. The only tax break you will get is the sales tax deduction on the new or new to you car.

As we all should have learned from Marvbear, the local new car dealer will provide you with the best financing options in your situation.

 

Last week I traded my car in for a 2012 Hyundai. It was a 2006 with 90k miles, I owed 15K and was upside down. I paid the diff between the payoff and what the dealer gave for my trade and I used my remaining $116.00 toward the down payment on the new car. BTW - My credit score is 585.

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