Need New Vehicle - Early-on Credit Repair

[gwenny]

Good Morning,

 

Yesterday afternoon, my son was in an accident - he rear-ended someone that had stopped in the middle of the road to look at a For Sale sign. Of course, he was charged.

 

Hubby & I just successfully completed a 5 year Chapter 13 and we're just getting started triaging our credit report / attempting to rebuild credit. 

 

This car needs to be replaced, but I am concerned about:

1) being approved for an auto loan due to our credit score

2) if we ARE approved by someone, I don't want that company to be on a baddy list AFA looking cruddy on our report (thinking places like rent to own furniture, etc)

 

My mind is telling me 'one thing at a time', but, I'm still torn. Do we go ahead and see what a dealer can do for us? What about those 'We finance everyone' places?

 

Has anyone had experience in getting a reasonably normal auto loan very shortly after Discharge?

 

I. Hate. Credit. It makes my stomach hurt! 

 

Any good info/links/etc. appreciated.

[cv91915]

How old is your son, and what are his FICO scores?

[gwenny]

He's 18 with no credit, yet.

[MarvBear]

Go to a reputable dealer, please do not go to a BHPH dealer.  Or, try ONE discrete application to Capital One and no more.  Take note of their response carefully and post back here if you do that.

[gwenny]

Thank you, Marv. I will try that. At risk of sounding obtuse, I presume I can find the or pre-qual info on the Cap1 site?

Edited July 20, 2018 by gwenny
typos

[MarvBear]

Here is the pre qualify app.   Don't know if this will work or not, but at any rate will give you a very general indication.

 

https://www.capitalone.com/cars/prequalify?PFFSRCID=S-GG-1234567890K-SEM-0001&external_id=COAF_V1_SEM_BAU_GG_P_360i_43700024721867026_g_APS_DT_71700000025263230_BND_e_20161206_264933647958_S&gclid=CMud4MT3rdwCFVWhgQodNkEIbQ&gclsrc=ds

[maht87]

Definitely do the pre qual through cap 1.  I work at a dealership in Texas, and this is sometimes what I use to see if a customer is able to get bought short of having to put a hard pull on their profile.  

 

Stay away from buy here pay here lots. They don’t help your credit, and their vehicles are garbage.  They normally buy them for the amount they require you to put down, so it’s all profit after that.  It actually is better for them if you repo bc they can turn around and sell it again and make another huge profit.

[dolphindan1]

not to hijack but I am in a similar situation...Bankruptcy about to fall off...Main issue is Santander with 2 charge off tradelines on the same vehicle....I have fought and fought them and even talked to the President and VP of Santander and no luck....anyway... head gasket blew in my 2000 explorer with 255k miles, no mechanic wants to really work on it due to age they same scrap it...Been to 2 dealerships with 1550 bucks in pocket and they cant seem to get me into any vehicle less than a 400 buck payment, which I cant afford, and I cant get any financing on a older cheaper vehicle....How do I deal with this...I am rural so no buses and too far to walk or bike to work....I am gonna have to go to a mom and pop dealership I guess right...

Edited July 22, 2018 by dolphindan1

[MarvBear]

30 minutes ago, dolphindan1 said:

not to hijack but I am in a similar situation...Bankruptcy about to fall off...Main issue is Santander with 2 charge off tradelines on the same vehicle....I have fought and fought them and even talked to the President and VP of Santander and no luck....anyway... head gasket blew in my 2000 explorer with 255k miles, no mechanic wants to really work on it due to age they same scrap it...Been to 2 dealerships with 1550 bucks in pocket and they cant seem to get me into any vehicle less than a 400 buck payment, which I cant afford, and I cant get any financing on a older cheaper vehicle....How do I deal with this...I am rural so no buses and too far to walk or bike to work....I am gonna have to go to a mom and pop dealership I guess right...

How much negative equity do you have?

[dolphindan1]

43 minutes ago, MarvBear said:

How much negative equity do you have?

I am not sure what you mean?

[MarvBear]

10 minutes ago, dolphindan1 said:

I am not sure what you mean?

How much more money do you owe on your current vehicle that it is realistically worth. If any?

[dolphindan1]

7 minutes ago, MarvBear said:

How much more money do you owe on your current vehicle that it is realistically worth. If any?

If you mean the vehicle that blew a head gasket it was paid for....The Santander issue is from a total loss accident about 5 years ago....

[MarvBear]

Then dolphin, you need to look at less expensive vehicles and more of a downpayment.  If someone will approve you for a 400.00+ payment then you are approvable.

[dolphindan1]

1 hour ago, MarvBear said:

Then dolphin, you need to look at less expensive vehicles and more of a downpayment.  If someone will approve you for a 400.00+ payment then you are approvable.

I have 1500 and looking under 10k...Is that too much...most everything the dealers have under10k is older with high miles and the banks wont touch it seems

[MarvBear]

I have 1500 and looking under 10k...Is that too much...most everything the dealers have under10k is older with high miles and the banks wont touch it seems

I'm sorry for your predicament. Just try to save more money for a down payment so you can live with the monthly notes.

Sent from my SM-N950U using Tapatalk

[Zanshiro]

On 7/22/2018 at 8:44 PM, MarvBear said:

Then dolphin, you need to look at less expensive vehicles and more of a downpayment.  If someone will approve you for a 400.00+ payment then you are approvable.

My thought too...or consider a new one on lease if they could get such done.  Tiny Fiestas might not be "cool" but they can sometimes make an under $200 lease new.  Don't know full credit situation but it is an option.  More down payment can make approvals magically change too, as Marv said.

[gwenny]

On 7/21/2018 at 3:48 PM, maht87 said:

Definitely do the pre qual through cap 1.  I work at a dealership in Texas, and this is sometimes what I use to see if a customer is able to get bought short of having to put a hard pull on their profile.  

 

Stay away from buy here pay here lots. They don’t help your credit, and their vehicles are garbage.  They normally buy them for the amount they require you to put down, so it’s all profit after that.  It actually is better for them if you repo bc they can turn around and sell it again and make another huge profit.

Maht87 - thank you for that insight! It seems pretty obvious, but, I really hadn't picked up on how their garbage works!

 

I have not yet done the pre-qualification on the Capital One site. Hubby and I are still on the fence about what to do. Our entire car situation is a great big soap opera in and of itself.      Told hubby that OUR 'used car lot' is now down a vehicle since son totaled the one I'm trying to replace.