Jump to content

RylandRelic

Used car loan options for bad credit

Recommended Posts

Hi guys,

 

I'm sure this has been asked time and time again, but I've read the first several pages of this sub-forum and haven't found it yet.  Please don't skewer me if I overlooked it.  I've found myself in a position where I need to buy a new (to me) used vehicle and I have no idea to begin where to look for financing.  A little history to understand what boat I'm in and how I got here (for whatever it's worth).

 

Six or seven years ago my wife got a serious case of the grass being greener in someone else's pasture which ended up in a very long and drawn out (and terribly expensive) custody battle.  By the time the dust settled I had primary custody of our son, refinanced our house into my name, had literally $18 left in savings, maxed out credit cards and no more health insurance.  Being in my early 40's and overall healthy I decided to take my chances with no health insurance and put that money toward paying down my debt.  In hindsight that wasn't the brightest idea because a couple years later I was diagnosed with testicular cancer.  I'm self-employed and thankfully a number of my customers are medical professionals, so I started calling in favors like there was no tomorrow.  Once all was said and done, several chemo treatments and one surgery later I was cancer free and broke as a joke.  I ended up with maxed out credit cards once again in addition to several pretty hefty medical bills. I started making payments on all the different medical bills I had coming in and did OK for a while, but it finally became more than I could handle and I slowly started sinking.  World's Foremost Bank sent me a letter saying that they had decided not to renew my card (which was maxed out) because of information on my credit report, which I can only assume to be either one of the medical bills that went to collection or the terribly high credit utilization ratios.  Regardless, I continued paying for another couple months before I had to make some tough decisions.  By that point I didn't have enough coming in to pay everything so decided to continue paying those people who had worked with me, so that one went to collections.

 

Fast forward to today.  I am still self-employed and getting by ok, but still have very high balances on my credit cards.  I had also gotten a payment or two behind on my mortgage but have worked out a payment plan with them to be caught back up by July.  I haven't had a car payment in probably 15 years and had intended to just keep plugging along with my trusty old Ford Explorer until I'd dug myself out of this hole in which I currently find myself.  Apparently Mother Nature decided she had different plans for me a few weekends ago when some storms rolled through and I ended up with a huge tree limb on the car.  It hit right at the top of the windshield which shattered the glass and pushed the roof down enough that just buying a new windshield is out of the question.  So I now find myself in a position of needing another car and having horrible credit.  I've never been in this position and quite frankly have no idea where to go from here.  

 

I have looked around online and see a umber of lenders who "guarantee 100% credit approval" but it seems that the majority of them will only finance a purchase through one of their network of dealers.  There is a nice used 2007 Explorer at a small car lot near my shop that I would very much like to buy, and it's very reasonably priced at $7000.  I'm interested in this car in particular because it's clean, reasonably low mileage for the age and it's something that I believe I can make last for at least another 7 or 8 years (barring any more gifts from Mother Nature!)  I know that I'm going to be stuck with an astronomical interest rate and I'm OK with that for the time being, but I just don't have a clue how to move forward.  Any help you guys could give would be appreciated more than you can possibly know.

 

Thanks,

RR

Share this post


Link to post
Share on other sites

If you have impaired credit I believe you should go to a dealership that has the resources all in one place to help you.  Be prepared to document your income.  And you will probably need somewhere ~2,000.00 for a downpayment.  Total loan not to exceed 10,000.00.

Share this post


Link to post
Share on other sites

As noted, let a dealership be aware of the situation.  They have people they can work with if something can be done.  The online 'guaranteed approval' stuff just bounces you around and makes a mess of the report AND can hamstring the dealer.

 

Other options are to go through your small local banking institution and let THEM tell you what they will write a note for...you then shop within that limit but have the equivalent of a guaranteed financing deal already in place. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Today's Birthdays

    1. alplouis
      alplouis
      Age: 39
  • Member Statistics

    • Total Members
      176,909
    • Most Online
      1,528

    Newest Member
    staylor188
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines