Bad/Credit Everyone Approved Auto Dealers?

[eg_eric]

Hey guys, I need some guidance and advice:

I'm currently looking for a car, and I went to a couple of
dealers to apply for a vehicle (slightly used) both times I
was rejected and the second time EVEN with a co-signer I
was rejected. So the dealer/new/newer car is probably
out of the question.

Does anyone know if these "everyone approved no credit
bad credit" really work? I'm willing to pay a higher interest
rate (as long as it doesn't rape me) on a vehicle.


Any advice? And can anyone vouch for a reputable place
where you might have been approved at a decent rate?


Notes:
- I have bad credit (Went to collections on a cell phone bill
and a student loan, both were settled in May 2009)

- Can pay up to 320 a month, looking for something
under 50,000 km, not afraid of long term commitment.

- I have a steady job, a $1000 down available, letters
of references, and pay stubs to show any these guys.

Thanks guys... Need some help, confused and tired of
getting messed around with by the stealerships.

[Kloubek]

Sure you can go to them, and they can probably get you approved.

But the interest you pay usually gets higher with the proportionate amount of perceived risk. And from the sounds of it, you will be paying a bundle; not always a great idea on a depreciating asset.

[CapnCrunch]

You will need a huge downpayment and get raped on the interest. Buy a beater for 1G.

[friedn00dles]

it's not worth the 30% interest on a vehicle. Just save up and buy a nice vehicle for around the $5000 range. A 02-05 Honda civic will last a long long time to cruise around it.

[Redlyne_mr2]

Based on your budget you'll be able to finance an $8000 vehicle over 72 months allowing for about $4000 in interests costs ($12000 total finance). Since you have credit issues you can't lease a car unfortunately so that rules out that option. In 6 years that $8000 car will be worth nothing and will require repairs along the way. Save a couple grand and buy a cheap car.

[eg_eric]

My co-signer is also willing to put themselves as the primary and myself as the secondary. Will this help my credit at all?

[Redlyne_mr2]

Originally posted by eg_eric
My co-signer is also willing to put themselves as the primary and myself as the secondary. Will this help my credit at all?
Nope

[RC-Cola]

A loan through one of the "Everyone's Approved" dealers will be a bad option. They would typically charge upwards of 20% interest on a car that will in the end cost 2 to 3x what it was worth.

If you have a co-signer with good credit you would be better off going to a bank to get a loan (if possible).

Instead of either of these options I'd get a credit card, use it and MAKE SURE YOU PAY IT OFF COMPLETELY EVERY MONTH!!!

You need to prove to the financial institutions that you have the ability to be trusted.

Maybe spend that $1000 on a beater and work on getting a better credit rating for the next year or so. BTW $160 on a car payment is the minimum you'll be paying for, you still need insurance, gas, matainance etc...

[eg_eric]

Originally posted by RC-Cola

If you have a co-signer with good credit you would be better off going to a bank to get a loan (if possible).

Instead of either of these options I'd get a credit card, use it and MAKE SURE YOU PAY IT OFF COMPLETELY EVERY MONTH!!!


I've been looking since last year for a way to start rebuilding my credit, when I go to the banks to ask for a secured credit card they either "don't have that program" or "don't know what I'm talking about".

(Edit, should have said i'm willing to pay 160 BI-WEEKLY (320 a month) for the payment alone, I can afford a car for 500-600 after insurance)

[Redlyne_mr2]

Apply for a capital one secure credit card, I know a few people who have rebuilt their credit with one of those.

[shynepho]

Originally posted by eg_eric
Hey guys, I need some guidance and advice:

I'm currently looking for a car, and I went to a couple of
dealers to apply for a vehicle (slightly used) both times I
was rejected and the second time EVEN with a co-signer I
was rejected. So the dealer/new/newer car is probably
out of the question.

Does anyone know if these "everyone approved no credit
bad credit" really work? I'm willing to pay a higher interest
rate (as long as it doesn't rape me) on a vehicle.


Any advice? And can anyone vouch for a reputable place
where you might have been approved at a decent rate?


Notes:
- I have bad credit (Went to collections on a cell phone bill
and a student loan, both were settled in May 2009)

- Can pay up to 320 a month, looking for something
under 50,000 km, not afraid of long term commitment.

- I have a steady job, a $1000 down available, letters
of references, and pay stubs to show any these guys.

Thanks guys... Need some help, confused and tired of
getting messed around with by the stealerships.

I'm not saying this applies in your case but what they go after is someone they know is in a bad credit position and they take advantage of that.

They take the persons downpayment and sign them up for a loan at a really high interest rate. Most of the times the individual is unable to make the payment after a few months. So knowing the individual most likely will not be able to keep up with these payments for too long, they go ahead and finance the person at a high interest rate loan.

Now fast forward 2-3months down the road:

Individual is unable to make the payments, so the dealership gets the car back, still has your original downpayment and any payments you made on top.


Customer= Fail
Dealership= Win x2

[Redlyne_mr2]

Originally posted by shynepho


I'm not saying this applies in your case but what they go after is someone they know is in a bad credit position and they take advantage of that.

They take the persons downpayment and sign them up for a loan at a really high interest rate. Most of the times the individual is unable to make the payment after a few months. So knowing the individual most likely will not be able to keep up with these payments for too long, they go ahead and finance the person at a high interest rate loan.

Now fast forward 2-3months down the road:

Individual is unable to make the payments, so the dealership gets the car back, still has your original downpayment and any payments you made on top.


Customer= Fail
Dealership= Win x2

Poor advice, has nothing to do with the dealership, has everything to do with the finance company.

[ddduke]

Don't do it. With $1000 down they won't give you ANYTHING decent. They'll put you into a $1500 car and charge you $3500 for it, then with the 27% interest you will end up paying $7000+ for it and the worst part is that they will not let you pay out the loan early without some sort of HUGE penalty.

My friend went this route on an 11k mazda a few years back, got completely fucked with payments and realized he was going to pay $25000 when all was said and done. This was one of the main reasons he killed himself.

[Graham_A_M]

^ he killed himself over $25k ???? Wow

[ddduke]

Originally posted by Graham_A_M
^ he killed himself over $25k ???? Wow

It wasn't just that. It was a mixture of a ton of things. This just being the icing on the cake.

Owing 25 on a 11k car that will be worthless soon and not having a job, being a few months behind on payments, Girlfriend issues, etc, etc.....

[Team_Mclaren]

seem like you still have not learned from having your phone bill and loan go on collections...

Perhaps its time to stay away from anything credit related for a while. Or like Redline has suggested go get yourself a secured credit card and stay rebuilding.

Going in with 1k down for a 8k car paying 30% in interest for a car thats going to be worthless in 3 years is the worst possible thing you can put yourself into right now.

[J-hop]

question for the finance gurus, if the OP were to already have a credit card, wouldn't getting another one only hurt his chances of ever being approved. ie: bank or leasing company would look at that as him possibly having to owe even more and thus he would be higher risk.

OP what have the banks said about any sort of loan. I am no financially smart person, but I would probably try to get a loan from the bank for $4000, buy a $5000 car as suggesting and then pay back the loan in a year or so. at $320/month you get $3840, I don't know what a bank would charge in terms of interest but it seems you could pay it off fairly quickly.

[Team_Mclaren]

Originally posted by J-hop
question for the finance gurus, if the OP were to already have a credit card, wouldn't getting another one only hurt his chances of ever being approved. ie: bank or leasing company would look at that as him possibly having to owe even more and thus he would be higher risk.

OP what have the banks said about any sort of loan. I am no financially smart person, but I would probably try to get a loan from the bank for $4000, buy a $5000 car as suggesting and then pay back the loan in a year or so. at $320/month you get $3840, I don't know what a bank would charge in terms of interest but it seems you could pay it off fairly quickly.

if you are getting declined by the finance people at the dealership, chances of you getting a loan at the branch level is slim to none.

[Xtrema]

Originally posted by Team_Mclaren


if you are getting declined by the finance people at the dealership, chances of you getting a loan at the branch level is slim to none.

This.

His credit score is too low to have dealers even offer him a high interest loan. Bank being a lot more conservative will stay away.

[Graham_A_M]

Honestly, search the marketplace for a decent used vehicle. You can get a early 2000's Ford Focus (or the like) on Kijiji for a couple grand. Then you wont have to worry about car payments or the like. Also, you're insurance will be way cheaper since you dont need collision on it, as you would if it was financed.
Just borrow or save up for the rest, and go see what you can find for $2-3k.

[Guillermo]

given your financial situation, i would recommend buying a beater until you can save up the cash to buy another car.

[J-hop]

Originally posted by Team_Mclaren


if you are getting declined by the finance people at the dealership, chances of you getting a loan at the branch level is slim to none.

good point, I just figured for a $4000 loan if someone could co-sign would it really be that hard to get??


Also along the same lines does anyone know if carrying a balance over on a CC will damage your credit. I've never let a balance carry over, in fact on occasion I have overpaid my CC. I have a lot of friends that live beyond their means and end up just making minimum payments, I thought for sure this would reflect badly on your credit or at least your track record with your bank (or whomever your credit card is with).

[kvg]

When applying for a loan the finance company will go on the basis that your cc is maxed out . Getting a loan doesn't mean 5 min later you can't go shopping and max your cc.

[eg_eric]

So fellas, I went to one of the sales places that deals with sub-prime bank rates and got this:

A 18,500 vehicle at 24% for 5 years.
Monthly payments come out at 510/month. Too much for me...

So I thought about one of the posts to go get a loan with a co-signer, I just did that and we got 13,000 from the bank...

... I am Now searching the Beyond marketplace :thumbsup:


Also called up Capital One and they said I need to apply online and then have to head over to one of the banks when they follow up with the instructions.

Thanks guys, appreciate it a lot. Not only did I get a loan for a car but also didn't realize I could get my credit back on track :)

I am indebted to you guys forev.... oh wait that's what got me in trouble in the first place.

[shynepho]

Originally posted by Redlyne_mr2


Poor advice, has nothing to do with the dealership, has everything to do with the finance company.

Oh I was under the assumption that these used car sales lots that offer high interest rate loans were done by in house financing (the dealership itself provides the loan).

[Xtrema]

Originally posted by shynepho


Oh I was under the assumption that these used car sales lots that offer high interest rate loans were done by in house financing (the dealership itself provides the loan).

They usually get a commission but they are not in the business of being loan shark.

[trevh]

Your an idiot.

[Canucks3322]

Originally posted by Xtrema


They usually get a commission but they are not in the business of being loan shark.

I don't get it, how does it make them any better...these sleazy used car dealerships knowingly sell their fucked up cars to desperate people, on top of that they're in cahoots with the loan sharks.

[Sorath]

Doing a sub prime loan for a couple of years is the best way to rebuild credit

Chrysler and Kia have subvented subprime rates

[Cos]

24% on a vehicle!?!? Anyone know the stock I can buy into for the company that underwrites these?

[ExtraSlow]

Sounds like you have your mind made up, but I'll throw my $0.02 in anyway.

You have a "good job" and $1k right now. Why not grind it out for a couple months, save up a couple thousand, and buy a car with cash.
You think you're rebuilding your credit, but in reality, all you are doing is giving up on your financial future.

having money > having "repaired" credit.

and having a nice car is less important than either of them.

Spending $13k when you only have $1k cash is a bad idea, no matter what your credit looks like.

[CapnCrunch]

These threads should just read "I have bad credit and I'm going to ignore every piece of intelligent advice I get, and I'll sacrifice anything to buy a nice shiny vehicle because I'm insecure"

[Skyline_Addict]

The solution to your debt problem is not to go further into debt. Oh well, I guess you really wanted that car.

[ddduke]

Originally posted by CapnCrunch
These threads should just read "I have bad credit and I'm going to ignore every piece of intelligent advice I get, and I'll sacrifice anything to buy a nice shiny vehicle because I'm insecure"

Then they're followed up with a FS thread reading 'FS: take over payments on my peice of shit for $XXX because I'm trying to free up some cash'

[heavyD]

Originally posted by Team_Mclaren


if you are getting declined by the finance people at the dealership, chances of you getting a loan at the branch level is slim to none.

^^^^
This. You can get approved for a new car loan through a dealer without even supplying a proof of employment. Banks will run every single check on you even if you have a good credit rating.

[Kloubek]

Originally posted by trevh
Your an idiot.

Nice addition to the thread.

By the way - while trying to put others down for lack of intellect, you might want to consider spelling things correctly... like "You're" as opposed to "Your".

This isn't like math, where two negatives make a positive.

[jonnycat]

Typically, co-signors are designed to help new credit, not bad credit.

Cos, some of the sub prime lenders are Wells Fargo, VFC, Carfinco and Rifco for starters.

[carson blocks]

Honestly OP, like a couple others have said, buy a beater. Paying interest, especially at those rates, is for suckers. You'd be surprised how far your money goes and how fast you can save money when you stop paying interest. If you're smart, the money you save on a car payment every month can go towards other debt, which has a snowball effect and pretty soon you have more spare cash every month than you thought possible.

I've been hanging out at the auctions and scoping out Kijiji lately and if you shop wisely, there are some pretty good drivers in the $1000 range. Nothing fancy or cool, but solid dependable transportation that won't cost you a dime in interest and allow you to save your cash for something better. You can get a solid 10-15 year old sedan that's lame as hell, but in awesome shape for not a lot of money. If you keep it nice and clean, most decent people won't razz you for driving it, and if they do, remind them that you don't owe a dime on it and that shuts them up pretty quickly.

I stopped driving new/newer financed vehicles, and started driving beaters I pay cash for. I save tons of cash on payments and insurance, and put surprisingly little in to repairs while acheiving reliability on par with my friends newer cars. A little proactive maintenance, parts shopping at RockAuto, and getting my hands dirty every now and then allows me to run cars for pennies on the dollar compared to what most people pay. As a bonus, since I keep my shit clean and well maintained, when I get tired of a car I can easily sell it for what I've got in to it and move on to the next one. I'm having more fun with cars and spending less than ever before.

I know quite a few people who have taken bad car loans out of desperation and have severely regretted it down the road. What seems worthwhile right now will seem stupid a few years from now when you're still paying full payment on your car that's now old, worn, and worth less than you owe on it. I've known a couple others who got in to accidents with their high-interest financed cars and have ended up paying them off for years after the car is gone. Or, be impulsive and live paycheck to paycheck, never actually owning anything, juggling creditors until something happens and you're royally screwed. I've done it both ways and I know that being financially secure has brought me more happiness than shiny financed shit ever did.

Sorry for the long post, but I feel strongly about this shit as I've made these mistakes myself, and know too many good people buried under mountains of debt with no light at the end of the tunnel. I know you're gonna do whatever you want anyways, but maybe now in a couple years you can look back on this thread and understand what some of us are trying to get across.

[Ldeibert]

Try Canadian Tire for a MasterCard. I got one from them when I was 18 and no bank would give me a CC, it was a $1000 limit. After two months of running it up to ~$800 and paying it off right away, they upped the limit to $2000. 6 months later and I had sufficient credit to buy a house...

If you don't mind me asking, what did the bank give you for an interest rate?

[mikey_p]

Originally posted by Redlyne_mr2

Nope

This is not true..

A credit bureau only indicates if the account is a "joint" loan between two people or a "Individual" loan in one persons name. If your co-signer is willing to have there name first and your second you are still on the contact as the co-buyer and will create credit from that. The banks use the co-signer as the main contact and it solidifies that the loan will be taken care of. Either way its still a "joint" loan and your still on it.. Now if they tell you that you cant be on the bill of sale or paperwork then you will gain nothnig and it will be a "straw purchase". Thats using someone elses credit to benifit someone else. Kinda like Bob financing a car in his name for peter but peter uses it. Also third party determination as the banks call it..

[mikey_p]

Originally posted by kvg
When applying for a loan the finance company will go on the basis that your cc is maxed out . Getting a loan doesn't mean 5 min later you can't go shopping and max your cc.

That's only true when TDSR (debt service) comes into play. A person with a high available amoutn of cash has the availability to rack it up and go bankrupt at any time..

A good rule of thumb is having your credit card 50%-75% of the available balance to start your credit.. Never go over 75% of your available limit. You dont want the banks to think that you need that card to survive.. But you want to show them that you can have a balance and make consecutive payments.. And dont forget.. Banks like intrest..

[Thaco]

get a mastercard from capital one, they have secured ones where they'll take a deposit and then give you a card, in a few months-1 year they'll give you back your deposit and switch you over to a normal card, a friend of mine who declared bankruptcy last year has one of their cards.

[maxwinedog]

Originally posted by Redlyne_mr2
Apply for a capital one secure credit card, I know a few people who have rebuilt their credit with one of those. Well you first need to clear past debts in order to rebuild credit. I suggest doing what i did 4yrs ago OP and file for bankruptcy. Once you clear, your credit is ready for rebuild. Its better than having that past collections record stay on your credit bureau forever. Trust me OP I was in the exact same shoes as you, infact my debt I can gaurentee was much much worse than yours. I had about 30G of debt. I filed for bankruptcy 4yrs ago, cleared and have been rebuilding my credit since.

DO NOT apply for a Capital One card before filing to bankruptcy first. WHy? Cause its pointless. People will see you have a capital one card and youre paying it on time - great! But they will also see your past collections records. File for bankruptcy, it all clears and you start from scratch.

[CapnCrunch]

Originally posted by maxwinedog
Well you first need to clear past debts in order to rebuild credit. I suggest doing what i did 4yrs ago OP and file for bankruptcy. Once you clear, your credit is ready for rebuild. Its better than having that past collections record stay on your credit bureau forever. Trust me OP I was in the exact same shoes as you, infact my debt I can gaurentee was much much worse than yours. I had about 30G of debt. I filed for bankruptcy 4yrs ago, cleared and have been rebuilding my credit since.

DO NOT apply for a Capital One card before filing to bankruptcy first. WHy? Cause its pointless. People will see you have a capital one card and youre paying it on time - great! But they will also see your past collections records. File for bankruptcy, it all clears and you start from scratch.

You could have instead just paid off the 30,000 over 4 years.

[ShermanEF9]

ass everyones probably saying....


better bring some.

http://tinadreams.com/images/n0674-anul_lube.jpg