Best used dealerships for rebuilding bad credit?

[Graham_A_M]

Hey everybody, a friend made a mess of her credit with some stupid moves. She is looking to rebuild it, and get her into a vehicle, under $10k. Any suggestions? I will pass the info on to her. TIA. No I will not post pics of her, lol.

[zechs]

Correct me if I am wrong, but wouldn't a financed vehicle require comprehensive coverage (or whatever you want to call over and above liability).

Thats the kicker is how much she'll pay in insurance.

Also, to "build" or "fix" credit, pay your bills, use a credit card for all purchases and pay the balance every month.

Voila, shit credit fixed in a year or two. Because if you have shit credit, the kind of car you get with financing under $10k is already a piece of crap.

If anything, she needs to go to Hyundai or Kia, or Nissan or whoever and get a $10k brand new car so she has warranty and doesn't have to do anything except oil changes for the next 100k kms.

[Disoblige]

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If anything, she needs to go to Hyundai or Kia, or Nissan or whoever and get a $10k brand new car so she has warranty and doesn't have to do anything except oil changes for the next 100k kms.

Yeah, there is nothing you can get for $10k.
Maybe $13-14k on a Chevy Spark?

[ExtraSlow]

All the sketchy used car lots specialize in this kind of thing. House of cars etc.

I'd say this friend needs someone who is very good with money to go over the numbers with them BEFORE they go to any dealership and then GO WITH THEM to the dealership to make sure they don't get fucked any harder than necessary on this.

Don't send them alone. Just don't.

[killramos]

Has shit credit, and thinks the solution is to buy a new car.

Sounds about right.

Try paying a utility bill or something instead.

[vengie]

May or may not be an option, but she will get hosed on a used car due to the rates she will recieve.

To rebuild credit, get a $500 credit card, use it and continually pay it off immediately.

[Xtrema]

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Hey everybody, a friend made a mess of her credit with some stupid moves. She is looking to rebuild it, and get her into a vehicle, under $10k. Any suggestions? I will pass the info on to her. TIA. No I will not post pics of her, lol.

Is she paying all the bills on time? If not, having more bills will not solve this problem.

Walking into a used car lot with shitty credit will only get you another unserviceable loan.

[dj_rice]

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May or may not be an option, but she will get hosed on a used car due to the rates she will recieve.

To rebuild credit, get a $500 credit card, use it and continually pay it off immediately.

26.99% on 96 month terms

[spike98]

How to rebuild credit:

- Pay bills on time
- Lower debt ratio
- Grow history with a prepaid or high risk credit card (paying attention to first point)
- Time

How to not rebuild credit:

- take on more debt

[ercchry]

^^agree to an extent… but one must use credit to build credit as well. I literally look at shitty credit bureaus all day long and the ones with a line or two open with some $500 cards never really rise out of the dirt… they also tend to close lines which is bad. You want your report to read like a good porno “thick and mature”

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May or may not be an option, but she will get hosed on a used car due to the rates she will recieve.

To rebuild credit, get a $500 credit card, use it and continually pay it off immediately.

No… unless you’re only using it to buy coffee… you will constantly be “over utilizing” a $500 limit all day long, plus it does nothing to support that you can handle high levels of credit responsibly which is another factor in it all.

Better off with one of those capOne prepaid cards, where you can’t get yourself into the shit repayment situation again. For a car… you’re credit has to be spectacularly shitty to not get approved on a regular car loan… might require a few bucks down, but a nice low payment on a high balance new car is not only going to be easier to manage than a shitty 20% interest, short term length $10k shitbox, but not having unexpected car bills pop up will mean every single bill still gets paid on time, doing way more to long term good credit sustainability

[Graham_A_M]

^So Capital one Credit cards is what you guys would recommend? Thanks. I thoroughly appreciate the info.

[dirtsniffer]

A car is not the way to rebuild credit. Prepaid credit card, then a normal card. Pay it off each month in full

[JRSC00LUDE]

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All the sketchy used car lots specialize in this kind of thing. House of cars etc.

I'd say this friend needs someone who is very good with money to go over the numbers with them BEFORE they go to any dealership and then GO WITH THEM to the dealership to make sure they don't get fucked any harder than necessary on this.

Don't send them alone. Just don't.

This.

Except don't completely close the door on fucking them harder than necessary (if hot).

[Graham_A_M]

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A car is not the way to rebuild credit. Prepaid credit card, then a normal card. Pay it off each month in full

Thank you, this is why I love beyond. Solid advice. Thank you

[ExtraSlow]

I'm going to go out on a limb that if someone doesn't help this individual buy a car in the least damaging way possible then they will go and buy one in the easiest way possible which will be significantly worse for them.

If this person is someone you care about, you need to watch, oversee and intervene as much as possible.

[zechs]

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I'm going to go out on a limb that if someone doesn't help this individual buy a car in the least damaging way possible then they will go and buy one in the easiest way possible which will be significantly worse for them.

If this person is someone you care about, you need to watch, oversee and intervene as much as possible.

This is why I made the suggestions I did, because realistically most people do need a car. Getting a piece of shit will not help the persons situation.

Its sort of funny, the people who most need a new cheap car are the ones who can least reasonably afford it.

$14k car for 84 months is $170/month plus insurance.

I'd rather that than any used car from a used car dealer.

[Xtrema]

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$14k car for 84 months is $170/month plus insurance.

You are assuming OP's friend has good enough credit to qualify for a 0% loan from manufacturer. Most likely dealers will just throw her out to the wolves.

But a new car with warranty does give you less surprises compared to used cars especially if money/credit is tight.

[killramos]

Man how much do you guys pay on car maintenance that you think it’s material here?

You all drive Audi’s or something?

[Pauly Boy]

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No… unless you’re only using it to buy coffee… you will constantly be “over utilizing” a $500 limit all day long

Slightly off topic, but I had a bud do this exact thing to build credit out of high school - Legit spent a year putting coffee, slurpees, bags of penny candies & the odd pizza on it, lol. Moot point for this situation, but made me remember his crazy little plan.

[tonytiger55]

Buying a used car for under 10K is going to be very problematic. I have seen people that have financed junk at rates of 20% plus and are financially stuck and possibly ruined (Looking at you House of Cars). She is just going to end up in a bigger mess. Im sorry but I have seen it so many times.

If your friend wants to rebuild her credit. I don't believe for a second she should start with just with credit. If she just focuses on credit she will end up in the same mess later down the road. I have seen this and its not pretty. It gets harder as one gets older. Just don't do it.

Credit is one factor of four. It starts with good financial base. Her income, how much is she saving? what debit does she have. Does she live within her means? The last part is probably the most common.

She needs to pay her bills on time. Use her credit card and establish regular boring patterns of grocery purchases and bill payments. Lenders like boring patterns. Its a good predictor of habits. Just focusing on having good credit in my opinion does more harm than good. Its like giving a fat person a diet pill and telling them everything will be fine. When the real solution is better diet, exercise, and dump shitty friends with bad habits.

If she needs a vehicle. Buy a reliable beater with a plan to change it in a couple of years once she has financially stabilised. Then use that timeframe to sort out finances.