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Desperately need a car!!


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Hello everyone,

I graduated from college last Spring and have just now found a job. The job requires relocating at the begining of next month and I don't currenty have a car. Over the past 5 years, I have managed to ruin my credit by making many stupid decisions. I haven't pulled my reports yet but according to Equifax a few months ago, I have a $3,500 chargeoff from a couple years ago, another $500 collection, a $500 paid collection. Because I have only had a part time job recently, I also have a lot of late payments from the past few months including a late college loan payment. Besides my college loans, I do have a MBNA credit card still open but maxed and with a few late payments.

My question is are there any options for a person like me? My new job will offer $50,000 salary which is a lot more than I was making when I fell into debt. Also, my mom is willing to be a co-signer but I don't have much money to put down. Will anyone be willing to work with me on a loan? I plan on paying off everything I owe on my credit report once I have the money but I need a car now. I am willing to put up with a high interest loan if it will help my credit in the long run. I'd like to get a used car in the $6,000-$10,000 range (i'd prefer not buying a beater that will last ony a few months). Does anyone have any suggestions. Any help will be greatly appreciated.

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IF you can find someone to give you a loan, you're going to pay interest rates thru the roof. I'm sorry, but your mother SHOULD NOT co-sign for you because what is likely to happen is they will put HER as the PRIMARY and you secondary simply because she has (assuming) far better credit than you do.

Suck it up and set your sights a little lower. Your assertion that a 'beater' is only going to last a few months is ridiculous unless you're a master mechanic. Find a car you can live with for 6 months to a year until you've got some employment history established and some money in the bank. It doesn't have to be a 'beater', there are good used cars that can be had w/o going to a dealership and being raped on interest.

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My question is are there any options for a person like me?

For prime lending institutions, absolutely not!

For sub-prime outfits, unpaid collection accounts is a deal killer, therefore most will turn you down although it is worth looking for a couple of predators.

And you have to be realistic. You got a lot of baggage including unpaid stuff and then you want somebody to loan you money? I don't mean to sound like an a$$ but your available options are very limited if there are any.

For cars, you can probably find the predator outfits that will mark up the value of a very used car like 200 or 300 percent and then give you the big chorizo on the financing (so they screw you both ways).

As for finding a car, do a little bit of alternative searching. There are plenty of people who want to skip the middle man by selling the car themselves. There is your best opportunity to find a good deal for a clunker that will last you for a while.

But the best thing you can do with your 50k job is to begin the credit rebuilding process while you are repairing your credit. That is good money to get rid of unpaid items (check out the debt settlement forum) while trying to find good places to get secured credit.

Write back and let us know what happens...

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You should just buy a cheap car from an individual. Depending on where you relocate 50k may not go far, also people tend to under estimate other expenses like business attire. If you happen to get a loan from a predatory lender/dealership they will still require around 2k down payment.On top of that you then have to be able to get full coverage insurance which will be difficult given your credit situation. Again depending where you live might be extremely high rats. Any chance of using public transportation or alternate transportation?

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You should just buy a cheap car from an individual.

That is what I would prefer to do but I don't really have much upfront cash. That is why the car lots that say no down payment and garanteed financing are so tempting. Couldn't I just refinance after I get my debts straightened out?

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Dh was in a similar situation 1 years ago. We were forced to buy a car put the down payment on a credit card (providian 21%) and pay 16% interest on the loan. We went to one of those lots that advertise on TV "we finance anyone"-I saw plenty of people get denied- Be careful they will drag the transaction out for hours-so be prepared, they'll attempt to sell extras like any dealer, and they will always try to steer you to certain cars, make sure the lender reports to all 3 CRB's,have another person accompany you. You want to get something fairly new -so that you will be able to refi (terms can be restrictive) and watch the mileage. DH bought a 2004 Hyundai for 11995 add on tax, prep.etc, it was around 15k.It had about 13000 miles. We bought it in Dec04 and refied down to 10.1% in July 05.

One other thing if you are a female and this is sad that you have to do this -do either of the following- have a male friend visit the dealer and get a price and then you visit later by yourself- more then likely they will give you a higher price. Then have your male buddy walk in and watch their jaws drop.

Or go with male friend to dealership- have friend ask all the questions appear as if he is the decision maker as you listen carefully to everything. When the salesperson is ready to write the deal take over.

I am not saying all dealerships are biased just don't be surprised if they are and be educate yourself as much about cars as possible and be clear about what you can afford and need.-- Good Luck

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I am not saying all dealerships are biased just don't be surprised if they are and be educate yourself as much about cars as possible and be clear about what you can afford and need.

The best thing to do is not to use a dealership's financing at all...

Even the respectable dealerships (the ones that owners own NFL football teams, etc...) will still screw you with the financing...

Check with your local credit unions first. Get a loan approved first and then they will provide you with a voucher that will cover the loan. The interest rates are low and they don't have the same kind of gimmicks and stupid tricks that dealer finance companies have. And the vouchers can even work with the cars that you buy from individuals.

Check out this web site:

http://creditunionaccess.com/

It has all the local credit unions listed by city and state...

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There is an additional "source" related to Credit Union Financing.

CUDL - Credit Union Direct Lending.

www.cudl.org

For used cars, if you purchase through a dealer that participates in this program, they'll find you the lowest financing through any credit union that participates. (read: possible multiple pulls)

This is how my wife became a member of the credit union. She was approved for financing at 8.24% (the best rate for her credit ratings and interest rates at the time).

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  • 2 weeks later...

I ended up going to a buy here pay here place. I am a co-applicant with my mother and it doesn't seem like a bad deal. There is no penalty for paying off earlier than the 18 month term. Unfortunately, I failed to ask if they report to the credit bereaus so I'm not sure if this will improve my credit at all.

I begin my job next week and recieve a generous bonus. Can anyone tell me where on this website I need to go for information on paying off past collections in full? All the information I find seems to be focused on settling for less than the full amount. I'm more interested in bargaining with the collection agencies and getting them to delete anything bad from my credit report.

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I ended up going to a buy here pay here place. I am a co-applicant with my mother and it doesn't seem like a bad deal. There is no penalty for paying off earlier than the 18 month term. Unfortunately, I failed to ask if they report to the credit bereaus so I'm not sure if this will improve my credit at all.

I begin my job next week and recieve a generous bonus. Can anyone tell me where on this website I need to go for information on paying off past collections in full? All the information I find seems to be focused on settling for less than the full amount. I'm more interested in bargaining with the collection agencies and getting them to delete anything bad from my credit report.

Do a search on the site ("Search" button @ the top) for Pay for Delete or PFD. That should get you started. Congrats on the car.

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