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CAR LOAN OR DEALERSHIP FINANCING?

I have a 512 TransUnion credit score and a 517 credit score with Equifax. I have an unpaid sprint bill of $700 due to closing an account early, but other than that its just unpaid hospital bills from not having insurance during my visit to the emergency room. I have about $1000 for a down payment, but i was wondering if someone could help me decide on should i try my luck with a bank/credit union or try dealership financing. My job history pretty much sucks, started my young life out in the streets and was in and out of jail. Im trying to right the storm, i have a full time job but my pay rate is only $8.75 an hour. Ive been working at the same place for about 4 months now. Thats pretty much it towards my qualifications for a car but any info is much appreciated. Just need some outside insight on what i should do. Also if any estimate APR percentages for my situation would be much appreciated also. I have been looking for cars in the $8000-$10000 range, i also have $1000 down. Thank you for your answers and time!

9 Answers

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  • Dash
    Lv 7
    4 years ago
    Favorite Answer

    You have a low wage job and poor credit. You are trying to get your life together. Don't get a car loan. Don't go in debt. You can get by with out a car.

    Once you have a car you will have to buy expensive insurance. Pay for repair bills, etc. You will owe more money than the car is worth and so you won't be able to sell it or trade it in for some time. Just keep working and concentrate on improving your education or job skills so you can get a better paying job.

    • ...Show all comments
    • But my public transportation system sucks where i am located. I couldnt finance a $8000 car with money down? I make about a thousand a month. I have tried getting insurance quotes, the most expensive i was quoted was 163. I feel its managable and my need for a car is basically dire.

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  • 4 years ago

    Dash gave you excellent advice. In your situation, will NOT get a $8000-$10,000 car. Your credit is rock bottom -- it can't be any worse, and your income is not even close to being to being good enough to qualify for a car loan. Your best bet is to simply keep working and saving enough money for a starter car. Then as your credit and income improve in the future, you can move up to better cars.

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  • tro
    Lv 7
    4 years ago

    your pay is $8.75/hr, hardly enough to pay rent let alone eat and pay past bills of which you claim $700 unpaid Sprint, and unknown hospital which at the very least is probably more than $1K

    that you have saved $1k is admirable but why didn't you pay off the Sprint bill, or apply some to the hospital bill

    I seriously doubt you could afford the payment of an $8 to $10K car even if you could get either loan

    but if you want to push ahead, start with the place that offers the lowest interest rate

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  • 4 years ago

    Dash gave you great advice. You're getting your life back together. Take your time and save. Your scores are bad and any loan (if you could even get one) would have ridiculous interest.

    Good luck to you! Keep doing the right thing and success will come.

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  • 4 years ago

    For $163 you can take a taxi for more than 50 miles ... and that is before the interest on the loan, gasoline, and repairs. {= maybe another 50 miles} For short distances walk or ride a bike. {Or consider a motorized (electric motor) bike to help ease the burden of pedaling - especially uphill.} Or lessen the distance between home and work (by moving or changing jobs) if possible.

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  • Judy
    Lv 7
    4 years ago

    You won't get approved at a bank. You can try dealership financing, but unlikely you'll be approved there either (maybe with a cosigner)

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  • 4 years ago

    You have horrible credit, debt in collections and want to borrow half of your annual income for a car. No bank or credit union is going to go anywhere near you right now. If you want a car, save up and pay cash.

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  • 4 years ago

    No, you should not try your luck with anywhere. It's doesn't matter where you try, because they will all deny you. Also, the attempt will make your credit worse.

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  • 4 years ago

    Try both and choose the one with the lowest interest rate.

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