Can buying help

[Lumps]

Holy poo 25%? I don't care what your credit is that's fuging crazy.

[Lumps]

You say your credit sucks, doesn't help much. New tires, brakes etc doesn't matter really....those are minor repairs and are usually taken care of by a dealership as a cheap sale tactic for the salesman. If they are sloppy you can always say you want those fixed before you buy and it shouldn't be an issue.

Things that matter are maintenance, the cars history (carfax), how many owners and what kind of owners (lead foot teen vs. old dude going 30mph everywhere makes a HUGE difference), was it previously rented, leased or owned? Because people treat it like poo if rented and most likely leased, take it to a mechanic to check the majors...water pump, gaskets, suspension. You won't be able to know everything but those are the important factors.

[Kevin Greene]

I'm not sure you can actually purchase a Mexican. 

[PandaPancake]

I'm not sure you can actually purchase a Mexican.

What are you looking for?

[KSpan]

As someone who also just shopped extensively for a minivan, may I suggest not taking out a loan at all. As a general rule, no one wins the consumer credit game except the banks.

 

If your car is worth $2K in trade, that means one of three things:

 

1) Your car is not actually worth $2K, but a dealer offering that is taking you for a ton of money somewhere else in the deal.

2) Your car is worth a minimum of $2K in cash to a local wholesaler, and you can sell it yourself to increase your bankroll.

3) Your car is worth more than $2K if you sell it yourself (a likely scenario), which would give you even more cash. It might take a little bit of time, but even if it takes 10 hours of your time and you sell for $3000, you just made an after-tax return of $100 per hour.

 

Also, you've indicated that you're in no hurry and you seem to be able to justify a car payment.  Why not start paying that to yourself and watch how quickly your savings grows? Though a car payment was never an option for me because I despise them, we were in the exact same position and I found several one-owner, meticulously maintained vans (Chrysler, Dodge, Ford, etc.) in the $4K-$6K range and ended up buying a one-owner Town & Country with every option imagineable for $6K cash.

 

Just a suggestion from someone who was walking in your exact shoes a matter of months ago.

[Jackofalltrades]

Here's another thing-

Went to the SECU yesterday and was denied, but they said if I could resolve 2 issues on my credit then they would reconsider it. It would cost 2k to resolve the issue, but my rate would be 4.75.

The problem is, if I resolve the issue and then get denied again now I'm out of the 2k for the downpayment.

[thefuzz]

Here's another thing-

Went to the SECU yesterday and was denied, but they said if I could resolve 2 issues on my credit then they would reconsider it. It would cost 2k to resolve the issue, but my rate would be 4.75.

The problem is, if I resolve the issue and then get denied again now I'm out of the 2k for the downpayment.

 

Honestly, you need to fix your credit, or you will always be in the poor house because you are paying 10-25% interest on anything you buy.

 

What happens if you get the car, then the tranny drops?  With bad credit you can't even finance a new tranny.

 

 

Fix the issues, ask the credit union how much you would need to put down after you clear the issues up, and go from there.

 

Honestly, I would look for private financing before paying 25%.  Buddy of mind does this in RDU and charges folks about 15% and he holds the title until it's paid off, and makes them get insurance.

[Jackofalltrades]

Honestly, you need to fix your credit, or you will always be in the poor house because you are paying 10-25% interest on anything you buy.

What happens if you get the car, then the tranny drops? With bad credit you can't even finance a new tranny.

Fix the issues, ask the credit union how much you would need to put down after you clear the issues up, and go from there.

Honestly, I would look for private financing before paying 25%. Buddy of mind does this in RDU and charges folks about 15% and he holds the title until it's paid off, and makes them get insurance.

Someone was telling me about this a little bit ago. If I had some assurance from the SECU I'd prefer to do it, but the risk of losing my downpayment and getting denied is the issue. I want to clean my credit up and this is almost the last step in the process.

[thefuzz]

Someone was telling me about this a little bit ago. If I had some assurance from the SECU I'd prefer to do it, but the risk of losing my downpayment and getting denied is the issue. I want to clean my credit up and this is almost the last step in the process.

 

Do you have a contact at a small bank, or feel comfortable talking to the loan officer at the CU?

 

 

If so, please sit down with them and explain your situation, and ask them for guidance.  Even if you can get a 9.9 loan or something, it's better than what you are looking at.

 

Also, what do you have that you can sell?  Look at anything and everything, try ebay, craigslist, etc.  Also can you pick up another job or help someone do yardwork on your days off to get some more cash for a down payment?  Do you have any family or friends you can call for a small loan?

 

Kicking the credit can down the road isn't ideal in your situation, once you are free and clear and have tons of cash in the bank, credit isn't nearly as important...once you have your house, but it's really important for you now.

[thefuzz]

P.S. once your "fix" those issues on your credit, expect it to take time to clear up, it won't happen over night.

 

Do you have any credit cards, payments, etc. now?

[Lumps]

Depending on your credit problem, almost all the time you can haggle. Call whomever it is and aim for 50%.

I know it sucks but I agree with everyone else, get your credit issues fixed paying 2k now is nothing compared to what it'll cost you long term.

[Jackofalltrades]

No, my credit has been bad for a while so we have nothing financed, no credit cards and no real debt.

I did call the one creditor I owed and asked about a settlement, but they don't settle. The lady actually told me to wait a year and it would come off anyway, but I'd rather knock it out now. It's just a matter of juggling correctly.

[KSpan]

No, my credit has been bad for a while so we have nothing financed, no credit cards and no real debt.

I did call the one creditor I owed and asked about a settlement, but they don't settle. The lady actually told me to wait a year and it would come off anyway, but I'd rather knock it out now. It's just a matter of juggling correctly.

Debts don't just vanish - they have to be paid or settled. If the debt is a few years old or if that particular creditor has had the debt for a long time, it may drop off of your report until they sell it and the new owner of the debt comes calling. Then the cycle will start all over and you'll have another negative on the report. There may come a time that the collector can no longer legally sue you, but an unsettled debt is almost always eligible for collection.

[thefuzz]

No, my credit has been bad for a while so we have nothing financed, no credit cards and no real debt.

I did call the one creditor I owed and asked about a settlement, but they don't settle. The lady actually told me to wait a year and it would come off anyway, but I'd rather knock it out now. It's just a matter of juggling correctly.

 

Once you get it cleared up a bit, get a couple of secured credit cards, and start trying to re-build it again.

 

 

I help people with this stuff everyday, it's really simple, but not easy.