Is it possible to get a poor credit loan for a car of my choice?
Question by ATLANTIS: Is it possible to get a poor credit loan for a car of my choice?
I want a specific car. I noticed with every poor credit auto loan lender they have to give you a car of their choice. How can I get what I want with a cosigner. I don’t want to be declined again.
Best answer:
Answer by jimmy d.
A “strong” co-signer will possibly help. If not, they pick the car and you pay 25% interest!
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Try this site. It has bad credit car loan information. If you need a new loan, it might be of some help to you. The loans on some of the dealers are outrageous, however (just telling it like it is), so shop with caution:
http://carmu.info/drive/car/gmac/bad-dallas.html
SURE YOU CAN IF YOU DON’T MIND THE INTEREST RATE IN THE RANGE OF 22.5 PERCENT.
Co-buyers really only help if you have little credit. If you have bad or poor credit, they wont do much good.
Generally, you have to go with the car of their choice because they have to be in it right to sell it to you. What i mean is- take a Previous Daily Rental 2005 Nissan Altima 2.5s for an example. Say KBB is $ 18,000 High and $ 14,000 Low. The dealer maybe bought this car for $ 11,000 plus all reconditioning fees and he is in it $ 12,800. The bank will loan 110% of Low KBB with average to great credit, and 90% of Low KBB with poor to bad credit. So, he needs a car to sell you that the bank is in a profitable situation.
90% of low KBB in this example is $ 12,600. So, he will probably ask you for a $ 2500 to $ 3000 down payment.
That is typically why most people with bad credit leave the lot in a Neon, Sentra, Focus, Cobalt, or a Carolla. Because the initial selling price is lower (means less down payment) and the dealer can usually pick them up at a auction for back of low KBB.
I hope you follow what im saying. Good luck.
do you have a cosigner? if your cosigner has good credit, it shouldn’t be an issue.
i have bad credit (score: 550) and a repossession, but i got the car i wanted from a dealer chain – the fact that it was a national chain made a huge difference since they work with more banks than the independent dealers.
my interest rate sucks (20.12%) and i had to settle for a 6 year loan instead of 5, but i did it without a cosigner, which means i’m rebuilding my credit and can refinance in a year or two.
so, depending on what you want, try to find a dealer that works with more banks than your local guys. make sure you have good monthly income and a sizeable down payment – they’ll want between 25% – 50%, but you can probably get away with as little as 20%. if you don’t have these two things, get a cosigner.
by the way – i forgot to mention that i originally set out for a used car but could only get approved for a new car. it seems the bank sees that as less of a risk due to the higher value.
yes you will be able to get the loan ,but your interest rate will be so high that the first year or two all you,ll be paying on is the interest,if you take a co-signer with you it should make it easier to get the loan,but don’t let them hook you in to a real high interest rate,you,ll be paying on that car for a long time if that happens,good luck.
It depends on how much the car cost. If you have bad credit you probably wont get a loan for that much money.
Maybe you can get a loan, and then find a car from a private dealer.