New Car / Bad Credit

eGoCeNTRoNiX · Post by **eGoCeNTRoNiX** » Thu Jun 01, 2006 8:38 pm

Hey Guys/Gals,

I'm looking at getting a new car (My first one ever) and as much as I hate to say it, my credit is certainly nothing to smile about. Does anybody else have any experience with this? I haven't talked to any dealers yet or anything like that. I know I will probably end up needing a co-signer and not sure how that's going to work out either. I'm kind of hoping that my mother can/will help me out, but that's still unforseen at the moment. Does having a large downpayment help any in situations like this? I may be able to come up with around $4k to put down. Been 5 years since my divorce and I'm still pretty much ruined as far as getting any kind of credit even though I've taken care of all of my bad debt over a year ago.. *sigh*

TIA

eGo

Executioner · Post by **Executioner** » Thu Jun 01, 2006 10:21 pm

$4k down is okay, but it depends how much you are buying the car for. You can get the car, but your interest rate will be higher than with someone with good credit rating. My wife and I usually get interest rates of 4-5%, but a lot of times, the dealers will have specials on certain new card with 0 or 1% interest with a loan from the dealer.

We bought a new Honda Accord that was stickered for $22k, and I got the guy down to $18.5k out the door, and with financing through my credit union @5% for 4 years. Also helps to be pre-approved for a auto loan.

eGoCeNTRoNiX · Post by **eGoCeNTRoNiX** » Sat Jun 03, 2006 11:14 am

Well, I'm chasing after a 2006 or 2007 Mitsu Eclipse GS (would like to go GT but don't know that I want to make payments that high). They have one at a local dealer for about $20k, but it's not the same package that I want. It's an automatic, I want a stick w/sunroof. I'm prepared to pay higher interest rates and don't have a problem with that. But, kind of hoping that my mother or father will help me out. I'm not just your typical kid trying to fall back on mommy and daddy, I don't want their money, just their signature. I make decent money and have very few bills. Total I pay around $550 in utilities rent phone and such. Which leaves me with a lot left over. I've never had a new car and feel it's time for me to get one and that I deserve it. I've worked very hard for the past 5 years to get back on my feet and actually have some extra money in the bank and I think it's time I rewarded myself.

Executioner · Post by **Executioner** » Sat Jun 03, 2006 12:32 pm

IF that is the case, try to save $10k as a down payment. That will really lower your monthly payment and your interest rate.

Since I'm an old fart, I can speak of experience with young kids. We co-signed with my daughter only, since both my wife and I know she maintains a budget and watches her spending. My son on the other hand, we did not co-sign with him when he got his loan for a car, since he is not responsible with money. He goes off to the Navy on Monday, and my wife and discovered he's behind on several of his credit cards. We are going to be the custodian for his bank account, but now I have to write letters to the creditors detailing what is going on with him and his past due accounts.

eGoCeNTRoNiX · Post by **eGoCeNTRoNiX** » Sat Jun 03, 2006 11:40 pm

Yah, I feel for you there. I have, fortunatly, over the last two years started taking much better charge of my finances. All of my bills are paid in full before they are due, and they're taken care of with my first check of the month. But, my bills consist of Rent, Lights, Cable, Cell Phone, Water (might as well be a joke haha) and Insurance.