can i buy a car that costs 20k if i have bad credit and a recent repo a year ago? - Personal Finance Forums

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Forums / Public / Personal Finance / can i buy a car that costs 20k if i have bad credit and a recent repo a year ago?

Author	Message
FallenAngel Members 608 posts Location: Moldavia Occupation: House painter Age:	#299724 2008-05-20 02:10 GMT
	the repo is not paid off yet, i make about 40k a year


Bambi Members 597 posts Location: Puerto Rico Occupation: Gynecologist Age:	#299725 2008-05-20 02:22 GMT
	I would guess that any loan you take is going to have 15% interest rate, with that being said will it really be worth paying close to 38,000 for a $20,000 car over the next 5 years. I would think that if you have stable job and the income is accurate you will be approved for a loan. They may also require a 10-20% down payment. Humble advice is to buy something that is enexpensive and let your credit improve then save some money and you will have a much easier time going through the process. The last you will want is to repeat the process you have dealt with a year ago with the other car. Good luck to you.

Goldriver Members 610 posts Location: Kyrgyzstan Occupation: Draper Age:	#299726 2008-05-20 02:25 GMT
	That doesn't sound affordable at all. I'm assuming you're talking about getting a loan. (If you have cash, then of course, you could buy a 20k car, but why would you want to?) Even if someone gave you a loan, it would be for fully half of your annual salary. That's a lot. If you don't think it's a lot, try to save 20k in advance, and pay cash for the car. Maybe you'll prove me wrong - I hope you do. More likely, if you save at all, once you have 5k, you'd realize you have enough to get a reliable used car, and get that. And that would be the right thing to do.

Clatterkeys Members 577 posts Location: Congo Occupation: Camp Counselor Age:	#299727 2008-05-20 02:39 GMT
	Your question is a little vague, in the sense that are you concerned about your monthly cash flow? Or, are you concerned that you will not get approved for a new loan, period (irrespective of rates)? Honestly, take the advice of the fellows who've responded here and really ask yourself if you need this car. If having wheels is an absolute must, then find something that is half the cost... With bad credit, current repo paydown, etc. you are no in the position to taken on any extra unnecessary expenses, in my honest opinion. That $20K will cost you a lot more in the long run (based on higher rates due to your credit score) and you can find something decent under $10K. Also, save up at least $2,500 for a down payment towards the car. Any cash you can plug towards the purchase is like 'free money' in that you will not have to pay interest on it. Seems to go without saying, but people do forget about this!!! Hope that helps.

Beanie Members 606 posts Location: Mongolia Occupation: Beautician Age:	#299728 2008-05-20 02:59 GMT
	IMO no bank will give you a loan until that repo is taken care of. Because that could all wind up with you in jail, you are not a good credit risk. Start saving; you are going to need cash for that next car.

JunkFoodAddict Members 581 posts Location: Tokelau Occupation: Pilot Age:	#299729 2008-05-20 04:37 GMT
	Hello my name is Eng Bhatti, my advice is that when you go to a bank in your area to request for a loan and that is if you have a collateral, but if you want loan from those that give out unsecured loan without a collateral i know of someone that gives out unsecured loans,i myself have been able to secure a loan for myself, though he is the only one i have tried for now so i don't really know if his interest rate is the lowest, here is their contact information if you want to contact them. (dejoeloaninc@live.com) i am sure they can be of help to you. Good Luck

TrickSkate Members 587 posts Location: Finland Occupation: Magistrate Age:	#299730 2008-05-20 08:41 GMT
	The answer is YES!!!!!! If you pay in cash. Why would someone making $40k buy a car for $20k? Sounds financially irresponsible to me. Don't you think it's time to deal with reality & make smart choices? You're on a spiral downhill & doing nothing to change it. Is that smart?

LostMarbles Members 595 posts Location: Croatia Occupation: Stock broker Age:	#299731 2008-05-20 09:18 GMT
	Didn't quite learn your lesson yet huh? Simple advice : Don't buy things you can't afford.

FallingMoon Members 594 posts Location: Greece Occupation: Switchboard operator Age:	#299732 2008-05-20 12:38 GMT
	you better think about settling for a cheap used car or you'll be right back where you were