Author Topic: Buy a car?  (Read 1601 times)

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RayFinkle

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Buy a car?
« on: October 26, 2014 06:47:54 PM »
Hello all,

As I am starting the flyingifr process, I am facing a quandary of really needing to replace my car.  Well, I'd like to due to the miles and warranty running out.  I recently spoke with my credit union who said, on the face of it, they would have no issue if I traded in my car against a newer model, I would instantly pay off the current loan, but take on a new one.  I assume that this would NOT go well with the credit repair process and it up.  Correct?

fisthardcheese

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Re: Buy a car?
« Reply #1 on: October 26, 2014 06:54:28 PM »
If you qualify for a car loan, then your repair is probably not as dire as most people who come here.  What is your goal for credit repair?

The new loan will lower your credit score in the short term due to the credit-to-income ratio taking a hit and also a new account being reported.  But if you are looking long term, about 2 years out, then it will really have no factor.

It also should not really make a big factor if you are trying to correct or remove bad TLs from your credit report as well.
11 Arb Settlements (9 AAA, 2 JAMS)
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2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
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Flyingifr

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Re: Buy a car?
« Reply #2 on: October 28, 2014 02:45:52 PM »
Installment loans have very little effect if any effect on FICO scores. A $500 credit card has more effect on FICO than a $100,000 mortgage.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

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montag

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Re: Buy a car?
« Reply #3 on: October 28, 2014 04:15:05 PM »
Check your CR's.  Every other one has incorrect info.  Dispute all baddies.

flacorps

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Re: Buy a car?
« Reply #4 on: October 28, 2014 04:56:44 PM »
GM may be the way to go in this situation. Both GM and Santander are known for writing "brain dead" paper, giving good rates and terms to those with dinged-up credit. Of course you're driving a GM at that point, which may not be your intent.

Somewhere out on the interwebs is a guy named MarvBear who can probably give you an awful lot of help.
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

http://www.myhopeseries.com

Clydesmom66

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Re: Buy a car?
« Reply #5 on: October 28, 2014 05:03:51 PM »
GM may be the way to go in this situation. Both GM and Santander are known for writing "brain dead" paper, giving good rates and terms to those with dinged-up credit. Of course you're driving a GM at that point, which may not be your intent.

Somewhere out on the interwebs is a guy named MarvBear who can probably give you an awful lot of help.

Santander is EVIL and does not give "good rates" to anyone.  I have never financed a car with them but had the misfortune of them buying out a portfolio of loans from my lender.  I had never missed a payment ever until Santander took over the loan with their "odd" accounting system and how they applied payments.  I paid the loan off early just to be rid of them.  I am now part of a class action suit against them for robo-calls and their questionable accounting practices.  A co-worker with credit issues was going to use them and was quoted a rate of 24%.  i would hardly call that good.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Flyingifr

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Re: Buy a car?
« Reply #6 on: October 28, 2014 10:29:37 PM »
Santander is to car loans what Ocwen and Vanderbiult are to mortgages - a guaranteed repossession and headache.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

KFMAN

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Re: Buy a car?
« Reply #7 on: October 29, 2014 07:52:13 PM »
Hello all,

As I am starting the flyingifr process, I am facing a quandary of really needing to replace my car.  Well, I'd like to due to the miles and warranty running out.  I recently spoke with my credit union who said, on the face of it, they would have no issue if I traded in my car against a newer model, I would instantly pay off the current loan, but take on a new one.  I assume that this would NOT go well with the credit repair process and <Removed> it up.  Correct?
CASH is king, so pay off your current car before you upgrade with Cash.
« Last Edit: October 29, 2014 07:59:18 PM by KFMAN »

RayFinkle

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Re: Buy a car?
« Reply #8 on: November 02, 2014 01:11:29 PM »
Right now I still have about 9K to go on my current loan.  I my goal is to repair my credit but I also have a car that I would like to upgrade...that goal being to get one is way less miles as I'm sure mine is going to be seeing more and more maintenance issues coming up.  I am in a career change so my current job salary is and it's terribly hard to get anything saved and I'm no where near paying off my current car loan.  I believe I can get a new car loan with my credit union at the same monthly payment which would be ideal.  I do realize it's starting my loan all over again but I'm willing to take that if I have a car with a lot less miles.  Plus I can get a new warranty with it, my current one is set to expire very soon.

I don't know exactly what my credit union will do for a rate, they have to pull my CRs and then go from there.  I'm sure it won't be what I'm at now which is pretty good.  I did speak with them and they said I'm a great customer blah blah and have always made my payments so I'm technically in good standing with them.  I just didn't want to up the credit repair plan outlined here. 

Let me throw this out...that plan calls for a $1000 credit repair loan.  Wouldn't my car loan more or less cover that?  I've already got a loan going and making payments fine, early in fact.  Of am I having to get another loan as well?

KFMAN

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Re: Buy a car?
« Reply #9 on: November 03, 2014 04:26:41 AM »
I would go to Dave Ramsey's website and see how much a car payments cost you in the long run.  Good Luck!

flacorps

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Re: Buy a car?
« Reply #10 on: November 03, 2014 07:05:07 PM »
Two things:

1. The outfits that score you for credit now "slice and dice" your credit history to provide different scores to different audiences. What that means to you is that you may have a better score on an "auto enhanced" beacon because you pay a car loan well, but you may still be untouchable to the credit card folks. You're supposed to have house, auto and credit card to have the best score, with finance companies (like the old HFC, etc.) actually counting against you a bit.

2. Hurry if you believe you are "subprime" ... the subprime auto lenders are facing investigations and they may tighten shortly ... at least temporarily until things blow over.
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

http://www.myhopeseries.com

Bruno the JDB Killer

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Re: Buy a car?
« Reply #11 on: November 03, 2014 07:21:08 PM »
Does the current car run well? Some of these newer cars will do 300,000 without a hiccup. If it does not have any problems looming, just drive it and do the maintenance. The cheapest car you can have is the one you own.

High mileage cars are worthless as trade ins, you have to consider that. If you want to get rid of it, who would be out looking for it? Most dealers will not take a trade older than three years unless they get it for nothing.

Cars are not investments, they are an expense. The cheaper you can make that expense, the better off you are.If you really want a newer car and you can afford it, that's up to you.

One trick is to wait until January, when they sell off the "executive" cars turned in by corporate big shots, who get a new car every year. A few years ago I saw a 31,000 Mercury Grand Marquis with 2,000 miles on it marked down to 19.000. Look for a deal like that.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

RayFinkle

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Re: Buy a car?
« Reply #12 on: December 13, 2014 05:41:33 PM »
I've chatted with my credit union and they are willing to let me do a new car loan but the interest rate was stupid high, too be expected of course, but ridiculous.  sorry, don't have the paperwork here, can't remember exactly but it was in the mid-teens.  i'll be hanging on to my car for now...lol!