Should I get an used car while my credit score is high before all hell breaks through?

Deal Score0

Right now my credit score is 787. I’m really wanting to get an used car, 1 or 2 years old car with less than 30K miles so that it would last me for the next 10 years. Currently my car is at 115K miles and is 9 years old, AC is broken. Radio is broken. The door handle is broken (my side). But no money to get them fixed.

At the same time I am in a not-so-good situation with my house. I put it up for short sale. And applied for loan modification. After reading different articles, and posts, I learned that I won’t be getting approved for loan modification because I’m selling the house. Yes I AM planning to move out of the house, I MUST downsize, settling in an apt so that my budget would be better as soon as my student loans repayment start in February. I simply cannot afford the mortgage anymore (after 3 years). My mom (whose name is also on the house) cant afford it either so she’s planning to move out too. So there’s no way I’d stay and ride it out. Or get drown.

I tried offering deed of lien and they told me to just wait for the decision from loan department. Well, I told them they will NOT help me because I’m already current! So fine, I’ll just stop paying the mortgage because I really need the money for security deposit and apt, as well as moving expenses. I KNOW my credit will ding ..and ding.. as soon as I miss payments. It’s a matter of time when my credit gets totally ruined.

So I wonder if I should hurry and get an used car that is in excellent shape that would last me for the next 10 years with good interest rate because I won’t be able to get a car once my credit shot down with the house being behind in payments and into foreclosure.

NOTE: I live in Florida. Yeah I know and it sucks! And no I’m not renting out my house due to horror stories about damages and my mother and I simply do not have the money for repairs. I’d rather suffer by walking away with deed of lien IF short sale did not work out. The house isn’t in a great shape, and the market isn’t so good either so it makes selling this house very difficult.

Please help, advise what should I do? I prefer finding a good car, and low payment like $ 200 or $ 250. That’s all I can afford. I’m done paying $ 935 a month on the $ 105K house. And my balance I owe is $ 101K. It’s crazy!

Thanks so much.

  1. Reply
    they call me happy
    May 1, 2011 at 11:56 pm

    Might as well. If not, you will be stuck with a buy-here-pay-here lot, which you will end up buying a $ 4000 car for about $ 10,000. Sounds like you are in a dead end with your home, just like many other people.

    *Also consider buying new. Look at the model you are considering to buy used, and then compare it to a new version of that model. For 2-3k you might be able to get a new version that will last you more than ten years, and give you a chance to hopefully build up that credit again.

  2. Reply
    May 2, 2011 at 12:56 am

    You are already fvcked.

    Your debt to income ratio is so screwed beyond belief already that you are already in BPHP car lot status.

    So….I guess that answers that question. And you won’t be getting a $ 200/month payment, either. Unless it is for a term of 48 months for some car from that BHPH lot that is currently worth about $ 900.

  3. Reply
    Dr. Phibes
    May 2, 2011 at 1:25 am

    Well, I feel for you.

    Have you thought of having someone “take over payments” on the house?
    This is like a sale, but you just lose out on any money…..whoever takes possession of the house, takes it “lock, stock, and barrell”, “as is”. They start taking over the payments and they pay for anything the house may need. This is not legal in all states, but you might check into it if you really want out of this mortgage.

    Or try and sell it to one of these “we buy any house in any condition” places?

    As for a car, you arent going to find any GOOD used car for only $ 250 down.
    Most places want at least $ 1,000 – $ 2,000 down.
    You can get a used car for $ 250 down, but its going to be a “junker” and need LOTS of care and attention.

    You MIGHT find a nice older used car at a dealership for $ 300 down. But you are going to have to be VERY VERY persuasive to get this! I got a LandRover for $ 300 down one time, but I know how to deal with car salesmen……I can “speak thier language”.

    If you have outstanding credit right now, you might be able to get something decent from a reputable car dealership (not a private used car place) for very little down. If they are reputable and honest, they can help you find something for your budget. Just DONT tell them about your house issue.

  4. Reply
    Stupid Flanders
    May 2, 2011 at 2:13 am

    You are going through a short sale on your house and you want to tack on more debt?
    That’s about the dumbest thing I have ever heard.

    No long-term plan to get out of debt ever included adding more debt.

  5. Reply
    May 2, 2011 at 2:19 am – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

  6. Reply
    Don't listen to previous posts
    May 17, 2011 at 3:28 pm

    Yes, definitely get a newer, more reliable car at a low interest rate before your credit gets destroyed. With a 787, you will qualify for the best deal any auto dealer offers, maybe even no down payment. Don’t listen to the previous posters. “Brandon” is an idiot, you already have a good credit score. “Stupid Flanders” is stupid. Your question is not about getting out of debt.

    I was in your exact situation here in California. When it dawned on me that I’m not going to get a modification and I’ll have to walk away from my place, I traded in my old car for a newer (used) reliable car at 3.49% interest because I have (had) excellent credit. I’m paying more than the minimum so that I pay it off quickly. After you foreclose, paying on your new car each and every month, and finally paying it off will help rebuild your credit score. Don’t listen to anyone else who tells you otherwise. How else can you rebuild your credit score if you don’t take on more debt, right? The key is making sure you pay it off. The smartest thing to do is to take on more debt now, with excellent credit, so that you get low interest rates. Then, after your foreclosure goes through, periodically pay off this debt to rebuild credit score.

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