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My credit score is in the mid 500s, it used to be much higher, the last 3 years have been very tumultuous money wise. But now I have a stable job and am planning to attend college for a hotel management degree
I have a car loan right now which is almost paid off, 9 payments to go at $230 a month and 9.75% interest. My car loan is with my company's credit union. In spite of all my financial troubles, I bent over backwards to keep the loan current, and I never once missed a payment
I've had this car since early 2009 when I bought it. Its a 2003 Nissan Altima. It now has 125,000 miles (57,000 at the time of purchase) and is starting to have a lot of high mileage car type problems that I cannot afford (struts, wheel bearings, etc) I owe about $2000 of the $11,000 loan I took out in 2009, when my credit score was around 700
Im saving up money for a down payment on a better car, and am looking at a max price range of $12,000 and a max payment of $325 a month. Even with my credit, do you think my credit union would be willing to give me another car loan since I have always been in good standing with it and have not missed a single payment?
My credit score is in the mid 500s, it used to be much higher, the last 3 years have been very tumultuous money wise. But now I have a stable job and am planning to attend college for a hotel management degree
I have a car loan right now which is almost paid off, 9 payments to go at $230 a month and 9.75% interest. My car loan is with my company's credit union. In spite of all my financial troubles, I bent over backwards to keep the loan current, and I never once missed a payment
I've had this car since early 2009 when I bought it. Its a 2003 Nissan Altima. It now has 125,000 miles (57,000 at the time of purchase) and is starting to have a lot of high mileage car type problems that I cannot afford (struts, wheel bearings, etc) I owe about $2000 of the $11,000 loan I took out in 2009, when my credit score was around 700
Im saving up money for a down payment on a better car, and am looking at a max price range of $12,000 and a max payment of $325 a month. Even with my credit, do you think my credit union would be willing to give me another car loan since I have always been in good standing with it and have not missed a single payment?
Don't take this the wrong way, but for your sake, I hope you don't get one. It sounds like you're on the permanent car payment treadmill.
You can't afford the repairs on your current car, but you can afford a higher car payment? What am I missing here? I don't know if you can get a loan or not, but I don't think it would be a wise move - even if you could. Pay the car off, save up some money. The cheapest car to drive is almost always the one you horn currently.
Nissan Altima it's generally a pretty good car. It can drive way beyond 125K miles.
In your situation almost any car repair is "cheaper" than a new loan, new 48+ month payments and high interest %.
See if you can fix the car till you get better, financially...
In 2009 your credit score was 700, now is in mid 500's. Ask yourself what happen, and fix it first.
For $12,000 you will get:
- old car, low mileage
or
- newer car and high mileage
However with such low credit score you will most likely end with an older car with high mileage and a killer interest rate.
If you saved even $200 of that $230 payment in a year you would have $2400! $2400 on a 125k car will last awhile...save it for a few more years and you pretty much can afford any car bill that may come up. Don't get a new car payment...save that money for car repairs.
It honestly would be a stupid idea to get a higher payment and 9% interest is crap. When you could save up for a year and be able to easily repair your car.
Last edited by packer43064; 01-29-2013 at 01:22 AM..
I agree with the others. Get the car looked at by a trusted mechanic - get a referral from a family or friend. See how much it will cost you to keep it in running order. I order my parts online - within reason and have them put it in.
The issue I had with my old car is that these repairs got constant at $300-500 a pop. The car kept stalling out and I had a long commute. So I went out and bought a new one. Had I not had a 150 mile roundtrip commute, I wouldn't have, but I felt stuck at the time. Luckily I haven't spent a dime outside of my $340 car payment on the car in 2.5 years - I did accelerate payments and will be done with the payment this year! I plan to keep the car for another 6 years without payments and this one I promise I will drive into the ground.
The problems you mention are maintenance items, not repair items. Of course it's all water under the bridge now, but if you had followed your car's recommended maintenance schedule you could have budgeted for these repairs along the way and wouldn't be looking at a bunch of stuff needing to be fixed all at once.
Your car should be good for another 100K miles, at least. Bite the bullet and get everything taken care of that needs it and keep driving it as long as you can while saving money to pay cash for the replacement when the care really does reach the end of its life (or you have enough saved to buy the specific car you want, whichever comes first). Otherwise you'll find yourself in this exact same predicament a few years down the road.
Fix the car you've got now, pay it off, then put what you'd be making in monthly car payments into savings every month for a few years. That should allow you to put a sizable down payment on your next car.
In the mean time, work on that credit score so when the time comes you can get one of those )5 type financing deals. Just wait until you've settled on a price based on a cash deal before you tell them you want the 0% loan.
I have a car loan right now which is almost paid off, 9 payments to go at $230 a month
Its a 2003 Nissan Altima. It now has 125,000 miles (57,000 at the time of purchase)...
Open the glove box and look at the "recommended service" at the back of the owners manual.
Make a list of everything you should have done (so far) that you haven't.
Start planning that work... and to make the Nissan last you (without any payments) another TEN years.
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