Tips on Buying Cars: Credit history and dealer financing, buying a new car, volunteer service

Question
I have two 7 year old vehicles that really need replacing, though I can only afford one new car payment.  My wife and I have found a car we believe fits our life and our budget.  The problem is my credit history.  According to my current report I am listed as "fair".  For 2 reasons: 1) I have a single late payment on my file and 2) I have high balances on a couple cards.  I have worked it out with the creditor to take the late payment off my credit history and am reducing my total debt every month.  Ideally I would like to wait until I am completely out of debt before buying a new car but I can't afford to keep fixing the cars I have.  So here is my question, is a dealer going to turn me away with a "Fair" credit rating and will waiting 60 days to have the single late payment removed really help in getting better (however slight) financing on a new car?

Answer
No the late will not make that much of a difference. If I were you I would go to your bank that you use everyday for a loan. See what they have to offer you and then compare it to the dealer. Goin in pre approved for the loan at your back will give you great leverage at the dealership.I hope this helps, if you have any other questions please don't hesitate to ask. Also just so you know I did not get the original email for this question so please don't rate bad for time. I would appreciate it if you take the time and rate me as thia is a volunteer service and I try to maintain the highest possible rating.