Tips on Buying Cars: buying a used car...bad credit, mazda tribute, car places


Question
Hi Steve,
    I have a 2003 chevy cavelier. It's starting to fall apart and I need to buy another car. I don't know my credit score, but it's not so good (lots of bad times). I think it's somewhere in the 500's. I am aware that my interests rate is going to be crazy. I have no bankrupties,credit cards or leins. Most of my stuff went to collections because I just didn't have the money to pay. After my divorce, I was in poverty with 2 girls. Although that was some yrs ago, I never quite bounced back.  Just got a new job in September...Teacher, making a great salary. This will be my time to get back on track, pay off outstanding bills and bring up my credit score. But, the distance I'm traveling is beginning to take a toll on my cavalier. I've had a $500 repair job and a new battery within the last 3 weeks. I am 5'9" and need a bigger car, or just more room. I'm tired of ducking in and out of "squatty" cars. I was thinking about a Ford Escape or Mazda Tribute. Want to keep the payments at $300 a month. How does a person with my credit history go about buying a car Steve? Should I go to one of those shoddy car places that have those crazy commercials on TV, or a place like Car Max or a regular dealership? Could you help me please. Oh yes, as if you couldn't tell already...I am a female and I know how we are easily taken advantage of when it comes to car purchases or repairs. I thought that buying one in December when the sales are going on would be a good time to do it. I have no boyfriend, husband or male friend to help me with any kind of car-knowledge. I need help bad. Can you help me?        Paula


Answer
Hi Paula,
glad your new job seems to be a big plus for you. You may have some trouble getting approved if the credit is that rough. The easiest way to get financing would be with a very credit strong co-signer, let's assume that is not possible. First, join the creit union in your area associated with your school or union. Just have a minimal $5.00 deducted per pay period. Now, to get financing now, you probably need a down payment. Figure what the very most you can use for the down payment. After that, we need to send you somewhere to look at vehicles. I recommend Carmax, you can sell them your car (is it paid off?).......That money can also go towards the downpayment. Carmax has up to 8 lenders, they have 2 or 3 lenders that deal in challenged credit. Now, chances are if there toughest lender approves you, you will need to prove income, address (phone bill, water bill, cable bill), a few references, and the downpayment will ahve to be in certified funds. There is more we can go over if you want, just ask and i will try to answer. You can check Carmax's inventory on-line before going into the store, also, if your credit problems are a long time ago, you may do better then you think. Just PLEASE stay away from the "buy here, pay here" lots, the cars are crap, the rates are hovering around usury, and you will not get any credit for there so called loans. I hope this helps a little, let me know if you have any other questions!! Good luck!!!

STEVE