Second Chance Auto Loans for High Risk Car Buyers
by davelal9 on Sunday, October 14th, 2007Second Chance Auto Loans for High Risk Car Buyers
If you’re considered a high credit risk because of past credit problems you can get a second change to rebuild your credit with a high risk auto loan. When you get a second chance, make sure to make your auto loan payments on time. Rarely will you get a third chance to re-establish your credit.
Second Chance Auto Financing
Many high risk car loan lenders are willing to give you a second chance to finance a car. Most of these lending sources are not available to the general public. Instead, they offer their services through local franchised car dealers. Not every dealer offers second chance car loans so it’s important that you find a dealer that does before you complete an auto financing application. If you apply with a dealer that does not offer high risk auto loans, you run the risk of lowering your credit score with unnecessary credit bureau inquiries.
To improve your chances of getting approved for a bad credit auto loan, apply with a high risk credit car buying service such as Auto Credit Express. Auto Credit Express has dealers with second chance car loans in all 50 states and Canada as well.
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i am trying to get a loan for a car without a co-signer.. its that i really have bad credit its that i have no credit.. my question is if i cant get a car loan how am i suppose to build my credit? can u please help me.
thankyou,
nikki
Just applied for bankruptsy. Make $8,000 monthly with check stub to prove. On job for 16 years. Can you help?
Sincerely,
James Mattus
James,
It depends on which bankruptcy you applied for. If you are in a Chapter 13, you need to contact the trustee to get an order to incur additional debt before you can apply for a loan. If you are in a Chapter 7, you will need to have completed your 341 meeting of creditors before applying for a car loan. If you have any more questions, please feel free to call our toll free number on our web site at: http://www.autocreditexpress.com.
I have a 570 Credit score, I am reestablishing my student laon (it will be active and in the green by January 09 after default). I have two credit cards account previously in default which I have recently paid in full. I make about $6000/month with about 1000/month in bills. Can you please let me know if you can help. I am looking for about 25-30k for this loan and a 5 year term.
Rich,
The first thing that you need to do is fill out the loan application at http://www.autocreditexpress.com. Once you have done this, you can contact one of our customer service professionals using our toll-free number. They would be glad to answer any questions that you have.
If my car is currently under repossession and they have advised me to get financing thru another bank?
Can you help me ? I currently make about 4,000/month?
Doris,
If you have a current vehicle in repossession (and this repossession is on your credit report), there is no bank that I know of that will finance you at this time. Even most subprime lenders will only finance someone with a repossession if the repossession occurred at least a year ago.
My credit score is low 500 tryin to rebuild my credit i make 1800 aweek after taxes. im lookin at a 15,000 auto loan think i can get a loan even with deliquent accts?
Nathan,
It really depends on what those delinquent accounts are. I would suggest that you fill out an application and then call us on our toll-free number if you haven’t been contacted by someone within 24 hours.
I just completed my 314 meeting today in Chapter 7. I’ve paid my current car on time for the past 2 yrs and have reaffirmed. I make $6,000 per month. How soon can I apply for an auto loan? I also have a co-signer with a 750 credit score. The max that I am looking to finance is $20K. Is there any hope for me?
Luisa,
What is the purpose of the auto loan? If you are looking for a second car, the judge will not allow that during the bankruptcy. If you apply for a loan, the bank is going to want the current loan paid off. One other point, if you have bad credit, the credit score of the co-signer is not relevant, regardless of how high it is. We are not lawyers and do not give legal advice, but in most cases, including your current car in the bankruptcy (if you want to replace it) and then applying for a loan is the only way you could replace it at this time. Otherwise, if your spouse is the co-signer and not in the bankruptcy, have your spouse apply for the new car and put it in their name.
I lost my job and had my car repossessed in 2006. It was a voluntary repossession. The bank sold the car and actually sent me credit for overpayment. Therefore, no money is owed. Of course, my credit is tarnished. I currently work for Amtrak and I’m in need of a car. Is there any hope for me?
Tony,
There is hope. The first thing you need to do is to go to http://www.autocreditexpress.com and fill out an application. If you haven’t heard anything back in 24 hours, call the toll free number at the bottom of our web page.
I have been trying to obtain a 2nd car loan, because the car I have is not very reliable and I haven’t been able to trade it in because of too much negative equity. The car dealers that I have visited have said that banks are not doing second loans right now. I make about $3100/month. Are there any banks that can help me?
Hello, I currently have a credit score of 550 and I will be in the market for a new car soon. I recently paid a car loan off (with no late payments) last month but defaulted on some credit cards that will be paid within the next couple of months. My question is, do you refer customers to dealerships or do you approve them for a dollar amount and allow them to purchase a vehicle from a dealership of their choice? I plan on having a down payment of 40-50% of the car’s value, plus a trade in (totaling $15,000 in all as a down payment).
Robert,
We refer our applicants to car dealers that specialize in a wide spectrum of auto lending.
Kasey,
Especially in the current economic climate, your negative equity is a big problem and you are going to continue to receive the same response regardless of where you go for a car loan – unless you can put someone else on the contract to justify a second loan.
I have a 500 Credit score and make $4300 a month. I had a car that was a total lost and was partially paid off by insurance company. The remainder of the loan because of the lack of GAP coverage became a charge off. Is there any hope of acheiving an auto loan without a co-signer? The charge off happend 8 monts ago.
Please contact me for a car loan. I receive SSDI checks every month by direct deposit.
I drive a 1993 Honda Accord and I would like a new one or a certified newer model.
Thank you,
Jacob Lee
Jeff,
A co-signer will not help a bad credit issue, so if you can’t get financed on your own you wouldn’t qualify with a co-signer, either. Even if it happened 8 months ago, a charge-off on a deficiency balance is nearly as bad as a repossession. If the charge-off was with a traditional lender, you might be able to qualify for a subprime loan in another 4 months, but again, this depends on other factors such as job time, home ownership, etc. If the deficiency balance was with a subprime lender, it will be very difficult to get any lender to consider your application.
My best guess is that there are some lenders that might consider you if the charge-off is paid in full. If this is not possible, you may have to resort to either a buy here pay here lot or have a family member let you drive one of their cars it if you offer to make the payments for them (this needs to be a car that they already own, since buying one for you constitutes a straw purchase and this practice is illegal).
Jacob,
If your SSDI monthly income meets the minimum requirement of $1,500 per month, just go to http://www.autocreditexpress.com and fill out the loan application. Once you do that, you will be contacted within 24 hours regarding your application.
I am in the military also and the original loan was through citi-financial. I have been active duty for 6 years and have 4.5 years left of my enlistment. Are there any sub prime lenders that make special auto loans for military. This is additional info for the above comment I left on March 18th. Do u have any additional advice? If no thank you for your time.
I have a repossesion listed on my credit. It happened in Sept. 08. It was a voluntary repo and the balance was paid off when the company sold the vehicle. I am currently lookin to purchase a vehicle. I ran my credit to see for myself and it very high 5′s and when i went to a dealer it was in the 4′s. can you help?
Dwayne,
If there is no deficiency balance on the repossession (and your credit report is showing a zero balance on the loan) you may have a chance at a new loan. Because of the repossession, the lender is going to want a fairly substantial down payment on your next vehicle (as a rule of thumb, about $2,500 per $10,000). If you have that kind of down payment, go to http://www.autocreditexpress.com and fill out the application. If not, you can either save up for a down payment or try a “buy here pay here” lot.
I was in auto accident in 07 and totaled my car. I have been unable to obtain financing for the past 2 years. I have had 3 bankrutcy dismissals last one in 2006. My score is 589, all my account have been paid off and my new credit I started in 2007 have never been late. I really can’t do anything to improve my score because I’m already paying all my accounts on time. Is there really a second chance company out there that will finance me. I tried autocreditexpress last year but no luck. Been renting a car for two years @ a rate of $800 per month. Just need a break.
Leona,
There is some additional information that we need to find out. Someone from Auto Credit Express will be in contact with you shortly.
I just checked by credit score and it was in the high 500′s and what i owed on my credit was settled and paid off, one hospital bill one bank and one store credit card, i make about 1600 per month and i don’t really have that many bills, would i get the chance to get a car loan? Thanx
Zoe,
Everyone’s credit situation is different, but it certainly appears like you have a chance to get a car loan. go to http://www.autocreditexpress.com and click on the “Pre-Qualify” box. This will help determine if you have a chance. If you do, then fill out the application.
We are paying our lawyer off this week for chapter 7 bankruptsy, can we get into a vehicle? do we need a down payment or can we just trade in a car? Also can we get into one without a co signer, we make @ 2000 a month,please let me know!THANKS MANDEE
Mandee,
Even though you are paying off your lawyer, you really should wait until the discharge order has been released by the court. That way, you can take advantage of the largest number of lenders possible. You can also get a bad credit car loan without a co-signer. Since everyone’s situation is different, the best thing to do is to fill out the loan application at http://www.autocreditexpress.com.
If you haven’t heard from anyone in 24 hours, call the toll-free number at the bottom of the web page.
please inform me about the possibility of receiving a car loan if i have two impending foreclosures on my credit. i am trying to sell the homes via shortsale. i have always had a car payment and always pay my car and other bills. I’ve been unable to keep up with the mortgages due to decrease in salary. Is there any hope for me to get a car loan? My current lease expires next month.
Sonja,
Yes, there is hope for you. My first suggestion would be for you to contact your current lender to see if they would consider you for a new loan or the possibility of financing your current leased vehicle (since you have a good track record with them). If they turn you down, I would then suggest that you contact a credit union in your area to see if you might qualify there (credit unions are generally more lenient than banks).
Finally, it that tactic fails, there are a number of subprime lenders that would consider you, even with the foreclosures (you want to consider subprime last, since the interest rate will be high). Since most subprime banks only do indirect lending, you will need to locate one of the high-volume dealers in your area that does special finance (high volume dealers have more leverage with lenders since they send tem more business), explain your situation and see what they can do for you.
I had a repo in 2005, they sold the vechile for less than contract price. I am and have been paying the balance monthly
Will this effect any chance I have to get a loan?
Linda,
The repossession is probably old enough that it won’t show up on your credit report. If you have been making direct payments to the lender and not through a wage garnishment, this will not show up on your credit report, either. The bottom line is that in most cases, neither one will have any effect on your chances of getting a loan.
Hey I am currently looking to purchase a larger vehicle I currently own a 07 Malibu that I’m currenty ahead of payments on. I bought the car for 12,500 and owe about 5,000 im looking to spend about 18-24k I make 2500 a month and pay about 7-800 in bills per month I have insufficient credit history but in need of a larger car for my job. What steps should I take next towards purchasing a new car? Could I get fainanced for a loan?
Trent,
The first thing I would suggest doing is filling out our secure online car loan application at http://www.autocreditexpress.com/sem. If you have any questions before doing this, you can contact our customer service department at 866-902-4403 or by emailing us at support@goacegroup.com.
Unfortunately, for security reasons, we are unable to take customer credit applications over the phone.
My fiancee is in need of a car loan our credit is in the 500′s the car that we have now is not good. He has a repo on his record where can he go to get a loan? we are in new york
Kim,
If you are willing to co-sign the loan, you’ll have a much better chance at getting approved – especially if the repossession is less than a year old. In addition, the chance of an approval will also be dependent upon how much of a down payment you can bring to the table. My guess is that with a FICO score in the 500 range and a repo showing on his credit report, you’ll probably need 15 to 20 percent down.
If this is the case, I would suggest applying online at https://www.autocreditexpress.com/sem.
Hi .. im the moron friend who got a car for another friend who defaulted on the loan :/ now I have a repo on my credit from 2008 .. I now would like to up grade my current vechile and cannot.. I consulted an attorney and was able to get it removed from.experian but not the other two. My score is a 610 with not much history a student loan and some credit cards all in good standing. 1 dr bill in collection that im currently fighting cause insurance paid it.. i own a home (husband holds loan im on deed) yes i can get a co-signer but would rather not.. what are my options?
Katie,
There are some banks that will work with you even though you have a repossession on your record. You will have to pay a higher interest rate on your new loan but that can come down as the more positive credit you maintain will offset those negative accounts over time.
I have a bankruptcy but was discharged in 2006.
My income is $1600.- a month. And I work for a Car dealer ship.
I was just told from a Kia dealer that I don’t qualify for second chance loan, because my income is not high enough and because I work for a Car Dealer ship. I was told that many second chance loans/banks to not give loans to car dealer ship employees.
Can i stell get a car loan? Even when i can not get a co-sponsor?
William,
There are a couple of reasons that some lenders don’t lend to dealer employees which includes but is not limited to a possible conflict of interest. In addition, salespeople are mainly paid on a commission basis, making it difficult to predict an actual yearly income. Typically this does not apply to administrative dealership employees.
In addition, though there are lenders that will work with $1600 minimum income, many bad credit lenders have increased or at least been more “tight” recently at a minimum of $2000 per month.
There is a good chance you can get a loan, but it may be because you have not run into the right dealer with the right lenders and vehicles. Another reason also could be that you don’t budget for a vehicle based on your debt to income. In other words, without knowing your monthly bills, it’s hard to know whether or not you might qualify for a car loan.
You can only get second chance financing with used/pre-owned cars, right? I need new car financing. Filed a bankruptcy over seven years ago and they still bring it up when I apply for a loan
Have no credit cards; 2 bank accounts in good order. I am a contractor, but still manage to make $35-45 a year. Tired of used cars that cost more to fix than they are worth due to rediculous interest rates and hidden car problems. Know anyone who would do a second chance finance for a new car in Texas?
Sharon,
There are a number of issues that have to be dealt with in your situation.
To answer your first question, individuals are often able to finance a new cars as well as a 2 to 3-year-old low-mileage used cars with second chance auto loans. Because of the price of new cars and the higher interest rates associated with these types of loans, if you do qualify for a new car it has to be affordable – in most cases under 18K or so.
Even though your bankruptcy was discharged over seven years ago, there still may be records in your credit report showing that they were part of a BK.
The bigger issue is that you’re an independent contractor and not a salaried employee. This is not necessarily bad in and of itself, but lenders that offer subprime loans look for proof of this income. In your case, this means they will require 2 to 3 years of income tax returns that show an adjusted gross income (after you expense everything out on your schedule C) of the $35-45 per year that you claim you make.
If you do have this proof and debt out (meaning your expenses are reasonable for your income and, therefore, your debt-to-income ratio isn’t out of whack), then you should have a reasonable chance of qualifying for a second chance auto loan.
With your lack of credit (no car loans or credit cards), you need to plan on coming into this type of loan with at least 15 to 20% down – the more the better (in fact with 50% down you’d probably qualify for any reasonably-priced new car).
But even if you don’t qualify for the new car you want, right now it’s more important that you take the first step to re-establish your car credit. At this point in time, a 2 to 3 year old used car that is either certified or qualifies for a service contract (preferably covering the entire loan term) would put you on the road in the right direction.
One more thing: if you limit the loan term to 36 to 48 months, you should be able to trade out of this car in 18 to 24 months and into a new loan with a lower interest rate (provided you pay the rest of your bills on time).
Best of luck to you.
I have bad credit and im looking to buy a street bike, is there any lenders that finance street bikes?
Ryan,
I am unaware of any subprime lenders that finance street bikes.