Comments on: General Requirements for High Risk Car Loans http://www.autocreditexpress.com/blog/2008/01/15/general-requirements-for-high-risk-car-loans/ How to get an Auto Loan with Bad Credit - Auto Credit Express Wed, 17 Mar 2010 22:35:49 +0000 http://wordpress.org/?v=2.6 By: Steve Cypher http://www.autocreditexpress.com/blog/2008/01/15/general-requirements-for-high-risk-car-loans/#comment-2851 Steve Cypher Mon, 13 Jul 2009 13:33:07 +0000 http://www.autocreditexpress.com/blog/2008/01/15/general-requirements-for-high-risk-car-loans/#comment-2851 David, The dismissal and tax issues may scare away a few lenders. You are still looking at the probability of a subprime loan for a vehicle (as I'm sure you are aware of). At this point in time, my suggestions are as follows: 1. Keep the vehicle in the 20k to 30k range (possibly a 2 year old vehicle that was originally in the 40k range) and keep the loan term as short as possible (36 to 48 months max). This will lower your interest expense and after 18 to 24 months you should be able to re-finance the vehicle or get into a new loan with a different vehicle at a lower rate. 2. Plan on putting between 15% and 20% down. Not only will this help you obtain a loan (lenders like nothing better than to see customer equity), it should enable you to maintain an equity situation in your vehicle so that you can roll out of it cleanly when the time comes for your next car. David,

The dismissal and tax issues may scare away a few lenders. You are still looking at the probability of a subprime loan for a vehicle (as I’m sure you are aware of). At this point in time, my suggestions are as follows:

1. Keep the vehicle in the 20k to 30k range (possibly a 2 year old vehicle that was originally in the 40k range) and keep the loan term as short as possible (36 to 48 months max). This will lower your interest expense and after 18 to 24 months you should be able to re-finance the vehicle or get into a new loan with a different vehicle at a lower rate.

2. Plan on putting between 15% and 20% down. Not only will this help you obtain a loan (lenders like nothing better than to see customer equity), it should enable you to maintain an equity situation in your vehicle so that you can roll out of it cleanly when the time comes for your next car.

]]> By: David H. Harvey http://www.autocreditexpress.com/blog/2008/01/15/general-requirements-for-high-risk-car-loans/#comment-2840 David H. Harvey Sat, 11 Jul 2009 14:10:41 +0000 http://www.autocreditexpress.com/blog/2008/01/15/general-requirements-for-high-risk-car-loans/#comment-2840 Income: approx. 200k/yr., very stable job. family/financial hardship in Jan. 2008: evicted from home. Date of Sherrif's sale: 11/6/06. Bankruptcy voluntarily dismissed by me/ court in Sept. 2006. Now in new house on Land Contract, all debts paid or up to date, in process of offer of compromise for any outstanding tax debt. Family/ financial issue completely settled: Wife completely handles finances with balances to the penny Want to spend about 40k on new car, probably less. Would value your insight and advice. Thanks, Dave Harvey Income: approx. 200k/yr., very stable job. family/financial hardship in Jan. 2008: evicted from home. Date of Sherrif’s sale: 11/6/06. Bankruptcy voluntarily dismissed by me/ court in Sept. 2006.

Now in new house on Land Contract, all debts paid or up to date, in process of offer of compromise for any outstanding tax debt. Family/ financial issue completely settled: Wife completely handles finances with balances to the penny

Want to spend about 40k on new car, probably less. Would value your insight and advice.

Thanks,
Dave Harvey

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