Need a new car with horrible credit and little money down, possible?

[Anonymous]

I feel so defeated!! Our SUV is 7 years old with 93k miles (we got it used). I found out today that the engine is bad and we need a new car. We got a bad deal on it and we have about 10k negative equity in it. We are just coming off of an 18mo period of unemployment and are really tight. Our credit is horrible because some months, we couldn't pay bills because it meant the kids woudn't eat. We got our lender to delay 3 payments and add it on the back end of the loan which was great when we had no money to pay our car note but now of course it is adding to our negative equity. I feel so hopeless, do we have any options? We have three young kids and really need a car. Any advice?

[Anonymous]

How would another car be cheaper? You will still have to pay back the 10k, and THEN the cost of the other car.

[Anonymous]

Is the car unfixable?

[Anonymous]

Wouldn't a new engine be cheaper since you are already in the hole $10k?

If you must replace the vehicle, buy a used basic sedan. It will fit your family of 5 comfortably enough.

[Anonymous]

Anonymous wrote:Is the car unfixable?

I got the impression that it would be a few thousand to replace the engine. I plan to take it to another place in the morning.

[Anonymous]

You shouldn't have an SUV. They are more expensive.

If you live in dc area, take bus and metro. If not, get a cheap sedan.

[Anonymous]

Anonymous wrote:You shouldn't have an SUV. They are more expensive.

If you live in dc area, take bus and metro. If not, get a cheap sedan.

+1

And yeah, a few thousand to fix an engine is DEFINITELY cheaper than buying a new car when this one is still not paid off.

[Anonymous]

+1 on fixing the engine, not buying a new car. Although now that I've said that...what is the make and model of the car? If it's a Toyota or Honda or similar, keep the car and fix the engine. If it's a Jeep or similar, those don't age well and you might have to keep fixing it.

Make and model will help us give you better advice.

I'm so sorry, OP.

[Anonymous]

Hopefully it is a Honda or a Toyota.

These brands have better reliability than American counterparts.

[Anonymous]

Fix the engine, and don't ever buy an American car again.

[Anonymous]

It's an 07 Ford Expedition. We need an SUV because we have three kids in car seats. I would love to get a cheap sedan! We have been throwing money at this car for so long. Over the past two years it has averaged to $400 every three months. The coils always need to be replaced. Two different mechanics told us that Ford trucks has engine problems that year and we should trade it in. The other fact is that DH didn't get the car fax when he bought it and we found out a few years ago (when we initially wanted to trade it in) it had been in an accident right before we bought it. I know, I know, stupid move. We had a lot going on at the time and I was in the hospital.

[Anonymous]

Hi OP! I have three kids in car seats and have a prius so it is TOTALLY possible to have 3 kids in a sedan. The gas alone in an expedition would be insane. Buying a new car will only (maybe) work out in your favor if you buy a cheap yet reliable used sedan. I would be looking at buying a used accord or camry but I would also get 3 estimates on the engine. If it costs less than 3 -4k I would fix it. Even if you found a decent car for 10-12 grand its really going to cost YOU 22k.

[Anonymous]

Yup, you need a used Camry. You can absolutely fit three car seats across. Even if you need to replace one or two car seats with a smaller model, you'll make it up on gas lickety-split. Plus, tires and repairs are cheaper. There is absolutely no reason for you to own an SUV. None.

[Anonymous]

So, you buy anything, you will owe 10K+ the replacement car. I know you will not get a loan with favorable terms, and probably won't get a loan at all.

Since your credit is in the shitter already, your best bet might be to let the car be repossessed, and hope the bank writes it off. Otherwise, consider bankruptcy.

Buy a cheap sedan with cash....My sister, for example, keeps buying 1996-1999 ford taurus's for about 1K. They work until they die. She usually gets 1-2 years out of them.

In 5-7 years, hopefully you are back on your feet credit wise...

[Anonymous]

You are living beyond your means, which unfortunately in this area doesn't mean you are living all that well. But you need to scale back if you ever hope to get it together. If you get rid of a car you can solve a lot of financial problems. Take the bus and Metro, and use a Zipcar when you need it. If you can come up with a few grand, buy a cheap reliable sedan as others have said. But my guess is you can't come up with a few grand, otherwise you would just get the current SUV fixed. I speak from experience - I had to take my kids to daycare on the bus every day and while it sucked, it was what I could afford and allowed me to save up to buy a cheap Honda that still runs fine 10 years later.