Join Date: May 2004
Location: Pacific Northwest
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Need a new (used) car, terrible credit - what to do?
We need a bigger vehicle as our kids literally no longer fit in our backseat. Kids are 3, 5, and 11 and the 11 year old is completely squished between the two car seats. We need a third row.
But our credit is really bad (like 570) and we don't have much of anything in savings. We can probably pull together about $2,000. I'm trying to figure out if it would be better buy what I can find for $2,000 private party (which would likely be very old or in very bad condition) or take my chances at a dealership, using the $2,000 as a down payment on something in the $10,000-$12,000 range and financing the rest at a likely ridiculous interest rate.
Our credit is so bad because we had several accounts go to collections about 5 years ago. We paid it all off and have most of our credit card debt paid off as well, but our credit wont really improve until those collections fall off our credit report in around 2 years. We have worked very hard over the past five years to pay down over $40,000 of debt and I hate the idea of accruing new high interest debt, but I also need a reliable vehicle. Thoughts?