Advice regarding a nightmarish financing situation?
A car I recently bought was stolen before I could buy insurance for it. This combined with a credit score of 550 has apparently made it impossible to find another auto loan.
Over the past two weeks, I’ve applied with (and been refused by) dozens of banks. Several dealerships advertising bad credit financing help have been unable to find any financing at all, citing my existing car loan as the reason. Although I was originally shooting for an $8000 loan (the value of my stolen car), I’ve since lowered my expectations to around $4500, with no effect. And all this despite making $2600 per month, and having a cosigner.
Do you think joining a local credit union might improve my chances?
Has anyone out there successfully dealt with a similar problem?
I was actually sold insurance with my loan, but I canceled it shortly after I bought the car, in favor of a company (Progressive) with better rates. Unfortunately, there was a problem (my bank hadn’t yet cleared a recent paycheck deposit, despite the online account showing that they had, and so the initial deposit bounced) and the first time I heard of this was when I called to report my car stolen, which was four days after I received an email stating that the initial deposit had been processed, and my insurance account activated (they had informed me of the bounced withdrawal via mail, which I didn’t receive until the day after my car was stolen.
Some Additional Resources:http://answers.yahoo.com/question/index?qid=20100619191304AATu4dU
Jun 19, 2010. I have a poor credit, but I am working to improve …. Just buy a car for $5000 and save the other $1000 for repairs.
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).
Anyway, I intend to keep paying the original loan, I’m just trying to find a second loan- can anyone recommend a bank that might be willing to help? I’ve tried all the major ones.
Comment by Chris
freedom from debt!
Sorry, I don’t have an answer to your problem.
In New Zealand all cars are autimatically insured for 24 hours after taking them of the car yard. It is up to you to insure before time runs out.
How long did you have the car before it was stolen?
Good luck
Posted on March 20, 2009 at 8:16 am
Comment by jon s
antique kodak cameras
Did you purchase the car that was stolen from a licensed dealer?
Generally speaking the buyer (you) is required to sign an “agreement to provide insurance” form AND the dealership is required to verify coverage in order to process the loan (get their money for the car they sold you from the bank) and registration paperwork.
Banks and credit unions require comprehensive (theft) and collision insurance on any auto with a loan against its value. .
As a finance manager I can tell you right off the bat what your credit report says about the loan you had on the car and what you are saying about the car aren’t the same.
The bank is reporting that you have the car and owe on the car, you’re saying “I don’t have the car and I had no insurance (which you were required to have!)”.
Was there a police report filed about the theft?
How did you not have insurance if you financed it?
You have to clear that issue up in order to move ahead!
The bank with the loan on it can’t repo it if they don’t know where it is so eventually (years) it will just end up being a charged off auto (on your credit report). Once it reaches that point I know banks that will give you another loan but you’ll need a hefty down payment to get into a decent car (plan on 3k if you want a 10k car!) and the interest rate will be high. Most credit unions have requirements for potential members. If your credit report is horrendous then they will make you clean up some collections before loaning you any money.
Cosigners can only help if their credit is good and/or they are not financially overextended themselves!! Banks are not stupid!
If you can’t get the issue resolved and reported on your credit report in a way that shows the car is gone and the loan is charged off then you could always try a small buy here pay here place…but that won’t help you reestablish your credit and you won’t get as good a car!
Good luck!!
Posted on March 21, 2009 at 10:54 pm