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Posted in Auto Loans
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Question By
EmmieMG

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Drive Time - Low Down Payment?
All righty so here's the situation I'm currently in:

I live in a house where the rent is $750 a month with five people, but only two are working at the moment. I make about $10 an hour and usually work around 20 hours a week while my brother makes $10.35 and works probably 25 hours a week. With that said, our utilities around probably $375. So every week we have about $175 left for food and other household items after putting back the necessary money for monthly bills (although my sister does get $198 in food stamps which helps buy some food). My credit score is poor (within the lower 500 range) so I can't really get a normal car loan, which is why I would want to go through a place like Drivetime.

But the thing is I don't want to put in my information into a website where I might end up getting rejected. So I was wondering if someone could tell me what their down payment was for Drivetime with a low credit score and for someone who makes not a whole lot of money. The used cars in my city on Drivetime seem to be within the $8,000-$10,500 mark but we really need a car! Our current one has so much wrong with it that I'm really afraid that it'll die on me at any point (if anyone knows what a car smells like when the catalytic converter needs replacing you'll understand my pain haha).

So! Anyone know what I could expect if I go through Drivetime? And... if anyone knows where I could get very minimule car insurance that'll be fantastic, heh.

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With the low income, your "debt to income ratio" is probably pretty much used up. I think you will have trouble getting approved. And truly you are really not in the position to purchase an $8-10k vehicle, you would cause yourself a lot of financial hardship. Full coverage auto insurance is pretty expensive any more and that alone could range between a hundred to two hundred per month alone and you will surely still have vehicle repairs to make as none are maintenance free. The interest rate for poor credit is sky high and that would add a ton of more money to the loan. The loan for the vehicle would probably be "underwater" (meaning you owe more than the auto is worth) from day one. Sorry for having to tell you all of this, but this is not the time for you to try to get a vehicle. And also, I would be telling people in the household to go get some jobs or get them out or find a new place for yourself. Freeloaders are not going to help you ever get into a better financial position.

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