You may want to check with your bank for another offer. Just because the car company says your credit is bad doesn't mean that you can't get a loan elsewhere--they may be hoping you don't try. Watch the interest rate too. With good credit, you should be able to get a rate between 8 and 9 percent. If they are charging you 15%--would you put a car on your credit card?
If they don't give you a rate under 11%, forget the whole deal. Take your $2000, buy a car that runs or fix the one you have, and throw $250 a month (your car payment--so it shouldn't be a problem) into a shoebox/account for your car. Then you have money to fix it when it breaks down, and you'll be saving for a down payment for when your credit gets better. It is almost always cheaper to keep throwing money at fixing a clunker than to buy something slightly used (and new is rarely a good deal money-wise).
Buy a better used car or a new car when you can afford the luxury, and not before. You don't want to make your credit problems worse by taking on a debt at the wrong time at an interest rate you can't afford.
(The paperwork is simple, but they will ask where you work and live, and will run your credit history.) |