Disabled, buying a car from dealer without losing credit rating

[teapot01]

Hi, folks! I'm new to this forum, and I tried finding a good place to post this, but this is the closest I got to my question. In the grand scheme of things it might sound trivial, but I really need help with this.

I've been living with HIV for 20 years, and working most of the time. A stroke put me in the hospital and on disability. I'm managing to live with both conditions, but now my car is near dead and I'm trying to get another one (on a disability income, no less.)

Somehow I kept my very high credit score--an "A" over 900 with one of the credit reporting agencies--by frugal living. I need to find a way to get a used car at a dealer without stating my employment status and income. Because once the changes in what I earned then and now are run them through the  agencies, they will likely turn down my application, I won't be able to get a car and my formerly good credit rating will sink like a rock. They will also likely cancel my cards, and I pay for my meds through through a credit card.

The irony is that I plan to get the cheapest car possible and pay cash...only by then they will have seen my income and stuff, and it will be too late. The damage will already have been done.

Yes, I could avoid dealers and go with a private party, but doing so makes me very nervous. A dealer has a reputation to uphold and a fixed address, and mostly I will avoid buying a lemon. And in my city, we have a crappy public transport system, so doing without a car is not an option.

Of course, I could fill out the dealer's paperwork and roll the dice. I think that would be extremely foolish, because the credit card companies are heartless; it's run strictly by the numbers. I know I'm responsible, but THEY don't.

I've searched the Internet for answers, but come up with nothing. Anyone who can help with this, I would be very grateful.

I'm sorry this post is so long, but I tried to be concise and to explain things, and this is the best I could do!

Thanks!

[pozniceguy]

Hey anxious guy  I don't know where you live but any Dealer I know will sell you a car for cash and issue a bill of sale.....They don't need to know any more about your status or income or credit rating,   they do have to turn in the sale to the   Motor Vehicle dept for taxes and insurance purposes...but none of that requires anything more than your name and address...   If you currently have insurance all the major companies will automatically cover your new car when you tell them you have have bought  a new one or sold the old one...they will probably adjust the rates...
In Texas you have to have proof of insurance before a "Dealer" can sell you a car...( that's why the insurance companies will automatically cover you if you have current policy)

If they ask for any personal info just tell them you are paying cash....don't answer anything else.....most sales people at a dealership try to sell you on "payments"   don't  let them push you , stick with cash and stonewall any personal questions...

I was in the business of "wholesaling" cars for a few years....be careful with pushy salespeople...they work on commission......and will try to squeeze the most expensive  total sale price they can out of you.....it is how they make their living...don't fall for "extended warranties""   undercoating,  or any type of coating for outside or inside the car... all basically scams...be especially careful of "free oil changes" or "brake inspections"  they will end up costing  a lot of money...

Good luck

Nick

[denb45]

Hi, folks! I'm new to this forum, and I tried finding a good place to post this, but this is the closest I got to my question. In the grand scheme of things it might sound trivial, but I really need help with this.

I've been living with HIV for 20 years, and working most of the time. A stroke put me in the hospital and on disability. I'm managing to live with both conditions, but now my car is near dead and I'm trying to get another one (on a disability income, no less.)

Somehow I kept my very high credit score--an "A" over 900 with one of the credit reporting agencies--by frugal living. I need to find a way to get a used car at a dealer without stating my employment status and income. Because once the changes in what I earned then and now are run them through the  agencies, they will likely turn down my application, I won't be able to get a car and my formerly good credit rating will sink like a rock. They will also likely cancel my cards, and I pay for my meds through through a credit card.

The irony is that I plan to get the cheapest car possible and pay cash...only by then they will have seen my income and stuff, and it will be too late. The damage will already have been done.

Yes, I could avoid dealers and go with a private party, but doing so makes me very nervous. A dealer has a reputation to uphold and a fixed address, and mostly I will avoid buying a lemon. And in my city, we have a crappy public transport system, so doing without a car is not an option.

Of course, I could fill out the dealer's paperwork and roll the dice. I think that would be extremely foolish, because the credit card companies are heartless; it's run strictly by the numbers. I know I'm responsible, but THEY don't.

I've searched the Internet for answers, but come up with nothing. Anyone who can help with this, I would be very grateful.

I'm sorry this post is so long, but I tried to be concise and to explain things, and this is the best I could do!

Thanks!

You might want to take a look at these websites they are GREAT for buying  new and used cars:

http://www.drivetime.com/

http://www.carmax.com/

both have and sell certified used and news cars.......so check it out, they will save you a lott more than any car dealer might 

[pozniceguy]

I agree with denb45...both are reliable sources....however notice that drivetime really push the idea of "payment" and "credit for difficult cases"  be careful  they almost always price their cars to account for a significant "loss/damage" from persons who have a bad credit rating....they may end up reselling  a car two or three times after repossessing it ...They are primarily in the finance business  and use the cars as the means to loan money

CARMAX  is a great place  ( I have sold many vehicles to them)  very reliable and they will work with you on any basis you want..cash..credit..or lease....

Nick

[DavidinCA92284]

I would be very careful when buying a car with "cash" - which usually means writing a check to cover the cost.   The reason is my experience buying from a Mercedes Dealer years ago.   I went in by telling the sales person that I was buying with cash.   They had me fill out the standard documents - which included a "loan" document even though I was not going to finance the car.  They said it was standard procedure just to get my basic information.   I informed them that since I was paying with cash to NOT run my credit check.  They ran the check anyway!     I had to get the manager of the dealership under threat of legal action and not buying the car to erase the inquiry from my record.

So, the moral is - make sure that if you have to fill out any paper work that includes in small print the right for them to check your credit, to write in big letters:  NOT AUTHORIZED TO RUN A CREDIT CHECK.  PAYING CASH.  Insist that they phone your bank to verify funds.

As far as being afraid of having your "income" or job status reported . . . the only thing that's really reported on your credit report is your current JOB.    If you are getting a disability pension from your company in which you get a W-2, that company name appears on your credit report as a current employer even though you no longer are considered an "employee".    But if you are not receiving a company disability income and only SS - then your prior employer of years ago might only appear as a previous employer, not current.....and might not even show up.   

The way I would handle a transaction with limited income is to be honest and say you're on long-term disability and paying cash.   The reason the honest approach is best is because by saying you are not "employed" they can not in good faith offer you financing, unless you are in a position to be able to make payments - which is why the credit information is taken in the first place.

[dixieman]

I'm trying to figure this out... Why? would the dealership run a credit check if your paying cash/check in full for the car... I've never heard of this? I've only witnessed car dealers running credit if your going to be financed... now if your paying by check I'm sure they want to check to make sure you are in good standing with the bank.... something just does not add up to me... just my opinion...

[bear60]

Ok I'm having some trouble with the notion that you have had a stroke and are still driving.  A good friend of mine had a stroke and as a result he cannot drive anymore.  I dont think he could even GET a drivers license. But he did buy a new car and has someone drive him where ever he needs to go.

[positively_me]

If you are paying cash, and tell the dealership this up front, you should not have a credit report pulled.  There would be no need for them to look at your credit if you are not financing it.

Also, I work for a credit reporting agency and can tell you that your credit score from one of the three bureaus isn't as important as your FICO score.  The bureaus have a score modeling program, but FICO is still the standard score that everyone wants to know.  So don't rely to heavily on a score given to you by TransUnion, Equifax or Experian. 

[teapot01]

THANKS to everyone who replied! I'm still getting the hang of this forum, but Ill comment on the earlies replies first.

pozniceguy--I didn't know that a dealer would issue a bill of sale for cash, without any credit report. I did plan to take any car to my mechanic before buying it, though. I wonder if that would complicate things. I wouldn't consider buying a car without my mechanic's blessing.

I would absolutely be okay with giving them my bank info so they can see I've got the funds to buy it. Thanks for the warning about Drivetime. I'm glad you had a good experience with CarMax.

denb45--Thanks for the info. I was already aware of CarMax, but they are so expensive! But the idea of a "certified car" makes me feel better. Lots of cars have been through Hurricane Katrina and they are being sold used. That's a big problem I want to avoid.

Drivetime is unfamiliar...I have to look into it.

DavidinCA92284 -- What you relate at the Mercedes dealer was exactly the kind of situation I was trying to avoid. Your idea about "not authorized to run credit check" is worth a try.

My former employer's disability insurance carrier is listed on my tax form as an employer, so what you say about my last actual employer sounds likely to be true.

You last paragraph, about telling the dealer the truth about my financial situation is what my natural instincts would been. But car dealerships are full of all kinds of traps, and I feel the need to protect myself from all those I know about. I don't want to walk in there like a lamb to slaughter.

dixieman-- Yeah, that's why I'm seeking the info. In theory, they should ask for any of that crap when you're paying cash. But they might push me to anyway, which  DavidinCA92284 experienced. As I say, I know they need to verify funds, I'm okay with that.

bear60-- That's a fair question. I had the stroke at a relatively early age, so there was less damage than there could've been if I had been older. I still had to go to physical rehab, and there are lingering physical effects that my doctor says are permanent. I still have trouble speaking...which is why I dread a long conversation with several dealers about buying a car. I've been to six speech therapists, and the last one said I was as good as I was going to get.

She did put me in contact with an outfit that specialized in rehabilitation for brain injury patients, and I went through their program, which was very thorough and included reaction time tests and actual driving with an instructor. (Which I paid for out-of-pocket, and it wasn't cheap.) At the end, I was given a letter discharging me with their blessing, a copy sent to my doctor, and I've been driving safely since then.

It's interesting that nobody contacted the Department of Motor Vehicles. I suppose I could have got in my car after after leaving the various rehabs I went to--nobody would have stopped me until I had an accident. But I don't didn't want to endanger myself or others , and it made my family and my boyfriend feel better, too.

positively_me--Forgive my ignorance, but I thought the credit reporting agencies and the FICO score were somehow the same thing. I guess I need to look into this more!

Thanks for the information, have alerted me to something new.


Thanks for all of your comments! I appreciate every one, and I'll take them all into consideration.