Need a loan badly, don’t know where to turn

I’m a third-year medical student commuting over 40 minutes daily for clinical rotations. My car was totaled in an accident recently, and I have no extra funds or loan options left since I’ve maxed out my student loans. I tried for private loans, but no luck so far. What are my options? I get loan money in January, but I need to make it to class next Wednesday.

Could you use the insurance payout to buy a replacement?

Gale said:
Could you use the insurance payout to buy a replacement?

Unfortunately, my insurance doesn’t cover collision, so there’s no payout.

beams said:

Gale said:
Could you use the insurance payout to buy a replacement?

Unfortunately, my insurance doesn’t cover collision, so there’s no payout.

Not sure why anyone would have car insurance without collision.

The challenge here is that without income, lenders don’t have a reason to give you a loan if they see you might not be able to make the payments.

Maybe look into long-term car rentals or a buy-here-pay-here used car lot. These places usually have very high-interest rates and a limited selection of vehicles. The loans are often predatory since they focus on people with few options.

@JamesHenry
I was in a similar situation without the funds for monthly payments. I ended up getting an older car—Ford Focus 2012—using car gurus. Check the car history and dealer reviews because some turn back odometers or sell stolen vehicles. You could also search for common issues by make, model, and year to avoid specific problems. Mine only lasted a week before the transmission failed, which apparently was a common issue for that model. It might not look nice, but you might find something in the $3-6k range that lasts a year or so.

@JamesHenry
I’d explore every option possible first—taking the bus, getting a ride, using an e-bike, or asking friends/family. If you really have no choice, then a buy-here-pay-here car lot could be a last resort. About six years ago, I was in a similar situation, ended up paying $11k for a car worth $5k at a 19% interest rate over five years. Luckily, the car lasted a while, but it was a tough financial choice. I paid off the balance early to save on interest, but if you go this route, expect really high rates (maybe around 25% APR these days) and prepare to deal with some heavy costs.

You might have to look into alternatives like the bus, Uber, biking, renting a car, or asking for rides.