What does your credit score need to be in order to buy a new car?
by Author on Tuesday, August 3rd, 2010 | 6 Comments
My husband and I are buying a car jointly, but we don't have great credit because we recently purchased a house and various things that made our credit take some big hits. Is there a particular score that they look for when you buy a car?
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As a former finance manager at a car dealership, I know a bit about this. Put in the most simple way, there are many many lenders out there who specialize in "sub-prime" auto lending. They usually require a score above 500, but there are other lenders that will lend money for a car no matter what your score, if you have enough cash down, and the LTV(loan to value) of the car is in line. But keep in mind that the lower your score, the higher the interest rate. A lot of states also have max interest rates for the different loan terms, i.e. 60 or 72 months. My suggestion is to check with the bank that you use first and see what they are willing to offer. Especially if you have a great banking relationship with them! Good luck
No, you’ll just get a higher interest rate on the loan, which will inflate the payments if you don’t put down a sizable downpayment.
Actually, having a house can really boost your credit. Have you checked out the number? Anything over 650, is good. You’d be surprised what you would get approved for when you own a home.
There is no particular score one needs to obtain credit. Many factors are involved, such as, selling price, money down and what your credit looks like overall. Get a copy of your credit report, so you are prepared. I’ll be more than happy to help if you contact me. I won’t try to sell you a car. jpcamaro70@yahoo.com
i dono..sorry
You don’t need a particular score to buy a car. The better your score the better terms and interest rate you will get. My wife and I just bought a new Toyota in April. The salesman said a score in the mid 600′s was needed for Toyota’s best offer. The higher your score, is the easier it is to qualify. Being a homeowner helps a lot. So does stability at a job.