2006-06-08 09:47:06 · 7 answers · asked by DARRELL J 1 in Cars & Transportation ➔ Buying & Selling
pay cash.
2006-06-08 10:21:02 · answer #1 · answered by bsm 1 · 0⤊ 0⤋
A credit score of 481 puts you in a very high risk category. While you can find dealers who will be happy to finance you, it's probably not a good idea; the interest rates will be sky-high. Probably over 15% and maybe even over 20%. I'd strongly recommend saving up just enough to buy a used car, even if it's really ugly or even old, as long as it is in decent condition, and driving that till your credit improves.
If you insist on getting a car on payments anyway, you will not be able to get a loan from any of the bigger dealers unless you have a very substantial income. While car dealerships do make a big part of their profits from financing, their primary business is still selling cars. They won't lend at a premium once the risk of your non-payment gets too high. So you need to look at a business who is really making the bulk of their money off of the financing and not the cars themselves. Usually these dealers have only used cars. They're willing to lend at a high rate because the profit they make on the loan covers the cost of repossessing the car and selling it again, should you default.
If you are a member of a credit union you may do a little bit better. But when your credit rating is so low, the best thing to do is to wait before buying anything on credit or financing till you have a higher score. This gets you lower rates, lower payments and also helps you to understand your budget before taking on another debt.
2006-06-08 09:59:51 · answer #2 · answered by dcgirl 7 · 0⤊ 0⤋
at 481 -- you will need at leas 2 grand down for a cr thats 10 or under ... expect 25% APR .... lets face it your credit sucks and it needs rebuilding ... so take the money and expect to put down a big part of the car up front
2006-06-08 18:42:14 · answer #3 · answered by theevilfez 4 · 0⤊ 0⤋
With a credit rating that low, you will find a few dealers willing to finance you but the APR wil be outrageous. I would suggest you find a cosigner so you can get reasonable payments.
2006-06-09 11:35:33 · answer #4 · answered by zippo 4 · 0⤊ 0⤋
I have been surfing more than two hours today looking for answers to the same question, but I haven't found any interesting discussion like this. It is pretty worth enough for me.
2016-08-22 23:29:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Haven't thought about it
2016-08-07 23:17:24 · answer #6 · answered by ? 3 · 0⤊ 0⤋
J D ByRider
2006-06-08 09:57:38 · answer #7 · answered by Iron Rider 6 · 0⤊ 0⤋