My "below average" credit score kept me from getting the car in my budget... Now what?

Question

Is this it? Will I get the same answer at other dealerships? Should I go with a less expensive vehicle? Give a bigger deposit? Co signer is out of the question (don't want one don't have one). I'm staying below 15,000 and putting up an average deposit. The sales man said to take the deal in 6 months and refinance it once my score is higher. Is this real information? Or should I just keep looking?

Answer 1

The dealer is rarely going to give you the best financing package and interest rates. Shop around and have the financing ready to go when you go to the dealership - they may even try to beat the financing you have!

The best source I know of that helps folks with bad credit get auto loans is http://www.mortgageous.com/noriskcredit

But get quotes from a few places - make them compete with each other for your business.

Answer 2

Lots of americans go through this daily! My advice is to keep looking. If you have credit cards, call and ask what credit breuau they go through, then go to the car dealerships and ask them the same question. Then call that credit beaureu and get your credit report.
If you score is indeed low then wait those six months, a year is better, and do not be late on any and all payments to your credit lines!
You could buy now and refinance but you do not know how the market will be 6 months from now. Your credit score may be better but intrest rates might go up and end up getting an even higher intrest rate. That's too risky!
If you do wait a bit longer, that will also give you time to save up a bit more cash to put down! Try to save $5/day. That's almost an extra $1,000! That will lower your intrest rate 1 maybe even 2 points!

Also, go to different lots and look at the same car! Compare, compare, compare! And don't be afraid to tell them that you're comparing, they might lower their price and have them right it down and sign it. You can even ask the manager to sign it! Be confident!

GOOD LUCK!

Answer 3

Everything depends on how low your credit score actually is and whether or not you had been paying certain types of loans (auto loans, etc...). The salesman is correct in a way because chances are that a company such as GMAC, Ford Credit, Honda Finance, etc... may give you a loan on a new car but at a higher rate. If you pay that loan consistently, you should be able to refinance in 6 months or so and lower that rate as your credit improves. Obviously the more downpayment you have will also increase your chances of getting a loan and a lower rate. Good Luck.

Answer 4

As long as your credit score is the result of establishing your credit. You may have a good chance of financing. You need to find a big volume dealer. One that specializes in good credit, bad credit, slow credit or even no credit. They know what car they can get you financed in and who to use to finance. You will probably have to go with a good used car the first time around. That is what used cars are for. Just about everyone has been in this situation before. When I was establishing my credit and trying to finance a car. It took several tries to get a car, but I didn't give up. I even tried co-signers, but everyone I tried had already borrowed up to their limit.

I would go with a deal that I am comfortable with. Sometimes it is hard to refinance a car because they depreciate very quickly. It will be over what it is worth and you will end up putting down another down payment to re-finance.

One other option may be to find a car with a personal credit union. A credit place where I lived had a repossession and they only wanted what was owed. I bought the car with my not so good credit. I had it financed for 36 months and payed it off in about 26 months. This built up my credit and I traded it in later and had positive equality on it.

These are just my personal opinions and experiences.

Answer 5

From what I've heard, if you can get in on a credit union, they give the best loans. If you don't need the car immediately, I would suggest going to a savings website that offers a higher interest rate, such as Emigrantdirect.com, and putting money in there for a while to build up your down payment. Whatever the case, secure the loan with a bank before you go into a dealership.

Answer 6

check other dealers some small dealers that do there own financing but they will probably need a bigger deposit. most dealers will give u alone if you have a good down payment you can also check your credit to make sure every thing is accurate and that will let you know what you have to do to better your credit. If not just wait a will pay your bills down and make sue you pay them on time

Answer 7

Why not go less expensive? Since you'd have a bigger down payment as compared to the total borrowed then you may get a lower rate. If you have a home, there's always the home equity loan with a lower interest and tax deductible too.

Answer 8

without knowing all of your information, id say that the salesman is probably right

they all look at the same lenders, which is every single one because they want to sell you a car.. so unless you go to one of those budget lots (which i HIGHLY recommend you dont) youre probably going to run into the same thing

the best thing for you to do is to save up as much money as you can for the next 6 months or so.. try to double or triple the down payment you have now. thats the only thing a person can do to combat an unacceptable credit score.

make all your payments on time and save up as much money as possible

Answer 9

Try to find a dealer that does their own financing. They are usually willing to take lower FICO scores. Usually Ford and Honda do their own financing. You just have to find the right dealership.

Answer 10

quit bathing get some fake gag teeth and take the bus