Buying a Car with Poor Credit

I would not lease. The contracts are killers on miles and damage to the vehicle when you turn it in. You could try a local dealer. Most have multiple lenders that they work with. There is a Chrysler dealer here that told me that they work with over 50 banks. However, credit is not so easy to come by now. Two years ago I walked out of a Toyota dealer with a Scion for just a signature. This was with mid 600 credit score. Most lenders are looking for higher now, and a down payment or decent trade. I would be very careful of the ads that are looking for bad credit customers. You will usually pay a very high interest rate, and they do not always offer you the best quality cars.

I bought a car a few days ago. My credit scores were alot higher than I thought they'd be. maybe that's how it will turn out for you. I got a 4.9% interest rate.

Are you a member of a credit union? Credit unions are notoriously nice to their members, even those who don't have the best credit. If you have a few months before you really need a car, go open an account with a credit union and when you need a loan you're likely to get the best rate from your credit union. Go to this site to find a credit union in your area: creditunion.coop/how_to_join.html

I do have a credit union...how long does it take to establish that kind of relationship?

what scores do they look for at car dealerships?

We got a loan at the CU with a very low credit score- mid 500's. We started out getting a small signature loan and paying it back quickly to help build the relationship with them.

I haven't been able to get a dealership financing for about 7 years...when our credit tanked :roll:

It really just depends on where you go and who you talk to. Our last vehicle we purchased used from a used car dealer and were able to get a nice vehicle with low miles-had a trade in and $500 down pay. Intrest rate is high (18%) but payments are low at $244 a month and after 18 months on time payments our intrest rate went down to 11%.

Good luck,
Chrissy

does chexsystems hold relevence with CU loans

I just got a truck and I had the dealer try their lenders first and I got 2 pretty good offers. But 1 wanted $2000 down and they would give me a 5 year loan. I wasn't happy with that, so I called my credit union and I got an even better deal through them. No down payment and I even got to trade in my POS that they had a lein on. My credit isn't that great. But I think it's because I have direct deposit on my paychecks and they take payments every payday and they get their money first before anything even goes into my checking account. So I make more than 1 payment per month, I am even saving on the interest by paying this way.

Oh and some credit unions are real good, that you don't have to be a member yet and they will do this for you. They did for us. They gave us a loan for a cabin and we were not even members there yet, and at the time we had pretty bad credit. But now all of our loans are through our credit union, i will never go to a regular bank again.

My Credit Score is in the mid 500's, as well. When I recently was in a car accident ( and totaled my car..) I was in the 'same boat'. My credit wasn't good enough to buy a 'new' car. If I COULD get a loan, it would be at a VERY high % rate. I looked at a few of those 'Buy here-Pay here' places (don't go there!!). FINALLY.... I found one...a very GOOD used car...on a car lot. I know it's time consuming looking for cars. ..it took me a long time. I think if you go with your instincts, you'll find one.

sdchargers 63: did you get a loan for that used car? or just pay cash? i need a new car and have a score in the mid 500's and i'm wondering what to expect?

thanks!