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Posted in Auto Loans
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mjbdo

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i need to buy a car, but my credit score is 505. how and where can i get a auto loan?

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Most auto dealerships, both independents and franchise dealers, will have a sub-prime programs with various bank and finance companies. If your credit is poor due to circumstances in the past, they will be able to help you, assuming you have at least 10% or more cash down. Be realistic and aim for a basic transportation car that fits your budget. Make sure you take with you your driver license, paycheck stub, proof of auto insurance, 6 personal refernses, and of course at least 10% cash down of selling price). When you walk in prepared the dealer will take you as a serious shopper and give you the attention as if you were a 800 score.

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Buy with CASH!

Helpful to 3 out of 5 people

I recently voluntarily surrendered my vehicle because when I purchased it, I had poor credit (620) and was given 29.9% interest rate with a 72 month term on a vehicle that was already 5 years old. After doing the math, I would have paid $29k for a vehicle worth only $5k and the likelyhood of this vehicle lasting to the end of that 72 month term was very slim.

My advice to you is to save up to purchase a car with cash instead of risking the high interest rate and long payout terms.. I called around to different dealers to see if they had any used cars on the lot for under $5k and if they did, I went to take a look at my options. In the end, I drove away with a car worth $5k according to KBB and Edmonds for only $3995+TT&L. If you show cash, the dealers usually will haggle down but be firm that you're not spending a penny more. Almost always, if it's a fair salesman, he will eventually break and hand you the keys. 

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