Poor Credit Used Car Loan
I'm needing a poor credit used car loan and I am looking to buy a used car in the 5000 to 7000 price range. My credit score is 580 and I have $2000 to use as a down payment...do you think I'll be able to find a loan for this and if so, where would be the best place to look?Answer:
Hi Tony. It depends on where you plan to buy your next car.
If you are looking to buy private party, then it will be a bit harder if not impossible to get approved. I don't know enough about your credit to say for sure here.
With a 580 credit score, it tells me that there are some issues, but I have seen strong 580's and weak 580's. On score alone you'd fall into a C Credit Tier
which is one of the hardest to gauge on score alone.
If you are planning to buy from a dealership, then I'd recommend you take a look at Auto Credit Express
as they work with close to 600 dealers nationwide that specialize in poor credit used car loans.
All in all, there are lenders out there for all credit situations, no matter how bad, but the terms and what type of vehicle you may be able to buy will vary.
Keep in mind that there are lots of dealers with the right lenders to get you approved out there. Don't feel that you have to settle for whatever the first one says. Take a look at several dealers if need be.
You have a couple of positives working for you here, which should make the process a bit easier for you.
First, you are not looking to finance an outrageous amount of money and second, your down payment (as a percentage) in relation to what you are looking to borrow is very good. Lenders like down payment!!! It lowers their risk.
All in all, your chances of getting approved on your own are limited and a dealer is going to be the easiest way to go here.
If you've got any other questions please don't hesitate to contact me.