Best Answer: Everyone who's told you they bought a car with bad credit hasn't bought one recently. NOBODY with bad credit is being approved today. The reason so many banks and lenders have gone down hard is because of all the bad loans they made. That isn't happening anymore.
it's not just your credit score lenders will scrutinize. They'll look at the the derogatory marks that brought your credit score down. They'll look at your debt to income ratio, if your credit card balances are 75% or more of your credit limits, how long you've been at your current job and how long you've been at your present address.
GMAC, Ford Credit and Chrysler Financial have turned down 75% of all credit applicants in the past month. Honda and Toyota are
advertising they have plenty of money to loan. But read the fine print. you have to be a 725+ score to qualify.
The few subprime lenders that are left are also being extremely careful as to who they'll approve. And if they do fund your loan, you can count on paying dearly for it with very high interest rates. And you'll have to keep the car for the term of the loan because you'll always owe more than its worth b/c of the APR you'll have to pay.
This is very bleak news. But its the reality of how the market is today. Being a sales manager I'm painfully aware of how bad it is.
Source(s): Me. new car sales manager for over 30 years.
insidebuy · 7 years ago