What Credit Score Do I Need To Buy A New Car in 2012?
October 29th, 2012 | Author: Stephanie
[A] common question among people looking for better transportation is, “what credit score do I need to buy a new car? ” There is not an exact “magic number” that will help guarantee the car loan of your dreams. Even if your credit rating is so good you are not concerned about the number, you still might not qualify for an auto loan.
Lenders want to see four key pieces of data if you are applying for a new car loan. Ideally, you should have at least a 660 credit score without any recent late payments. A 700 or higher is virtually perfect for borrowing money to secure a new motor vehicle. However, if you cannot prove a stable job and residence, even a perfect credit score might not help you. You should have at least 12 months, ideally two or more years, at the same job and residence to secure a new vehicle loan. If you switch jobs and move
around a lot, you become a credit risk to auto lenders. In the event that you default on the payments and the lender needs to repossess the car, the lender wants it to be as easy as possible to locate you and the vehicle.
The final key piece of information a lender will seek is whether you have successfully repaid a car loan in the last seven years. If you have one or more paid in full motor vehicle loans on your credit report, then your potential lender will probably be ready to issue those loan papers you covet.
Another question people ask is “do I need a down payment to buy a new car? ” It depends on your credit rating, your income level, and what type of vehicle you wish to buy. In most cases, you should expect to pay at least $1,000 down especially if you want a luxury vehicle. However, if you have a perfect credit score then you probably will not have to make a cash down payment to qualify for a new car loan.