I am thinking about buying a New Car but my credit score isnt that good what is the best Interest rate ?
ok I am thinking about buying a new truck and trading in my old car my old car I owe just about what i can trade it in for so thats a wash... I was wondering what kinda interest rate everyone thinks I could get and the amount I can finance my credit score is in the 630 range. I have no lates just little high dept to income ratio because I make most money in overtime. so what do you think? I am looking to get a 07+ Toyota Tacoma asking price is 32k
Public Comments
- You can, no doubt, find financing though it will not be cheap. But trading in a car on which you still owe money is not financially wise. You will immediately lose on the depreciation of the new one. So ask yourself if you really need a new car or if you just want it.
- Auto finance is what I do for a living and auto loans are made based on the following factors; 1. LTV (loan to value). 2. Term of loan. 3. Age of vehicle. 4. Miles on vehicle. 5. Down payment. 6. Time on job. 7. Time at residence. 8. Monthly income before taxes. 9. Credit score/profile. 10. Total debt to income ratio. Since you are looking at new items 1 through 5 should not really be a factor. With a 630 score you will fall into the sub-prime area so depending on how the rest of the factors look you should be anywhere from 12.49% to 16.95% depending on term.
- If your credit is not great, I would look here http://www.creditcarddetails.com/bad_credit.html for your options. Get free advice from a pro and find a low interest card that will help you make this big purchase. These cards will also help you improve your credit so when it's time for your next large purchase, you can be ready.
