What Every Auto Loan Customer Wants to Know
• How much of a down payment will I need?
• What will my payments be?
• What is the interest rate?
• Do you have [your car here] in stock, and how much is it?
Here’s the shortest answer we can give because every individual case is different:
As a general rule, thanks to the credit crunch and mortgage meltdown, think of at least 10 to 12 percent down in cash or trade (whether a new car loan or a used car loan).
Most bad credit car loans have payments in the $250 to $300 a month range because banks have formulas based on your ability to repay. Your interest rate will depend on a number of things, including your credit score. You can see average rates matched to credit scores at www.MyFico.com.
In terms of specific cars, if you really want to get bank approved, think about your dream car but only a few years older. Most bad credit car loans are in the range of $7,000 to $12,000, but that’s not a big deal — there are hundreds of quality cars available at that price. Don’t believe us — see the annual Auto Issue from Consumer Reports. They even have best bet cars listed for as little as $4,000!