How to Find Financing to Buy an Older Car with a Low Credit Score.

karmasterkarmaster Member Posts: 2
edited July 2018 in General
Hello. I’m looking to buy an older model SUV (such as a 2013 or 2014 Chevy Suburban or GMC Yukon) to be used for business purposes, but I have a low credit score. Aside from improving my credit score, which I will also be doing, what are the best ways to obtain a car loan within the next month or so?

I would save money with the lower price of an older (but reliable) car. But, aside from low credit scores, it seems lenders also tend to shy away from financing vehicles that are older or have a higher number of miles. It also seems that used car dealerships in my area tend to stock mainly vehicles made within the last couple years or so (not much before 2015).

So, what should I do? Try to find a car I like online, then contact the dealership that listed the car and see what kind of financing they can offer?

Comments

  • kyfdxkyfdx Moderator Posts: 197,496
    Do you do business with a local bank? Maybe, visit them, and line up financing, before you start shopping the dealers.

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  • karmasterkarmaster Member Posts: 2
    kyfdx said:

    Do you do business with a local bank? Maybe, visit them, and line up financing, before you start shopping the dealers.

    I have a business account with one of the major banks, but they have more stringent credit history requirements. Also, I’m not sure they would finance an older car.
  • kyfdxkyfdx Moderator Posts: 197,496
    karmaster said:

    kyfdx said:

    Do you do business with a local bank? Maybe, visit them, and line up financing, before you start shopping the dealers.

    I have a business account with one of the major banks, but they have more stringent credit history requirements. Also, I’m not sure they would finance an older car.
    I would find out... ;)

    I'm sure they would finance 2010-2014 model cars... but, maybe not if they have over 100K miles

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  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,350
    You have been given good advice. The bigger down payment you can make the more comfortable the back will be making the loan. The lower the risk the happier they are.

    Please avoid "Mouse House" financing it you possibly can. They may finance with little or nothing down but you will pay a horrific interest rate. If you get behind even a bit on your payments, they will repo your car in an instant.
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