Car Loan - Bad Credit but Good Down Payment. What to Expect at dealer?

Hello everyone,

I'm trying to get a new car a 2013 Ford Fusion S to be more precise. The car is $20,500 after incentives ( $2,000) My credit score is very low (500 something) can't get a loan elsewhere I tried. The dealer told me over the phone "We will definitely get you approved with that downpayment. We just want to discuss the terms with you." But its not all bad I have a pretty good down payment $10,000 plus a $3,500 trade in. Will this help me any to not get totally screwed on this deal?


I didn't mention this earlier. But I was thinking even if they gave me a really high interest rate as long as I got a simple interest loan. I could just pay interest for 5 months then I would be able to pay it off in one large sum.( by then I will have more cash enough to finish paying it off) But I also heard of the "Rule of 78" and that scares me specially since I have poor credit. In addition to answer the reason for my bad credit it's because I had an emergency not to long ago and I fell back on all my payments. Trying to get back on track.

Update 2:

I'm just looking for some advice, not to be lectured please. I had a death in the family and I had to leave the country for a while that's why I fell behind on my credit. I currently finished paying off the collections I got as a result and I have less then $800 in debt which is on track. I haven't finished paying that off because I'm trying to get it to help me build credit again.

5 Answers

  • 7 years ago
    Best Answer

    If you have $13,500 in immediate assets between your cash and your car then WHY ON EARTH is your credit so bad?

    The truth is, with your lack of payment history, you have no business buying a new car. You need to be focusing on getting your financial life together and that starts with your credit and outstanding debt.

  • roger
    Lv 7
    7 years ago

    I think you better consider that no other dealer would touch it . If you put your 10 grand down only to find out in a few weeks that the dealer financing fell through or they want more money or they will repossess the car where does that put you?. Not to mention what is the interest rate? with a credit score like that your looking at non traditional source of funding. This means a large interest rate. More money for the dealer any way you look at it. I suggest that you hold on to what you have and when you can go make a cash offer five percent below msrp is what dealers usually do for cash. those incentives come with restrictions and most people do not qualify. best of luck don't trust that dealer he sounds too slimy to me already.

  • ?
    Lv 7
    7 years ago

    Normally you wouldn't get approved with a 500 credit score for a 20k car but you do have a rather large downpayment. You can count on a sky high interest rate probably over 10%

  • Brent
    Lv 7
    7 years ago are going to get your finances back on track by... financing about $10k for a car?

    Explain this concept to us, will you?

    I say that because the only thing that cures bad credit is time. As in enough time to let all those dings fall off your credit report. That takes several years, really. Why finance a car to do that? You do not get bonus points for doing that, since it absolutely kills your already lofty debt-to-income ratio.

    People and their thought processes...or lack thereof!

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  • Mary
    Lv 4
    4 years ago

    yes, because i bought a car that was 5 grand with exactly a $1000 deposit. No problem..

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