Anonymous
Anonymous asked in Business & FinanceCredit · 1 month ago

Getting Car at Carmax will under 600 credit score. And about $4500 down?

Okay so i am 24. i have bad credit. But there is only one thing on my credit. I dont have much credit history. No Repos or Evictions or nothing like that. I have $4,500 to put down. what is my likely apr and how much do you think id get approved for? just curious because my old car is getting up there in age. I make about $38K a year. and have less that $900 due for bills a month.

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  • Anonymous
    1 month ago

    $4500 down will probably get you a car. Maybe not at carmax. Probably not what you want.

     The APR is not really all to look at. Such contracts sell for a discount to face value so the effective rate is way higher than whatever is showing.

    Subprime dealers sell contracts at 70-90% of face value depending on exactly how bad your credit is.  Yours would not be 90%.

    Id say buy a $4500 car for cash and save. Until you have a 650 or so, you should not be financing a car.

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  • 1 month ago

    Per the link below, it looks like a <600 score either gets you denied or an APR in the high 20%s, which would be ridiculously stupid for you to get yourself into.  

    I second the other response.  You have no business attempting to finance a car right now.  Either pay cash or drive your car for at least 2 more years while continuing to grow your down payment and giving your credit the opportunity to improve.  

    https://www.nerdwallet.com/blog/loans/best-car-loa...

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  • 1 month ago

    Your likely APR is way to high...

    If your car is not working, take the $4500 and buy a different car.

    If your car is simply getting up in age, but working fine = why would you consider getting rid of it?

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