I’m looking out for my friend who just signed a contract on a job in which she’ll be well-compensates. She needs a car for SoCal life, and her credit is below 600.
The question: Can any deal be done for her? Which brands/dealerships are flexible? I’m not looking to get her an Audi, but Honda/Toyota/Subaru would all be fine choices if possible. Any help is appreciated!
That’s a tough one, allot of it depends on how the deal is structured, cash down, loan to value etc. Sometimes you can get a better rate on a new car, it just depends. Money down is really going to help this deal. It’s tricky because you want to shop for a good deal but don’t want to get her credit pulled too many times. You might want to check with a credit union too. You can always do a deal now with a high rate and refinance it later. Yeah forgot to mention, probably a slim chance leasing, you’ll be looking at a purchase
Honestly better off renting weekly/monthly from Enterprise/Sixt/Alamo/etc, saving money from the well-compensated job, buying a used vehicle after 6 months in cash, and then working on improving credit.
Anything below 650 IMO leases end up terrible as far as MF/apr situation.
If she has any money saved, I’d recommend buying a used car and putting that extra money towards fixing her credit or rebuilding it. Leasing/Financing a car is just going to give you a high payment with a high interest rate. IMHO, that’s not worth it. I would definitely check into a credit union and start seeing how to rebuild her credit. Why did her credit drop that low? (if you don’t mind sharing.)
Never underestimate the down payment and the power of a good F+I manager. She might not get tier 1 rates, and nobody knows what her report looks like from the OPs post other than the score (her auto enhanced could be higher), but a lease isn’t entirely out of the question.
The question would be…would that be an attractive lease? That part is more doubtful than her actually getting one.
She could lease but why do it with that credit score. You will regret it in a year when you have way better options.
I’d say buy a cheap used car with a huge down payment, say 80%+, but you definitely want a note that you can pay to build fica and auto fica score. Then in a year she could easily have a credit score of 650+. Then you are talking maybe being able to get a reasonable lease deal.
Kia dealerships thrive on customers like this. For only $800 a month you can drive this brand new Forte.
Also renting weekly/monthly with Maven, Turo, etc. might be an option until credit improves. There’s another app called fair where you can rent used cars at a reasonable price, but probably they will check credit and there’s an upfront deposit of something like $1k or $2k.
@deceptacle Poor Credit is not the same as Bad credit so I’ve been told. She can still get approved with strong history of previous car ownership and no late payment history whatsoever across the board. MSD’s can help too if getting a decent MF is your friend’s concern (if allowed in your state). Bad Credit however (i.e. defaults/collection and/or bankruptcy) will be a tough sell. Subprime loans are really not encouraged as you’re automatically tacked on high MF just cause they know you really need the car, or probably getting a car loan for you is your way of rebuilding credit. If that’s the case, find a co-signer or get a second hand car will be your way to go.