Alot of subvened lenders will offer rates weighted heavily on equity. His previous auto still reports so that helps a great deal. Honda is offering 1.9% for 60 monthson new Accords right now. Bearing his stability (employment and living situation), I cannot see why he would not qualify unless there is a hard threshold for credit score that must be met. Usually, the manufacture's captive fiinance source (Honda Financial Services) will be very lenient to sell a NEW car and will forego score for down payment to qualify the buyer for a higher tier and offer the subvened rates.
He should be able to get Tier 1 rates based on equity assuming marginal scores. I would also suggest purchasing the car from a "larger" dealership. If the dealership is selling 10,000 cars a month, they have a lot more leverage in negotiating credit terms with their lenders than say an independent dealership that is sending 10-20 a month. Just my 2 cents.
@Lyythine wrote:
I would also suggest purchasing the car from a "larger" dealership. If the dealership is selling 10,000 cars a month, they have a lot more leverage in negotiating credit terms with their lenders than say an independent dealership that is sending 10-20 a month. Just my 2 cents.
Agreed...
I got my $40k Challenger with $0 down... I could have put $5k down but the difference in monthly payment just wasn't worth it to me... I went with GAP insurance.
My previous high auto loan was $22k and while I did get a few "not enough experience at this level of credit" and "insufficient down payment" denials... they did get me financed with a local CU at a decent 4.49% rate all things considered. Once my reports are clear of my BK13 in a year I hope to refinance to a better rate.
10,000 cars a month? Whoa...