Advice on credit rating and buying a car - The Bills.com Blog

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Advice on credit rating and buying a car

Question: Hi Bill, my name is Dequan Smith im just turning 18 years old, i have had a couple revolving accounts, my FICO score is at 611, and i want to purchases a new/used vehicle...if i go to a lot how much money down do you think i should need if any? What type of car do you think i could get or loan? Keep in mine a make only1000 a month.

Answer: Thanks for visiting Bills.com. I am glad that you are researching what you should expect when financing a vehicle for the first time.

Unfortunately, many young people find themselves blind sided by aggressive salesmen, who take advantage of the purchasers? na?vete regarding finance terms. However, do not expect to dictate the terms of your loan; given your age and credit score, your interest rate will likely be higher than you would

like. You should probably expect to pay between 10% and 15% on a used car loan. Because of your income level, it is unlikely that you can afford to purchase a new car. Assuming that you will purchase a used vehicle, you should go to the negotiating table with as much cash for a down payment as possible. The more money you have in hand, the more leverage you will have when negotiating the terms of your financing. If you plan to purchase a $10,000 vehicle, are able put $2,000

down, and finance the vehicle for 4 years at 14%, you can expect to pay about $220 per month, which sounds like it is within your means. I hope this information helps. Best of luck in searching for your new vehicle!

If you would like more information, please visit us at: http://www.bills.com

We hope that this helped you to Find, Learn, and Save!

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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