Get a loan with poor credit
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You will probably be able to do it with less than 5,000. I got a used car at Carmack and put 1,000 down and it was in great condition with 39,000 miles and about 12k all in. Tell them you want to put a thousand down and see what your monthlies are, then go from there.
SmallCat1269’s response was:
Yes I did something very similar.
Six months ago I was as in exactly the same position. I was 23 with a CS of 540. A list of medical bills in collections, and the only positive was a 500$ 12 month secured personal loan that closed 2 years ago. I ended up buying a 2017 Mazda 3 Sport and put 7,000 hard earned grand up front as a down payment. I was approved through Chase at 8.75% with a 72 year note. 8.75% is excellent for a 540 score. The 500$ secured loan may have helped a bit, but a large down payment will give you room to bargain. My brother also worked at the dealership as a technician and new the gentlemen that dealt with me. If it wasn’t for that family tie I would have been fortunate to see 12%. So you will get stuck with a 10+ most likely, but your first payment will shoot your score up by nearly 40 points. I paid on time for 4 months then got a credit card from the local credit union and that also netted a 45 point increase( just a low rate visa unsecured 500 limit). 4 months in I also opened up a 100$ secured loan that netted another 10 instantly ( anything above $100 showed diminishing returns when I ran the sim). Along with on time monthly payments I’ve seen a 100 point increase in 5 months. Now I plan on giving it another 3-4 months of on time payments then getting another card at 8 months with at least a 2k limit at approval then only focus on building those 2 cards credit limits as high as possible. While keeping utilization at exatcly 7%. At 11 months ask for increases CL on both cards. Finally at 12 months I’ll re finance and hopefully see a low 6 or 5%. Refinancing will close out my oldest account but that’s why setting up a 12 month secured loan 1-4 months after you receive the auto loan will pad the drop and give you 14-15 months to contour building history if you feel it nessesarry. So yes getting an auto loan when I was subprime was a great decision and I think it still would have been at 10+ it paved the ground for rapid CS growth and when done correctly you will only be paying on a double digit interest rate for 12 months. Do the research and make sure your educated on each of FICOs factors, and you could find your self coming up on 680 by the 12 month dead line. Shop hard and cut that interest rate into 8 maybe 6 if your lucky. Best wishes on your endeavors.