The right credit score needed to get a good deal on your next car purchase isn’t a mythical number. In fact, you can almost always find a deal regardless of your FICO score. That said, there are scores that will lead to better financing deals.
Recently, Cheatsheet published an interesting article on the subject. Here’s one eye-opening insight:
Unless you can afford an all-cash purchase, your credit score is going to have a major impact on whether you’re able to get a good deal on a car. Buyers with bad credit may end up paying $150 or more per month on their auto loan than someone with excellent credit, according to data from myFICO.
Eighty-six percent of people buying new cars rely on financing, according to credit scoring agency Experian, with a typical loan amount of nearly $30,000. Someone with a credit score in the excellent range (between 720 and 850) could score a 48-month auto loan for that amount with an interest rate of 3.27% and a monthly payment of $668. A buyer with a credit score in the 620 to 659 range would pay $752 a month at a rate of 9.4%, per the myFICO loan savings calculator.
Being informed and prepared can save you hundreds of dollars or more per year. To learn more, check out the rest of the article: Buying a Car? The Credit Score You Need to Get a Good Deal