Buying a car can be a challenging process that involves endless hours of research, test drives, and negotiations. While picking a car is already hard enough, more obstacles get added when the potential buyer has a low credit score. While it’s not impossible, there are just more barriers added to sign on the dotted line to complete the sale.
A Toyota salesman reveals what the process entails if a potential buyer has a credit score of 400. In a TikTok with over 1,300 views as of this writing, Josh Welty (@jawsellscars) shares what needs to be done to get approved with a 400 credit score.
“The only way to get approved is to have 10% to 20% down on the vehicle's worth,” Welty begins.
Whatever the listing price is, take 20% to determine the down payment amount. He mentions a $10,000 car will need a $2,000 down payment at signing.
“You gotta have some sort of commitment because you weren’t really committed to anything in the past because you have a low credit score,” he shares.
