Credit Score: Buying a Car in Today's Market

Credit is tight and unless you really, really need a car your chances aren't very good. Financing is available but it costs you with the average rate this week being 7%. If your credit is below par you can expect the rate to go closer to 8%.

Sure the dealers are advertising no money down and 0 interest but there is a catch. That catch is your credit score. If you want to buy anything over 10k your credit score needs to be higher than 500. Dealers are desperate to make sales and the ads have some very small fine print. One dealer advertises buy one and get one free. What he is selling is a very expensive model with all the bells and whistles and a huge price tag. The free car is a stripped down bottom of the line. But even such a deal will require a credit score of over 600.

Interest rates continue to climb as the squeeze gets tighter. If you haven't already signed the deal you may be too late. Everyday across the country dealers are going out of business. They have short-term loans due and no buyers. When you drive by one of those huge mega-superstore lots, you are looking at a huge amount of money owed. They want to move those cars and will make deals but they can't sell without a decent credit score.

The old saying is, Cash is king". It still is and those who have it are playing it safe and holding onto it. Jobs are being lost and no one knows who will be next. Inflation is sure to follow and people are scared.

For those lucky enough to feel safe and have new car fever your car is out there waiting for you. The latest report on credit scores and autos however may deter you. Most dealers are saying new car sales are requiring better than a 700 credit score. Ouch, that is high!

The economy, as it is today, is predicted to get worse. The odds of improving your credit score are against you. That new car smell you crave may have to come from a can.