The Detroit Three are now all offering 0% financing for 84 months to help new car buyers during the coronavirus crisis. However, our analysis reveals that some of these unprecedented incentives for manufacturers in the aftermath of COVID-19 largely exclude consumers with bad credit.
For example, FCA now offers 7-year loans at 0% APR on vehicles like the 2020 RAM 1500. Unlike an offer announced earlier this week by GM and a later Ford deal, FCA’s offering includes a number of 2020 models rather than just last year’s vehicles. But you will have to have very good credit to get it.
This is because the FCA has limited the offer to people with a FICO score above 680. As a result, those with lower levels, including subprime credit will not be able to take advantage of the same offers as the others. Ford Credit is doing something similar, while GM Financial is limiting its offer to those with a so-called “A +” score.
Stricter requirements to obtain the best offers 0% are not unusual. After all, lending to those with disputed credit histories can involve an increased risk of default. However, for people struggling with a less than perfect credit score, this can lead to a very different outcome in terms of affordability.
For example, earlier today our analysis revealed that Ford’s latest promotion may amount to a lower payment of $ 118 / month on the 2019 Ranger compared to the best deal just a week ago. Such a large difference could greatly influence whether or not a car or truck is part of a family’s monthly expenses.
Fortunately, some dealerships specialize in helping people with bad credit and other factors may affect your ability to get a loan. That said, buyers should make sure they understand basic car loan requirements as well as the challenges of buying with bad credit.
The result could improve your chances of getting the best possible deal based on your unique situation.