How to Buy a Lexus If You Have Bad Credit

How to Buy a Lexus If You Have Bad Credit

Having bad credit or no credit doesn’t automatically sentence you to drive a car that’s in rough shape. You need a reliable vehicle and you’d like a nicer and newer car than the one you have now.

The good news is that lots of people get financing for the car they want, even with bad credit. If you’d like to buy a Lexus, you may have an easier time getting a loan because this type of vehicle tends to hold its resale value well. Of course, much depends on the year and number of miles on the car, as well.

During the third quarter of 2017, 52% of used car buyers had a FICO credit score below 660. The first and most important step to getting your Lexus financed is to understand your own credit score.

FICO credit scores range from 300 to 850. The higher your score, the better your chances of getting an auto loan with a low-interest rate. Statistically, people with lower credit scores present a higher risk of not paying their debt. So, if you have a low FICO score, lenders will probably charge you more money in fees and you’ll end up with a higher interest rate.

You can see copies of all three of your credit reports for free at

Here are the FICO credit scoring tiers:

o   781-850 Super prime

o   681-780 Prime

o   601-680 Non-prime

o   501-600 Sub-prime

o   300-500 Deep Sub-prime

The interest rate on your car loan can make a big difference in your monthly car payment.

For example, a 60-month auto loan of $17,000 will cost someone with a FICO credit score in the non-prime range $360 per month with an interest rate of 10%. Subprime borrowers may have to pay 16% interest, which would bump their monthly payment on the same loan up to $414 per month.

Why a Lexus is a smart choice if you have past credit problems

Lenders look carefully at the car you’ve chosen when they consider whether to give you a loan and how much interest to charge. A financial institution that specializes in subprime loans is more likely to say yes to a loan for a nicer, newer car with fewer miles.

Here are the criteria that banks use when deciding whether to approve a loan:

ü Vehicle age

ü Vehicle mileage

ü Buyer’s FICO score

ü Buyer’s employment status

ü Buyer’s income and/or down payment amount

Before you apply for a loan on a Lexus, put yourself in the best possible position to get approved.

Ø Check your credit history, and ask the credit bureau to fix any mistakes you find

Ø Choose a newer Lexus with fewer miles

Ø Save for a down payment (a bigger down payment means a lower monthly payment and a better chance of loan approval)

Best-selling Lexus models

If you’ve chosen a Lexus, congratulations! Lexus is one of the most popular luxury brands available, today. The Lexus ES made the top 3 of New York Daily News’ list of Best-Selling Luxury Cars in America.

It’s reliable, quiet, and comfortable with a sporty look and spacious interior. There’s a brand-new body style on the way for 2019, too. The sticker price for a new base model is $39,945. These vehicles hold their value well, but you should be able to find a used Lexus ES for a nice discount off the base model price.

The Lexus RX 350 is an SUV with great gas mileage and all the comforts you expect from a luxury SUV. All-wheel drive prices start at $44,420. If you prefer a hatchback, check out the Lexus CT 200H. It gets 43mpg in the city and 40mpg on the highway while offering the comfort of a sedan with the spacious interior of an SUV.

If you need more room and more power, take a close look at the Lexus LX 570. This SUV has room for eight and a maximum cargo capacity of 45 cubic feet. The powerful V8 engine combined with four-wheel-drive will get you where you need to go.

Would you like to learn more about how you can get financing for the Lexus you want at a price you can afford?

Having a FICO credit score in the lower range shouldn’t keep you from getting a nicer, newer vehicle. In fact, thousands of Americans with low FICO scores and past credit problems get a loan every single day. They understand how important it is to work with a lender that specializes in helping people with low scores get financing.


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