Can You Buy A Toyota With A 500 Credit Score?

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As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Managing Editor - February 15, 2022

If you have a credit score of around 500, you may find buying a used Toyota to be a relatively expensive prospect. That's because so-called deep subprime credit entails greater risk for lenders and thus higher interest rates for consumers. Here's what to expect if you're buying a used Toyota with a FICO score of around 500.

According to a bulletin sent to dealers, factory-certified used Toyotas can be financed with a FICO under 520. In fact, the automaker's definition of Tier 7 credit ranges from 520 to 579, which qualifies as deep subprime credit. On a CPO Toyota, that means a standard rate of 15.49% APR on loans of up to 72 months in length.

However, dealers have the ability to mark-up this rate by up to 1% on FICO scores under 520. On a $25,000 used car, that could result in over $14,500 in interest on a six-year loan. Buyers with deep subprime credit may have fewer options than others, and it could be appropriate to work with a dealer that specializes in bad credit.

Fortunately, your credit score doesn't have to define you. CarsDirect works with dealers equipped to assist car buyers with subprime credit. In many cases, choosing a non-CPO car or truck could improve your chances of finding an affordable car and discovering financing options that are the best fit for your unique situation.

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, Managing Editor

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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