Bill Utter Ford – Denton, Texas - Announces New Vehicle Financing Online for even Low Credit Scores

Bill Utter Ford announced today that they will now offer sub prime credit options on used cars in order to maintain their competitive advantage in the Metroplex Pre-owned market. Credit scores in the Dallas Fort Worth market continue to fall causing many area car dealers to explore new credit options.

"There are many factors to consider when shopping for a used car - not only is the condition and history of the car important, but a person’s credit rating affects the bottom line – the final purchase price." says Chris Miller of Bill Utter Ford.

Overall, there are three-steps for customers to follow prior to purchasing a pre-owned vehicle: 1. Determine a personal Credit Score. 2. Determine the type of lender. 3. Find a dealer that works with the calculated Credit Score.

According to an article on CarJunky.com, “Car Shopping: Knowing Your Credit Score Can Help Put You In the Driver’s Seat”, it’s important for customers to walk into the dealership knowing their credit score and the interest rate they should receive. One of the driving factors in determining loan interest rates is a three-digit number ranging from 300 to 850 – a person’s FICO credit score.

A Score Watch tool allows any person to view their FICO credit score. MyFICO.com and Equifax.com are two websites that sell the Score Watch tool to calculate and watch credit scores.

According to Equifax, the average interest rates for each FICO Score as of 10/2/06 are:

FICO® Score 720-850 Avg Rate 7.224%
FICO® Score 620-659 Avg Rate 11.151%
FICO® Score 690-719 Avg Rate 7.959%
FICO® Score 590-619 Avg Rate 14.566%
FICO® Score 660-689 Avg Rate 9.533%
FICO® Score 500-589 Avg Rate 15.294%

With the Score Watch tool, a pre-owned car buyer can track his FICO score over time and set a target score for earning the best interest rate on an auto loan.

Lenders frequently use the FICO credit score as a benchmark to estimate the risk in the loan.

A credit score determines the types of lenders that a car dealership uses – either Prime or Sub-Prime.

A dealership seeks a "prime” or "traditional" lender for a person with a good score and credit history. The buyer pays less interest with a prime lender.

A dealership seeks a "sub-prime" or "secondary" lender for a person with a poor credit score, recent bankruptcy, and/or short history with current employer. Sub-prime lenders weigh credit scores differently. For example, a credit score can rise if a lender gives more weight to a mortgage payment or previous car payments.

Sub-prime lenders have to consider more since it is a high-risk loan. Specifically, sub-prime lenders:
• consider if the car is new or used. Sub-prime lenders prefer a vehicle no more than 2-3 years old. An older car has a greater risk of needing repairs, which a person cannot afford, thus he or she would stop paying for the car.
• look for good payment history on installment debt payments.
• evaluate the warranty from the manufacturer.
• consider whether the brand that has a good history of being a reliable car.

A buyer should approach the used car-financing plan the same as any loan process. Researching and organizing finances before going into the purchasing process is a good start. A buyer should also assume responsibility of the car purchasing process by tapping into the same information that lenders use to determine qualification for a loan.

For potential pre-owned car buyers who have a low credit score, Bill Utter Ford now offers an online credit application and process to purchase a pre-owned vehicle. Most dealers have the online application go through the manufacturer sites for credit approval; however, Bill Utter Ford is allowing a customer to go directly through them. The sales staff will help any customer find a vehicle that fits any financial situation and needs, no matter what the credit score is.

All buyers need to remember to keep the bottom-line cost in mind when preparing to purchase a pre-owned car.

For more information, visit www.utterpreowned.com or call Chris Miller at 888-557-3603.