A fat stack could be your cheat code for getting a new car, even if you’re not on the best terms with TransUnion, Experian, and Equifax.
While some car dealerships seem to have an aversion to physical currency, a TikToker says that cash is still king. This is especially true when getting a new ride.
Tiff J (@tiffjustliving), an auto sales worker, posted a skit between her and a prospective buyer with a “bad” credit score.
Cash versus credit score
“Client: I have 5-8k down but my credit……” the text overlay in the video reads.
Tiff records herself sitting across from the car buyer in this scenario. She holds up a sheet of paper and lip-syncs an audio of a woman saying, “My name is Kayla.” Tiff then speaks as a man in this audio, saying, “That don’t matter, it comes down to this, baby girl.”
The “this” in question is the application sheet. She shows how the bad credit doesn’t matter because of the cash the buyer put down for the vehicle. Tiff doubles down that this is the case in a caption for the video, writing, “Got money? That credit doesn’t matter.”
Many viewers shared this sentiment in the comments section.
One user wrote, “I put 7k down with a 465 credit score & pay 377 a month for a 2017 ford fusion my credit is now 588!”
Someone else replied that a large cash deposit also helped them get a luxury car, no questions asked.
“I put 7k down the man left & came back with the keys to the Benz he didn’t even ask for my license,” they wrote.
Another said, “I put $1500 down with a 685 credit score and I pay $492 a month for a 2024 Nissan Sentra.”
@tiffjustliving Got money? That credit dont matter 🤑 #dealershiptiktok #carsales #chevylandcutie #silverado #viral #fy #fypシ゚viral #cartalk #credit #naturalhair ♬ original sound – DRUSKI
For others, it seemed like running credit was simply a formality.
“This is so accurate!!!” one viewer wrote. “I put 10k down and they hadn’t run my credit yet he said they’ll run it tomorrow and I left with my car!”
Is this true?
Depending on who you ask, large down payments can be good or bad. Folks in this Reddit thread weighed the pros and cons of putting a large down payment on a vehicle. One person said it’s almost always in someone’s best interest to invest whatever cash they have in the S&P 500. They stated, “over the course of nearly 100 years, has provided an annual average annual total return just north of 10%.”
So unless the interest rate is higher than that, financing more of your vehicle and putting your extra cash in a higher-yield interest investment return is a better move, the Reddit user argued.
Someone else said if you’re financing a vehicle and want to pay it off quickly, then a nice-sized down payment can help reduce the size of your car loan.
What’s the best way?
Lending Tree recommends folks put “at least 20% on a new car” or 10% on a used whip. They added that “a larger down payment can also help you nab a better interest rate.” The outlet stated folks should ultimately follow the 20/4/10 rule when financing a new vehicle. These guidelines indicate a person should put 20% down on the total value of the car, and only pick a financing term that’s four years. This is to avoid high levels of compound interest.
The “10” refers to the percentage of your monthly income for the car. If the payments are more than 10% of your monthly influx, then you should look for a better deal.
The Daily Dot has reached out to Tiff via TikTok comment for further information.
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