The credit crunch coverage in the media has convinced people that banks are not lending for auto loans, home loans, or personal loans. This is very over blown. The lenders that are still in business continue to lend. They may have changed their lending guidelines, but they are still lending.
For many people looking for an auto loan, a credit score of 600 does not give the same options that it used to. If you have negative equity on your trade-in, you will probably need to cover a large portion of the negative equity with down payment. A very low credit score of 400-575 range means you will likely need some down payment just to use a loan approval. If you have negative equity and a very low credit score, you will need to cover all of your negative equity in down payment PLUS put some down towards the new vehicle. The exact amount of down needed will depend on your loan approval and the exact vehicle you buy.
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