If you have been checking out car online and dreaming of getting into a new ride, you may feel ready to run to our dealership and buy right away. As happy as we will be to see you, there are a few things you should do before you finance your next car.
Check Your Credit
Before you take out any new line of credit, you should check your credit score. Doing so will help you understand what options are available to you. If your score isn’t as high as you want it to be, don’t worry. We offer bad credit car loans as well.
Know Your Budget
Purchasing a vehicle is a significant investment. Sit down and create a budget before you decide which car is right for you. You should determine what your maximum monthly payment is, as well as your maximum overall price.
This step can help ensure that you purchase a car that makes sense for you. Your vehicle should be a source of happiness, not stress.
Think About Insurance
When you make your budget, don’t forget about insuring your car. Remember that different types of vehicles can have different insurance needs. If you’re not sure what kind of car you can afford to protect, give your agent a call.
Bring Someone with You
Getting a new car is exciting. In the happiness of the moment, you may need another set of eyes and ears to focus on the details of the transaction. When you come to our lot, bring your partner, trusted friend, or family member.
Find a Car You Love
Once you have done the work to be ready for a car loan, it’s finally time to choose the right vehicle. Remember, this is a significant investment. Make a checklist of “must haves” and “wants” and bring it to the lot. This list can help you find the car that will make all this work worth it.
If you need a new vehicle but have bad credit or no credit, you may be feeling frustrated and at a loss as to what to do. After all, you can’t afford to pay for a new vehicle in cash and you no one will finance you…or will they? Bad credit car loans are not as rare as you might think, and if you put in the time and effort, you will obtain the financing you need to help pay for your new set of wheels. To ensure your endeavor is a successful one, use the following three tips to get a bad credit car loan:
Don’t Assume the Worst
So you used Credit Karma and they told you that your credit is horrible? Or maybe you visited a dealership last week and they said they couldn’t do anything for you? However you learned that your credit was bad, if it wasn’t through FICO, the information may not be accurate. Go to FICO.com to obtain a report from all three credit bureaus. If you score is even a few points above what you were told, it could make a difference between getting approved and being told to go home.
Don’t be discouraged when a dealer tells you they cannot help you, but also, don’t take the first loan that you’re offered. If you have poor credit, you may see a variety of offers, some better than others. However, you can’t know if an offer is the best you’ll get if you don’t shop around first.
Look to Auto Lenders
While you may want to keep your business with your bank, doing so may actually hurt your cause. Banks are notoriously rigid when it comes to handing out auto loans. Avoid low-credit lenders as well, as though they approve just about everyone, they’re notorious for charging outrageously high interest rates. Instead, look for lenders that specialize in auto loans, as they’re in the business of helping dealerships and shoppers alike.
Bad credit car loans are out there, and by keeping the above tips in mind, you will find the one that is best for you.
It can be tough to navigate your options when you are looking for car loans. Offers of 0% down or 100% financing can be tempting. If, however, you have the money to put a down payment of 10%-20% of the price of your auto purchase up front, doing so can work out better in the long run. There are several reasons why we think this is a good idea.
Shorter Upside Down Period
Every car loan goes through an initial period where you owe more on the car than it is worth. This is called being upside down. This phenomenon can be due to depreciation or simply due to the taxes you owe on the car. The more money you can put down at the beginning, the less time you will spend being upside down.
Smaller Required Payments
Your monthly payments will be smaller if you can put down a large down payment. If you have a five-year term loan on an $18,000 car, and you can put $3600 down, you will only have to finance $14,400 over 60 months. Depending on the amount you have set aside in your monthly budget to cover your car payment, you might even be able to opt for a shorter term for your loan, which will shorten the amount of time it takes you to pay off your vehicle altogether.
Lower Interest Rate
Obviously, the less you have to finance, the lower the amount of interest you are going to pay. In addition, paying more up front can actually result in a lower interest rate. When we finance car loans, we are taking a risk. The less you have to finance, the less you owe us. This makes you less of a risk, and we like to reward those who lower our risk with more attractive interest rates.
If you are financing a car, consider making a 10-20% down payment. Let us help you crunch the numbers to see how beneficial a down payment can be.
Buying a used or new car usually involves getting financing from the dealer. While we know our loans, it doesn’t hurt to come prepared and knowing how auto loans work can save you money. Take a look at the three elements that affect a loan and how they can change how much you pay overall.
Annual Percentage Rate
The APR on your loan is the rate of interest you’ll pay on top of your loan amount. The higher the rate, the more money you’ll pay. The annual percentage rate is based heavily on your credit rating, so checking your score before you come to us can be helpful. This way you’ll have a better idea of the interest rate you deserve.
The Amount of the Loan
The loan amount will be determined by the price of the car minus any trade-in value from old cars or down payments you might make. Obviously, the lower the loan, the less money you need to pay back, so bring us your used cars and make the biggest down payment that you can afford. The savings per month can be significant.
The Length of the Loan
The length of your loan is how long you have available to pay it back and it ranges from 3 to 8 years on average. While adding time to your loan term can lower your monthly payments, it also means more years that you’ll be paying interest on the loan. This can cost you hundreds of dollars extra. You’ll see now that getting the lowest APR available is important, but you’ll also want to arrange the shortest loan term you can manage to pay for. We’ll help you calculate the change in your monthly payments based on all the variables, but you can also play with loan rate calculators online.
When buying a new or new-to-you car, you’ll most likely need to take out an auto loan. Knowing how each of the three factors that make up your financing work makes applying with us much simpler and helps you get the best rates available.
When you are exploring car loans, you want to look at a few specific elements to ensure that they work for you. Knowing more about these factors will help to make sure that you choose the best loan for your needs and situation.
Term of Your Loan
You want to know how long you will be paying on your loan so that you can budget for the monthly payment. Shorter loans can be beneficial, but you will pay more each month. With a longer loan, your monthly payment is usually lower, but you might actually pay more since interest will tack on for longer.
The Monthly Payment
You have to ensure that your monthly payment is something that you can afford. Remember that you will also have auto insurance too to budget for. If you can put down a larger down payment, this could reduce how much you have to pay each month for the life of your loan.
The Interest Rate
Your interest rate has a major impact on the total loan cost. It also plays a role in your monthly payment. If your credit is at least moderately good, the dealership might offer you a relatively good interest rate. If your credit is poor, you might have to take a higher rate in order to secure a loan.
Some loans will charge a penalty if you decide you want to pay off your loan before the term is up. For example, if you get a loan for 36 months and pay it off before this time, you might have to pay a fee. Your loan will tell you what this fee is going to be.
When you are getting a car loan, make sure to look at these factors. You want to ensure that they will work for you, what you need in a vehicle loan and your overall financial abilities.
If you need a new car, but don’t have the money needed to pay for it in cash, you might feel a little (or a lot) of apprehension. Auto loans have been notoriously known as a contract full of fine print, hidden fees and high interest rates. I don’t think that’s fair and I don’t think that’s any way to treat a customer that is trying to give me business. I want my customers to be able to trust me so that come back and feel comfortable recommending me to friends and family. Getting referrals and repeat customers is the highest compliment I can get. I work hard to make that happen.
I keep my lot stocked with vehicles of every size, shape, and price range. I truly have something for everyone. Buying a car and getting a loan for it doesn’t need to be a big scary ordeal. It should be fun! Think of your first car. Remember the excitement you felt as you held your keys in your hand? I want to bring back that feeling. I want you to feel comfortable and safe in your car and with the financing option you choose. Come see me and I’ll show you a variety of cars in your price range. I’m not the kind of salesman that will try to sneak you into a car that’s more expensive than you can really afford. Trust me, it doesn’t do me any favors when you can’t afford to pay me back, so why would I want to do that? If you come to my dealership, we can work together to find you a car that you love. So, whether you have bad credit or good credit, low income or high, I want you as a customer. I’ll take your business when others won’t and I’ll work with you to make the best deal possible.
If you’ve been turned down repeatedly for a car loan due to your credit score, our financing options can provide alternatives where your credit doesn’t matter. We’re here to work with you on getting the car you need at the price you want, regardless of your credit. Applying for a bad credit car loan can be the best way to turn a no into a yes, and drive off the lot with a new or used car.
Simple Application Process
The application process can be as simple as speaking with one of our financing specialists to find out if you qualify. Our team members will ask questions regarding employment and financial history, and determine the loan you qualify for based on credit and income. Paperwork is minimal, and can be completed at the dealership with the assistance of our friendly staff.
When applying for a bad credit car loan, you’ll need to provide proof of income to demonstrate your ability to pay. Pay stubs and bank deposit statements are among many verifiable ways of showing proof of income; we may also request employer and bank information. Come prepared with the necessary documentation and a valid form of ID.
Make a Budget
Buying on bad credit often means buying on a budget. Plan in advance to know exactly how much you can spend in payments per month and how long you want your payment term to be, and calculate the average price range for the car you want.
The words “bad credit” in a bad credit car loan don’t have to mean bad news for you. Whether you’re buying your first car or looking for an upgrade to your current vehicle, our financing options can significantly enhance your chances of being approved. If you’re tired of hearing no, contact our customer service teams today to discuss how you can finance your next vehicle purchase.
You may want to get a new car, but worry that it is going to be nearly impossible because of your bad credit. If you feel like your bad credit is a curse that keeps you from enjoying some of the finer things in life, you should consider stopping by our dealership for some assistance. Our primary goal is to help you find your dream car and assist you with the process of getting accepted for one of the bad credit car loans.
Improve Your Chances of Getting Approved
There are some things you can do to improve your chances of receiving a loan without the best credit. If you have been employed with the same company for quite some time and have paystubs to prove how much money you are earning each month, your odds may be even more favorable. Showing steady employment through paystubs could prove that you can afford to make monthly payments back each month.
Get Help From a Reliable Source
Our dealership wants to work with you. We understand that unfortunate situations can happen to anyone. You may have had to max out credit cards in the past due to family emergencies or other unexpected expenses, but that does not necessarily mean you are not a reliable person who will not make their payments on time. Our bad credit car loans make it easier for those with poor scores to still receive the funds they need to drive away in their dream vehicle without a hassle.
Completing an application for this loan with us is simple. We can go over everything with you and answer any of the questions you may have. We even have an impressive variety of different vehicles available for you to pick from if you are approved. By the end of the day, you could end up driving right out of our dealership in your new vehicle without any stress included.
Leasing is a great way to get a nice car at a cheaper price point. Car leasing allows you to have lower monthly payments and little-to-no down payment necessary. If you don’t have the cash upfront to buy a car, or you don’t have the monthly budget to afford a larger car payment, leasing is a great option. When leasing your vehicle, you are essentially renting it, so after the lease is up you can either trade in your current vehicle for another one, or look into other options.
Reasons Leasing Makes Sense
Another benefit to leasing is that your car will be under the factory warranty that came with it, so typical repair costs are almost always covered. You will be locked into very manageable monthly payments, and you aren’t stuck in any sort of long-term deal.
Important Things to Remember
Like any decision that has a financial impact, leasing a car requires you to understand potential setbacks. Your lease comes with mileage cap, meaning if you go over the allotted mileage within the timeframe of your lease you will have to pay a fine. The same can be said for any damages made to your leased vehicle, wherein you will have to pay repair costs upon turning in your lease. Make sure you understand potential financial setback within your lease.
Is Leasing a Car Right for You?
Taking into account what you can afford to pay on a monthly basis is the first step in understanding if leasing is right for you. Then it’s crucial that you know how many miles you will be putting on your vehicle within the timeframe of the lease. You must also take into account factors like weather, parking (do you have a garage or will you be parking on the street?), and anything that will potentially cause physical damage to your vehicle. Once you understand everything that goes into leasing a car, speak with a trusted professional about how to proceed.
If you are buying a new car with financing, you probably want to find the lender with the best loan terms possible. With banks, credit unions, and financing companies offering car loans, it can be a challenge to find the best loan terms. While each of those institutions might be an effective option for auto financing, you might consider financing your new car purchase at the dealership.
Automotive dealerships frequently offer specials and incentives that other lending institutions don’t. If you can take advantage of one of these programs, you can save potentially thousands of dollars over the life of your auto loan. Even better, you might be able to negotiate extra car features in exchange for different loan terms. At the bank or credit union, you won’t have the opportunity.
Taking advantage of the dealer’s sales volume is another benefit of financing your car there. Since dealers typically sell hundreds or thousands of vehicles each year to buyers who finance, they have a fairly good idea of the sort of loan terms they can approve. They also know how much flexibility they have to negotiate a loan with someone who has less than perfect credit.
Finally, if you finance at the dealership, you will probably have a much more convenient loan process. Instead of visiting different banks or other lending institutions seeking preapproval, you can negotiate your loan terms when you buy your new car. Then, if you later decide that you could have obtained better financing elsewhere, you can refinance your auto loan. Since car dealerships generally do not require you to stick with their loan through its final payment, you have the flexibility to seek different financing in the future.
If you are shopping for car loans, you probably want to get the best loan rates possible. For many reasons, financing your new car purchase at the dealership is an effective strategy.