4 Facts About Bad Credit Car Loans

Do you have poor credit? Have you filed for bankruptcy? You may think you can’t get a car. Well, the truth is you can. There are car dealers who make it easy for people to get a bad credit car loans. As you prepare for financing, there a few things you can expect.

 

Higher Down Payment

 

Dealerships require a down payment. The amount is usually 20 – 50 percent of the vehicle’s sales price. So save up enough money. The more money you put down, the better. For one, it lowers you car payments. Additionally, it shows you’re more likely to pay off the loan.

 

Shorter Loan Term

 

A car buyer with good credit can finance an auto for up to six years. The same isn’t true when your credit is less than perfect. Generally, the maximum term for a bad credit car loan is three years. Keep in mind, the shorter time frame results in higher car notes. So, it’s recommended you buy a quality pre-owned vehicle at a lower price point.

 

Higher Car Payments

 

The interest rates are higher for bad credit car loans. As a result, your monthly car payments are more. Don’t be discouraged. There is a brighter side. Focus on making your payments on time. Over the course of several months, you’re establishing a solid payment history. You can then speak with the car dealer and refinance the loan at a lower interest rate. Doing so will reduce your payments.

 

Different Payment Arrangements

 

Car buyers with poor credit are often required to pay car notes for more frequently. Say you are paid bi-weekly. The auto dealer may require that you make payment twice a month. For many loan applicants, this payment method is more manageable than paying once-a-month.

 

There are car dealerships that specialize in bad credit car loans. Consider applying for this financing option. It gives you the chance to rebuild your credit – and drive your dream car.

Why an Auto Loan Is the Right Choice

When you’re in the market for a new car, you have several options for paying for it. You could take the money out of your savings account, charge your credit card, use the equity in your home or use one of the available types of auto loans. While all of these are good ways to afford a car, taking out an auto loan offers several benefits that warrant a closer look.

 

Keep More Money in Savings

 

When you take out an auto loan, you don’t have to deplete your savings to cover the entire cost of your purchase. The loan allows you to pay off a little bit of your new vehicle each month while leaving the bulk of your money sitting in a savings account where it accumulates interest. If you’re concerned about the size of the loan you’re signing, you can take some of your savings money and put it towards the cost of the vehicle.

 

Take Advantage of Interest Rates

 

If you qualify for an auto loan interest rate that is lower than the interest rate on your savings account, from a financial standpoint, it makes sense to take the loan and keep your money in your savings account. In this scenario, the interest money from your bank account is more than the interest you pay on your auto loan, which means you’re coming out ahead financially.

 

Build Up Your Credit Score

 

A final benefit of taking out auto loans is that they offer a great way for you to build up your credit score. When you make regular on-time payments on an installment loan, you’re showing that you’re a good credit risk. Being a good credit risk raises your credit score and allows you to get better interest rates in the future.

 

There are many ways you can pay for a new automobile, and all of them have their pros and cons. Auto loans are a great way to get the car you want while still staying on a budget. Your local auto dealer has the knowledge and experience to help you through the loan process when you’re ready.

Tips to Get a Better Auto Loan Rate

If you are shopping for a new vehicle, you want to ensure that your loan fits your budget. While exploring the car loans available, know that there are a few things you can do to reduce both your total loan amount and your monthly payments.

 

Increase the Size of Your Down Payment

 

The bigger your down payment, the lower the total loan you will need. When your loan is smaller, you will usually pay it off faster, reducing how much interest you are paying. If your credit is not good, a larger down payment can also give us some assurance that you are taking this responsibility seriously. This can get you better rates and more of our in-house lenders interested in working with you.

 

Consider a Cosigner

 

If your credit is not great, you might consider a cosigner to help improve your interest rate. The cosigner should have a solid credit score and be willing to take on this responsibility. We can tell you how much of an impact your chosen cosigner would have on your rates.

 

Choose a Short-Term Loan

 

Short-term auto loans tend to have better interest rates compared to long-term loans. Consider a loan with a three-year term instead of a five-year term. This will save you significantly when it comes to added interest. Shorter loans also have a lower default risk, giving the us more confidence.

 

Explore Various Finance Options

 

You should explore at least three options, such as short-term, long-term or a lease, to see what they are offering and compare their pros and cons. Remember that in addition to the rates, you also want to consider the finance terms to ensure that the loan works best for you.

 

You can use this information to find the best car loans and ensure that the loan you choose fits your budget. Of course, improving your credit score and total financial profile can also be beneficial before you start shopping.

Buy Your Next Used Car With Confidence

We know that buying your next used car can sometimes be an overwhelming process. However, we don’t think it needs to be. Because you’re taking advantage of the reduced prices that used cars afford, you’re already ahead of the game. By following these simple guidelines, you can make sure you’re next car purchase is made with confidence.

 

Research a Car’s Value

 

The best place to start is to do a simple search online to determine how valuable the car you’re looking for is considered to be. By being informed on your car of choice, you can make self-assured decisions when it becomes time to consider the price tag.

 

Design a Budget

 

Consider your financing options. Are you prepared to make a down payment? Would you consider trading in your old vehicle? Do you need financial assistance? If you need any assistance securing auto loans, we can help you take the next step to find a plan that’s right for you.

 

Investigate the Mileage

 

The average car travels a distance of 12,000 miles a year. However, many people drive their cars distances far below the average. If you find a used car on the lot that has a reduced mileage for its age, then it’s a good chance you have found a vehicle that will give you a longer lifespan.

 

Take a Test Drive

 

Purchasing a car allows you to get a feel for what you’re paying for before you sign the check. We highly encourage a test drive to make sure that your driving experience is everything you expected it to be. Test the acceleration and the brakes to get a good idea for how the car handles. Feel free to roll down the windows and blast the radio. Who said car purchases can’t be fun?

 

By following these simple steps, you can make your next car purchase with confidence. If you’re ready to take the next step, don’t hesitate to give us a call or come visit us at the lot. We look forward to helping you find the car that’s right for you.

The Overlooked Benefits of Car Loans

The idea of getting a car loan isn’t necessarily exciting. It means monthly payments, interest rates and years before actual ownership. But before you decide against car loans, consider these benefits that can make your life a little easier.

 

Extra Time

 

If you purchase the car in full now, that is an immediate and major dent to your savings account. However, if you qualify for a low interest rate car loan, the total amount of money you pay over your loan term will be pretty close to the actual purchase price, and you’ll have the added benefit of having much more time to come up with that money. You can use the next couple of years and additional income to pay for your vehicle.

 

Extra Money

 

Using all of your available cash to purchase a car can be a big mistake. Lost liquidity could mean dire consequences. What if an emergency occurs next month? Your car can’t help, but money in a savings account sure can. Or, if you invest wisely, you could see a return higher than the interest rate of your car loan, meaning that by the end of your loan term, you could have earned more money than you spent on interest.

 

Extra Quality

 

Maybe you have a few thousand dollars to put towards a car. If you use that money to purchase a car outright, you might see as little as a few months out of the vehicle before problems start arising. However, if you use that few thousand dollars as a down payment for a higher-quality car, you’ll know that your money is going towards a vehicle that will be reliable for years to come. Investing in extra quality saves you from a lot of future headaches.

 

If you can’t afford to pay in full for a new vehicle, don’t fret. There are some exceptional advantages to car loans like having more time and money on your hands to pay off your new car and having a more dependable car that will last you for years to come. If these sound like benefits you would enjoy, apply for a car loan today.

 

3 Features of a Car Loan to Know About

In our busy lives, have a car to get us from place to place helps immensely in helping to accomplish our daily tasks. For many people, the lack of a reliable car can be a major hindrance is meeting responsibilities. Sometimes finding the right car isn’t the difficult part; getting a loan is the challenge. Before you obtain a car loan, it’s vital to be aware of the following essential components.

 

Down Payment

 

When  you decide it’s time to purchase a car, start saving your money. Most car loans require a down payment. Though the minimum amount will vary from loan to loan, the more money you can put down, the better off you’ll be. A higher down payment will reduce your financed amount and your monthly payment, thus helping you to save each month on what you would otherwise pay. If you don’t have much, or anything, in savings to devote to a down payment, you’ll have a difficult time obtaining a loan.

 

Interest Rate

 

Based on your loan and current economic conditions, the interest rate of your automobile loan can vary considerably. However, an interest rate is a feature with any loan. You can help ensure you secure a more favorable rate, though by having a good credit score. The higher your score, the better rate you’ll get for your loan. If your score is on the lower end, your rate will be higher, and thus you’ll pay more on the loan in the long run.

 

Term

 

You will pay your loan over the course of a set number of months. The loan term can typically vary from 36 months to 60 months. Often, you can negotiate the term based on your down payment and credit history.

 

Obtaining car loans can be a wise investment. Understand what makes up this method of automobile financing before you make your purchase.

Tips to Staying Current on Your Auto Loan

Purchasing a car can be an exciting milestone for anyone. Aside from a home, buying a car is typically one of the biggest transactions a person will ever make. If you’ve obtained a loan for your car, as opposed to getting a lease or paying for it outright, it’s essential to stay up to date on your loan so you don’t incur late fees or fall in danger of losing the car. Here are some helpful pieces of advice to not getting behind on auto loans.

 

Have Your Payment Automatically Deducted

 

Life is busy, and with all that goes on in a given day, it’s easy to forget about making your car payment. Before you know it, you could be weeks late on your payment, despite your best intentions to stay current. To avoid this problem, set up automatic payments with your dealer and have your payment taken out of your bank account on or before the payment’s due date.

 

Pay a Little Extra

 

It’s a great feeling to pay off auto loans, so if you want to do it faster and get that debt off your shoulders, simply increase your payments. You’ll have a minimum payment to fulfill each month, but you might be surprised how much of a difference a little bit more can make in putting a dent in your balance.

 

Speak up if You Have a Problem

 

Unexpected hardships come up for many people. Your dealer understands this and that personal challenges may make it difficult to stay up with auto loans. Instead of staying silent and ignoring payment reminders, letters and phone calls, talk to your dealer and explain your concerns. If you communicate your issues, your dealer will be willing to work out a payment plan that suits your needs.

 

Make sure you don’t fall behind on auto loans. Keep these things in mind when you purchase your next car.

How Getting Auto Loans With No Credit Works

When it comes to auto loans, many people focus on getting them even with bad credit. Less attention is paid to individuals who do not have any credit at all. You may be fairly young or just getting your own place, so you have had no reason to get a credit card so far. If you fall into this category, then here is what you need to know about acquiring car loans.

 

Start a Bank Account

 

In the event you do not currently have a bank account, you should open one up. This is very simple to do, and all you have to do is go to your local bank or credit union. While you are there, you should also look into getting a credit card if you do not have one already. You need to ensure you get a credit card as opposed to a debit card because only the former will have an impact on your credit rating.

 

Save Up

 

Now that you have a bank account, you should start saving up money for the eventual auto loans. Deposit whatever funds you can into the account frequently so that you get a nice little nest egg. A big part of getting a used car loan is the ability to make a down payment, so showing you have enough cash on-hand to make that payment will make dealership lenders more confident.

 

Look Into Cosigners

 

Bring a cosigner with you to our dealership. This person should ideally have great credit and will sign the documents along with you. Cosigners can help greatly in getting you approved and providing you with a reasonable interest rate. You want to be certain you can make all the loan payments or else that responsibility can fall on the cosigners, which is not good.

 

We are here to help people with no credit or bad credit get the auto loans they need. Start planning out your financial situation now, so you are in a better position when the time comes to buy.

Factors That Can Affect Your Car Loan Offers

Many individuals are unable to pay off a used car in one installment. Therefore, they need to take out an auto loan and make payments over the course of a year or two. Certain factors can affect how much money you get out of a loan and what your interest rate will be, so it can be helpful to look into them before applying.

 

Credit Rating

 

You should have a good idea of what your current credit score is. If you do not, there are a variety of resources for finding it. An excellent credit rating of over 700 will provide you with better loan terms. However, if your score is low, then you may end up in more of a pinch.

 

Any Debt

 

Whether you have credit card debt, student loan payments or other bills you still need to pay off, those items can affect the types of car loans you qualify for. Even if you have a high income, you may end up with higher interest rates if you have a lot of debt to your name.

 

Type of Car You Want

 

The model and age of the car you are hoping to purchase can also affect your loan offers. Cars that are only a few years old tend to get better loan terms because in the event a dealership ends up repossessing the vehicle, it could more easily sell it. A really run-down car is actually viewed as more of a risk for many dealerships.

 

Stable Employment

 

Most used car dealerships will want to see proof of employment. If you frequently jump around from one job to the next, then that gives the places some hesitation. People who stay put at good, well-paying jobs often get better loans.

 

By ensuring your finances are in order, qualifying for car loans will be much simpler. You can visit our dealership with the peace of mind you can get good loan terms for most of the vehicles being offered.

3 Tips for Choosing the Right Car Loan

Choosing car loans is challenging, but it’s usually necessary if you’re looking to purchase a truck, car, van or SUV of any shape or size. While our lot provides excellent prices for the top-quality vehicles we offer you and any other buyers, if you’re looking for a new car, you’re usually going to need to take out a loan in order to pay for your new ride. However, choosing the wrong loan can lead to some financial struggles down the road, so it’s important to be selective throughout this process. Therefore, keep the following tips in mind when choosing your auto loans:

 

Keep Track of the Numbers

 

You’ll need to keep track of several numbers aside from just the overall amount you’ll be borrowing to purchase one of our cars. Interest rates, repayments periods and other figures will play a significant role in how much your car loans will impact your monthly budget after you leave the lot in one of our fine rides.

 

Don’t Get in Over Your Head

 

Whether you’re financing with us or taking out a car loan from your personal bank, it’s imperative to remember that you don’t need to borrow more than is necessary for the transaction you have in mind. This means knowing what kind of car you’re looking for ahead of time. If you take out too much cash, you may just find your repayments problematic.

 

Talk to a Professional

 

Finally, speaking to a professional at either our dealership or your lender of choice is the best way to find your best possible loan. They can help you sort through the options, and can explain what will be most beneficial to your specific financial situation in the coming months.

 

Following these three steps can help you choose the best car loans for your situation, so you’re able to enjoy your new ride with no regrets in the coming months and years.