If you’re interested in buying a new car, odds are you need a car loan. Our expertise in the field is unrivaled, and we have specialists ready to fund your loan. Let us match you with a finance consultant who can help you get the car loan needed for the car you prefer.
Huntsville Car Lots That Finance Bad Credit
These days, there are dealerships with finance departments whose sole purpose is serving people with poor credit. As with all subprime loans, expect:
- Elevated APR rates.
- More upfront cash required.
- Smaller loan amounts.
On the other hand, bear in mind you’ll be getting a car, sure, but also the chance to boost your credit score. Here at Motive Auto Finance, we work with many such dealerships, and you can get pre-approved by applying online.
Huntsville Auto Loan Rates: Reducing Them
If you’d like to save on your car, do something to keep your interest rate low. This could lead to a lot of money saved by the time your vehicle has been paid off. Consider this: a car loan of $13,590, financed for Five years, would cost you the following:
- 3.50% APR: $1,244 in interest.
- 7.00% APR: $2,556 in interest.
- 11.00% APR: $4,139 in interest.
Thankfully, there are a few effective ways to decrease your interest rate.
- Credit Score: Request the latest copy of your credit report free of charge, then contest any mistake that show up.
- Down Payment: A larger amount of money down routinely translates into cheaper loan rates, as the loan to value ratio isn’t as high.
- Debt to Income (DTI): Have you got a large amount of revolving credit debt? Paying off as much as you can will reduce your debt-to-income ratio, which will mean a more affordable interest rate.
- Shorter-Term Financing: Financing for 60 months or less could result in a lower rate of interest.
- Age of Vehicle: It doesn’t cost as much to finance a new car or truck as opposed to a used one–at least when it comes to rate of interest.
Buy Here Pay Here Car Lots in Huntsville, AL
Have you considered getting your vehicle through a buy here pay here dealership in Huntsville? These kinds of Huntsville in house financing car dealers provide auto loans on site, usually without checking the consumer’s credit. Given that they don’t depend on a traditional bank or credit union to approve the credit-seekers, they’re able to assist a broad selection of borrowers.
For consumers who have horrible credit, Huntsville buy here pay here dealers are sometimes the only real option. But the truth is, Alabama poor credit car loans from banks and credit unions typically come with less expensive rates.
Recommendations for Buying a Car in Huntsville
Your car payment, where to start? Simply take 10% of your monthly income, which is the maximum you should allocate for this. On top of this, finance your vehicle for not more than 60 months. If you follow these two rules of thumb, you will wind up buying a car or truck which costs roughly 50% of what you make on a yearly basis (pre-tax). with an income of $18,122 a year, the average for residents of Huntsville, you would buy a car that costs $9,060. Please remember, this is the maximum amount you should spend. Plenty of professionals recommend spending just 10-30% of your income for any car you buy.