A bad credit rating can make it tougher to buy a new car, but getting approved is possible. No one knows the frustration of financing a car with poor credit like us. The only thing you have to do is send us your application, and we will connect you to an auto dealership or finance company specialist who’ll make every effort to find you the ideal automobile finance package.
Tempe Car Dealers for Bad Credit
Have you considered where to buy your next car or truck? If you have weak credit, you typically need to get your car from a dealer, instead of a private party, as lenders seldom offer private party loans for people with credit problems. Thank heavens there are dealerships that cater to bad credit. Typically, these dealers offer:
- More affordable interest rates.
- More affordable down payments.
- Lower mileage vehicles.
Your credit and income will dictate which cars you can finance. With adverse credit, you can borrow 6 to 8 times your monthly income. For residents of Tempe making $2,529 each month, this is $15,174 to $20,232. With that being said, you’d be smart to borrow less than you can, keeping your monthly payment to just 10% of your income–$253, in our example.
An automobile lending specialist can help you determine how much you’re eligible to borrow, and at what rate. Go here to apply online.
Buying a Car in Tempe with No Money Down
Hoping to finance a new car or truck, but you haven’t got the cash for a down payment? A down payment will reduce your LTV (loan-to-value) ratio, which is the size of the loan relative to the cost of the vehicle. This results in a reduced interest rate and less interest paid overall.
It may be possible to buy a car in Tempe with no cash down, especially if you have a pre-owned vehicle to offer in trade. Submit an application to chat with a dedicated finance specialist and find out which cars can be purchased with no money down in Tempe.
Tempe Buy Here Pay Here Car Lots
If you have major credit problems stemming from issues like bankruptcy or foreclosure, a buy here pay here dealer could very well sound like a smart move. They may not carry out credit checks, so your credit problems probably won’t be a hurdle to approval, but you will wind up paying more than you’d like for this. The fact is, you will be faced with exorbitant annual percentage rates, high down payments, and high mileage vehicles that are steeply-priced. Worst of all, these car lots don’t report to the credit bureaus, which means you could make all of your payments when they’re due without helping your credit score.
Rules of Thumb for Buying a Car in Tempe
If you want to make a smart move financially, you should spend no more than 10% of your monthly income on this car loan. If you don’t want to be car poor, opt for a loan of 60 months, at max. This will equal out to a car or truck costing roughly 50% of your annual income. For Tempe residents with incomes of $30,352 per annum, the per capita average, this is $15,174. Generally speaking, the less you can spend to acquire a dependable car, the better.