Getting your credit approved became a good deal more complicated following the credit crunch, but it isn’t impossible. It’s imperative to find a lender that can give you the funds you need at a rate that won’t break the bank. We have spent years forming an unrivaled network of dealers and lenders that can put you in the driver’s seat of a new vehicle, regardless of what your credit score is. An auto finance specialist will help you set up your finance package, and then you’ll go to the dealership and select your new car or truck. Go here to apply online.
Anaheim Car Dealers for Bad Credit
Nowadays, there are dealerships with finance departments that specialize in subprime financing. Any time you have adverse credit, expect:
- Steeper APR rates.
- More money down required.
- Tighter lending conditions.
But keep in mind, the rates and terms are a lot better than you would be given at one of Anaheim’s buy here pay here car lots. We work with many such dealerships, and when you submit your application, we can connect you with one who wants to arrange your loan.
Can You Get Financed with No Money Down?
A down payment might be a pain, but for people who have a low credit score, it might be a necessity. A down payment offers many benefits:
- Less negative equity.
- Fewer funds borrowed, so you’ll owe less in finance charges.
- Lower risk loan, meaning a lower rate of interest.
Be that as it may, we know that saving such a chunk of cash isn’t that simple. The good news is, you can sell your vehicle to someone in your area and put what you make toward your down payment. Otherwise, you could trade it in at the dealership.
Buy Here Pay Here Car Lots in Anaheim, CA
People today in Anaheim go to buy here pay here car lots, believing that they will only be able to get financed at such a place. Not true. A lot of dealer financing is sourced elsewhere, as dealers go through banks or credit unions to supply the loans. By contrast, BHPH dealers don’t. They provide loans themselves. More often than not, used autos are the only models on the lot, and these aren’t no money down car deals. Usually, the down payment is the same as the vehicle’s value at dealer auction, and you could end up paying in the neighborhood of 20% APR. Worse, these car lots seldom work with the credit reporting agencies, which means you could make every single payment when they’re due without making improvements to your FICO score.
Financing Guidelines for Anaheim Consumers
It’s good to budget, at the maximum, 10% of your monthly income for your new car payment. At the same time, opt for a 5-year repayment term at the very most. If you follow these two rules of thumb, you will wind up purchasing a car that costs roughly half of your annual income. Here in Anaheim, where the average income is $22,232 a year, the average consumer would finance a car which costs $11,118. Automobiles lose value from day one, so you’ll want to spend as little as possible to obtain a solid car.