All around California, getting approved for car loans is much tougher than it used to be, owing largely to the nation’s economic climate. We believe that auto financing ought not to be so difficult for people in Bakersfield, California, despite their FICO scores.
All you need to do is submit your application online. We will match you with a dealer or lender specialist who will work hard to find you the right vehicle financing package.
Bakersfield Car Lots for Bad Credit
Have you given thought to where you could buy your next car or truck? When you’ve got a low credit score, you’ll probably have to get your car from a dealership, rather than an individual seller, since lenders hardly ever fund these types of loans for people with sub-standard credit. Thank heavens there are dealerships that cater to poor credit. Compared to a BHPH car lot, such dealers provide lower rates and more attractive terms. Your income and credit determines which cars you’re qualified to finance. Normally, when you have bad credit, the upper limit of what you can borrow is 6 to 8 times your monthly income. For residents of Bakersfield making $1,516 each month, this is $9,096 to $12,128. Having said that, it’s smarter to borrow less than you can, reducing your monthly payment to just 10% of your income–$152, in our example.
A dedicated lending professional will determine how much you’re qualified to borrow, and at what APR. To get going, simply submit your application.
How to Reduce Your Interest Rate
When it comes to buying a car that’s financed, rate of interest is as significant as price is, if you’re hoping to get the best deal you possibly can. Think about this: an auto loan of $13,644, with a term of 60 months, would cost you vastly varying amounts depending on your interest rate:
|Amount Borrowed||APR||Total Interest Paid|
As you can see, getting approved at the best rate your credit allows is crucial. Now let’s look at several strategies you have available.
- Credit Score: Dispute any errors you discover on your credit report which could increase the interest rate at which you can get approved.
- Down Payment: Putting more money down often means a lower rate of interest, as less money has to be borrowed.
- Debt-to-Income Ratio (DTI): Having less debt can translate into a more affordable rate of interest, so it’s smart to pay down as much as you can.
- Loan Length: Keeping your finance term to 60 months or less could result in a lower rate of interest.
- Vehicle Condition: Used vehicles are more expensive to finance than new vehicles, though they cost a lot less to start with.
Buy Here Pay Here Car Lots in Bakersfield, CA
Have you wondered about getting financed at a buy here pay here dealer in Bakersfield? These kinds of dealerships don’t rely on banks or third-party lenders to fund their loans, so they can service a broad range of customers. They only sell used vehicles, typically those with quite a few miles under their belts. They often advertise their services under the slogan: where your job is your credit. The implication is that your income, as opposed to your credit rating, is the primary factor upon which your approval hinges.
Many men and women with really terrible credit assume that a buy here pay here car lot is the only establishment that will approve their credit, despite the fact that the annual percentage rates are much higher than a bank loan. In addition, they don’t often report payments to the credit bureaus, meaning your FICO rating will not get better even if they pay off the loan on time. As you can see, these aren’t the best option. Fortunately, we can help you get approved for the loan you need without resorting to BHPH financing. We have relationships with dealers and lenders in the Bakersfield area that will approve you for financing, despite a less-than-stellar credit history. Go here to apply online.
Financing Guidelines for Bakersfield Residents
When buying a car, a maximum 10% of your monthly income should be dedicated to your monthly payment. At the same time, it’s not smart to finance for more than 5 years. This means a vehicle which costs around half of what you get paid annually (pre-tax). with an income of $18,194 annually, the average for residents of Bakersfield, this would be a car costing $9,096. Generally, the less you can spend to acquire a solid car, the better.