For people struggling with low credit ratings, getting financed is the most significant hindrance to coming home with a new car, truck, or SUV. A good credit score may give you reduced rates, but we can help you get the El Monte auto loan you need.
Advantages we offer you include:
- Superior Application Placement System
- Vast Dealer Network
- Extensive Applicant Education
Bad Credit Car Dealerships in El Monte, California
Have you considered where you could buy your next car? If you’ve got less-than-perfect credit, private party car loans are normally out of the question. Odds are you’ll have to purchase from a local El Monte dealership. Luckily, there are dealers that cater to adverse credit. Since you’re a higher-risk applicant, expect:
- More expensive interest rates.
- More upfront cash required.
- Less costly cars.
On the plus side, the experience is superior to that of a buy here pay here dealer, and your vehicle will likely cost you less in the long run. There are many such dealers in our network, and they want to get you the car you want. Go here to apply online.
Trimming Your El Monte Interest Rate
Rate of interest is vital if you want to decrease the total amount you have to spend on your vehicle.
Consider this table that shows the impact of different rates of interest.
|Good Credit||Average Credit||Poor Credit|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
Thankfully, there are some quick ways to lessen your rate of interest.
- Credit Profile: File a dispute for any inaccuracies you find on your credit report. These could be affecting your credit score, and thereby push up the APR rate on your loan.
- Loan-to-Value: Provide a down payment of at least 10-20% on your vehicle. This will cut down on lender risk, resulting in a decreased rate of interest.
- Debt to Income Ratio: Do you have a large amount of other debt? Paying off as much as you can will bring down your DTI, which will mean a better rate of interest.
- 36-60 Month Loan: If you choose to repay your loan in a shorter time frame, your interest rate will be lower.
- Age of Vehicle: It doesn’t cost as much to finance a newer model–as long as you don’t pay more in terms of purchase price.
El Monte Buy Here Pay Here Car Lots
Perhaps you have considered financing a car through a BHPH dealer because of bad credit? Usually, there are considerably better alternatives. Dealers like these will finance almost anybody, no matter their credit, but there are disadvantages.
More often than not, preowned cars and trucks are the only models available, and these are not no down payment car deals. Quite often, the down payment is set at the vehicle’s value on the wholesale market, and you could end up paying in excess of 20% APR. If improving your credit score is important to you, and it ought to be, you should contact a finance specialist through us, since BHPH dealerships won’t assist you in re-establishing your credit.
Rules of Thumb for Financing
When considering the monthly payment on your car, it shouldn’t exceed 10% of what you make per month. In addition, aim to pay off this vehicle in no more than 5 years. This equates to a car or truck which costs roughly 50% of what you earn annually. If you have an income of $19,545 annually, the average in El Monte, you would buy a $9,774 car. Take note, this is the cap on what you should budget. Quite a few authorities propose forking over just 10-30% of your income for the next car you buy.