Worried about financing a car in Long Beach, California, with bad credit scores? You needn’t be. Despite the fact that plenty of auto creditors are neglecting consumers who’ve got poor credit ratings, we have scores of car dealers and vehicle lending institutions in our network who approve car loans with bad credit in Long Beach every day.
All you need to do is send us your application, and we will place your application with a loan company or auto dealer willing to pre-approve you for a loan.
Bad Credit Car Dealers in Long Beach, CA
When you have , dealer financing is usually your best bet, since the majority of banks in the area won’t be willing to work with you. There are dealers, however, that want to win your business. In any bad credit lending scenario, expect elevated rates of interest and bigger down payments, as well as smaller loans. Having said that, don’t forget that you are getting a car, of course, but also the chance to boost your credit score. At Motive Auto Finance, we work with many such dealerships, and they want to get you the car you want. Go here to apply online.
Minimizing Your Interest Rate
Securing an affordable interest rate from your lender may lead to big savings.
In fact, a lower rate could save you thousands over the life of your loan, as evidenced in the table that follows.
|Good Credit||Average Credit||Sub-prime Credit|
|Size of Loan||$12,825||$12,825||$12,825|
|APR||3.50% APR||7.00% APR||11.00% APR|
First and foremost, finding and contesting any errors on your credit report can give your credit a boost, and we all know that improved credit equates to lower rates. In addition, lenders check both your income and existing debts. If you pay off any existing debts, you will be reducing your debt-to-income ratio, which will result a better interest rate. Remember to opt for a loan that won’t take 5-6 years to repay. Your monthly payments will be higher, but you’ll pay less in the end. Down payments are also important. The less The less of your car or truck you have to finance, the better your interest rate will likely be.
Tote The Note Dealers in Long Beach, CA
Commonly known as buy here pay here, tote the note, or your job is your credit car lots, these businesses typically have a few key features. They…
- Finance car loans on-site.
- Rarely require credit checks.
- Want weekly or biweekly payments, often in person.
For people with really bad credit, Long Beach buy here pay here car dealers tend to be the only option, despite the fact that there are plenty of downsides:
- Excessive Loan Rates
- In-Person Payments
- Lack of Ability to Improve Credit Score
Guidelines for Financing
Here’s a good guideline: a maximum 10% of what you earn monthly should be dedicated to your loan payment. Take care, however, that you don’t get talked into overly long-term financing, which will lead to:
- Bigger finance fees.
- Increased interest rate.
- More difficulties with negative equity.
Rather, try to have your vehicle paid off in as little time as is feasible. This means a vehicle that costs roughly half of what you make per year, before taxes. Here in Long Beach, where the average income is $17,100 per year, this would be $8,550 to invest in a car. Basically, the less you can spend while still obtaining a trustworthy car, the better.