Nationwide, loan creditors haven’t been financing car and truck loans like they used to, and Northridge is no different. We feel that car loans should not be a huge struggle for people in Northridge, regardless of their credit scores. Inside of 60 seconds, we can connect you with a lending specialist who will go the extra mile to get you financed.
Bad Credit Car Dealerships in Northridge, CA
Have you considered where you could buy your new car or truck? If you have damaged credit, private party car loans are generally not available. Odds are you’ll need to buy your vehicle through a dealer. Thank goodness there are dealers that specialize in poor credit. Whenever you have credit problems, expect:
- Higher rates of interest.
- More money owed upfront.
- More stringent repayment terms.
Having said that, it’s far better than being unable to get a car, and these dealers can help you build up your credit and secure lower rates of interest later on. At Motive Auto Finance, we work with many of these dealerships, and when you submit your application, we match you with one who wants to fund your loan.
Approval Requirements for Northridge Borrowers
If you’d like to keep your time on the lot to a minimum, it is recommended that you provide all of the documentation that’s required.
- Driver’s License: You could supply another form of identification, but the majority of lenders are unwilling to finance consumers without a license.
- Proof of Income: Paystubs are highly important, because they function to confirm your monthly income.
- Proof of Insurance: Full coverage insurance is considered necessary on any vehicle bought with a loan.
- Proof of Residence: Banks and lenders will have to see a recent document with your address on it, such asyour most recent power company bill.
- Personal References: Most likely you won’t need to supply references unless you have bad credit–in that case, references are used by repossession agents in cases where your vehicle has to be repossessed.
This may look like a big headache, but in fact it’s really easy, and a finance professional can lead you through each step of the process.
Buy Here Pay Here Dealers in Northridge, California
Folks in Northridge and all over California go to buy here pay here car lots, believing that they will only be able to get approved at one of these places. Not the case. Dealers like these will approve virtually anyone, regardless of their credit, but you will find problems with sort of financing.
More often than not, higher-mileage cars and trucks are the only ones on the lot, and these Northridge dealers may require you to have a GPS tracking system mounted in your vehicle. The rates of vehicles being repossessed are staggering, much like the interest rates. If that weren’t enough, these dealers don’t report back to the credit bureaus, so you could make all of your payments on time without helping your credit score.
Guidelines for Financing
Here’s a great guideline to follow: not more than 10% of the income you earn in an average month should be dedicated to your car payment. Also, opt for a 60-month loan at most. This will translate to a car costing roughly 50% of what you make per year, before taxes. For Northridge residents, having incomes of $27,864 per year, the per capita average, this is a vehicle which costs $13,932. Broadly speaking, the less you’re able to spend to acquire a trustworthy vehicle, the better.