Looking for a new or preowned car or truck? If you’re like a large percentage of people in Sacramento, you probably need an auto loan. We’ve spent years securing a network of dealers and lenders across the nation, and we are dedicated to getting you approved by the dealer that suits you best. Let us match you with a lending specialist who can help you obtain the loan you need for the vehicle you desire.
Sacramento Car Dealerships That Approve Bad Credit
Dealerships able to assist consumers with sub-prime approvals are typically referred to as bad credit dealerships. By and large, these dealerships offer:
- Manageable APR rates.
- More affordable down payments.
- New and used vehicles.
The cars and trucks you can finance will be decided by your monthly income and credit score. It is wise to purchase a budget friendly, fuel-efficient vehicle with payments that amount to just 10% of your income. If you earn $972 a month, this equates to a payment of $97. Submit your application to have a finance professional confirm your options.
Reducing Your Rates of Interest
APR rate is extremely important, as is repayment period, in determining the amount you will end up spending on your vehicle. For example, a $8,748 car loan, financed for Five years, would cost you the following:
- 3.50% APR: $800 in interest.
- 7.00% APR: $1,645 in interest.
- 11.00% APR: $2,664 in interest.
Thank goodness there are steps you can take to limit your rate of interest.
- Credit Score: Review your credit report and dispute any mistakes you come across.
- Down Payment: Supply a down payment of at least 20% on your purchase, which will reduce the risk for the lender, resulting in a cheaper rate.
- Debt-to-Income (DTI): Lenders prefer that you have little in the way of existing debt, so paying down as much as possible makes sense.
- Repayment Period: Keeping your finance term to 60 months or less could result in a lower rate of interest.
- Vehicle Age: Banks and finance companies charge steeper rates for used vehicles than new vehicles, though they don’t cost nearly as much in the first place.
Buy Here Pay Here Car Dealers in Sacramento, CA
Have you wondered about getting approved through a buy here pay here car lot in Sacramento? These Sacramento bad credit car dealers don’t depend on banks or outside lenders for approval, so they can support a wide array of shoppers. If you have terrible credit, Sacramento in house financing dealers tend to be the only way to go, despite the fact that there are a number of downsides:
- Elevated Interest Rates
- In-Person Payments
- Inability to Improve Credit Score
Recommendations for Buying a Car in Sacramento
Make sure you allocate no more than 10% of your monthly income for the payment on the car you’re buying. Also, opt for a 5-year loan at most. If you follow these suggestions, you will end up financing a car or truck that costs roughly 50% of what you earn annually. In Sacramento, where the average income is $11,666 a year, this would be $5,832 to spend on a vehicle. Typically, the less you can spend while still obtaining a trustworthy vehicle, the better.