Serious about financing a car in Santa Monica, California, with poor credit or no down payment? A favorable credit record may provide you with more options, but we help you, the applicant, find the auto loan you need at a rate you can afford. To get going, all you’ve got to do is send us your application. We will match you with a car dealership or lender specialist who will work hard to find you an appropriate auto loan.
Santa Monica Car Lots That Finance Bad Credit
Make sure you stay away from buy here pay here dealers, reputed as they are for underhanded tactics of one sort or another. There are bigger dealerships that work with people with poor credit and provide an improved lending experience. Compared with a BHPH dealer, such dealers can offer:
- More affordable APR rates.
- More manageable down payments.
- More favorable lending terms.
- Stricter regulation, meaning much less risk of unethical lending.
- Power to improve your credit.
You may not have the credit and income to finance just any car on the lot. Here’s an example based on the average per-person income in Santa Monica, $2,275 per month:
- Great Credit: $22,750 (Income x 10)
- Fair Credit: $20,475 (Income x 9)
- Sub-Prime Credit: $18,200 (Income x 8)
- Bad Credit: $15,925 (Income x 7)
- Very Bad Credit: $13,650 (Income x 6)
These sums are by no means absolute. You could meet the requirements to finance greater than this, or less. Submit your application to talk to an auto lending specialist about how much you can borrow.
Can You Finance a Car with No Down Payment?
Want to purchase a new car, but you haven’t got the cash for a down payment? A down payment will reduce your LTV (loan-to-value) ratio by reducing the size of the loan versus the value of the vehicle. The result is:
- Cheaper rate of interest.
- Less total interest to be paid.
- Less of a problem with negative equity.
Even though there are zero down car deals in Santa Monica, we generally endorse down payments, particularly if you’re going to pay an expensive rate of interestAPR rate.
Buy Here Pay Here Auto Loans in Santa Monica, CA
The BHPH industry keeps growing, largely due to the fact that so many people’s credit ratings took hits on account of the credit crunch and housing market. These dealers will approve just about anyone, no matter their credit, but you will find negatives. Problems with sort of financing include:
- Extortionate APR Rates
- Extortionate Down Payments
- Overpriced Cars and Trucks
- Aggressive Repossession Practices
Even worse, these dealerships rarely report back to the credit bureaus, which means you could make all of your payments on time without improving your credit score.
Improving Your Credit in Santa Monica
If maximizing your credit score is a priority, don’t go to in house financing dealers. The lenders and dealers in our network can help you with your credit. If you pay your installments on schedule month after month, you’ll be developing a good history of debt payment, which accounts for 35 percent of your FICO score.
Your score is not going to go up the instant you pay back your loan. Rather, it will rise gradually as you keep making payments time after time. To make sure you don’t miss a payment, consider electronic options such as auto-payment.