We have seen too many Santee consumers who worry that credit problems will keep them from securing a car loan. For years, we’ve been securing relationships with lenders and dealers across the nation, and we have lenders and dealers ready to fund your loan. It really is difficult to find a more convenient way to get approved for your next car.
Santee Dealerships That Work with Bad Credit
Bad credit doesn’t have to keep you from the driver’s seat of your next car. We can pair you with dealers in Santee that won’t turned you down for a car loan, simply because your credit isn’t perfect. In any sub-prime financing arrangement, there are certain things to be expected:
- Steeper interest rates.
- Bigger down payment requirements.
- Less costly cars.
With that being said, the rates and terms are more favorable than you would be given at a used lot that does in-house financing with no credit checks. There are many of these dealers in our network, and you can get pre-approved by submitting your application.
Minimizing Your Rates of Interest
Tons of consumers concentrate on paying the cheapest price they can for the car or truck they want, but when you’ve got unfavorable credit ratings, interest rate is just as essentialto saving money down the road. To illustrate, a 60 month car loan of $20,187 would cost you $1,847 at 3.50% APR, $3,797 at 7.00% APR, and $6,148 at 11.00% APR.
Boost your credit, and you’ll able to secure lower rates of interest. At annualcreditreport.com, you can check your report once annually, for free, and challenge any mistakes you find, possibly increasing your credit score. Do you have a whole lot of credit card debt? Paying some of it down could reduce your debt-to-income ratio your interest rate along with it. A loan of 60 months or less will come with a lower rate than a 72 or 84 month note, and it will reduce negative equity. Last but not least, don’t forget that a bigger down payment will lessen your loan-to-value ratio, also referred to as your LTV–yet another rate-reducing factor.
Buy Here Pay Here Dealerships in Santee, California
Have you thought about financing a car through a BHPH dealer because of bad credit? Ordinarily, there are more attractive options. These dealers grant credit lines in-house, unlike traditional dealerships which contract this, and they finance just about everyone.
You’ll find that used vehicles are the only thing for sale, and these Santee dealers may have you make payments weekly, in person. Repossession rates are extremely high, as are the interest rates. That isn’t all: these dealers don’t report back to the credit reporting agencies, so you could make each and every payment on time without improving your FICO score.
Budgeting Recommendations for Santee Borrowers
Here’s a great guideline: no greater than 10% of the income you earn every month should be set aside for your car payment. Take care, though, that you don’t opt for overly protracted financing, which may result in:
- More paid in interest to the lender.
- Higher annual percentage rate.
- Worse issues with negative equity.
Rather, try and pay off your vehicle within 5 years. With a 10% monthly installment and 60 month term, you will be getting a car costing around 50% of what you make on an annual basis. Here in Santee, where the average income is $26,912 a year, the average consumer would purchase a car that costs $13,458. A new car or truck is a depreciating asset, meaning it’s best to spend the minimum amount you can and still bring home a car that fits your needs.