Are you worried about buying a car because of less-than-perfect credit? We can help. Our company helps clients in Valencia and all over the state of California, helping them put together their financing on the web. You will be guided step-by-step through the process by a financing professional in your area.
Valencia Car Lots for Bad Credit
Nowadays, there are dealerships with finance departments specializing in special financing. Since you’re a higher-risk applicant, you can expect steeper interest rates and higher down payments, together with shorter length loans. However, the experience is far preferable to that of a buy here pay here car lot, and your vehicle will almost certainly cost you less in both upfront costs and interest. Here at Motive Auto Finance, we work with many of these dealerships, and when you apply online, we match you with one who wants to arrange your loan.
Necessary Documentation for Your Valencia Car Loan
Whenever you buy a vehicle from a dealership, certain paperwork has to be included, and if you’re suffering from bad credit, additional documentation could very well be requested. It is critical to have your license. You’ll need it for test-driving various models, and it is used to verify your identity. If your credit isn’t immaculate, lenders will want to verify your income through paycheck stubs or tax returns. A number of lenders require you to be in the workforce for 1-2 years before they’ll consider you for financing. Proof of insurance is yet another requirement. The California minimums are not adequate. You’ll have to have full coverage insurance, which includes both comprehensive and collision coverage, during the full term of the loan. Lenders will also want to confirm your address, so they know where the vehicle is. required if you have sub-prime credit.
More may be required, so be sure you check what’s needed with your finance consultant.
Buy Here Pay Here Car Lots in Valencia, CA
In house financing, otherwise known as buy here pay here financing, keeps growing, largely due to the fact that so many consumers’ credit ratings took hits on account of the credit crunch and housing bubble. Such car lots offer funding on site, while conventional dealers outsource this, and they are more focused on your job than your credit. The fact is, you can expect exorbitant loan rates, expensive down payments, and somewhat battered vehicles that are steeply-priced. That isn’t all: these dealers seldom work with the credit reporting agencies, which means you could make all of your payments on a monthly basis without a lift in your FICO score.
Recommendations for Financing
If you want to be a smart shopper, you should spend no more than 10% of your monthly income on financing a car. Be careful, though, that you don’t go for a payment term of 72-96 months, which can lead to more interest and negative equity. Rather, try to have your loan paid off in as little time as you’re able. If you stick to these guidelines, you will find yourself buying a car that costs around 50% of your yearly income. Say you earn $49,598 per annum, the average in Valencia, you would buy a $24,798 car or truck. Bear in mind, this is the maximum amount you should budget. Scores of advisors advise forking over even less, just 10-30% of your income for a car.