Here at Motive Auto Finance, we’re proud to help people in Arvada get an auto loan, even with issues such as bad credit, lack of credit, and no money down. Rather than waiting until you’re in negotiations at the dealership, we allow you to apply for financing in advance. More often than not, we can position borrowers with the right lender or dealer within minutes of application.
Arvada Car Lots for Bad Credit
Damaged credit has been on the rise ever since the market downturn, and more and more dealerships now have finance departments dedicated to subprime financing. Since this is a high-risk loan, there are certain things to be expected elevated rates of interest, larger down payments, and tighter lending terms. But keep in mind, it’s much better than being unable to buy a car, and these dealers can help you repair your credit and perhaps even refinance at a lower rate in the future. We work with many such dealerships, and when you submit your application, we work hard to pair you with one who wants to approve your credit.
Have You Got a Down Payment?
You aren’t going to find many people who enjoy spending a load of greenbacks at one time–it hurts! But it’s sometimes necessary to offer money down on the vehicle you want to finance–this is particularly true if you’ve got below-average credit. Dealers and lenders like you to offer a down payment, since doing so decreases the risk built into the loan. For you, that means a reduced APR rate and possibly better terms. That being said, we understand that setting aside such a chunk of cash can be daunting. Fortunately, you can sell your existing vehicle and put the takings toward your down payment, or for slightly less trade it in at the dealership.
Tote The Note Car Dealers in Arvada, CO
Have you thought of getting financed at a buy here pay here car lot in Arvada? These Arvada bad credit dealers don’t depend on banks or lending companies for approval, so they’re able to help a broad selection of shoppers. If you have really bad credit, Arvada in house financing dealers in many cases are the only real way to go. But keep in mind, the loan rates are more expensive than a bank loan. Also, they don’t usually report payments to the credit agencies, meaning your credit rating isn’t likely to improve as a result of the loan.
Financing Recommendations for Arvada Residents
Your car payment, what should you spend? Simply take 10% of your monthly income. This is the maximum amount you should allocate for this. Be cautious, however, that you don’t end up with overly long-term financing, which will result in:
- More paid in interest to the bank or finance company.
- Increased annual percentage rate.
- Greater difficulties with negative equity.
In fact, it’s best to have your vehicle paid off in as few years as you’re able. With a 10% payment and 5-year term, you will be getting a car costing approximately 50% of your annual income. Say you earn $48,597 a year, the average for residents of Arvada, you would buy a $24,300 car or truck. Most times, the less you’re able to invest while still getting a reliable car or truck, the better.