Your credit score is vital when it comes to car loans. The interest rates associated with bad credit auto financing in Boulder are greatly elevated in comparison with those for consumers with first-rate credit, and rates of acceptance are pretty low. Not to worry. We understand the challenges that Boulder residents with bad credit have to deal with.
Benefits we offer you include:
- Innovative Application Placement Platform
- Huge Lender Network
- Assistance from Dedicated Finance Experts
Bad Credit Car Dealerships in Boulder, CO
Car dealerships that have sub-prime finance offices are typically known as bad credit car dealerships. Since this is a high-risk loan, expect:
- Steeper interest rates.
- Significant down payment requirements.
- Smaller sized loan amounts.
On the plus side, the experience is far preferable to that of a buy here pay here car lot, and your vehicle will cost you less in both upfront costs and interest. We work with many of these dealerships, and you can get matched with one by submitting your application.
Boulder APR Rates: How to keep Them Low
Tons of consumers concentrate on the price of the vehicle they’re purchasing, but interest rate is equally as relevant. Case in point: you’d pay $866 in interest a $9,459 loan financed for 5 years at 3.50% APR. At 7.00% APR, you’d pay $1,779, and at 11.00% APR, $2,881. This would impact you each and every month, as your payment would go from $172 to $206.
Needless to say, your interest rate is absolutely critical, and fortunately, keeping it affordable isn’t that difficult.
- Credit Profile: Check your credit report and file a dispute for any errors you come across.
- Loan-to-Value Ratio: Putting more money down often contributes to more affordable APR rates, as less of the vehicle is being financed.
- Debt to Income Ratio (DTI): Do you have a significant amount of credit card debt? Paying off as much as you can will trim your debt-to-income ratio boosting your credit score, which will mean a less expensive APR.
- 36-60 Month Loan: Longer loans are regarded as higher risk investments, so opting for a shorter loan could be to your benefit.
- Vehicle Mileage: It doesn’t cost as much to finance a new or almost new vehicle–in terms of annual percentage rate, at least.
Tote The Note Car Lots in Boulder, CO
Commonly called in house financing, your job is your credit, or we tote the note car lots, these businesses generally have a few chief features:
- They offer car loans direct to the consumer.
- They don’t perform credit checks.
- They want you to pay them each week, often in person.
Many men and women with really low credit believe that a buy here pay here car lot is the only real place that will be willing to accept their credit, despite the fact that Colorado bad credit car loans from credit unions and banks typically have less expensive rates.
Guidelines for Buying a Car in Boulder
Divide your monthly income, pre-taxes, by 10. You’ll want to spend no more than this on your monthly payment. If you’d rather not be paying off a car or truck that’s worth less than you owe, consider a loan of no longer than 60 months. This will get you a car or truck that costs about 50% of what you make on a yearly basis. For instance, if you make $12,606 per annum, the average in Boulder, this would be a car costing $6,306. Cars and trucks lose value from day one, so you’ll want to fork out as little as you can and still bring home a car that fits your specific needs.