Around Connecticut, getting a car loan is a lot more difficult, on account of the rocky economy. To assist you, the borrower, we give you access to bad credit car dealerships in Meriden, Connecticut. After you submit your application, we can find you an auto finance company who would like to approve you for financing, no matter your credit.
Bad Credit Car Dealers in Meriden, Connecticut
You might want to steer clear of buy here pay here dealerships, working instead with bigger, better-respected dealerships that arrange loans through conventional lending companies like banks, credit unions, and finance companies, all of whom are closely watched by federal and state regulators, in contrast to BHPH dealers. As with all subprime loans, you can expect:
- Greater APR rates.
- Significant down payment requirements.
- Cheaper vehicles.
But keep in mind, it’s better than any alternative, and if you make your payments on time and in full, you can increase your credit score in the process of paying off your vehicle. Here at Motive Auto Finance, we work with many such dealerships, and they want to get you in the car you want. Go here to apply online.
How to Minimize Your APR Rates
Rate of interest is of utmost importance, as is finance term, in determining the amount you will end up spending on your vehicle.
The truth is, a more affordable interest rate could save you hundreds, even thousands of dollars, as shown in the table that follows.
|Good Credit||Fair Credit||Poor Credit|
|Size of Loan||$32,229||$32,229||$32,229|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
|Payment Per Month||$586||$638||$701|
If you want to keep your interest rate low, make sure to review your credit report for any inaccuracies. If you find an error, file a dispute with the credit agency where the problem is showing up. This is a fast and easy way to boost your credit score. Also, taking care of any existing debt can bring down your debt-to-income ratio, thereby reducing your rate of interest. Banks and finance companies charge less to finance cars for 36 or 48 months than for 60 months or more, and shorter loans are less susceptible to negative equity. Lastly, a greater down payment will decrease your loan-to-value ratio, otherwise known as your LTV–yet another way to reduce your rate.
Buy Here Pay Here Dealerships in Meriden, CT
Car lots in Meriden that approve buyer credit in house differ from traditional dealerships in some significant ways. They…
- Furnish auto loans without 3rd party approval.
- Rarely perform credit checks.
- Want you to make payments every seven days, often at the lot.
If you have really bad credit, Meriden in house financing car lots are often the only real option, even though there are a couple of negatives:
- Excessive Loan Rates
- In-Person Payments
- Inability to Improve Credit Score
Credit Repair for Meriden Consumers
There are three main credit bureaus:
In all likelihood, your lender or dealer will report your payments to these reporting agencies, enabling you to restore your credit. If you pay your installments promptly month after month, you will wind up developing a positive payment history, which makes up 35 percent of your credit score. Of course, credit improvements are slow and steady, developing with time. Of course, the potential benefits to an improved score are tremendous, including greatly reduced rates of interest and insurance premiums, as well as reduced down payments far better terms.