A growing number of car-shoppers in New Britain are getting their credit approved before heading to the dealer, for it makes buying a car a much easier process. We do business with a diverse network of dealers and lenders, and that means we can help applicants from every financial background. We assign you a financing professional whose job it is to get you approved for the car you want.
New Britain Car Lots for Bad Credit
For people with unfavorable credit ratings, dealer financing is generally your best bet, because most banks in your area will be hesitant to approve you. There are dealers, however, that can get you the loan you need at at a rate to suit your budget. When compared with a BHPH dealer, such dealerships offer more affordable rates and more desirable terms. The dealer will analyze your credit and income to establish which cars you’ll be able to finance. We suggest you find a vehicle that won’t stretch your budget, having a payment that’s equivalent to 10% of your income, if not less. If you get paid $2,354 monthly, this comes to a payment of $235. Apply online to have a finance specialist confirm how much car you can afford.
Affordable Auto Finance Rates for New Britain Consumers
Most consumers are focused on paying the lowest price possible for their new car or truck, but for people who have a low credit score, interest rate is equally as critical. Consider this: a 60 month car loan of $21,186 would cost you $1,939 in interest at 3.50% APR, $3,984 at 7.00% APR, and $6,452 at 11.00% APR.
Boost your credit, and you’ll be rewarded with lower interest rates. At AnnualCreditReport.com, you can check your report once each year, without spending a dime, and dispute any inaccuracies you find, possibly boosting your credit score. Second of all, lenders take note of both your income and existing debts. If you pay off any existing debts, you will be lowering your debt-to-income ratio (DTI), which will result a more affordable rate of interest. Don’t tie yourself to a 72 or 84 month loan. The shorter your loan is, the lower your rate will be. Down payments are also critical. The less you finance as a percentage of the price of your vehicle, the better your interest rate will likely be.
New Britain Buy Here Pay Here Dealers
Buy here pay here dealers ordinarily finance people with serious credit problems such as:
- Chapters 7 or 13
- Auto Repossession
- Debt Settlement
- IRS Liens
Nearly all dealer finance isn’t direct to the consumer, as car dealers go through a network of lenders to provide the loans, but buy here pay here dealers engage in direct lending. They provide car loans themselves.
- Inflated Interest
- Inflated Down Payments
- Steeply-Priced Cars and Trucks
- Location Tracking Devices
There is a good reason that these dealers don’t have a good track record. Let us put you in touch with a reputable dealer who can get you financed, even if your credit is awful.
Budgeting Guidelines for New Britain Residents
When it comes to setting your monthly payment, it shouldn’t be more than 10% of what you make on a monthly basis. Be careful, though, that you don’t go for a loan repayment period of more than 60 months, which can result in:
- More interest paid to the lender.
- Higher annual percentage rate.
- Greater risk of negative equity.
Rather, try and repay your loan within 5 years. If you stick to these guidelines, you will find yourself financing a car that costs approximately 50% of what you get paid on a yearly basis, before taxes. In New Britain, where the average income is $28,247 per year, the average consumer would finance a vehicle which costs roughly $14,124. Don’t forget, this is the upper limit of what you should spend. A number of authorities suggest budgeting even less, just 10-30% of your income for any car you buy.