Have you been considering getting your car loan pre-approved? It’s a good idea, given that it often translates to a lower annual percentage rate and far better terms. Our industry relationships are unequalled, and we are dedicated to connecting you with the dealer who can get you in the car you want. Normally, we can place applicants with an appropriate lender or dealer within minutes of application.
Bad Credit Car Dealerships in Dover, Delaware
If you are searching for a dealership that finances bad credit, you’re in the right place. As compared with a BHPH car lot, such dealerships typically offer:
- More competitive rates of interest.
- More manageable down payments.
- Fairer lending terms.
- Tighter regulation.
- Ability to build up your credit.
The dealer will evaluate your credit and income to decide which vehicles you qualify to finance. You should find a vehicle that won’t drain your bank account, with a payment that amounts to 10% of your income–no more. If you earn $1,144 monthly, this equals out to a payment of $114. Apply online to see how much car you can afford.
Will You Need a Down Payment?
Are you looking to buy your new car with no down payment? When financing a car, you want to pay it off at a faster rate than it depreciates. When the your new car loses value more rapidly than you can make payments, then you are upside-down on the loan. A down payment works against depreciation, which is particularly crucial if you’re being charged a high interest rate.
Bear in mind that your trade allowance can be put toward your down payment. In effect, this means you can, finance a car without putting down any of your hard-earned cash.
Buy Here Pay Here Dealers in Dover, Delaware
People young and old in Dover resort to buy here pay here auto lots, assuming they will only be able to get financed at a place like this. Rarely is this the case. Nearly all dealer finance isn’t direct to the consumer, as car dealers work with banks and lenders with whom they have relationships to fund the loans, but buy here pay here dealers engage in direct lending. They decide who gets financed on-site, often with no credit check. More often than not, used vehicles are the only ones available, and these Dover dealers may make you have a GPS unit placed in your vehicle. Repossession is a common occurrence, and the APRs are just plain exorbitant. There’s more: these dealerships rarely report to the credit reporting agencies, which means you could make each and every payment punctually without improving your FICO score.
Credit Considerations for Dover Residents
If you need another reason to finance a car, here it is: a car loan has other benefits. More than merely helping you purchase the car you want, it can supercharge your credit rating. To elevate your credit, be sure to make your payments on time, each and every month.
Having said that, you could potentially hurt your credit by making late payments or missing them completely. Most banks and finance companies allow you to arrange a scheduled payment each month, so the money is taken directly from your bank.