Have you considered getting your car loan pre-approved? You should, given that it addresses a lot of the stumbling blocks from the car-shopping process. We assist buyers in Naples every day, helping them line up their auto loans long before they visit the dealer. In most cases, we can position applicants with an appropriate lender or dealer even if their credit has been impacted by bankruptcy or repossession.
Bad Credit Car Dealerships in Naples, FL
You’ll want to avoid buy here pay here car dealers, which offer on-the-lot financing, financing instead through more reputable dealerships that arrange loans through third-party lenders like banks and finance companies, both of which have a much better reputation for ethical lending practices. In most cases, these dealerships offer:
- More affordable interest rates.
- Reasonable down payments.
- New and pre-owned vehicles.
You may not meet the criteria to finance the more expensive cars in the showroom. With credit problems, you can get approved for 6 to 8 times your monthly income. For the Naples consumer earning $3,578 per month, this is $21,468 to $28,624. With that being said, no more than 10% of your income ($358, in this case) should be devoted to your car payment, which will no doubt make for a more modest loan.
A lending expert will determine how much you can borrow, and at what rate. If you want to speak to one, be sure you submit your application.
Required Documentation for Your Naples Car Loan
You will be required to bring certain documents with you as you go to sign for your new car or truck. Typically, your dealer or lender will ask you for the following:
- Personal Identification
- Proof of Employment
- Proof of Insurance
- Proof of Residence
- Contact Information of Personal References
More may be required, so be sure to double check what’s needed with your dealer or lender before going to select your vehicle.
Naples Buy Here Pay Here Car Lots
Buy here pay here dealers ordinarily do business with people with acute credit problems like:
- Auto Repossession
- Tax Liens
Sure, they rarely carry out credit checks, so bad credit ought not be an impediment to approval, but you will really pay for this in the end. The fact is, you can look forward to exorbitant annual percentage rates, big down payments, and high mileage vehicles that are overpriced. There is a good reason why these retailers don’t have the best reputation. We can connect you with a reputable dealer who can put you in the driver’s seat, regardless of your credit.
Rules of Thumb for Financing
When considering the monthly payment on your car, it’s best not to spend more than 10% of your monthly income. Also, in order to decrease interest and negative equity, choose a 60-month repayment at the maximum. This will buy you a car or truck costing around half of what you get paid on an annual basis. In Naples, where the average income is $42,939 annually, this would be $21,468 to commit to a new car or truck. Cars lose value rapidly, so you’ll want to spend no more than you absolutely have to, in order to bring home a dependable car.