In Florida, getting an auto loan is a lot trickier, due to the shaky economy. Nobody understands the frustration of getting a car financed with poor credit like we do. Day after day, we help folks finance a car despite hurdles like:
- Unfavorable Credit Ratings
- Minimal Credit
- Unsettled Bills
That’s our specialty. Want to get rolling? Simply click here to submit your application.
Ormond Beach Car Lots That Finance Bad Credit
Nowadays, many dealerships have finance departments whose sole purpose is serving people who have weak credit. In any sub-prime financing arrangement, you can expect elevated interest rates, more substantial down payments, and more exacting lending terms. Having said that, they will arrange your financing through lenders that submit information to the credit reporting agencies–critical if you want to increase your credit score. We work with many of these dealerships, and when you submit your application, we can pair you with one who wants to arrange your loan.
Ormond Beach APR Rates: Keeping Them Low
Paying a lower rate of interest may result in a lot of money saved. To illustrate, a car loan of $14,976,paid back in Five years at 3.50% APR, would cost you $1,370 in interest. It would cost you $2,817 at 7.00% APR, and $4,561 at 11.00%. From 3.50% to 11.00% APR, your monthly payment would go from $272 to $326.
Needless to say, your interest rate is of utmost importance, and truth be told keeping it manageable isn’t that complicated.
- Credit Profile: Dispute any inaccuracies appearing on your credit report which could push up the interest rate on your loan.
- Loan-to-Value Ratio (LTV): A good down payment will reduce your loan-to-value ratio–the size of your loan in relation to the price of the car or truck being financed–thereby reducing your rate of interest.
- Debt-to-Income Ratio (DTI): Carrying less debt may lead to a reduced rate of interest, so it’s smart to pay down as much as you can.
- 36-60 Month Loan: Lengthier loans offer lower monthly installments, but shorter ones come with lower rates.
- Age of Vehicle: It costs less to finance a new car or truck versus a previously owned one–when it comes to interest rate, at least.
Ormond Beach Buy Here Pay Here Car Lots
Buy here pay here dealers normally do business with people with acute credit problems like:
- Asset Repossession
- Tax Liens
Such car lots grant car loans in-house, unlike traditional dealerships which work with banks and lending companies, and they are more focused on your job than your credit.
Most often, used cars and trucks are the only thing for sale, and you may need to pay weekly, at the dealership. Repossession is common, and the interest rates are just plain ridiculous, they are so high. If strengthening your credit score is important to you, you are better off applying through us, seeing as BHPH car lots won’t assist you in improving your credit.
Financing Guidelines for Ormond Beach Residents
When considering the monthly payment on your car, you ought not spend more than 10% of what you make each month. Simultaneously, it’s best not to finance for over 5 years. If you follow these two rules of thumb, you will wind up purchasing a car which costs roughly half of what you earn on a yearly basis. For Ormond Beach residents, having incomes of $19,971 annually, this is a vehicle that costs $9,984. All in all, the less you’re able to spend on a solid car or truck, the better.