Have you been thinking of getting pre-approved for financing? You really should, given that it often leads to a less expensive interest rate and significantly better terms. Our network of lending professionals is unrivaled, and that means we can help applicants of every kind, from good credit to bad. You’ll be guided one step at a time through the process by a financing specialist in Port Charlotte.
Port Charlotte Car Lots for Bad Credit
Certain bad credit car dealerships assess your job history rather than your credit. They often promote themselves as your job is your credit car dealerships, and they don’t require credit checks. That seems like a benefit, but most likely they will not help you boost your credit score. Chances are you’ll have a better experience with car dealer that offers bad credit car loans in Port Charlotte, Florida through an off-site lender. As compared with a buy here pay here car lot, such dealers can offer lower rates and better terms. You may not be able to finance just any car in the showroom. With a low credit score, you can finance six to eight times your monthly income. For residents of Port Charlotte earning $2,795 each month, this is $16,770 to $22,360. Then again, only 10% of your income ($280, in this example) should be earmarked for your car payment, which will most likely lead to a more modest loan. Apply online to talk to a vehicle lending expert about how much you can borrow.
Port Charlotte APR Rates: Reducing Them
Interest rate is critical in determining the amount you will end up paying for your vehicle.
If you don’t believe rate of interest is absolutely critical, take a peek at the figures below.
|Good Credit||Decent Credit||Sub-prime Credit|
|Size of Loan||$25,155||$25,155||$25,155|
|APR||3.50% APR||7.00% APR||11.00% APR|
So as to minimize your rate of interest, make sure to examine your credit report for any inaccuracies. If you find anything inaccurate, file a dispute with the credit bureau where the mistake is being reported. This is a quick and simple way to boost your credit score. Secondly, lenders look at your monthly debts as a percentage of your income–your debt-to-income ratio–so paying off some of your other debts can result in a lower interest rate. Banks and lenders charge less to finance cars for 36 or 48 months than for 60 months or more, and shorter loans are less likely to result in negative equity. Last but not least, how much can you put down on your new car or truck, either in cash or trade? A larger down payment will translate into a less expensive interest rate.
Buy Here Pay Here Car Lots in Port Charlotte, FL
Thinking about a buy here pay here dealer on account of bad credit? Usually, there are more attractive options. Most dealer finance is outsourced, as car dealers go through off-site banks and lenders to provide the loans. By contrast, BHPH dealers handle everything on site. They are both the lender and the dealer. Downsides include:
- Inflated Rates of Interest
- Exorbitant Down Payments
- Steeply-Priced Vehicles
- Location Monitoring Devices
Because of this, these dealerships have a sullied reputation. We can place you with dealer finance professional who can get you financed, even if your credit is terrible.
Rules of Thumb for Buying a Car in Port Charlotte
Make sure you spend, at the maximum, 10% of your monthly income for your new car payment. Take care, however, that you don’t get talked into a loan repayment period of 72-96 months, which may result in more interest and negative equity. Instead, try to have your loan repaid within 5 years. With a 10% payment and 60 month term, you will be purchasing a car which costs about half of your yearly income. In Port Charlotte, where the average income is $33,538 per year, the average consumer would purchase a vehicle costing around $16,770. By and large, the less you can spend on a solid vehicle, the better.