An applicant’s credit score is extremely important when it comes to car loans. The interest rates associated with bad credit auto dealerships in Powder Springs are drastically more expensive than those for excellent credit, and approval rates are often quite low. But don’t worry. No one understands the frustration of buying a car with credit problems like us.
Benefits Our Company Offers
- Proprietary Credit Approval Program
- Nationwide Lender Network
- Guidance from Experienced Auto Finance Experts
Bad Credit Car Dealers in Powder Springs, GA
For anybody who is searching for a dealership that takes poor credit, you’re in luck. As with all subprime loans, expect higher interest rates and higher down payments, plus tighter lending requirements. Having said that, bear in mind you’ll be getting not only a car, but also the chance to restore your credit. Here at Motive Auto Finance, we work with many of these dealerships, and when you submit your application, we can match you with one who wants to get you the loan you need.
Do You Need a Down Payment?
Have you got money saved for a down payment? One might be required. A down payment reduces your loan-to-value ratio (LTV), which is the size of the loan in relation to the vehicle’s value. This results in:
- More affordable rate of interest.
- Less paid in total interest.
- Fewer problems with negative equity.
Bear in mind that the money from trading in your old car or truck can be put toward your down payment. Effectively, this means it’s possible to, finance a car with zero down.
Buy Here Pay Here Dealerships in Powder Springs, GA
People in the buy here pay here industry would like you to believe that you don’t have any alternative but them, yet this is hardly ever the case. Typically, dealer financing is indirect, in that dealers go through off-site banks and lenders to offer the loans, but BHPH dealers make credit decisions on site, typically without a credit check.
Drawbacks include excessively high rates of interest that nuzzle up to the state’s maximums, as well as harsh contracts which permit quick repossession in the event of a missed payment There’s more: these dealers rarely report to the credit bureaus, so you could make all of your payments in a timely manner without boosting your credit score.
Will a Car Loan Increase Your FICO Score?
If bettering your credit score is a goal of yours, avoid tote the note dealers. Our dealers and lenders can help you get your credit to a better place. Having said that, this benefit isn’t immediate–far from it. You must pay off the loan as scheduled, making every payment on time.
Your score is not going to skyrocket the day you pay back your loan. Rather, its climbs slowly but surely as you continue paying your bills in a timely manner. Of course, the advantages of an increased score are huge, including much lower interest rates and insurance costs, as well as more opportunities for refinancing current loans.