Bad credit can be a significant hurdle when getting approved to finance a car, but it certainly isn’t impossible. We allow you to find a lending company who has experience financing buyers with less than perfect credit. We’re proud to represent a wide-ranging network of lenders and dealers that want to fund your purchase, even if your credit score is weak.
Simply submit your online application, and we’ll do our best to match you with a lender or dealer in Lombard that can finance your credit.
Bad Credit Car Dealers in Lombard, IL
Car dealerships that have sub-prime finance offices are, in many cases, known as bad credit dealerships. Generally speaking, these dealers offer:
- Less expensive rates of interest.
- More reasonable down payments.
- Lower mileage vehicles.
Your income and credit dictates how much car you can afford. Below is an example based on the average per-person income in Lombard, $5,032 per month:
- Great Credit: $50,320 (Income x 10)
- Average Credit: $45,288 (Income x 9)
- Subprime Credit: $40,256 (Income x 8)
- Bad Credit: $35,224 (Income x 7)
- Really Bad Credit: $30,192 (Income x 6)
These are just approximations. You might not have the ability to finance this much, particularly if you have a lot of existing debt.
An auto lending expert will determine how much you can borrow, and at what APR. To get going, all you have to do is apply online.
Lombard Auto Loan Rates: Keeping Them Affordable
If you want to save money on your next vehicle, take action to keep your interest rate budget-friendly. This could save you a great deal by the time you’ve repaid your loan. For example, a car loan of $45,288, repaid in 60 months, would cost you widely differing amounts depending on your interest rate:
|Amount of Loan||APR||Total Interest|
Raise your credit score, and you will enjoy lower interest rates on not just car loans, but other lines of credit as well. At Annual Credit Report, you can check your report once every 12 months, free-of-charge, and contest any inaccuracies you find, possibly giving you a better credit score. Additionally, 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 more affordable rate of interest. Don’t turn to a 72 or 84 month loan. The shorter your loan is, the lower your rate will be. Down payments are also worthwhile. The less you finance as a percentage of the value of your new car or truck, the lower your rate of interest is likely to be.
Buy Here Pay Here Car Dealers in Lombard, IL
Dealerships in Lombard that offer in-house financing have certain things in common. They…
- Furnish auto loans in-house.
- Don’t check your credit.
- Want you to make payments every week, often in person.
If you’ve got really bad credit, Lombard buy here pay here dealerships tend to be the only real way to go, even though there are a variety of drawbacks:
- Excessive Annual Percentage Rates
- High Down Payments
- Inability to Improve Credit Score
Guidelines for Buying a Car in Lombard
When considering your monthly car payment, it shouldn’t be more than 10% of your monthly income. Furthermore, plan to pay off this vehicle in no longer than 60 months. This will result in a vehicle which costs approximately 50% of your yearly income. For Lombard residents with incomes of $60,378 per year, this is $30,192. Broadly speaking, the less you’re able to spend on a reliable car, the better.