Getting a car loan at a competitive rate is often the largest hurdle when shopping for a car, especially since the downturn hit. We allow you to find a lender that can get you the funds you need at a rate you can afford. For years, we’ve been developing a vast network of lenders and dealers who can put you behind the wheel of a new vehicle, regardless of your credit score. Your auto finance expert will help you put together the auto loan you need, so the only thing you have to do is head to the dealer lot and select the car you want. Feel free to apply online for financing.
Bad Credit Car Dealerships in Melrose Park, IL
Car dealerships that have departments dedicated to sub-prime car loans are commonly known as bad credit car dealerships. In any subprime lending arrangement, there are certain things to be expected:
- More expensive rates of interest.
- More upfront cash required.
- Tighter lending terms.
On the plus side, the experience is better than that of a buy here pay here car lot, and your vehicle will in all probability cost you less in the end. Here at Motive Auto Finance, we work with many such dealerships, and they want to get you the car you need. Just go here to submit your application.
Will You Need a Down Payment?
A down payment, as you probably know, is the amount owed in advance for your vehicle. When financing a car, you want to pay it off more quickly than it depreciates. If the vehicle isn’t worth as much as what’s owed on it, then you have negative equity. A down payment offsets depreciation, which is especially important if you’ve been asked to pay a high interest rate.
On the other hand, we know that setting aside such a chunk of cash isn’t that simple. The good news is, you can simply sell your existing vehicle and put the proceeds toward your down payment. Otherwise, you could trade it in at the dealership.
Buy Here Pay Here Dealers in Melrose Park, IL
Many people resort to buy here pay here auto lots, also called your job is your credit car dealers, convinced that they can only get financed at one of these places. Not true. In most cases, dealer financing isn’t direct to the consumer, as dealers go through banks and lenders with whom they have relationships to offer the loans. In contrast, BHPH dealers engage in direct lending. They are the actual loan originator. Disadvantages include inflated lending rates and overpriced vehicles with ignition kill-switches to assist in repossession And if that weren’t enough of an issue, these dealers don’t report back to the credit bureaus, so you could make all of your payments on time with no lift in your FICO score.
Guidelines for Buying a Car in Melrose Park
If you want a car that fits your finances, your car payment should not be above 10% of your monthly income. At the same time, it’s not smart to finance for longer than 5 years. This means a car that costs roughly 50% of your yearly income. For Melrose Park residents, having incomes of $37,954 a year, this is $18,978. Don’t forget, this is the most that you ought to spend. A number of experts advise devoting just 10-30% of your income for a new car or truck.