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Auto Loans in Ames (IA)

Do you need to buy a car with a bad credit score? Excellent credit may give you more options, but we help you, the consumer, find the auto loan that will fit your budget. Here’s how we help our customers to rise above their bad credit and secure financing they need:

3 Easy Steps
  • Step 1: Our web application takes less than 60 seconds to complete.
  • Step 2: Our program leverages a network of innumerable loan providers and dealers to get you approved.
  • Step 3: Most consumers get approved in less than 24 hours.

Bad Credit Car Dealerships in Ames, Iowa

Dealers that help credit-challenged consumers are known as bad credit dealerships. As with any subprime loan, there are certain things to be expected more expensive rates of interest and higher down payments, together with shorter lending terms. Having said that, it’s far better than not having a new car at all, and if you make your payments on time, you can raise your credit score in the process of repaying your loan. At Motive Auto Finance, we work with many of these dealerships, and you can get pre-approved by submitting your application.

Trimming Your Ames Interest Rates

Rate of interest is vitalin determining your monthly payment, not to mention the amount you will end up paying for your vehicle. As an example, a 60 month car loan of $11,223 would cost you $1,027 in interest at 3.50% APR, $2,111 at 7.00% APR, and $3,418 at 11.00% APR.

As is obvious, your interest rate is crucial, and the best part is that it can be dramatically reduced in many different ways.

  • Credit Score: Take steps to correct any inaccuracies you see on your credit report which could push up the APR rate you’ll have to pay.
  • Loan-to-Value: A substantial down payment will limit your loan-to-value ratio–the size of your loan as compared with the price of your vehicle–which should help reduce the interest rate at which you’ll be approved.
  • Debt-to-Income Ratio (DTI): Have you got a great deal of credit card debt? Paying off as much as you can will lower your debt-to-income ratio, which will mean an improved rate of interest.
  • Length of Loan: The shorter your repayment period, the cheaper the interest rate.
  • Type of Vehicle: It is significantly cheaper to finance a newer model–provided that you don’t pay a higher purchase price.

Buy Here Pay Here Dealers in Ames, IA

People go to buy here pay here auto lots, also called in house financing car lots, of the belief that they will only be able to get approved at such a place. Not true. These types of dealerships provide funding on site, whereas a lot of dealerships farm this out to third-party lenders, and they typically don’t carry out credit checks.

Drawbacks include exorbitant rates and down payments, not to mention older vehicles and bimonthly payments If boosting your credit score is important to you, you should contact an auto finance specialist through us, since BHPH car lots won’t assist you in improving your credit.

How Much You Should Pay for a Car

Please do not buy more car than is really required. Have a look at the following scenarios, showing how much the Ames consumer ought to spend based on an income of $1,247 a month, a payment of $100, and a term of 60 months–the most extended term advisable.

Prime Credit Okay Credit Poor Credit
Payment $100 $100 $100
Interest Rate 3.50% 7.00% 11.00%
Years 5 5 5
Down Payment $1,371 $1,260 $1,147
Note Size $5,484 $5,038 $4,588
Total Interest $502 $948 $1,397
Total with Interest $7,357 $7,245 $7,133
Sticker Price $6,855 $6,298 $5,735

Used Cars in Ames, IA

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