Before the internet, you would have to go from one Richmond lender to the next, applying for loans to do a comparison of rates. At Motive Auto Finance, we have simplified the process. We’ve spent years securing a network of dealers and lenders across the state of Kentucky, and we have lenders and dealers approve you for the financing you need. Normally, we can position car shoppers with a willing dealer or lender in real time.
Richmond Car Lots That Work with Bad Credit
Given the prevalence of bad credit in the wake of the market downturn, a lot more dealerships now have finance departments that specialize in financing people who have credit problems. As with any bad credit loan, you can expect steeper interest rates, more substantial down payments, and more stringent repayment requirements. With that being said, they will get you approved through lenders that supply information to the credit agencies, providing you with the ability to raise your credit score. We work with many of these dealerships, and when you submit your application, we can pair you with one who wants to arrange your loan.
The Best Interest Rates for Richmond Drivers
Obtaining a more affordable interest rate from your lender can pay big dividends. As an example, a 60 month car loan of $12,141 would cost you $1,111 in interest at 3.50% APR, $2,283 at 7.00% APR, and $3,697 at 11.00% APR.
A majority of Americans now have inaccuracies on their credit report. You’d be smart to check yours. Remedying these lead to a more affordable rate of interest. Also, paying down any outstanding debt can bring down your debt-to-income ratio, thereby reducing your rate of interest. Banks and finance companies charge less to finance cars for 36 or 48 months than for 60 months or longer, and shorter loans have less risk of negative equity. As a final point, a larger down payment will decrease your loan-to-value ratio–yet another way to reduce your rate.
Tote The Note Car Lots in Richmond, KY
Car lots in Richmond that advertise buy here pay here financing are distinct from conventional dealerships in certain crucial ways:
- These dealers offer car loans without third party funding.
- They rarely perform credit checks.
- They demand weekly or biweekly payments, often at the lot.
Many men and women with really bad credit believe that a buy here pay here car lot is the only place that will finance them, even though Kentucky bad credit car loans from credit unions and banks typically have more affordable rates.
Which Cars Are Best For Richmond Residents
The perfect car, in terms of price, will depend largely on your income and credit. This table displays how much car the average Richmond consumer can afford based on an income of $1,349 each month, a car payment equivalent to 8% of this income ($108), and a repayment term of 5 years.
|Prime Credit||Decent Credit||Bad Credit|
|Income Per Month||$1,349||$1,349||$1,349|