We understand the challenges you face when you need to finance a car with bad credit. It’s important to work with a lender or dealer that is able to cater to your credit and finances. We work with an extensive network of dealers and lenders who are hoping to accept your finance request, even if your credit is sub-standard. What you need to do is apply online, and we will do our very best to pair you with a lender or dealer willing to accept your credit.
Alexandria Car Lots for Bad Credit
It is best to keep away from buy here pay here dealers, which offer in-house auto loans, opting instead for bigger, better-respected dealerships that meet the needs of people who have lower credit scores, and in the process offer a far better lending experience. Since this is a high-risk loan, expect increased interest rates, larger down payments, and shorter length loans. On the other hand, keep in mind that you are getting not just a car, but also the chance to improve your credit. We have a great number of dealers in our network, and when you submit your application, we pair you with one who wants to put you in the driver’s seat.
Do You Need a Down Payment?
Even if you have favorable credit, a lack of money down can be a hindrance. A down payment lowers your LTV (loan-to-value) ratio, which is the size of the loan versus the vehicle’s book value–thereby resulting in a lower interest rate, along with less interest paid overall.
It isn’t impossible to secure a car loan in Alexandria without a cash down payment, particularly if you have a good credit score. Apply online to chat with a vehicle lending consultant and discuss your options.
Your Job is Your Credit Dealerships in Alexandria, LA
Often known as in house financing, your job is your credit, or tote the note car dealers, these establishments generally have a few primary features:
- They finance car loans in-house.
- They do not require credit checks.
- They want you to make payments 2-4 times per month, often at the lot.
For consumers with terrible credit, Alexandria in house financing dealerships are sometimes the only real way to go. But bear in mind, the cost of your car or truck will be inflated on account of exorbitant loan rates. As if that weren’t enough, it is unlikely that your credit score will go up since these car lots rarely report to Equifax, Experian, and Transunion.
Rules of Thumb for Financing
In regards to the monthly payment on your car, it shouldn’t surpass 10% of your monthly income. If you’d rather not be paying off a car that’s worth less than what you still owe, go with a repayment term of 5 years, no longer. This translates into a vehicle which costs about 50% of your annual income. Here in Alexandria, where the average income is $11,770 per annum, the average consumer would finance a car which costs about $5,886. A new car or truck is a possession that depreciates, so you’ll want to invest as little as possible to get a dependable car.