A few years back, you had no choice but to go to multiple lenders, applying for loans to do a comparison of rates. Here at Motive Auto Finance, we have made this process simpler, quicker, and more convenient. Rather than waiting until you are in the dealership’s F&I office, we enable you to get approved for a car loan ahead of time. It truly is hard to find a more convenient way to buy your next car.
Kenner Dealerships That Take Bad Credit
Car dealerships with sub-prime finance offices are oftentimes known as bad credit car dealers. As with any bad credit loan, there are certain things to be expected:
- Rates of interest that are more costly.
- Down payments that are more substantial.
- Loan repayment terms that are shorter.
On the other hand, the rates and terms are far superior to what you would be offered at a buy here pay here lot. At Motive Auto Finance, we work with many of these dealerships, and you can find one ready to accept your funding request by applying online.
How to Minimize Your APR Rates
A lot of shoppers concentrate on paying the cheapest price they can for the vehicle they’re purchasing, but for people with a bad credit score, APR rate is equally as essentialto cutting costs in the long run.
Check out what you’ll pay in interest at an APR of 3.50% as compared with 7.00% or 11.00%.
|Good Credit||Average Credit||Sub-prime Credit|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
|Payment Per Month||$198||$215||$236|
The good news is, there are a few simple ways to limit what you pay in interest.
- Credit History: Maximize your credit score by requesting the correction of even the smallest error in your credit profile.
- Loan-to-Value (LTV): A good down payment will lower your loan-to-value ratio–the amount of your loan as compared with the price of the vehicle you’re buying–thereby bringing down your interest rate.
- Debt to Income Ratio: Do you have a significant amount of credit card debt? Paying off as much as you can will lower your debt-to-income ratio thereby improving your credit score, which will translate to a better rate of interest.
- Shorter-Term Financing: Keeping your finance term to 60 months or less could result in a lower rate of interest.
- Age of Vehicle: It doesn’t cost as much to finance a vehicle that’s new–so long as you keep the price down,at least.
Tote The Note Dealers in Kenner, LA
Car dealers in Kenner that offer in-house financing differ from regular dealerships in certain crucial ways. They…
- Offer auto loans directly.
- Rarely require credit checks.
- Want you to make your installment payments every week, often at the lot.
For people with terrible credit, Kenner buy here pay here car lots tend to be the only real option, even though Louisiana subprime auto loans from banks and credit unions typically have less expensive rates.
Can This Help You Restore Your Credit?
If you work with a lender that has relationships with the major credit bureaus, a vehicle loan may actually improve your FICO score. When you make payments on a regular basis, you demonstrate to creditors that you’ll be someone they can depend on.
On the flip side, you’ll hurt your credit by missing payments, or making them late. Of course, the benefits associated with a healthier score are massive, including much lower rates of interest and insurance rates, along with higher credit limits.