Getting approved for a car loan became a lot harder after the credit crunch, but we can help. It’s smart to find a lender or dealer that has experience financing consumers with less than perfect credit. We’re proud to provide access to an unrivaled network of dealers and finance companies that will consider your application, even if you have a credit score of 650 or lower. Your auto finance manager will help you set up your finance package, and then you’ll head to the dealership and get your car. Go ahead and apply online for financing.
Bad Credit Car Dealers in Millersville, MD
Dealerships that specialize in sub-prime financing are frequently known as bad credit car dealers. In any subprime financing scenario, expect:
- Much higher rates of interest.
- Much bigger down payments.
- Stricter repayment terms.
Having said that, they will get you approved through lenders that supply information to the credit reporting agencies–required if you want to rebuild your credit. Here at Motive Auto Finance, we work with many of these dealerships, and they want to get you behind the wheel of the car you want. Just go here to submit your application.
Should You Buy Your Vehicle New or Used?
It’s a common question: which should they buy, a new or used car? In many cases, a used car is best. The rates of interest on new cars are low, yes, but used cars are much cheaper.
|New Car||Used Car|
|Age||New||3 Years Old|
|Term||60 months||48 months|
Buy Here Pay Here Dealerships in Millersville, MD
In house financing, also known as buy here pay here financing, has expanded in the years following the recession, largely due to the fact that so many people’s credit ratings took hits on account of the economy. Such dealerships offer car loans in-house, while most dealers work with banks and finance companies, and they typically don’t conduct credit checks.
In most cases, higher-mileage cars and trucks are the only models you can buy, and these aren’t no down payment cars. Normally, the down payment matches what the dealer had to pay for the vehicle at auction. Lending rates of more than 20% APR are not unusual. There’s more: these car lots almost never report back to the credit agencies, so you could make all of your payments as agreed without making improvements to your credit score.
Recommendations for Buying a Car in Millersville
When it comes to the monthly payment on your car, you ought not spend greater than 10% of what you earn per month. Be careful, though, that you don’t opt for a loan term of 72 or more months, which can result in:
- More total interest paid.
- Greater rate of interest.
- Worse difficulties with negative equity.
Rather, look to repay your loan as quickly as you’re able. This will result in a car which costs about 50% of your annual income. If you have an income of $68,246 per annum, the average in Millersville, you would buy a car that costs $34,122. All in all, the less you can invest while still acquiring a trustworthy car or truck, the better.