A large percentage of car-shoppers in Montgomery Village and across Maryland are fearful of being declined by lenders because of their credit. The main thing is finding a lender that can approve your credit. Instead of waiting until you’re in negotiations at the dealership, we allow you to apply for financing in advance. We connect you to a finance professional whose goal it is to get you approved for the car loan you need.
Bad Credit Car Dealerships in Montgomery Village, MD
You shouldn’t let credit stop you from buying your next car. We have access to dealers all across Maryland that won’t turn you down, just because your credit isn’t ideal. By and large, these larger dealers offer:
- Manageable APR rates.
- Reasonable down payments.
- Both used and new vehicles.
The dealer will review your credit and income to see the specific cars you’re qualified to finance. So as to reduce the risk of loan default or repossession, find a vehicle that won’t empty your savings, with a payment that amounts to 10% of your income. If you get paid $5,122 a month, this would be a payment of $512.
An auto finance specialist is standing by, waiting to determine how much you’re eligible to borrow, and at what rate of interest. Go here to submit your application.
Montgomery Village Car Loan Rates: Keeping Them Low
Getting approved at the lowest rate of interest possible–it’s vitally important.
If you don’t think rate of interest is positively critical, take a peek at the figures below.
|Good Credit||Mid-Range Credit||Sub-prime Credit|
|Size of Loan||$46,098||$46,098||$46,098|
|APR||3.50% APR||7.00% APR||11.00% APR|
Raise your credit score, and you’ll able to secure lower interest rates. At Annual Credit Report, you can check your report once annually, at no charge, and contest any errors you find, potentially increasing your credit score. Do you have a substantial amount of credit card debt? Paying some of it off could reduce your debt-to-income ratio and therefore the rate of interest you’re charged. A loan of 60 months or less will come with a lower rate than a 6 or 7 year note, you will be at less risk of being under water. As a final point, don’t forget that a larger down payment will reduce your loan-to-value ratio (LTV)–another effective way to reduce your rate.
Buy Here Pay Here (BHPH) Dealerships in Montgomery Village, MD
Maybe you’ve thought about getting your vehicle through a buy here pay here dealership in Montgomery Village? These Montgomery Village in house financing dealers don’t depend on banks or investment companies to fund their loans, so they can help a wide array of borrowers.
Sometimes consumers with really horrible credit assume that an in house financing car lot is the only place that will take their credit. But keep in mind, the rates of interest are a lot higher than you’d be given by a conventional lender. At the same time, they don’t often report payments to the credit reporting agencies. This means your FICO rating will not improve as a result of the loan.
Rules of Thumb for Buying a Car in Montgomery Village
Your car payment, where to start? Just take 10% of your monthly income–the maximum amount you should commit to this. Take care, though, that you don’t get persuaded into going with a payment term of 72-96 months, which may result in more interest and negative equity. Rather, you should repay your loan within 60 months. With this payment and finance term, you will be getting a car costing about 50% of what you make on a yearly basis (pre-tax). For instance, if you make $61,464 a year, the average for residents of Montgomery Village, this would equate to a $30,732 vehicle. Broadly speaking, the less you’re able to spend to obtain a reliable vehicle, the better.