Poor credit rankings are a hassle. Nobody knows the frustration of financing a car with credit problems like we do. All you need to do is complete this simple form, and we will match you to a lending company or dealership willing to pre-approve you for auto financing with bad credit.
Grosse Pointe Dealerships That Accept Bad Credit
Dealerships that work with consumers with credit problems tend to be known as bad credit car dealers. Contrary to buy here pay here dealers, these types of dealers offer:
- Less expensive rates of interest.
- Reasonable down payments.
- New and used vehicles.
Your credit and income dictates which cars you can finance. Here’s an example based on an income of $4,786 per month, the average in Grosse Pointe:
|Credit Score||Income Factor||Loan Amount|
This is merely an approximation. You might qualify to borrow a larger or lesser amount.
An auto lending expert will determine how much you’re qualified to borrow, and at what APR. If you want to talk with one, just apply online.
Financing a Car in Grosse Pointe with No Money Down
Do you have a down payment saved for your new car? One might be required. Generally speaking, you need a down payment of 10% for a vehicle that’s used, and 20% if it’s new. Glance at the table we’ve included.
|New Car||Used Car 1||Used Car 2||Used Car 3|
|Age||New||1 year old||2 years old||3 years old|
Bear in mind that the money from trading in your old vehicle can usually be used toward your down payment, so essentially, you’re able to finance a car without putting anything down, at least in terms of cash.
Grosse Pointe Buy Here Pay Here Car Lots
The buy here pay here industry continues to grow, largely due to the fact that so many people’s credit ratings took hits on account of the housing market and slow economy. These dealers provide auto loans in-house, while traditional dealerships contract this, and they are more focused on your job than your credit. More often than not, higher-mileage cars and trucks are the only models available, and dealers may make you pay weekly, in cash. Repossession rates are astronomical, much like the interest rates. If that weren’t a problem, these dealers almost never work with the credit reporting agencies, so you could make all of your payments month after month with no lift in your FICO score.
Rules of Thumb for Financing
Take 10% of your monthly income. You should spend no more than this on your monthly car payment. Take care, though, that you don’t end up with exceedingly lengthy financing, which may lead to:
- Higher finance charges.
- Higher APR.
- More time spent under water.
Rather, try and have your loan paid off after 60 months. This means a car or truck that costs around 50% of what you get paid annually, before taxes. In Grosse Pointe, where the average income is $57,427 per year, the average consumer would finance a car which costs $28,716. Automobiles depreciate quickly, meaning you should invest no more than you absolutely have to, in order to buy a reliable car.