If your credit isn’t very good, securing a loan is often the biggest hurdle to purchasing a new car, especially since the economic crisis. It’s crucial that you find a dealer or lender that can finance people who don’t have the most amazing credit. We work with a wide-ranging network of lenders and dealers that serve every end of the credit spectrum, not just the uppermost tiers.
Go ahead and submit your finance application, and you could be behind the wheel of a new car within hours.
Traverse City Car Dealers for Bad Credit
Don’t let credit prevent you from buying your new car. We have access to dealerships all across Michigan who are willing to compete for your business. In contrast to buy here pay here dealers, these larger dealerships offer:
- Interest rates that are fair.
- Down payments based on the vehicle’s price.
- New vehicles, not just pre-owned ones.
You may not qualify to finance the most luxurious car in the showroom. Ordinarily, if you have poor credit, you can finance six to eight times the amount you earn on a monthly basis. For residents of Traverse City making $1,819 per month, this is $10,914 to $14,552. At the same time, not more than 10% of your income ($182, in this case) should be earmarked for your car payment, which will most likely result in a smaller loan. Apply online to talk to an auto finance professional about your options.
Minimizing Your Interest
Paying a cheaper rate of interest may result in a lot of money saved. To illustrate, If you borrow $16,371 at 3.50% APR for Five years, you would pay $1,498 in interest. At 7.00% APR, you’d pay $3,079, and at 11.00%, $4,986. This would impact your monthly payment, which would rise from $298 to $356.
Boost your credit, and you’ll enjoy lower rates of interest. At this site, you can check your report once every 12 months, without spending a dime, and dispute any inaccuracies you find, potentially improving your credit score. Have you got a lot of credit card debt? Paying some of it off could lessen your debt-to-income ratio your interest rate along with it. You can finance a car at a lower rate for 3-4 years than for 5 years or more, and you aren’t as likely to find yourself under water on a shorter loan. Finally, keep in mind that a larger down payment will decrease your loan-to-value ratio (LTV)–yet a final way to reduce your rate.
Traverse City Buy Here Pay Here Dealers
The buy here pay here industry keeps growing, largely because so many people’s credit ratings were hit by the economy. Customarily, dealer finance is outsourced, in that dealerships work with off-site banks and lenders to fund the loans. In contrast, buy here pay here dealers engage in direct lending. They provide funding themselves. Alas, you should be prepared for exorbitant annual percentage rates, expensive down payments, and well-used vehicles that are steeply-priced. There is a reason that these dealers have a sullied track record. Let us match you with subprime finance specialist who can put you in the driver’s seat, not matter your credit.
Can This Supercharge Your Credit Score?
If your credit has been through the ringer, you may be worried that financing a car will do further harm. In fact, financing a car just might help you reverse the damage to your credit. The crucial element is payment history, an enormous part of the credit scoring matrix, and a car loan provides 36-84 months of payments. The positive effects are gradual, building in the course of months, even years. It is impossible to estimate just how much your score will climb, but month-to-month boosts of 5-10% have been noted.