Before the internet, you needed to lender after lender, hoping to find one who will work with your credit. At Motive Auto Finance, we have brought this process online. Our industry partnerships are unequalled, and we specialize in placing your application with the dealer who can get you in the car you want. You’ll be walked step-by-step through the lending process by a financing specialist near you.
Bad Credit Car Dealerships in Warren, MI
You shouldn’t let credit stand in the way of your new car. We have access to dealerships all across Michigan who are willing to compete for your business. Since you’re a higher-risk applicant, there are certain things to be expected:
- Interest rates that are higher.
- Down payments that are more substantial.
- Loans that are more modest in size.
However, the experience is preferable to that of a buy here pay here car lot, and your vehicle will almost certainly cost you less in the long run. We have many such dealers in our network, and they want to get you the car you need. Just go here to apply online.
Documentation Requirements for Your Warren Auto Loan
As a way to reduce the risk of issues like fraud, lenders are required to validate things like who you are, where you work, and where you live.
- Driving License: If you do not have a license, odds are most lenders will turn you down.
- Proof of Income: Paycheck stubs help your lender to confirm the income you stated in your application.
- Proof of Insurance: Liability coverage will not be satisfactory, not on a financed vehicle. Lenders demand that you have comprehensive coverage, and if you fail to do so, they have the right to buy the policy themselves and simply include the cost in your monthly payment.
- Proof of Residence: A utility bill confirms your present address.
- Personal References: Normally required when you’ve got subprime credit. They enable the lender to ensure your information is up-to-date.
When you speak to your auto lending consultant, they will tell you what documents to bring.
Buy Here Pay Here (BHPH) Car Lots in Warren, MI
Car lots in Warren that advertise buy here pay here financing differ from conventional dealerships in a few key ways. They…
- Approve auto loans on location.
- Don’t check your credit.
- Want you to make payments 2-4 times per month, often at the lot.
If you’ve got horrible credit, Warren buy here pay here car lots are sometimes the only option. But keep in mind, the cost of your vehicle will be higher on account of outrageous interest rates, plus it’s less likely that your FICO score will get better as you repay the borrowed funds. That’s because these car lots rarely work with the credit reporting agencies.
Guidelines for Financing
Here’s a solid guideline to follow: a maximum 10% of your monthly income should be spent on your car payment. At the same time, plan to repay your loan in no longer than 5 years. This will buy you a vehicle costing approximately 50% of what you get paid on a yearly basis, before taxes. For Warren residents, having incomes of $25,647 annually, the per capita average, this is an automobile costing $12,822. Any car you buy is a possession that depreciates, so you should spend no more than you have to, in order to obtain a car that won’t cost you time and money in repairs.