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Auto Loans in Duluth (MN)

A bad credit score affects 25% of Minnesota residents. To aid you, the consumer, we’ve got car lots in our network in Duluth that accept poor credit. This is how we help our applicants to overcome their credit scores and secure car loan they need:

  1. You apply online.
  2. Our state-of-the-art approval software matches you to an auto lender or dealer.
  3. Your finance company reaches out about finalizing your bad credit auto financing package.

Bad Credit Car Dealerships Duluth Minnesota

Bad Credit Car Dealers in Duluth, MN

Poor credit has been a bigger problem in Minnesota, due largely to the economic crisis, and a lot more dealerships now have finance departments that cater to people who have damaged credit. Whenever you have adverse credit, you can expect more expensive rates of interest, bigger down payments, and smaller loans. With that being said, the rates and terms are much better than you would be offered at a used lot that does in-house financing with no credit checks. Here at Motive Auto Finance, we work with many of these dealerships, and they want to get you approved for the car you deserve. Just go here to submit your application.

Can You Get Approved with No Down Payment?

A down payment might be a headache, but when you’ve got poor credit, it might be a requirement. Dealers and lenders like you to provide money down, as it will reduce risk built into the loan. For you, that means a reduced APR rate and improved terms. Keep in mind that your traded-in vehicle can be put toward your down payment. In that way, you can, basically, finance a car without having to put down anything out of pocket.

Duluth Buy Here Pay Here Financing

People today head for buy here pay here dealers, also called your job is your credit car lots, believing that they will only be able to get financed at a place like this. Not true. Nearly all dealer financing isn’t direct to the consumer, as dealerships work with banks or credit unions to finance the loans, but buy here pay here dealers make approval decisions on site, generally without any credit check.

Disadvantages include:

  • Ridiculous APR Rates
  • Huge Down Payments
  • Steeply-Priced Vehicles
  • Uncompromising Repossession Practices

And if that weren’t enough, these dealerships don’t report back to the credit reporting agencies, so you could make all of your payments on time without increasing your credit score.

Guidelines for Buying a Car in Duluth

Generally, you should commit, at the maximum, 10% of your monthly income for your new car payment. Additionally, plan to repay your loan in not more than 5 years. If you follow these two rules of thumb, you will end up financing a car that costs about half of your annual income. In Duluth, where the average income is $23,409 a year, this would be $11,706 to commit to a vehicle. Typically, the less you can spend to acquire a reliable car, the better.

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