Your FICO score is hugely important when getting a car loan, and rates of approval have gone down since the recession. We help you find a lender or dealer who serves your credit tier. For years, we’ve been developing an unrivaled network of dealers and finance companies who are willing to consider your application, even if your credit has suffered some bruises. A vehicle finance specialist will be there to walk you through the purchasing process, helping you secure the lowest rate you can. Go ahead and get financed.
Bad Credit Car Dealers in Reno, NV
Given the rise in bad credit as a result of the market downturn, more and more dealerships now have finance departments that specialize in subprime auto loans. When compared with a buy here pay here car lot, such dealers are able to offer:
- Less owed upfront, in terms of money down.
- Less expensive APR rates.
- Tighter regulation, meaning much less risk of predatory lending.
- Option to rebuild your credit.
The dealer will use your credit and income to establish the cars you qualify to finance. As a way to reduce the risk of loan delinquency or repossession, buy a low cost, efficient vehicle having payments amounting to 10% of your income–at maximum. If you make $1,414 monthly, this is a payment of $141.
An experienced lending expert can help you determine how much you’re eligible to borrow, and at what rate of interest. In order to talk with one, be sure to submit your application.
Reno Auto Finance Rates: How to keep Them Low
Securing the least expensive rate of interest possible–it’s key. Consider this: an auto loan of $12,726, at 3.50% APR for 60 months, would end up costing you $1,164 in interest. It would cost you $2,393 at 7.00% APR, and $3,876 at 11.00%. From 3.50% to 11.00% APR, your monthly payment would shoot up from $232 to $277.
In order to get the best rate you can, be sure you check your credit report for any errors. If you find one, make sure you send a letter to the credit agency reporting the error. This is a fast and easy way to raise your credit score. Also, it’s a good idea to pay down any debts you can, as lenders prefer borrowers with low debt-to-income ratios, and reward them with less expensive rates. Lenders charge less to finance cars for 36 or 48 months than for 60 months or more, and shorter loans are less susceptible to negative equity. The amount being financed, as it relates to the vehicle’s price, is yet another factor. A greater down payment makes for a lower ratio, thereby decreasing the interest rate your lender charges you.
Tote The Note Dealers in Reno, NV
Car lots in Reno that advertise buy here pay here financing differ from regular dealerships in a few key ways. They…
- Grant auto loans directly.
- Rarely perform credit checks.
- Ask for weekly or biweekly payments, often in person.
If you have really bad credit, Reno in house financing car lots are often the only real option, even though there are a few drawbacks:
- Elevated Interest Rates
- Large Down Payments
- Inability to Improve Credit Score
Budgeting Guidelines for Reno Car-Shoppers
Here’s a solid guideline to follow: at the most, around 10% of what you earn per month should be dedicated to your car payment. At the same time, plan to repay your loan in no more than 5 years. With a 10% monthly installment and 5-year term, you will be purchasing a car or truck costing about half of what you get paid annually (pre-tax). For instance, if you make $16,971 a year, the average in Reno, you would buy a car that costs $8,484. Cars don’t appreciate like most homes do, meaning you should shell out no more than you absolutely have to, in order to buy a dependable car.