Cars have become more and more costly over the years, and securing a reasonable rate of interest is more critical than ever. Our network of dealerships and lending companies is unmatched, and we have some of the highest approval rates in the market. We will match you with a financing expert who can help you get the car loan you need for the vehicle you prefer.
Bad Credit Car Dealerships in Camden, NJ
Bad credit doesn’t have to stand in the way of your new car. We work with dealerships in Camden that are able to give you a second shot at financing. As with any bad credit loan, expect:
- Steeper rates of interest.
- More money owed upfront.
- Smaller sized loans.
With that being said, they will line up your financing through banks and finance companies that submit information to the credit agenciesallowing you to strengthen your credit score. Here at Motive Auto Finance, we work with many such dealerships, and when you submit your application, we work hard to match you with one who wants to put you in the driver’s seat.
Decreased Interest Rates for Camden Borrowers
Locking down the cheapest rate of interest possible–it’s key. Case in point: On a $24,192 car loan financed at 3.50% APR for Five years, you would pay $2,214 in interest. At a rate of 7.00% APR, you’d pay $4,550. At 11.00%, $7,368. Furthermore, your payment would increase from $440 to $526.
So that you can minimize your interest rate, make sure to review your credit report for any errors. If you find an error, you’ll want to file a dispute with the credit agency where the error is being reported. This is a quick and simple way to boost your credit score. Also, taking care of any existing debt can bring down your debt-to-income (DTI) ratio, thereby reducing your rate of interest. Make sure you opt for a repayment period of less than 60 months. Your monthly payments will be higher, but lenders charge less for shorter loans. Loan amount, as a percentage of vehicle value, is a final factor. A larger down payment will result in an improved loan-to-value ratio, thereby minimizing your rate of interest.
Buy Here Pay Here Auto Loans in Camden, NJ
Buy here pay here dealers ordinarily finance people with major credit problems such as bankruptcy or repossession of a vehicle. Dealers like these will approve pretty much anyone, no matter their credit, but there are disadvantages.
Regrettably, you can look forward to inflated interest rates, massive down payments, and high mileage vehicles that are overpriced. That isn’t all: these car lots very rarely report back to the credit agencies, so you could make all of your payments in a timely manner without reviving your credit score.
Budgeting Guidelines for Camden Residents
Here’s a great rule: at the most, about 10% of your monthly income should be set aside for your monthly payment. If you’d rather not be upside down on your vehicle, paying exorbitant finance fees, opt for a loan of 60 months or less. This will translate to a car costing around half of your annual income. Here in Camden, where the average income is $32,257 annually, this would be $16,128 to invest in a car. Take note, this is the most that you should spend. Various industry experts advocate forking over just 10-30% of your income for a car.