Bad credit. It is common in Albuquerque and across the state of New Mexico. Good credit may give you more options, but we can help you find the Albuquerque auto loan that will fit your finances.
Here’s how the process works:
Bad Credit Car Dealers in Albuquerque, NM
Car dealerships in Albuquerque that approve financing in house are termed in-house financing, tote the note, or buy here pay here car lots. It’s better to work with a car dealership that can get you the loan you need through an authorized lender. They’ll check your credit, but they also work with the credit reporting agencies – a rarity among Albuquerque BHPH dealerships. Compared to a BHPH car lot, such dealers offer:
- Less owed upfront, in terms of money down.
- Reduced APR rates.
- Ability to rebuild your credit.
The specific models you can purchase will be determined by your income and credit history. As a way to steer clear of loan default or repossession, look for a vehicle that won’t strain your finances, having a payment of about 10% of your income–at maximum. For people making $1,317 per month, the average in Albuquerque, this comes to a payment of $132.
Apply online to learn how much you can borrow.
Documentation That’s Needed
Any time you finance a car, certain documentation has to be included, and if you’re suffering from a low credit score, extra documentation could very well be needed.
- License or Permit: If you haven’t got a license, chances are most lenders won’t accept your application.
- Proof of Income: Pay stubs or tax statements allow the lender to confirm the income you stated in your application.
- Proof of Insurance: Your lender will request that you carry comprehensive coverage for any vehicle they finance, so you can repay the loan in case of an accident that totals it.
- Proof of Residence: Lenders will require you to provide a recent document with your address on it, likeyour latest power bill.
- List ofReferences: These are yet another means of verification, required when you’ve got adverse credit.
More may be necessary, so make sure you verify the requirements with your finance consultant.
Buy Here Pay Here Financing in Albuquerque, NM
The BHPH industry has boomed in recent years, largely due to the fact that so many people’s credit scores were impacted by the credit crunch and housing bubble. Such dealerships offer credit lines on site, as opposed to conventional dealerships which make use of banks and other lenders, and they regard your job as your credit. Downsides include:
- Inflated Finance Fees
- Overpriced Down Payments
- Steeply-Priced Vehicles
- Invasive Repossession Tactics
There is a reason that these dealerships don’t have a great track record. We can connect you with subprime finance professional who will work with you, even if your credit is really bad.
Rules of Thumb for Financing
If money is important to you, only about 10% of your income should be dedicated to a car payment. At the same time, plan to repay your loan in no longer than 5 years. This will buy you a vehicle that costs about half of what you earn annually. For Albuquerque residents, having incomes of $15,805 per year, the city average, this is a vehicle which costs $7,902. In most cases, the less you’re able to spend on a trustworthy vehicle, the better.