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Auto Loans in New York (NY)

Auto financing with bad credit in New York–it’s what we do. Good credit may lead to less expensive annual percentage rates, but we can help you get approved for the New York auto loan that will fit your budget.

Here’s how the process works:

  1. You, the applicant, apply online.
  2. Our leading-edge placement software matches you to a car dealer or lender.
  3. Your lender contacts you about completing your auto financing arrangement.

Bad Credit Car Dealers New York

New York Dealerships That Finance Bad Credit

You might want to try to avoid buy here pay here dealerships, which offer in-house financing, opting instead for big franchise dealerships that arrange loans through traditional lenders like banks, credit unions, and finance companies, which are monitored by federal and state agencies, in contrast to BHPH dealers. As compared with a buy here pay here car lot, such dealerships are able to offer:

  • Less owed on the day of purchase, in cash or trade equity.
  • Less expensive rates of interest.
  • More advantageous repayment terms.
  • More stringent regulation.
  • Opportunity to increase your credit score.

You may not qualify to finance all the cars in the showroom. With poor credit, the upper limit of what you can borrow is 6 to 8 times the amount you earn on a monthly basis. For the New York resident making $4,953 a month, this is $29,720 to $39,626. That being said, you’d be wise to borrow less than you can, reducing your monthly payment to just 10% of your income–$495, in this situation.

Submit an application to talk with an auto lending specialist about how much car you can afford.

How to Minimize Your Rate of Interest

The majority of shoppers concentrate on getting the lowest price for their new car, but interest rate is equally as vital to the the total amount invested. Check this out: you’d pay $4,079 in interest a $44,579 loan financed for 5 years at an interest rate of 3.50% APR. At a rate of 7.00% APR, you’d pay $8,384. At 11.00% APR, $13,576. There’s more: your payment would rise from $811 to $969.

Obviously, getting approved at the lowest rate your credit allows is paramount. Let’s look at several strategies you have available.

  • Credit Score: Request your credit report and file a dispute for any errors you discover.
  • Loan-to-Value: Provide a down payment of 10-20% on your purchase. This will greatly reduce lender risk, resulting in a lower interest rate.
  • Debt-to-Income Ratio: Do you have a large amount of credit card debt? Getting that paid down will decrease your debt-to-income ratio, which will result in a cheaper rate of interest.
  • 36-60 Month Loan: Longer loans are regarded as higher risk investments. All things considered, a shorter loan typically comes with a lower rate of interest.
  • New Vehicle: It doesn’t cost as much to finance a newer vehicle–if the purchase price is the same.

Buy Here Pay Here Dealers in NY

Have you considered getting your car loan at a buy here pay here dealer in New York? These kinds of New York bad credit car dealerships don’t depend on banks or third-party lenders for approval, so they’re able to work with a wider selection of consumers. For folks that have horrible credit, New York buy here pay here car lots tend to be the only real way to go, even though New York poor credit car loans from banks and credit unions typically come with more affordable rates.

Financing Guidelines for New York Borrowers

Your car payment, how much should you spend? Determine what’s 10% of your monthly income, which is the maximum you should budget for this. Be careful, though, that you don’t undermine your low payment with exceedingly lengthy financing, which can lead to more interest and negative equity. Rather, you want to have your vehicle paid off within 5 years. If you follow these suggestions, you will find yourself financing a car or truck which costs around half of what you get paid on a yearly basis. Here in New York, where the average income is $59,439 annually, this would be $29,720 to invest in a car. New cars are never good investments, given how quickly they lose value, so you’ll want to fork out as little as you can to buy a car that won’t leave you on the side of the road.