Throughout the country, finance companies are not approving car loans like they did before the credit crunch, and New York City is not any different. With a large selection of New York auto lending companies neglecting people because of poor credit ratings, it could take a long time to find a loan company who is prepared to accept your credit. The good news is, we are happy to lend a hand.
To get going, all you’ve got to do is submit your application online. We will place you with a car finance company or auto dealer that can pre-approve you for an auto loan.
NYC Car Dealerships for Bad Credit
When you’ve got damaged credit, dealer financing is usually your best bet, seeing as most banks in New York will be hesitant to work with you. There are dealers, however, who have finance professionals in-house, ready to get you approved. For the most part, these dealers offer:
- Affordable APR rates.
- More affordable down payments.
- Both new and used vehicles.
The dealer will consider your credit and income to determine which cars you qualify to finance. Make sure you go with a vehicle that won’t strain your budget, having a payment that’s equivalent to 10% of your income–any higher, and you will run into problems. If you get paid $1,228 per month, this equates to a payment of $123. Submit your application to talk to a vehicle lending professional about how much car you can afford.
New or Pre-owned Car?
Both new and used vehicles can be purchased through us. In a lot of cases, a pre-owned vehicle is a better deal. The interest rates on new cars are more affordable, yes, but pre-owned vehicles are substantially less expensive.
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Buy Here Pay Here Car Lots in New York City
The buy here pay here industry continues to grow, largely due to the fact that so many consumers’ credit ratings suffered on account of the down economy. Such dealers provide car loans directly, unlike conventional dealers which work with banks and lending companies, and they regard your income as a form of credit. Sadly, you should expect exorbitant annual percentage rates, big down payments, and well-used vehicles that are steeply-priced. And if that weren’t enough, these car lots almost never report to the credit reporting agencies, and that means you could make every single payment as agreed without raising your FICO score.
Recommendations for Buying a Car in NYC
When you finance a car, a maximum 10% of the income you make on a monthly basis should be allocated to your monthly payment. At the same time, aim to pay off this vehicle in no longer than 60 months. This equals a vehicle that costs approximately half of what you earn on an annual basis (pre-tax). If you earn $14,739 per year, the average for residents of New York, you would buy a car that costs $7,368. As a rule, the less you’re able to spend on a reliable vehicle, the better.