A car, truck, or SUV is a large investment, so it’s critical to set up your car loan through a trusted dealer or lender. Our company assists clients in High Point regularly, helping them put together their financing on the web. You will be led one step at a time through the lending process by a lending professional in High Point.
Bad Credit Car Dealerships in High Point, NC
Have you considered where you could buy your next car? For those who have below-average credit, private party auto loans are usually not an option. Chances are you’ll need to buy your vehicle through a dealership. Thank goodness there are dealers that work with poor credit. Generally speaking, these types of dealers offer:
- Fair interest rates.
- Lower down payments.
- Both used and new vehicles.
Your income and credit dictates which cars you’re eligible to finance. Here’s an example based on an income of $2,125 per month, the average in High Point:
|Credit History||Income Factor||Sum|
|Very Bad Credit||6||$12,750|
These numbers are just estimates. You might not be approved to borrow this much, based on such factors as your other loan balances, housing payment, and the type of income you have. Submit your application to have a finance professional confirm your options.
How to Minimize Your Interest Rates
Most people concentrate on the out the door cost of the vehicle they’re buying, but APR rate is just as crucial.
Have a look at this chart that shows the impact of different rates of interest.
|Good Credit||Decent Credit||Bad Credit|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
Thankfully, your APR rate can be dramatically reduced in a variety of ways.
- Credit Score: Raise your credit score by notifying the appropriate credit bureau of even the smallest inaccuracy being reported on your credit.
- Down Payment: A good down payment will lower your loan-to-value ratio–the size of your loan as compared to the price of the car or truck being financed–which should limit your rate of interest.
- Debt-to-Income Ratio: Banks and lenders have a strong preference for applicants with little in the way of existing debt, so paying down as much as possible is smart.
- Shorter-Term Financing: Longer loans are regarded as higher risk investments, so opting for a shorter loan could be to your benefit.
- Age of Vehicle: It costs less to finance a newer model–though used vehicles often cost less overall.
Buy Here Pay Here Car Lots in High Point, NC
Commonly called buy here pay here, tote the note, or your job is your credit car lots, these dealerships ordinarily have a few key features:
- These dealers offer car loans in house.
- They do not require credit checks.
- They demand weekly or biweekly payments, often at the lot.
For consumers who have horrible credit, High Point in house financing dealers are often the only real way to go. But keep in mind, the cost of your car or truck will be higher on account of excessively high loan rates. And if that weren’t enough, chances are your credit score won’t improve as you repay the borrowed funds. That is because these dealers have no relationship with Equifax, Experian, and Transunion.
Budgeting Recommendations for High Point Consumers
When it comes to the monthly payment on your car, it shouldn’t surpass 10% of what you earn on a monthly basis. On top of that, finance your vehicle for no more than 5 years. With this payment and repayment period, you will be purchasing a car or truck that costs roughly half of what you make on an annual basis. If you have an income of $25,505 a year, the average in High Point, you would buy a $12,750 car or truck. All in all, the less you can invest while still acquiring a trustworthy car, the better.