A bad credit report can make it tougher to get a new car, but it is possible to get financed. Nobody specializes in subprime credit like us.
To get started, just complete your credit request. We will place your application with a loan provider or car dealership that can pre-approve you for financing, bad credit okay.
Lexington Car Lots for Bad Credit
Assuming you have a low credit score, dealer financing is likely the way to go, because the majority of banks in Lexington will be unwilling to accept your application. On the other hand, there are dealers that want your business. Compared to a buy here pay here car lot, such dealers typically offer:
- Lower interest rates, as well as smaller down payments.
- More favorable lending terms.
- Less risk of being ripped off.
- Potential to re-establish your credit.
The exact models you can buy will be determined by your income and credit. It’s always best to find a low cost, reliable vehicle with payments of just 10% of your income–no more. If you get paid $1,562 per month, this comes to a payment of $156. Apply online to see how much you can borrow.
New or Pre-owned Vehicle
It gets asked time and again: is a new or used car better? In some cases, a pre-owned car is a better deal. The interest rates on new cars are lower, but used vehicles are considerably less expensive.
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Buy Here Pay Here Car Lots in Lexington, NC
Maybe you’ve considered getting approved through a buy here pay here dealer in Lexington? These types of Lexington in house financing dealers supply financing themselves, usually without checking the consumer’s credit. Because they don’t rely on a traditional bank or credit union for approval, they can service a diverse variety of clientele. For folks who have horrible credit, Lexington in house financing dealers are sometimes the only way to go. But the truth is, the loan rates are much higher than you’d get from a dealership that does indirect financing. Additionally, they seldom report payments to the credit bureaus, which means your FICO rating won’t go up as a result of the loan.
Will This Enhance Your Credit Score?
If you need another excuse to finance a car, here you go: a car loan has other benefits. More than merely helping you buy the car you’d like, it can increase your credit score. An auto loan can beef up two chief credit components:
- History of Payments (35% of score).
- Credit Mix (10% of score).
Of course, increases in credit score are progress, not immediate, gaining traction over time. It’s tricky to know how much your score will go up, but experts have reported a 5-10% improvement per month.