Have you thought about getting pre-approved for financing? You really should, because it addresses almost all of the regular hurdles from the car-shopping process. Our market expertise is unmatched, and we are dedicated to placing your application with the lender who wants your business most. It truly is tough to find a better way to obtain the financing required for your new car.
Statesville Car Lots for Bad Credit
Bad credit has been a growing issue ever since the economic downturn, and a lot more dealerships now have finance departments devoted to subprime auto lending. In any subprime financing arrangement, there are certain things to be expected:
- Interest rates that are higher.
- Down payments that are bigger.
- Loans that are smaller.
However, don’t forget that you are getting a car, sure, but also the opportunity to increase your credit score. We have a great number of dealers in our network, and you can get matched with one by applying online.
No Money Down Auto Loans in Statesville
Do you have a down payment saved for your new car? You might need one. Generally, you’ll need a down payment of 10% for a pre-owned car, and 20% on a brand new one. Take a look at the following example.
|New Car||Used Car 1||Used Car 2||Used Car 3|
|Age||New||1 year old||2 years old||3 years old|
The good news is, the trade equity from your used car or truck can usually be used toward your down payment. Essentially, this means you’ll be able to, finance a car with zero down in cash.
Buy Here Pay Here Car Lots in Statesville, North Carolina
In house financing, also referred to as buy here pay here financing, continues to grow, mainly because so many consumers’ credit ratings took hits on account of the down economy. Most dealer finance isn’t direct to the consumer, in that dealerships go through a network of lenders to deliver the loans. On the other hand, BHPH dealers are both the lender and the dealer.
More often than not, preowned cars and trucks are the only thing offered, and these are not no money down car loans. Normally, the down payment is not much less than what you would pay for the vehicle from a private seller. Interest rates in the neighborhood of 20% APR can be expected. There’s a reason why these retailers have a lousy reputation. We want to place you with subprime finance specialist who can get you approved, even if your credit is really bad.
Rejuvenating Your Credit in Statesville
If your credit isn’t the best, you may be worried that financing a car will only decrease your score yet further. The truth is, financing a car is one of the best ways to rebuild your credit. If you pay your lender promptly month after month, you will begin to establish a strong history of debt payment, which accocunts for greater than 33% of your credit score.
Don’t miss a payment, since this can have the exact opposite effect: a reduced FICO score. Most banks and lenders let you arrange an automatic monthly payment, so the money is subtracted directly from your bank account.