Here at Motive Auto Finance, we’re proud to help people in Medina get the auto loans they need, even with obstacles such as poor credit, zero credit, and no trade equity or cash. Instead of waiting until you’re in the dealership’s F&I office, we allow you to apply for financing ahead of time. We match you with a credit expert who will work tirelessly to get you financed.
Bad Credit Car Dealerships in Medina, OH
Poor credit has been a growing issue since the economic downturn, and many dealerships now have finance departments dedicated to helping people who have credit problems. By and large, these dealerships offer:
- Lower interest rates.
- More affordable down payments.
- Lower mileage vehicles.
The dealer will evaluate your credit and income to determine the specific cars you can finance. In order to steer clear of loan delinquency or repossession, find an easily affordable, dependable vehicle with payments of just 10% of your income–any higher, and you’ll be at a high risk of repossession. If you get paid $2,723 per month, this comes to a payment of $272.
An experienced lending professional will determine how much you’re qualified to borrow, and at what interest rate. To begin, simply apply online.
Medina APR Rates: Reducing Them
If you’d like to minimize the overall cost of your next car or truck, do something to reduce your rate of interest. This could result in big savings over the life of your loan. For instance, an auto loan of $24,507, pay off in 60 months, would cost you vastly varying amounts depending on your interest rate:
|Loan Amount||APR||Total Interest Paid|
Thank goodness there are steps to take to lower your rate of interest.
- Credit History: File a dispute for any inaccuracies you come across on your credit report which could increase the interest rate on your loan.
- Down Payment: Put 20% down on your new car or truck, which will cut down on the risk for the lender, leading to a lesser rate of interest.
- Debt-to-Income Ratio: Creditors like it when you have little other debt, so paying down as much as possible is advisable.
- Length of Loan: The shorter your loan is, the lower the interest rate.
- Vehicle Mileage: It is significantly less expensive to finance a vehicle that’s new–at least with regards to rate of interest.
Buy Here Pay Here Dealerships in Medina, OH
Commonly known as buy here pay here, tote the note, or your job is your credit car dealers, these dealerships typically have a few main features. They…
- Grant auto loans without third party funding.
- Do not perform credit checks.
- Demand weekly or twice-monthly payments, often in person.
If you have horrible credit, Medina buy here pay here dealers are often the only real way to go. Unfortunately, Ohio poor credit car loans from banks and credit unions typically feature less expensive rates.
Can This Improve Your FICO Score?
If you need one more reason to finance a car, you have it: a car loan not only helps you afford the car you’d like, it can supercharge your credit rating. Taking out and paying down an installment loan, on schedule and as contracted, reveals that you are a great person to finance, resulting in lower rates and more advantageous terms in the long run.
Your score is not going to rise the instant you pay back your loan. Rather, it will climb slowly but surely as you keep making payments month after month. In order to be sure you don’t miss a payment, consider a scheduled calendar reminder or automated deductions from your bank account.