Issues like late payments, health care bills, and bankruptcies can damage your credit score. So as to help you, the applicant, we work with countless bad credit dealerships in Doylestown and across the state of Pennsylvania. The only thing you have to do is submit your application online, and we will match you to a finance company or car dealer who can pre-approve you for auto financing.
Doylestown Dealerships That Take Bad Credit
If you are looking for a dealership that offers loans to people who’ve got poor credit, we can help. Compared with a BHPH dealer, such dealerships offer:
- More affordable interest rates and down payments.
- More favorable repayment terms.
- Chance to restore your credit.
You may not meet the criteria to finance just any car on the lot. In most cases, if you have bad credit, the most you can borrow is six to eight times the amount you make on a monthly basis. For the Doylestown resident who makes $2,027 each month, this is $12,162 to $16,216. That said, it’s far better to borrow a limited amount, restricting your monthly payment to 10% of your income–$203, in this situation. Apply online to talk with an auto finance expert about your options.
Doylestown Car Loan Rates: How to keep Them Low
Many consumers are focused on getting the least expensive price on the vehicle they want, but for people who have poor credit, rate of interest is just as significant–if not more so.
Check out this chart depicting the impact of varying rates of interest.
|Good Credit||Average Credit||Bad Credit|
|Interest Rate||3.50% APR||7.00% APR||11.00% APR|
So as to reduce your rate of interest, you’ll want to examine your credit report for any mistakes. If you find anything that’s out of date, contact the credit bureau in question. This is a quick and simple way to raise your credit score. Second of all, by paying off any existing debt you will decrease your debt-to-income ratio, helping you to secure a better rate of interest. Always opt for the shortest loan you can. Your monthly payments will be higher, but you’ll pay less interest in the end. To finish, a solid down payment will lower your loan-to-value ratio (LTV)–an additional rate-reducing factor.
Doylestown Buy Here Pay Here Car Lots
When you have dealt with bankruptcy or repossession, buy here pay here financing may well seem like a sensible approach. A lot of dealer finance is outsourced, as car dealers go through banks and lenders with whom they have relationships to finance the loans. In contrast, buy here pay here dealers handle everything on site. They determine who gets financed on the lot, generally with no credit check. You will find that higher-mileage autos are the only thing you can buy, and these are not no money down car loans. Quite often, the down payment is nearly as much as you would pay for the vehicle from an individual seller, and you could end up paying thousands more than you expected through exorbitant rates. There is a good reason why these retailers have a dirty reputation. We want to place you in the hands of a reputable dealer who can get you the funds you need, even if you’ve been through bankruptcy.
Guidelines for Financing
Divide the amount you make per month, prior to withholdings, by ten. Make sure you spend this much, at most, on your car payment each month. If you don’t want to be paying off a car that’s worth less than you owe, go with a repayment term of just 60 months or less. This will equal out to a car that costs roughly half of your annual income. If you have an income of $24,321 per year, the average for residents of Doylestown, this would be a car costing $12,162. Cars don’t make good investments, considering how rapidly they don’t hold their value well, so it’s best to spend as little as you can to bring home a solid car.