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Auto Loans in Lancaster (PA)

Do you need to get an auto loan with a bad credit score? No one specializes in subprime credit like we do. Everyday, we help people get approved for the cars they want in spite of difficulties like:

Car Loans Lancaster PA
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  • Bad Credit Scores
  • Limited Credit
  • Bankruptcies
  • Foreclosure

That’s simply what we do. Want to begin? Follow the link to apply online.

Lancaster Car Dealers for Bad Credit

You’ll want to stay away from buy here pay here dealers, known as they are for deceitful tactics of one sort or another. There are big franchise dealerships that arrange loans through banks, credit unions, and finance companies. As with all subprime loans, certain things are to be expected:

  • Much higher interest rates.
  • Larger down payment requirements.
  • Less significant loan amounts.

However, they will get your loan funded through banks and finance companies that report back to the credit reporting agencies, which is required if you’re hoping to strengthen your credit score. Here at Motive Auto Finance, we work with many of these dealerships, and you can get pre-approved by applying online.

Lancaster APR Rates: Keeping Them Low

If you’d like to minimize the overall cost of your vehicle, take steps to reduce your rate of interest. This could result in a lot of money saved.

Check out this table depicting the impact of different rates of interest.

Good Credit Average Credit Poor Credit
Amount Borrowed $8,046 $8,046 $8,046
Rate of Interest 3.50% APR 7.00% APR 11.00% APR
Monthly Installment $146 $159 $175
Interest Paid $736 $1,513 $2,450

To start with, searching for and correcting any errors on your credit report can raise your credit score, and we all know that higher scores translate into better rates. Also, paying off any outstanding debt can bring down your debt-to-income ratio (DTI), thereby reducing your rate of interest. A loan of 60 months or less will come with a lower rate than a repayment term of 6 years or more, you will be at less risk of being under water. Down payments are also pretty important. The less you finance with respect to the price of your vehicle, the cheaper your rate of interest is likely to be.

Buy Here Pay Here Financing in Lancaster, PA

In house financing, better known as buy here pay here financing, has expanded in the years after the recession, largely because so many people’s credit ratings took hits on account of the economic crisis. Sure, they don’t pull your credit, meaning your credit problems ought not be an impediment, but you will really pay for this in the long run.

Alas, you should be prepared for excessive interest rates, expensive down payments, and older vehicles that are steeply-priced. Is improving your credit important to you? If so, you should submit your application through us, seeing as buy here pay here car lots won’t assist you in raising your credit.

Financing Guidelines for Lancaster Consumers

It’s always best to allocate not more than 10% of your monthly income for your loan payment. If you don’t want to be upside down on your vehicle, paying exorbitant finance fees, consider a repayment term of 5 years, at the maximum. If you follow these tips, you will end up financing a vehicle costing roughly half of your yearly income. In Lancaster, where the average income is $10,729 annually, this would be $5,364 to invest in a car. Automobiles lose value from day one, which means it’s best to spend no more than you have to, in order to get a reliable car.

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