Here at Motive Auto Finance, we understand the hurdles faced by consumers in need of financing, particularly those who have credit problems of one type or another. We allow you to find a lending company who caters to people with your type of credit. We’re proud to represent an unrivaled network of dealers and finance companies that are helping people restore their credit by paying off a car. Just apply online, and you could be driving home your new car by the end of the day.
Bad Credit Car Dealers in Levittown, Pennsylvania
Be sure to try to avoid buy here pay here dealerships, which have a reputation for dishonest tactics of one kind or another. There are more prominent dealerships that arrange loans through banks and credit unions. Since you’re a higher-risk applicant, you can expect:
- Rates of interest that are steeper.
- Down payments that are more substantial.
- Loans that are modestly-sized.
Having said that, the experience is far preferable to that of a buy here pay here dealer, and your vehicle will cost you less in the long run. We have a great number of dealers in our network, and when you submit your application, we pair you with one who wants to put you in the driver’s seat.
Lowering Your Rates of Interest
Getting the least expensive APR rate possible–it’s immensely important. Check this out: a $31,104 car loan, financed for 60 months, would cost you the following:
- 3.50% APR: $2,846 in interest.
- 7.00% APR: $5,850 in interest.
- 11.00% APR: $9,473 in interest.
As is obvious, your rate of interest is nothing short of critical, and what’s great is that it can be minimized in a number of ways.
- Credit Score: File a dispute for any errors you discover on your credit report which could elevate the rate of interest on your loan.
- Loan-to-Value (LTV): A solid down payment will limit your loan-to-value ratio–the size of your loan as compared to the price of the vehicle you’re financing–thereby decreasing your interest rate.
- Debt-to-Income (DTI): Having less debt can result in a more affordable interest rate. Pay off as much as you can.
- Length of Loan: Longer loans are regarded as higher risk investments, so opting for a shorter loan could be to your benefit.
- Type of Vehicle: Used vehicles are more expensive to finance than new vehicles, though they cost a lot less to start with.
Levittown Buy Here Pay Here Dealerships
If you’ve got substantial credit problems stemming from issues like bankruptcy or debt settlement, a buy here pay here dealer could very well seem like a good plan. These dealerships grant auto loans directly, in contrast to traditional dealers which outsource this, and they will typically finance anyone. You will see that preowned cars and trucks are the only models available, and these are not no down payment car loans. Normally, the down payment is equivalent to the vehicle’s value on the wholesale market. Rates of around 20% APR are typical. Because of this, these retailers have a sullied reputation. Let us connect you with subprime finance professional who can get you approved, even if you have bad credit.
Budgeting Recommendations for Levittown Borrowers
If your financial future is a priority for you, no more than 10% of your income should be used on your car payment. If you don’t want to be paying off a car or truck that’s worth less than the balance on the loan, opt for a loan of not more than 60 months. With this payment and lending term, you will be getting a car or truck that costs around half of your annual income. For Levittown residents with incomes of $41,466 annually, the per capita average, this is $20,736. Automobiles drop in value after every month of ownership, so you want to shell out as little as you can to obtain a dependable car.