A low credit score. It is no fun. Considering how many lending companies are still unable to finance people due to bad credit, it could take a long time to find a lending company willing to fund your loan. Luckily, we’re here to make your auto buying experience successful. In just a minute, we can find you a car lending company who can get you behind the wheel of a new car or truck, in spite of your credit.
Simpsonville Car Lots for Bad Credit
Dealers dedicated to supporting credit-challenged car-shoppers tend to be referred to as bad credit car dealers. As compared to a buy here pay here dealer, such dealers provide less expensive rates and more attractive terms. The dealer will analyze your credit and income to see the specific cars you are eligible to finance. It’s best to purchase a vehicle that won’t wipe out your savings, having a payment that amounts to 10% of your income–at the most. For people bringing in $4,912 per month, the average among Simpsonville residents, this comes to a payment of $491. Apply online to have a finance professional confirm your options.
Zero Down Auto Loans in Simpsonville?
You won’t find too many people who enjoy spending a chunk of hard cash in one go, but oftentimes it’s necessary to make a down payment on the vehicle you are financing–this is especially the case if you’ve got below-average credit. When financing a car, you are in a race with depreciation. When the your vehicle loses value faster than you can pay it off, then you are upside-down on it. A down payment works against depreciation.
People in Simpsonville do sometimes finance cars with zero down, but it’s more common for them to trade in their existing vehicle to satisfy the lender’s down payment requirement.
Simpsonville Buy Here Pay Here Dealerships
Have you thought about BHPH financing because of bad credit? Normally, there are better options. Typically, dealer financing is indirect, as dealerships work with various lenders to fund the loans, but buy here pay here dealers don’t. They provide funding independently.
Unfortunately, you should be prepared for high loan rates, huge down payments, and older vehicles that are overpriced. And if that weren’t a problem, these dealers don’t report back to the credit bureaus, which means you could make each and every payment on a monthly basis without raising your FICO score.
Recommendations for Buying a Car in Simpsonville
If you fancy yourself a savvy shopper, your car payment should represent 8-10% of what you make each month. Be mindful, however, that you don’t undermine your intelligent decision-making with a repayment period of 72-96 months, which may lead to:
- More total interest paid.
- Greater annual percentage rate.
- More time spent under water.
Rather, you want to repay your loan after 5 years. This means a car costing roughly half of your yearly income. In Simpsonville, where the average income is $58,938 per annum, the average consumer would purchase a car that costs about $29,472. Take note, this is the maximum you should spend. A lot of advisors suggest paying just 10-30% of your income for the next car you buy.