In the past, you had no choice but to go from one Memphis lender to the next, searching for one who will approve you for financing. Here at Motive Auto Finance, we have brought this process online. We work with a diverse network of dealers and lenders, and that means we can help applicants get pre-approved for a car loan, even if their credit isn’t ideal. You will enjoy the convenience of having a dedicated lending expert to help answer your questions and arrange your loan.
Bad Credit Car Dealerships in Memphis, Tennessee
Have you thought about where to buy your next car or truck? With bad credit, you typically need to buy your car from a dealership, as opposed to a private seller, simply because lenders hardly ever provide these types of loans for people who have credit that isn’t perfect. Fortunately, there are dealers that specialize in below-average credit. Contrary to buy here pay here dealers, these larger dealers offer:
- More competitive interest rates.
- Lower down payments.
- Lower mileage vehicles.
The types of vehicles you’re eligible for will be based on how much you make each month, along with what your credit score is. It is wise to buy a modest, fuel-efficient vehicle with payments of just 10% of your income or less. For people bringing in $1,752 per month, the average among Memphis residents, this would be a payment of $175.
Apply online to have a finance professional confirm how much car you can afford.
The Best Car Loan Rates for Memphis Borrowers
Interest rate is crucialin determining your monthly payment, as well as the total amount you pay for your vehicle.
Take a look at how much less you will pay in interest at a rate of 3.50% as compared with 7.00% or 11.00% APR.
|Good Credit||Decent Credit||Poor Credit|
|APR||3.50% APR||7.00% APR||11.00% APR|
An increased credit score will result in lower rates of interest on all lines of credit, not just car and truck loans. At this site, you can check your report once annually, for free, and file disputes for any mistakes you find, potentially improving your credit score. Have you got a whole lot of credit card debt? Paying some of it down could reduce your debt-to-income ratio your rate of interest as well. Don’t be tempted into a long-term loan to afford a more costly vehicle. Finance for 5 years or less, and you’ll be rewarded with a cheaper rate of interest. Down payments are also critical. The less you borrow in relation to the cost of your vehicle, the cheaper your rate of interest is going to be.
Buy Here Pay Here Car Lots in Memphis, Tennessee
Buy here pay here dealers wants you to believe that you can’t get financed anyplace else, yet this typically isn’t the way it is. Most dealer financing is sourced elsewhere, as dealerships go through banks or credit unions to offer the loans. On the other hand, BHPH dealers provide loans themselves. Alas, you will be faced with high interest rates, massive down payments, and cars and trucks that cost too much given the kind of shape they’re in. If strengthening your credit score is important to you, you should submit your application through us, since BHPH car lots can’t help you strengthen your credit.
Can Financing Supercharge Your Credit Score?
As long as you pay off the loan as agreed, financing a vehicle may actually help you re-establish your credit. Taking out and paying off a loan, on time and as contracted, exhibits that you are an excellent borrower, resulting in lower rates and more advantageous terms when you need them.
Missed payments, however, can lower your FICO score, and quickly! It’s easy to undervalue the merits of an improved FICO score. It will make your life easier and more affordable, and you’ve just got to pay your lender each month.