Cars have become increasingly expensive in recent years, and finding a reasonable annual percentage rate is paramount. We make it easy to apply for financing through our vast network of dealers and lenders. It’s hard to imagine a more convenient way to finance your next car.
Abilene Car Dealers That Accept Bad Credit
Certain bad credit car dealerships evaluate your job history as opposed to your credit. They often advertise themselves as your job is your credit car dealers, and they don’t check your credit. That sounds like a benefit, but odds are they won’t be helping you improve your credit score. You’ll be happier finding a dealer that can finance your bad credit through a third party lender. Unlike buy here pay here dealers, these types of dealers offer:
- Interest rates that aren’t exorbitant.
- Down payments that are affordable.
- New vehicles, instead of only used ones.
Your income and credit determines how much car you can get financed. With bad credit, the upper limit of what you can borrow is six to eight times the amount you make on a monthly basis. For residents of Abilene making $1,558 per month, this is $9,348 to $12,464. That said, just 8% of your income ($125) should be spent on your car payment, which will probably limit the amount you can spend. Submit your application to talk with a finance expert about how much you can borrow.
Abilene Auto Finance Rates: Keeping Them Affordable
When it comes to financing a car, rate of interest is equally as critical as price, if you want to spend less in the long run. Case in point: a 60 month auto loan of $14,022 would cost you $1,283 in interest at 3.50% APR, $2,637 at 7.00% APR, and $4,270 at 11.00% APR.
If you want to decrease your interest, make sure to check your credit report for any inaccuracies. If you find one, contact the credit agency in question. This is a quick and simple way to boost your credit score. Have you got a lot of credit card debt? Paying some of it off could reduce your debt-to-income ratio and therefore your rate of interest. You can finance a car at a lower rate for 3-4 years than for 5 years or longer, and shorter loans are less likely to result in negative equity. Down payments are also critical. The less you finance relative to the value of your new car or truck, the better your rate of interest is likely to be.
Your Job is Your Credit Car Dealers in Abilene, TX
Maybe you’ve thought of getting your vehicle through a buy here pay here dealership in Abilene? These Abilene bad credit car dealers don’t depend on banks or lending companies to approve people for financing, so they can support a wide selection of clientele.
Often consumers with really horrible credit believe that a buy here pay here car lot is the only place that will be willing to finance them, even though the annual percentage rates are much higher than you’d get from a traditional lender. In addition, they hardly ever report payments to the credit bureaus, which means the borrower’s FICO rating won’t increase even if they pay off the loan as scheduled.
Rules of Thumb for Financing
In most cases, you want to allocate, at the maximum, 10% of your monthly income for the payment on the car you’re financing. Additionally, finance your new car or truck for no more than 5 years. This will result in a car that costs approximately 50% of what you earn annually. In Abilene, where the average income is $18,695 annually, this would be $9,348 to commit to a vehicle. Don’t forget, this is the upper limit of what you should spend. Various industry experts advise devoting just 10-30% of your income for a car.