A consumer’s credit scores are a pretty important factor for companies who grant car loans. The interest rates for bad credit auto loans in Baytown, Texas, are exponentially more expensive than those for people with good credit, and rates of acceptance are much lower than they once were. But don’t worry. Excellent credit may result in less expensive rates, but we can help you find the bad credit car loan you need at a rate you can afford. In just one minute, we can set you up with a lending consultant in your part of Texas.
Bad Credit Car Dealers in Baytown, TX
You’ll want to keep away from buy here pay here dealers, which are known for dishonest auto lending. There are more reputable dealerships that arrange loans through third-party lenders like banks and finance companies, which have a better reputation for honest lending. As with any subprime loan, expect:
- Steeper interest rates.
- Much bigger down payment requirements.
- Less costly assets (cars).
But keep in mind, the rates and terms are much better than you would get at one of Baytown’s buy here pay here dealers. There are many such dealerships in our network, and they want to get you the car you need. Go here to apply online.
Documentation You Will Need
In order to avoid hitches, be sure you bring the required documentation when you buy your car. Requisite documentation often includes:
- Personal Identification
- Proof of Income
- Proof of Insurance
- Proof of Residence
- List of Your Personal References
Before you drop by the dealer or lender, make sure you have all the documentation that’s required.
Buy Here Pay Here Dealers in Baytown, TX
Buy here pay here dealers typically work with people who have truly serious credit problems such as:
- Chapters 7 or 13
- Involuntary Repossession
- IRS Liens
Dealers like these will approve nearly anyone, regardless of their credit, but you will find disadvantages.
Alas, you will be faced with inflated rates of interest, huge down payments, and cars and trucks that cost too much given the number of miles they have. There is a good reason why these car dealers don’t have the best reputation. We want to put you in touch with a reputable dealer who can get you financed, even if you have bad credit.
Financing Recommendations for Baytown Borrowers
When financing a car, not more than 10% of what you make each month should be spent on your car payment. To prevent equity issues and excessive finance fees, opt for a repayment term of no more than 60 months. This equates to a car which costs approximately half of what you earn on a yearly basis, before taxes. Say you earn $21,649 annually, the average for residents of Baytown, you would buy a $10,824 vehicle. Ultimately, the less you can spend to obtain a trustworthy car, the better.