If you’re interested in a new car, odds are you need an auto loan to get yourself behind the wheel of the car you want. We have an extensive network of dealers and lenders, and we have lenders and dealers set and ready, expecting your application. Experience the convenience of having a devoted financing specialist who can address your questions and set up your loan.
Bad Credit Car Dealerships in Richardson, Texas
If you are looking for a car dealer in Richardson that will take bad credit, you’re in the right place. Since this is a high-risk loan, there are certain things to be expected:
- Steeper interest rates.
- More money down required.
- More stringent lending conditions.
On the other hand, the rates and terms are much more attractive than you would be offered at a buy here pay here dealer. There are a great number of dealers in our network, and they want to get you the car you need. Just go here to submit your application.
Reducing Your Interest Rate
Have you secured a car loan before? In that case, almost certainly you know interest rate is as vital as price, especially if you want to save some money in the end. Case in point: a car loan of $32,499, pay off in 5 years, would cost you the following, depending on your interest rate:
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The good news is, there are steps you can take to minimize your rate of interest.
- Credit Score: Make sure there are no mistakes damaging your credit. If you discover one, make sure to take action to correct it.
- Loan-to-Value (LTV): More money down generally leads to more affordable annual percentage rates, because a smaller proportion of the vehicle is being financed.
- Debt to Income (DTI): Less debt may mean a lower interest rate, so pay down as much as you can.
- Loan Length: The faster you pay back your loan, the cheaper your APR rate will be.
- Type of Vehicle: Used vehicles are more expensive to finance, mainly because they’re more susceptible to maintenance issues, etc.
Buy Here Pay Here Dealers in Richardson, Texas
For people with dealt with bankruptcy or repossession, a buy here pay here dealer may seem like a smart move. As a rule, dealer financing is outsourced, as dealerships work with off-site banks and lenders to offer the loans. On the other hand, buy here pay here dealers handle everything on site. They make approval decisions on site, generally without any credit check. In most cases, preowned cars and trucks are the only ones you can buy, and dealers may expect you to have an remote interlock installed in your vehicle. Rates of repossession are astronomical, much like the interest rates. That isn’t all: these car lots don’t work with the credit reporting agencies, so you could make all of your payments punctually with no lift in your FICO score.
Recommendations for Buying a Car in Richardson
Make sure you devote no more than 10% of your monthly income for the payment on the car you’re buying. On top of this, it’s best not to finance for longer than 5 years. With this payment and lending term, you will be purchasing a car or truck costing about half of your yearly income. Here in Richardson, where the average income is $43,330 a year, the average consumer would purchase a car that costs $21,666. Generally, the less you’re able to spend to acquire a trustworthy car, the better.