It is always a good idea to search for financing ahead of time, as the advantages are significant:
- Much less time spent in the finance office.
- Probability of a more affordable APR.
- Personalized dealer appointment.
We give you the ability to apply for financing through our nationwide network of dealers and lenders. Generally, we can match our customers with the right lender or dealer even if their credit has been affected by bankruptcy or repossession.
San Benito Car Dealers for Bad Credit
Have you considered where you could buy your new car or truck? If you have below-average credit, you’ll probably have to get your car from a dealer, instead of an individual seller, since most lenders don’t approve these types of loans for people who’ve sub-prime credit. Fortunately, there are dealers that finance bad credit. As opposed to buy here pay here dealers, these types of dealerships offer:
- Competitive interest rates.
- Realistic down payments.
- New and used vehicles.
The types of vehicles you’re eligible for will be determined by your income and credit. In order to avoid loan delinquency or repossession, opt for a highly affordable, efficient vehicle that has payments amounting to 10% of your income. If you earn $2,001 monthly, this is a payment of $200. Submit your application to have a finance professional confirm your options.
Reduced Auto Finance Rates for San Benito Consumers
If you’ve financed a car, then you know rate of interest is just as critical as price, particularly if you want to save some money overall.
Check out what you’ll owe in interest with an interest rate of 3.50% as compared with 7.00% or 11.00% APR.
|Good Credit||Average Credit||Bad Credit|
|APR||3.50% APR||7.00% APR||11.00% APR|
Don’t worry, however, as there are steps to take to bring down the interest rate you’re charged.
- Credit Score: Check the latest copy of your credit report free of charge, then file a dispute for any mistakes you discover.
- Loan-to-Value Ratio: Increased down payments commonly bring about less expensive annual percentage rates, given that less of the vehicle is being financed.
- Debt-to-Income: Lenders always prefer applicants who’ve got little pre-existing debt, so paying off as much as possible makes sense.
- Length of Loan: Longer loans have lower payments, but shorter ones have better rates of interest.
- Type of Vehicle: A lot higher rates are charged for pre-owned cars and trucks than new vehicles, though they don’t cost so much in the long run.
Buy Here Pay Here Dealers in San Benito, TX
People in the BHPH industry would like you to believe that they are your only option. However, this is hardly ever the case. Dealers like these will approve pretty much anybody, no matter their credit, but there are drawbacks. Unfortunately, you should expect high interest rates, big down payments, and well-used vehicles that are overpriced. Worse, these car lots seldom report back to the credit bureaus, and that means you could make all of your payments month after month without helping your credit score.
Rules of Thumb for Financing
Divide the amount you get paid per month, before taxes, by ten. It is best to spend no more than this on your monthly car payment. Be cautious, though, that you don’t get talked into a payment term of 72 or 84 months, which can lead to more interest and negative equity. The truth is, you want to repay your loan with the shortest term as is feasible. With this payment and lending term, you will be buying a car that costs roughly 50% of what you make on a yearly basis. For instance, if you make $24,014 annually, the average in San Benito, you would buy a car that costs $12,006. A new car or truck is a depreciating asset, which means you should spend no more than you have to, in order to buy a car that won’t leave you stranded.