Has your credit been declined before? We help you to find a lending company that can fund loans for consumers whose credit scores aren’t all that good. We’ve established an extensive network of lenders and dealers who offer financing to a varied range of Washington drivers, not just those with credit scores greater than 750. An auto finance professional will help you:
- Compare APR’s.
- Consider various lending terms and down payment requirements.
- Plan a time to purchase your vehicle.
Go ahead and apply for your loan.
Snohomish Car Lots That Accept Bad Credit
It is advisable to stay clear of buy here pay here dealerships, which offer on-the-lot financing, buying instead from big franchise dealerships that arrange loans through traditional creditors like banks, credit unions, and finance companies. Such lenders are monitored by state and federal authorities, unlike BHPH dealers. In any sub-prime financing arrangement, expect:
- Interest rates that are more expensive.
- Down payments that are larger.
- Loan terms that are shorter.
With that being said, it’s much better than having no new car at all, and if you make your payments on time and in full, you can raise your credit score in the process of paying off your vehicle. We work with many of these dealerships, and you can get pre-approved by submitting your application.
Have You Got a Down Payment?
Even if your credit is excellent, a down payment–or the dearth thereof–can stand in the way of financing your car. A down payment offers many advantages:
- Less negative equity.
- Smaller loan amount, meaning your interest charges will be decreased.
- Reduced lender risk, leading to a lesser rate of interest.
Don’t forget that the trade allowance from your used car or truck can be put toward your down payment, helping you to finance a car with zero down in cash.
Your Job is Your Credit Dealers in Snohomish, WA
Have you thought of getting financed at a buy here pay here car dealer in Snohomish? These types of Snohomish bad credit car lots don’t rely on banks or finance companies to approve their customers, so they can help a larger range of borrowers. Often men and women with very bad credit think that a buy here pay here car lot is the only real establishment that will be willing to take their credit, even though the rates of interest are much higher than a loan from the bank. On top of that, they don’t often report payments to the credit bureaus. This means your credit score won’t go up even if they pay off the loan on time.
Rules of Thumb for Financing
Generally, you want to commit no more than 10% of your monthly income for your new car payment. If you’d rather not be under water on your vehicle, paying exorbitant finance fees, choose a repayment term of just 5 years, at the maximum. This will translate to a vehicle that costs roughly 50% of your yearly income. In Snohomish, where the average income is $46,097 a year, this would be $23,046 to spend on a vehicle. Unlike a home, a new car or truck doesn’t appreciate over time, meaning it’s best to fork out no more than you absolutely have to, in order to obtain a car that won’t leave you broken-down on the side of the road.