Beating Bad Credit

Low credit scores are tough to deal with, but they don’t have to ruin your life or keep you from being successful. Bad credit car loans are available for people like you who need a vehicle to improve their lives and advance their careers. However, as with all financial products, there’s a lot of variation in the types and terms of car loans you can be approved for as a person with bad credit.

Time

The amount of time you have to pay back your loan affects both the size of the payments and the number you’ll have to make. If you have experienced being overwhelmed by monthly payments in the past, you might be tempted to go for a loan with a long term. It’s generally a good idea to think twice about how much you can really afford to pay per month, and select the highest amount you think is reasonable. That’s because car loans for bad credit usually have higher interest, so the faster you pay it off the cheaper it is for you.

Money Down

The down payment will also affect the number of payments you have to make. Putting the maximum you can afford down will save you a lot of money in the long run, so don’t be afraid to write that big check.

Good Information

You might be surprised what you can accomplish when you partner with a dealership like us that wants to get you out on the road in a car you can afford. The trick is to get the right price so that a financial officer sees a car that will hold its value through the entire term of the loan. It’s no problem to advise you on what will work best for you financially, but only if you remember to bring along all the most recent financial documents you have so everybody can see the big picture.

When Car Leasing Can Be a Great Choice

While many people opt to buy a car instead of leasing it, car leasing can make sense in certain situations. Here are three situations when leasing a car can be a great choice.

You Love to Drive Different Cars

If you want to drive the newest and latest cars every few years, then leasing is a great option. You always get late models which usually don’t require extensive repairs. On top of that, instead of having to try to sell your car when it’s time for a new vehicle, you just trade it in for your next lease. Since you won’t ever have to sell your car, depreciation is of no concern to you. Furthermore, leasing allows you to choose first-generation vehicles that may come with some issues from the factory.

You Can’t Get a Car Loan

Unfortunately, some people struggle with bad credit scores and are simply not able to secure a low interest rate. This could mean high monthly payments that some just can’t afford. Or you’re only looking for a business vehicle but can’t bring a down payment to the table, or your need for an extra business vehicle is only temporary. Monthly lease payments are sometimes lower than actual loan payments. You could use the money you save every month for a down payment on a future car purchase.

You Don’t Use Your Car Often

Most car leasing agreements come with certain restrictions. You are only allowed to drive the vehicle for a specified, agreed-upon amount of mileage each year. If you don’t drive your car often, leasing a car can be more feasible than purchasing one. Additionally, if you are being relocated for your job to a remote location for only one or two years, you can just lease a vehicle and save yourself the hassle of a car purchase and car sale.

These are three situations when it can make more sense to lease a vehicle. If you’re ever wondering to lease or not to lease, take a close look at your very own situation and take all variables into account.

Tips For Getting A Bad Credit Auto Loan

Just because you may have a credit score that is less than perfect doesn’t mean that you can finance a car that you really want. Having an idea of how to go about getting a loan for a vehicle is often complicated, even with good credit. Here are some ways to get a bad credit auto loan without being overwhelmed by the process.

One of the first things you should do is check your credit score. There are websites online that will allow you to get your credit reports for free. You may wonder why you would want to know your credit score if you already know that your credit is wrecked. Well, things may not be as bad as they seem and often a lender can make things work for you, even with a low score.

Don’t take the first good offer that comes your way. Having poor credit doesn’t mean that you have to accept whatever is available. If you go into the financing process keeping in mind that you may get a better deal than you are expecting, you are less likely to accept a subprime loan when you may in fact qualify for something a little better. A bad credit auto loan doesn’t have to be all that bad.

While you are looking for a loan, it’s important to keep working towards correcting your bad credit score. Make sure that you are making payments on all of your debts so that lenders can see you working on getting better. A six-month good payment history prior to signing on the dotted line is ideal if you want to get the best loan possible.

If you do your homework before you begin looking for a bad credit auto loan, you are more likely to find a financial institution that is willing to work with your situation. Knowing what to look for beforehand can end up saving you money over time.

How to Avoid Bad Bad Credit Car Loans

Bad credit car loans are great for individuals with bad or no credit, but unfortunately, there are dealerships out there that take advantage of individuals who are desperate for financing, and they dole out loans that are unreasonable and downright unaffordable. If you have bad credit but need a new car, there are a few things you can do to avoid those bad bad credit car loans. They are as follows:

Know Your Credit Score

Don’t just assume that you have bad credit, as credit is always changing, and even a month of timely payments can bring your credit score from bad to fair. If it’s been a while since you’ve checked your credit score, check it right before heading to the dealership. When it comes to car shopping, knowledge is power, and by knowing your current credit rating, you can avoid being scammed into signing on for a loan with high interest rates and impossible terms.

Avoid Loans With Long Terms

Though lower monthly payments may sound ideal, they usually come with longer terms of up to six or seven years, which means more interest. By the time you’ve paid off your loan, you may end up paying more in interest than what the car is actually worth. You can avoid this by sticking with a loan term between three to five years.

Shop Around

Don’t sign on for the first loan that you’re offered. Shop around to see what types of terms and rates you can reasonably expect, and then use a lower rate as a bargaining chip for the car that you really want. By understanding what’s available to you, you can save thousands in interest and other fees.

If you have bad credit, it can be easy to fall for a bad bad credit car loan. To avoid doing so, know your credit score before you head to the dealership, avoid dealerships that promise long terms and low monthly payments and shop around.

The Main Advantages of Car Leasing

If you’re thinking about getting another vehicle but you have some concerns about paying for it in cash, car leasing is a feasible option offered to those looking to get a car without a costly down payment. It may be one of the easiest ways for you to get the car you want and need without spending too much of your money in the beginning.

The Down Payment is Affordable

If you’re going to lease a vehicle, you may have to make a down payment, but you won’t have to worry about that down payment costing you thousands of dollars. In fact, many people prefer leasing a vehicle because the down payment is so affordable. There are times when the company that leases that car doesn’t even charge a down payment, but that will likely depend on your current credit score and credit history.

You’ll Get to Drive a Car You Love

Not a fan of driving outdated vehicles? Most people aren’t. The great thing about choosing to lease a vehicle instead of purchasing it is that you’ll get to choose from such a broad selection of beautiful, recently released vehicles that are in fantastic condition. If you’re on a budget, driving your dream car may have been out of the question, but it’s something you can do if you’re leasing. You may be able to go to the dealership, check out all the updated options they have available, and then pull off the lot in a car you love.

If you’d like to drive around in an updated vehicle that is in fantastic condition both inside and outside, but you don’t want to pay the full price for it when you first get it, car leasing is an option you should consider. Leasing has its advantages, including low down payments and access to vehicles that may initially cost more than you could afford if you were paying in cash.

What You Should Know About Leasing a Car

If you’re in the market for a new car, then you may be considering the option of leasing the vehicle. This can be a way for you to enjoy the benefits of a brand new car while being able to afford the monthly payments. Here are the basic things you should know about car leasing. Keep these in mind the next time you are in the middle of searching for a new car.

First of all, it is important to know what a car lease actually is. It is often depicted as a long-term car rental. Generally, you will make monthly payments for a certain time period and then when you reach the end of the lease, you have the option to purchase the car or turn it back in.

There are certain restrictions with leasing a car. So you should be sure to read all of the fine print before you sign a lease. For instance, since you don’t technically own the car you may have to pay for any kind of damages that occur to the vehicle during the lease.

Before you begin looking for leasing offers, you should have an idea of what your personal credit score is. You can usually access your credit score from any of the major credit bureaus.

The leasing specials you often see at dealerships are for customers who have excellent credit scores. If you have a lower credit score, then you can still qualify in some cases for a leasing offer it may just require you to put down more money upfront in the form of a down payment.

As you can see, there are some important points to consider before you decide to accept a car leasing offer. You should make sure that you can afford the vehicle you are interested in leasing. It also helps if you can put down more money upfront as this will lessen your monthly payments.

5 Benefits of Used Cars

When you set out to look for your dream car, you want one that has all the right features but doesn’t break the bank. Used car dealerships offer you myriad car choices, and they are your best bet for finding that perfect car. Here are five of the benefits of buying used cars.

The first and perhaps most obvious benefit of a used car is the lower price sticker. The steepest depreciation in value comes in the first two or three years of a car’s life. When you buy used, you profit from that depreciation, whereas an original car owner inevitably takes a serious financial hit on trade-in.

Used cars tend to come with lower down payments as well as lower prices. Furthermore, insurance and taxes on your used car will be less expensive, which means you have more money in your wallet at the end of the month.

If you want a car loaded with all the hottest tech, the latest safety features or the cleanest engine developments, you have plenty of options to choose from among cars made in the last two to four years. You can get a thoroughly modern car without the sticker shock or the drastic depreciation.

If you are operating on a tight budget, cars older than four years are probably the ones in your sights. Although buying an older used car may not leave you with Bluetooth compatibility, you will still have access to plenty of safety features in cars that date as far back as early 2010.

Last but not least, if your passion is classic cars, you have only one option. Used is the only way to go.

There are plenty of other benefits to buying used cars. These cars give you the greatest bang for your buck and offer you the widest purchasing variety.

How You Can Get a Great Car Lease

You might be surprised to learn that car leasing follows a similar strategy to car buying. It’s all about being prepared before you go to the dealership. In particular, there are a few steps you can take to get a great car lease.

Know Your Prices

Do your homework before you walk into the dealership and know your prices. Not just the wholesale price of the car that you want, but the blue book value of your trade-in, if you have one. You could then negotiate an equitable lease rate and maximize the value of your trade-in.

Negotiate Options

A lease agreement has provisions for options such as down payment, mileage limit, and end-of-lease purchase. Prepare to negotiate the terms of these options with your dealership. Also, the amount of down payment affects your lease interest. A larger sum could reduce the interest rate.

End-of-Lease Terms

Make sure you know what is required when the lease expires and it’s time to return the car. For example, you might need to return the car with fairly new tires. Knowing the terms in advance, could help you to avoid penalties.

Avoid Mileage Overage

Check the mileage terms of the lease. If you anticipate driving over the allotted mileage, then you might want to consider purchasing extra miles at the beginning of your lease. If this sounds like something you’d consider, ask the dealership if you can do this.

Just like a car purchase, you might want to consider coming prepared to the dealership for a lease. Know the wholesale price of the lease vehicle and the blue book price of your trade-in. Familiarize yourself with your lease options and end-of-lease terms and if you anticipate logging a lot of mileage, consider adding extra miles to your lease plan.

Five Steps to Getting a Loan With Poor Credit

Reversing poor credit requires hard work, and that hard work is even more challenging when you don’t have a car. Fortunately, there are some steps you can take to get transportation to and from your job.

One: Have an Open Mind

With a poor credit history, you probably won’t be able to secure a traditional loan, but you may have more success with bad credit car loans. These typically have higher interest rates, so be prepared to pay a little more.

Two: Stay Away From Additional Credit

One of the most common mistakes people make when using credit to make a major purchase is to open up a new credit card or account. You may want to take a look at your credit history, checking for errors and correcting inconsistencies.

Three: Be Realistic Concerning What You Can Afford

There are two important parts to this. The first is your monthly payment. Consider your most difficult months and determine how much of a payment you’d be able to make at those times. Your car payment probably shouldn’t be much more than that. The second thing to consider is the overall cost of the vehicle. Consider how much you’ll have to pay as a down payment, how much maintenance the vehicle will require, and how much gas and insurance will cost.

Four: Try to Find a Co-Signer

If you have a friend or family member with good credit, you can improve your chances for getting a loan. The terms of that loan will also be easier to live with. That co-signer (or co-borrower for even more benefits) will give the lender assurance that the loan will be paid, even if you struggle to make payments.

Five: Don’t Settle

While being realistic about your options, you can still discuss better terms, such as the length of the loan, the interest rate, prepayment penalties, and annual percentage rate. Factors such as the prepayment penalty may be much easier to get rid of, whereas the interest rate may be harder to negotiate.

Poor credit will make obtaining a loan more difficult, but it shouldn’t prevent you from getting a car. Use these tips to improve your chances.

How to Get an Auto Loan With Any Credit Score

Credit scores go a long way in determining what kind of interest rate you might be able to expect on your auto loan. Those buyers with a good credit score can expect to have a lower interest rate and a higher loan amount than those buyers that get auto loans with bad credit. However, there are many advantages to getting a bad credit car loan, including the fact that a bad credit auto loan may be able to help improve your credit.

Here are a few things that you need to know about getting an auto loan with any credit score:

Credit scores make an impact

When it comes to securing an auto loan, your credit score will make an impact. Your credit score is an accumulation of your credit history. If you have a good credit score (one over 700), chances are greatly improved that you will be able to qualify for a good auto loan. Generally speaking, a good auto loan is one in which you will be able to get a high loan amount with a small interest rate. Therefore, people with good credit scores are often able to get more advantageous auto loans. However, we offer auto loans to all of our customers – even those customers with bad credit or no credit.

Bad credit auto loans can improve credit

Because credit scores are based on your credit history and current financial situation, you can help to improve your credit score by making wise financial decisions now. One way to make a great wise financial decision is to take out an auto loan that you then repay on time and in full. When you do so, future creditors will notice that you have a history of being financially responsible and will be more likely to extend a good credit car loan to you. Remember: 35 percent of your credit score is comprised of your payment history.

Get an auto loan today

It is possible to get an auto loan on the same day that you apply – especially when you use our simple online services. You can get started with this loan process by applying for a car loan online through our secure server. We’ll review your loan application and contact you with options right away!

We look forward to helping you get the best auto loan for your needs to make buying the right car easier than ever. Contact us today to get started!