Should I pick out a car before I apply for a Bad Credit Auto Loan?
If you’re shopping for a vehicle with bad credit, it’s in your best interest to consult with our finance team before you start shopping. Don’t go in blind; our team will help you determine your credit needs, how much you’ll be approved to borrow, and the length of your loan term, which will help you pick the right car for your budget.
Are there any minimum qualifications for credit approval?
With every credit application, the Buyer’s credit history and personal equity position are considered. If you have bad credit, you will likely be held to certain income and employment requirements in order for our team to guarantee your financing.
I have someone to cosign my loan, will that help me get approved?
Yes, but you – as the Buyer – must meet any employment and/or income requirements in order to be approved. You cannot use your Cosigner’s status as your own.
How much money will I be approved to borrow?
The amount of your loan will vary depending on several factors including your credit score, personal equity, and income status. Our finance department utilizes special equations to determine how much to lend each individual Buyer.
Do I need a down payment?
A down payment will certainly help (it will lower how much money you’ll need to pay back and can get you a lower interest rate), but it is not necessarily required. If you don’t have a down payment, ask our finance team about special considerations.
If I trade in my old car, can I use that money as a down payment?
Yes; you can and you should! However, keep in mind that, if you still owe a balance on your old car, you will be required to pay down that balance before getting any money back. Ask our finance team how we can help you if you’re upside down on your current car payments and need a new car.
How much will my monthly payments be?
Your monthly payments will vary depending on several factors: the total cost of your chosen vehicle, all applicable taxes and fees (including license), and lastly, your credit score and financial standing. Buyers purchasing a newer vehicle with low (under 50,000) mileage or even a new car can usually get a lower monthly payment.
What will my interest rate be?
Auto interest rates vary greatly from loan to loan and are also determined by the auto industry itself. Your interest rate will be determined based on your personal equity, credit score, and credit history. Our team will work to provide you with the best possible rates for your personal financial standing. If you have a down payment and a good (or even decent) credit score, your interest rates will be lower. New and late-model vehicles also carry lower interest rates than older vehicles, whose base rates go up about one point per year.
Will I be approved if I have a bankruptcy on my record or am currently filing Chapter 13 Bankruptcy?
If you have a past bankruptcy on your credit report, all you need for approval is to have had that bankruptcy discharged OR on Authorization to Incur Debt from your bankruptcy trustee. Shoppers currently filing for Chapter 13 Bankruptcy can still be approved as well, but it may take longer (2-3 weeks) and you must get an Authorization to Incur Debt from your trustee.
I’ve never bought a car before, what can you do for me?
Ask our finance team about our First-Time Buyer programs and how you can still get approved with “baby credit”.
I had my car/house/other property repossessed within the last year, can I still get a bad credit auto loan?
Yes you can, but only if your repossession was outside of a bankruptcy and there is still an existing balance on the account. If you have had a repossession recently, your vehicle selection will be limited to newer vehicles under factory warranty and you may need a larger down payment.