Do you know what the interest rate was for the last auto loan you were approved for? I’m not even sure about mine because I had opted for simple financing with a small car lot. Before that, I had financed a Chevy Colorado at almost 20 percent interest. Yes, you read that right. Auto loans for people with bad credit aren’t always advantageous so you need to shop around.
When you do shop around, it’s easy to compare auto loan rates online these days. There are many people out there with bad credit, and they fall into all kinds of different categories. For example, have you ever had a car repossessed? If so, then there are auto loan companies that specialize in helping people get a loan when they have a repossession on their credit report.
Perhaps you’re self employed with bad credit, or maybe you just went through bankruptcy. You need an auto loan company that is used to handling financing for people in various types of situations. Auto loans with bad credit are attainable, and you don’t necessarily have to find yourself paying 20 percent interest or toting the note.
Your income can go a long way to getting approved for a better loan. You not only need a good income, but you need longevity to your employment history. How long have you been at your current job? When it comes to your income, the monthly payment doesn’t need to be more than 20 percent of your monthly budget. You really need to shoot for less than that, however, because you still need a place to live, food on the table, etc.
Another thing that can help you get auto loans with bad credit is coming up with a down payment. You don’t want to put too much money down for an automobile though. It does show good faith, however, and of course it’s going to be music to the ears of the people at the dealership.
If you can get a loan without a down payment, then go right ahead. Figure out what you can afford, and know what the auto loan companies are going to expect from you. Fill out an application online with the company you choose, and get ready to be told the words that you want to hear: You are approved! Soon, you’ll be behind the wheel of a new car.