Borrowers looking for weekly payments may find the monthly payment option to be less expensive in the long run
Payment Question
Here at Auto Credit Express we recently received an inquiry from a consumer that went like this: "(I am) Interested in your weekly payment option."
The short answer is that although Auto credit Express is not a lender, the dealers in our network do work with a wide range of lenders, so let's look at that.
Monthly Car Payment Options
Most of the dealers in our network work with subprime lenders who offer car loans indirectly through them. These lenders report both the loans they make - and the monthly payments on these loans - to the credit bureaus.
While these subprime loans have higher interest rates and, generally speaking, stricter documentation requirements (such as references as well as income and residence verification), they share a number of similarities with regular car loans. These include simple interest as well as a monthly payment schedule. One more thing: in order to qualify for one of these loans, these lenders will first check your credit, which means that an approval is not guaranteed.
Weekly Car Payment Options
On the other hand, some of the dealers in our network offer vehicles that they finance themselves. Called buy here pay here, tote the note or in-house financing dealers, these loans are usually based on simple interest, but they can also be based on rule of 78s financing, a type loan whose interest rate is built into the payment and can result in higher interest charges. In addition, the interest rates on these loans are also at the upper end of the subprime spectrum. Although these dealers generally ask for higher-than-average down payments, they usually only look at your income and will not check your credit.
Payments on cars financed at one of these car lots are usually made on a weekly basis, in person, at the dealership where the vehicle was purchased. Larger buy here pay here dealers usually report loans and payments to the credit bureaus, while some of the smaller ones don't- which means these borrowers won't establish any car credit (even with on-time payments).
The Bottom Line
While Auto Credit Express is not a lender, a number of dealers in our network do offer weekly payment options. Looking at both the indirect monthly subprime loan payment schedule as well as the buy here pay here weekly loan payment schedule, whichever one a consumer chooses will generally depend upon their current credit situation.
Either way, Auto Credit Express specializes in matching consumers with poor credit to dealers that can offer them their best chances for auto loan approvals.
So if you're ready for that, you can begin now by filling out our online auto loan application.
