If you have bad credit and need an auto loan, getting approved can be difficult if you are paid in cash because subprime lenders require proof of income.
According to a report from Moody’s Investors Service released last week, negative equity is at an all-time high. Lenders continue to allow consumers to roll over negative equity into their next car loan at trade-in. Moody’s believes this practice has created what they call a “trade-in treadmill,” because it traps consumers in a cycle of never-ending negative equity on each successive car purchase.
Here at Auto Credit Express, we do not offer assistance with financing for private seller car purchases, and there are very good reasons for this.
Costs associated with car ownership don’t end with the selling price. So, if you’re applying for an auto loan in order to buy a vehicle, there are several expenses to consider when planning your budget.
The latest information from Experian shows that the average car loan amount is at an all-time high. As a result, consumers are turning to longer-term auto loans to reduce the size of their monthly payments. This auto loan trend can be a dangerous habit for consumers with less than perfect credit. But, luckily, a down payment can help you buck that trend.
If you are a seasonal employee and have bad credit, getting approved for auto financing can be challenging. In fact, your success will largely depend on your income and the stability of your employment.
Car prices can be prohibitive, so many buyers purchase vehicles on credit to pay for the car over time. But because it is such as big expense, it’s important to do some prep work and make sure you understand your financing. Here are some important auto loan considerations you’ll want to think about.