You may feel that because you have a lower income and low credit you'll never get an auto loan... But what if you can?
Most today face an economy with a lower income due to the struggle of the past decade or so. Many also face low credit or even no credit. At Auto Credit Express, we've found that most consumers are not aware of the best way to get a vehicle when faced with a lower income and lower credit: Guaranteed Auto Loans.
How Can a Dealer Approve You?
When you tell someone something they want to hear but don't expect to, they can be quite surprised. Usually the first thing you may want to know is 'how is this even possible'.
It's actually pretty simple: we work with a nationwide network of dealers and lenders that specifically focus their efforts on helping consumers that have faced the brunt end of the stick and struggle to find the paths to things they need, such as a dependable vehicle. Auto loans, even bad credit auto loans, should not be something that are only accessible to those who are well off.
These dealers and lenders know that your credit score may usually be the best way to determine your responsibility and your capability to keep up with payments, but they also know it's not the only way. Many consumers' credit scores have been badly affected by the economy's recession. This is why dealers will look at these factors as well:
- Job Time
The longer you've been at a job the better. However, if you just started your job, don't worry. As long as the gap time between jobs is minimal, lenders will feel confident that you will continue to keep your income flowing.
An especially important part about applying for a low-income auto loan is your income. Most dealers will want to see at least $2,000 before taxes; however, we work with dealers that realize this is not a reality for most car buyers and will find ways to work with lower incomes.
- Debt to Income Ratio
To calculate your ratio of debt to income, take all your bills and add them together. Then divide this sum by your monthly income before taxes. The percentage you get is your DTI ratio. Dealers prefer to see this between 40% to 50%.
- Payment to Income Ratio
This is similar to DTI; you'll add up your total monthly payment for your auto loan and divide it by your gross income and you'll have your PTI percentage. Dealers like to see this number no higher than 20%, and most lenders also prefer not to see your payment to income ratio on a car payment not exceed 15%.
As We See It
Low income should never be the reason for not being able to get the things that you really need. In today's world, a dependable vehicle is vital for so many different matters like getting to work, the doctors office, or the local grocery store. Even if you have low credit or no credit, there is still a way to get the car, truck or SUV that you need. Apply today and we'll find a dealer in your local area that completely agrees with us - and you.