When buying a car with bad credit in Seattle, you need to keep in mind the qualifications subprime lenders use when evaluating auto loan applications. You can also do some prep work ahead of time to help you pick the right vehicle for your situation. Before you can choose a car, however, you need to qualify for a bad credit auto loan.
Bad Credit Auto Loan Qualifications
What do subprime lenders in Seattle – those that work with bad credit – look for to approve someone for financing? They consider your credit score, but also look to other factors such as:
- Proof of income – Most lenders require that you make at least $1,500 to $2,000 a month before taxes from one job. Bring in a recent computer-generated pay stub showing year-to-date income.
- Proof of residence – Lenders like to see that you’ve been living in the same area for some time, and haven’t moved around a lot. To prove your current residence, bring in a recent utility bill in your name showing the address listed on the application.
- Proof of a working phone – Lenders want to make sure you’re reachable. Bring in a copy of a recent phone bill for either a landline or contract cell phone.
- A down payment – You almost always have to make a down payment on a bad credit car loan. Usually, subprime lenders ask for $1,000 or 10% of the vehicle’s selling price, whichever is less.
- Personal references – A list of five to eight personal references, complete with names, addresses, and phone numbers.
In addition, if you have a cosigner or co-borrower to add to the loan, your approval odds increase. Make sure your potential cosigner or co-borrower meets the requirements, including enough income and good credit.
How to Pick an Affordable Car in Seattle
As a resident of Seattle, you understand the cost of living can be hefty – and it’s no different when buying a car. Financing a vehicle isn’t cheap, as you have insurance, fuel, and maintenance to keep in mind. You need to pick a car that won’t break the bank.
When you’re ready to research vehicles, consider these three things:
- Your budget – To come up with a budget, you can use our car loan estimator and payment calculator. When you’re budgeting, make sure to include tax, title, and license fees, fuel, insurance, and the estimated cost of repairs. There’s much more to it than just the sticker price and your monthly payment.
- Your vehicle needs – What do you need out of this car every day? Think about your daily driving habits, who else might use the vehicle, and how many miles you drive per year, on average.
- How long you want to keep the car – If you plan on keeping this vehicle for more than five years, you should choose one that’s reliable and keeps its value.
Ready to Get Started?
When you feel ready to get the car buying process in Seattle started, we’re here to help. At Auto Credit Express, we work with a large network of special finance dealers that have the lending resources to assist people in many types of credit situations.
Our network stretches from coast to coast, so we can help you find a dealership in your local area. Don't wait any longer to get the vehicle you need. Simply fill out our easy auto loan request form now, and we'll get to work matching you with a dealer!