When you are buying a car, down payments are often recommended. But if you are a car buyer with a tarnished credit background, a down payment may not be enough if you are working with a typical car dealership.
Having a down payment will always benefit you when you are buying a car, regardless of your financial history. However, when you are dealing with a tarnished credit background, you need to work with a dealer who has qualified experts in subprime auto financing.
Benefits of a Down Payment
When you're on a tight budget, it is important to have a new car loan payment that is manageable. With a down payment, you:
- Reduce the amount of monthly payments.
The more you have for a down payment, the less your monthly payments will be.
- Might be able to lower your interest rate.
If you provide a lender with a down payment, you are showing that you are willing to invest in the loan as well. This good faith commitment may give them the incentive to reduce the interest rate on the loan.
- Will have equity in the vehicle.
Cars lose value over time, and a down payment can help you stay ahead of the game, depending on how much you have put down.
You want to make the most of your down payment, and in order to get that, you might find your best chance to do that is with a bad credit car loan.
Why a Traditional Lender May Not Be for You
Lenders that work in alternative car financing look at factors in addition to your credit score. This means that they will work hard to get you the best subprime interest rate you can qualify for.
At Auto Credit Express, we can match you with a dealer that can provide you with the financing you need to get a vehicle. We have helped millions, and our network of financing experts are ready to do the same for you. All you need to do is complete the quick, easy, and secure online application. Get back on the road today!