Auto Loans in Northridge (CA)

Are you worried about buying a car on account of a low credit score? We can help. Instead of waiting until you’re in the dealer financing office, we enable you to line up financing in advance. It really is difficult to find an easier way to buy your next car.

What Will Your Annual Percentage Rate Be?

Your interest rate varies according to several different factors, some of which include your credit, where you live, and whether you are financing a new or used vehicle. Take a look at how various factors play into your annual percentage rate.

  • Credit score: higher score leads to lower interest rate.
  • Vehicle age: newer vehicle equals lower interest rate.
  • Length of loan: shorter leads to lower interest rate.
  • Debt to income ratio: lower ratio means lower interest rate.
  • Loan to value ratio (LTV): lower ratio leads to lower interest rate.
  • Time with employer: more time equates to lower interest.

It is extremely tough to predict your interest rate without more information. Just complete your application and find out what rates a nearby dealer can offer you.

Used Vehicle Financing in Northridge

A great many smart shoppers steer clear of new cars, favoring preowned ones instead. Some consumers discount used vehicles for having more costly annual percentage rates, but remember that they are cheaper at signing and in sum total. Even if you are faced with negative equity on a preowned car, it typically won’t be for as long. Below, we have assembled the following figures that will help you determine if you should get a vehicle that’s new or used. This is assuming a vehicle three years old, having lost 50% of its value, and a borrower with a prime credit score.

New Car Used Car
Price $23,220 $11,610
Down Payment $4,644 $1,161
APR 5.00% 7.50%
Term 5 years 4 years
Monthly Payment $350.55 $252.65
Interest Paid $2,457 $1,678
Total Paid $25,677 $13,288

Bad Credit Northridge Auto Loans

There are a number of disadvantages to auto loans with bad credit:

  • You will have to pay more interest.
  • You have to have a larger down payment.
  • You have to pay back the loan more quickly.

Locating a lending company in Northridge that is an expert in bad credit is extremely important. After all, you don’t want to have your credit declined or deal with an outrageous APR rate. That’s where we can help. At Golden West Auto Finance, we serve consumers with credit problems of all kinds, helping them secure the loans they need.

Looking for a car that you can finance at a reasonable rate is most important, especially when your credit isn’t very good. You probably won’t be capable of financing some of the cars and trucks in the showroom. If you apply through us, you can often discuss the important points of your financing in advance, then pick a day for you to select your car or truck and finalize any remaining paperwork. Regardless of what your credit score is, you should be able to find a vehicle you can afford. You’re smart to go with a payment that is roughly 5 to 10% of what you make per month pre-tax. If you make $2,322 per month, this would be a payment of $116 (5%) to $232 (10%).

Buy Here Pay Here Car Lots in Northridge, CA

For people with experienced bankruptcy or foreclosure, a buy here pay here dealer might seem like a sensible approach. They won’t check your credit, meaning bad credit ought not be an impediment to approval, but chances are high you will pay more than you think for this service.

Alas, you can expect exorbitant interest rates, large down payments, and older vehicles that are too expensive given their condition. If maximizing your credit score is important to you, and why wouldn’t it be, you are better off applying through us, since BHPH dealerships won’t help you strengthen your credit.

Purchasing a Car in Northridge: Loan Amounts

The amount you can borrow will depend on how much money you’re making, and how good your credit scores are. The following numbers use an income of $2,322 per month, the average for people in Northridge.

Credit Income Factor Sum
Excellent Credit 10 $23,220
Average Credit 9 $20,898
Temporary Bad Credit 8 $18,576
Poor Credit 7 $16,254
Very Bad Credit 6 $13,932

Just remember, there’s how much it’s possible for you to finance, and the amount is smart.

Auto Loans with $186 Monthly Payment

Consider this table, which shows what price car you can finance based on your credit rating, provided an income of $2,322 each month, 60 month loan, and 20% due at signing.

Great Credit Fair Credit Poor Credit
Monthly Income $2,322 $2,322 $2,322
Payment $186 $186 $186
APR 3.50% 7.00% 11.00%
Number of Months 60 60 60
Car Price $12,764 $11,727 $10,680
Money Down $2,553 $2,345 $2,136
Total Interest $934 $1,764 $2,602
Total with Interest $13,698 $13,491 $13,282