Setting up your financing upfront is a very good approach, as there are many advantages:
- A shorter time on the car lot.
- Potential for a more competitive APR.
- Better bargaining leverage.
Our company serves buyers in Santa Clara and across the state of California, helping them line up their financing from home. It is tough to envision an easier way to obtain your auto loan.
Santa Clara Auto Loans for New Cars
Shopping for a new car? Financing a new car does have its advantages:
- Decreased loan rates.
- More manufacturer incentives.
- Reduced service costs.
- Lower monthly payments through longer-term financing.
On the other hand, there are drawbacks at the same time.
- They come with serious sticker prices.
- They lose value right off the bat.
- They involve much larger down payments to ward off negative equity.
All that aside, automakers are desperate to get their vehicles sold, and you can often score a great package through the manufacturer’s own finance wing, even if you have poor credit.
Financing a Used Car in Santa Clara
You can opt for a car a couple of years old and still have a dependable, fuel efficient vehicle. Considering that they have gone through that initial drop in value, preowned cars and trucks require smaller down payments, normally just 10% in contrast to the 20% required for new cars. Even if you’re under water on a used car, it typically won’t be for as long. In the end, a used car will provide more value for the money.
Santa Clara Auto Loans for Bad Credit
Traditional lending institutions like banks ordinarily fund loans only for individuals with scores of 700 at least. Naturally, you don’t want to waste a lot of time struggling to find a lender or dealer in Santa Clara that will work with your credit. It’s likely that we can place your application with a lender or dealer in Santa Clara who is ready to approve you for financing.
Auto loans can indeed help your credit score. Just make sure to make each of the payments on time. Be sure to not ever miss a payment, as it can lower your score substantially. You shouldn’t strain your finances with a large car payment. Typically 5-8% of your monthly income is advisable, or $129 to $207 if you earn $2,586, the average in Santa Clara.
Santa Clara Buy Here Pay Here Dealers
When you’ve got substantial credit problems stemming from bankruptcy or repossession, a buy here pay here dealer may seem like a realistic approach. Yes, they don’t conduct credit checks, which means bad credit ought not be an impediment, but you will really pay for this down the road.
- Ridiculous Rates of Interest
- Exorbitant Down Payments
- Overpriced Cars and Trucks
- Ignition Kill-Switches
Even worse, these dealerships don’t report back to the credit agencies, which means you could make all of your payments when they’re due without making improvements to your FICO score.
Santa Clara Income and Finances
- Income Per Year: $31,033
- Income Per Month: $2,586
- Recommended Monthly Payment: $129 to $259 (5-10% of monthly income)
Below we have a chart showing what car you can afford with a payment amount of $207, 20% down payment, and 5-year term.
|Exceptional Credit||Decent Credit||Poor Credit|
|Income Per Month||$2,586||$2,586||$2,586|
|Repayment Period||60 Months||60 Months||60 Months|
|Total with Interest||$15,256||$15,025||$14,792|