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Does My Down Payment Amount Matter for an Auto Loan?

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Oftentimes, whether or not you’re required to have a down payment on a car loan depends on your credit score. If you have bad credit, you can usually count on needing a minimum down payment to be considered for auto financing – in which case, the amount matters!

Down Payments and Auto Loans

Does My Down Payment Amount Matter for a Car Loan?When you’re applying for an auto loan, your lender may require a down payment for you to be considered for financing. If you have bad credit, you can expect to need at least $1,000 or 10% of the vehicle’s selling price.

Down payments are often required for bad credit borrowers because lenders need to see that they’re invested in the car loan – borrowers who are invested are less likely to default. This means that a down payment lowers your risk as a borrower, which can help you get approved by an auto lender if your credit is less than perfect.

As a bonus, having money to put down may also help you get into a more expensive vehicle! If you’re only approved for $5,000 in financing, but you want a $7,000 car, putting $2,000 down allows you to be able to purchase the vehicle you want. Down payments can close the gap between what you qualify for and something more expensive.

However, simply having a down payment doesn’t mean that you’re automatically eligible for financing, since you still need to prove that you can afford the auto loan payments. There’s also nothing stopping you from putting down more than the minimum amount required now to save some cash in the future!

Down Payments Save You Cash

While putting lots of money down on a loan seems like more hassle than it’s worth, it can actually be worth a lot. It’s because borrowing money from an auto lender means financing, which means interest charges.

Interest is the cost of borrowing money, and the bigger and longer your loan, the more interest charges you pay. By putting money down on a vehicle, you’re financing less. This means your down payment matters when it comes to how much interest you’re going to be charged over the course of the loan.

If you want to purchase a $12,000 car with 12% interest on a 60-month loan, you’d pay $16,016 by the end of the loan. Although the vehicle was only priced at $12,000, the interest charges really stack up.

But if you put $2,000 down on the car, you’d only pay $13,346 for the vehicle, and that means a savings of $670 (after subtracting the down payment). This may not seem like a lot at first glance, but that’s about three car payments, or three extra months of paying on that car.

This is why putting down money on an auto loan is recommended for any borrower. It saves you money long term, and it can lower your monthly payment. In the above example, the loan with no money down had a payment of $267, while the loan with the $2,000 down payment had a payment of $222. Not only do down payments lower your interest charges, they can also help free up your disposable monthly income by lowering your monthly car payment.

Saving Up for Your Next Auto Loan?

Whether or not you’re required to have a down payment largely depends on your credit score, and how much that amount matters to you depends on how much you’re willing to pay in interest charges. The minimum amount you’re required to put down can also depend on your lender and the price of the vehicle you’re looking to finance.

And if you’re a bad credit borrower, having a down payment matters a lot – in fact, you’re likely to need one to get into your next car loan. However, just having a down payment doesn’t mean you’re guaranteed to get into loan.

Traditional auto lenders may not even approve you if your score is too low, no matter how large a down payment you make. If you’ve run into the problem of getting turned down because of your credit score, it may be time to look into special financing.

Special financing is for borrowers with less than perfect credit, and it means you work with a subprime lender, and we know where they are! Here at Auto Credit Express, we have a nationwide network of dealers, and we’ll look for one in your area with special financing after you complete our free car loan request form. It’s quick, secure, and there’s never an obligation to buy. Let’s get you back on the road with help from the right lender for the job!

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Pima Supes address eviction protections

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TUCSON, Ariz. (KGUN) — Economic fallout from COVID has cranked up concerns about evictions as tenants have trouble paying. There are Federal protections to reduce evictions in the pandemic but Pima County Supervisors are concerned about evictions that could bypass those safeguards.

Federal restrictions from the Centers for Disease Control restrict evictions if they could increase health risks in general— or the risk of spreading COVID because someone is put out of a home. Those protections are based on whether someone has trouble paying the rent.

Landlords and their lawyers spoke at this week’s Supervisors meeting. They say compared to keeping a tenant, an eviction is a loss for everyone. They want county rental assistance programs to move much faster to channel Federal grants to help tenants pay rent and help landlords cover their expenses.

Steve Huffman of the Tucson Association of Realtors reminded Supervisors tenants will still have to pay back rent and if they can’t it could hurt them long term.

“Many of them have huge judgments that will be issued against them eventually they will owe back rent for the time that they have not been paying rent, those judgments will create bad credit, and will interfere with future housing opportunities, and also future job opportunities.”

Tenants who create other problems beside non-payment or rent can still be taken to court and evicted.

But Pima Supervisors are concerned about reports of people evicted over questionable claims like a car parked in the wrong space or a toilet clogged too many times.

Chairperson Sharon Bronson says these eviction issues are focused by COVID but call for a broader look at how people become homeless.

“We are addressing basically the pandemic issues right now, but this may be, you know, an opportunity to just began the discussion about the larger discussion about homelessness and addiction down the road.”

Supervisors agreed to ask an existing task force on evictions during COVID to take a fresh look at eviction issues, especially in light of possible policy changes under the Biden Administration.



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Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

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Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom | Fintech Zoom

Published

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

Tags: Loans Bad Credit Online

Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Tags: Loans Bad Credit Online

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