Have you recently found yourself in need of, or simply desirous of a used (also known as ‘pre-owned’) car but face problems with less than good credit? Kelley Buick GMC has a solution for you, so read on.
Generally, finance companies and banks limit access to funds allocated for auto purchases to those with good to great credit but don’t give up just yet. There are aggressive dealers who have partnered with financial sources who are willing to take on the higher risk customer base in many circumstances.
In today’s climate, there are those lenders who understand ‘life happens’ and bad circumstances don’t make you a bad person. The people at Kelley want you to know that buying a used car in Lakeland Florida is possible; even with bad credit.
Your credit score is referred to as FICO score. Its information is gathered by the Fair Isaac Corporation, in cooperation with the three reporting credit bureaus; Equifax, Transunion and Experian. Your rankings are in part determined by a score that each of these places on your credit rating. They can and do vary report to report and some financial institutes will weigh one heavier than another and some will average them, just depends on lending policies. Another reason to work with experts as they are familiar with lending practices of their banking partners and save you time and energy. Finding appropriate funds for your purchase can be exhausting but it certainly does not have to be with the right financing liaison – preferably an outfit who keeps their finger on the pulse of the local and national lending climate.
This chart gives a current scale of how your score rates in the eyes of lenders and also affects whether you can get a loan, and at what interest and terms the loan can be secured.
Excellent Credit – 750+
Good Credit – 700-749
Fair Credit – 650-699
Poor Credit – 600-649
Bad Credit – below 600
Poor and Bad Credit Affects A Car Loan
The very best rates and programs are reserved for Excellent credit ratings, so 750 and above get those fancy deals you see advertised. It can take years and quite a credit history to gain access to low rates and those 0% deals you see while watching your favorite television shows. In some states where interest rates are not regulated tightly your rates can range into the 20’s and even the 30’s for very marginal to poor credit. This means paying a lot of money, for the privilege of borrowing money. Finance companies manage risk so the higher the risk the higher they need to charge to cover for the calculated ‘bad paper’ (people who do not repay the loan). Nobody wants to recover cars from bad loans but it happens and high rates for potentially riskier borrowers are how a bank balances the profits and losses.
Also, considered along with rates are the type of work you do and it has its own rating scale the banks use. How long have you been at your job? Where do you live, and do you own home or rent it; and how long have you resided there? Lenders will ask for references and they must feel they can reach you if needed. If it looks like you have a solid foundation, that will bode well for you, but obviously, if you look like a flight risk, not so much.
Be Honest With Them And With Yourself
Pretending you have a job or lying about any part of your application is 100% the wrong way to go about correcting the situation you are in. Be honest with your representative and he or she will be able to guide you much better. Also, you can’t fool the bank. They know you don’t have a car and need one so acting like you can afford anything on the lot isn’t helpful either. Set a realistic budget based on your current (not predicted) income and buy well within your means. You have maintenance and insurance to account for as well so be very critical of this process. Here is a great place to apply a principle that will help you get out of and stay out of this kind of trouble in the future….”Keep your promises, no matter what your personal situation may be.” In short, make your payments on time every time before they are due and develop your credit history up so the next time the process will be in your favor. It will carry over to other purchases like your home and furniture and credit cards so care for it as such.
One Option Is Buy Here/Pay Here
Some dealers will carry their own paper or write your loan right there where you buy the car. This is a great option for both the dealer and the customer when not many options are available. This should be the final option once you have exhausted all others. One benefit to using this option is, many dealers and financing companies report your payment history to credit bureaus, you should make sure they do
and check that they are doing so. It is not a mandate that a dealer does report so it’s up to you to make sure and investigate before signing the papers.
Do Your Homework
So now you have a budget and ready to move on to the next step. First thing is to find a trusted source; a dealer you can trust like Jarrett-Gordon Ford Davenport or Kelley Buick GMC. They will help you research the vehicles that fit not only your price range but also those that the banks will consider loaning money on. This process again does not have to be a pain. With the right people and your patience, it can not only be fun at the point of sale but can be fun months later when the buying excitement has worn off. Nothing worse than buying a car that doesn’t fit your needs or you paid too much or it had too many miles and now your budget has to double to maintain it. A little research goes a long way in the car buying experience.
Those pesky terms and conditions! It’s critical that you know what you bought and how you bought it. In short, know what you are paying for and to do that you need to read the agreement/contract and I mean read it. It is there to protect you and the seller and the financial institute as well. If you were
promised anything, get it in writing on the contract or a “we owe” type of document. Most dealers are upright and they work hard to keep you happy but you deserve what was agreed, and what was agreed needs to be in writing. That way if there is a “misunderstanding” it’s easy to go to the paperwork.
It is important that you must read all the terms and conditions before signing the contract as there may be some unknown conditions written in the contract which would create more challenges for you to cope with in addition to the situation as you are already facing. It is good for your satisfaction as well, and you can avoid any high-risk situations like payment penalties.
Buying A Used Car In Lakeland Fl
Car shopping and obtaining the vehicle of your dreams can be difficult but it’s more possible today with the great work done at Kelley Buick GMC and other Lakeland, Florida auto dealers who understand your situation and the banks’ needs. So, no more anxiety if you haven’t sufficient credit history or have had made some mistakes in the past that have brought your score down. There are several sources out there looking for your business and who can assist you in getting reliable transportation, even with some tainted history. It’s our highest recommendation you contact the dealers we suggested in this article to avoid the high costs of buy here pay here; regardless, that is always there as a last resort. Lastly, enjoy the new ride!