Have you been turned down for an auto loan before? You’re not the only one — more than 1 in 4 Maine car buyers suffer from credit problems. Many banks, credit unions, and other traditional car lenders rarely approve auto financing with common economic hardships:
- Poor Credit
- No Credit
Luckily, many dealers have responded to this problem by offering in-house financing; that is, they lend to their customers out of their own pocket.
BuyHereNPayHere.com can help you get approved for financing from one of the many buy here pay here car lots in our Maine dealer network. When you submit your application, our online service will go to work matching you to the best Maine buy here pay here car lot given your individual credit profile, income, down payment, and vehicular needs. With your credit already approved for financing, you can step onto the car lot with added confidence and negotiating leverage. It puts the fun back in car shopping, enabling you to focus on the car you want, not the financing you need approved.
Buying a Preowned Vehicle
Pre-owned vehicles are at the core of most BHPH car lots in Maine. This is usually the best choice if you’ve had credit problems. New cars lose 20-25% of their value as soon as the tires hit the street. That’s because car buyers pay retail, but as soon as the car is sold, dealers will only pay wholesale to get it back. That means a steep drop in value.
So, for instance, you’ll suddenly owe $15,000 for a new car that’s worth only $12,000. If you want to sell the vehicle, you’ll have a significant sum of debt to repay that the auto sale won’t cover, the car not being worth the amount of the loan.
Budgeting for your New Car
Most financial experts recommend dedicating 1/5 of your monthly budget to vehicle payments and costs. Monthly car payment is not the only factor of course. Gas, car insurance coverage, and repairs, as well as existing vehicles, should all be considered.
Credit Score and Interest Rates
You should always check your credit report prior to signing any auto financing package.
That’s because your finance rate is based largely on your credit score, and without knowing it, you could pay too much.
Moreover, credit report inaccuracies and mistakes are all too common; after all, creditors report borrower behavior to credit bureaus, and mistakes happen. You should ensure that your report doesn’t have issueslike false bankruptcies, foreclosures, auto loan delinquency, or similar credit-damaging events that could deflate your score by whole credit tiers and inflate your financing rates to astronomical proportions.
To check your credit score, we recommend a trusted source such as CreditReport.com.