The search for the perfect car can sometimes be halted by poor or subprime credit. Loan providers might be hesitant to offer you loans or they might only offer you loans with bad rates. At Auto Simple, we want to help every driver get behind the wheel of a quality car no matter what their credit score may be. Keep reading to find out how you can get your next quality car with subprime credit at Auto Simple in Chattanooga, TN.
Ideally, you would pay for your car with cash. That way, you wouldn’t have to deal with loans, payments, or debt. Realistically speaking, however, that is an impossibility for most of us.
In order to get the car you need for school, family, or work, you will most likely have to finance. Luckily, there are easy ways to get pre-approved for a car loan, which usually carries a much lower interest rate than a personal loan.
There are many places that you can go to get pre-approved for a car loan, including traditional banking institutions, such as Wells Fargo and Bank of America, and online lenders, such as Capital One. Interest rates and requirements vary by location.
Keep in mind that the advertised interest rates on websites and advertisements tend to be reserved for those with excellent credit. If you have bad credit or no credit, it’s still possible to find a car you love at a price you can afford. Rates will be higher, but there are options available, such as getting a cosigner to lower your rates.
While it’s a good idea to shop around, we highly recommend checking with your dealership first before seeking out competitors.
At Auto Simple, you can easily get pre-approved online. Just fill out the form and you’ll get your pre-approval within minutes. Don’t worry, it won’t affect your credit score.
Good Credit? Accepted
Bad Credit? Accepted
No Credit? Accepted
Past Bankruptcy? Accepted
Once you get approved, you will know how much you can spend on a vehicle along with the interest rate and monthly payments for the loan.
If you don’t know what your credit score is, it’s a good idea to check before seeking out auto loans. Check with your bank. You are normally entitled to one free credit report per year.
Important Note: When you get pre-approved for a car loan, it’s almost always required that you purchase your vehicle from an authorized dealership. Most pre-approved auto loans don’t apply to independent dealerships and private sellers. If you wanted to purchase a vehicle from a private seller or independent dealership, you would have to take out a personal loan, which carries higher interest rates.
When you get an auto loan pre-approval, your lender will set a maximum loan amount based on your credit score and other factors. Don’t forget about other expenses, such as fees and taxes. So if you are approved for a $20,000 loan, choose a car that is several thousands of dollars less than that.
When you make regular payments on your auto loan, you can quickly rebuild your credit score. Our goal at Auto Simple is to approve your financing and help rebuild your credit by reporting to 3 major credit reporting agencies every month.
We want to work with you. If you need to speak with us about your loan or payments, simply give us a call and we’ll figure something out together so as not to harm your credit.
Auto loan pre-approvals provide a baseline to compare with other offers. Simply fill out your dealer’s pre-approval application first to see what is being offered.
Many dealerships offer competitive financing to simplify the payment process and get customers to finance with them.
When you are pre-approved, you not only have a realistic budget in place, it’s also like having cash in your pocket when you are shopping around for the best car deal. Once you are pre-approved, you can focus on the car-buying process rather than worry about down payments, loan terms, and interest rates. Simply ask your dealer what the “out-of-door” or “TT&L” (tax, title and license) price is.
Sometimes, dealerships will allow you to leave the lot with your new car without fully closing out the financing portion of the deal. This is what is known as “spot delivery”—cars are sold “on-the-spot.”
Yo-yo financing usually happens to people with poor credit when the deal is made on late nights or weekends, when banks are closed. When the banks open, they review the loan applications and either approve or deny them.
If you left the lot without the bank approving the loan first, you may receive a call from the dealership notifying you that the loan wasn’t approved. This may entail going back to the dealership to reapply for the loan, which normally leads to higher interest rates and a larger down payment.
Subprime buyers (those with a credit rating under 680) are particularly susceptible to dealership scams. You can avoid this situation entirely by getting pre-approved for a loan.
Pre-approved loans save you a lot of time and energy at finance and insurance (F&I) offices, where you will most likely have to sit through several sales pitches. Buying a car is complicated enough without adding a lot of paperwork and travel time to different offices.
Our goal is to provide everyone with the right car, regardless of credit history. With hundreds of cars, trucks, vans, and SUVs, we make it easy to drive away in the car that matches your lifestyle and budget.
To avoid going deeper into debt and possibly getting your vehicle repossessed, do your homework first and make sure you can actually make your car payments. While auto loan pre-approvals can quickly rebuild your credit score, they can also make it worse. Learn how to buy a used car if you have bad or no credit.
Read our Used Car Buyer’s Guide for more information on the car-buying process.
For a dealership that knows how to treat buyers right, contact Auto Simple.
We carry a large selection of hand-picked, Certified Pre-Owned vehicles, all of which come with a 6 month/6,000-mile powertrain warranty.
If you have any questions, don’t hesitate to speak with one of our Online Specialists or give us a call:
Chattanooga, TN – (423) 551-3600
Cleveland, TN – (423) 472-2000
Dayton, TN – (423) 775-4600
Dalton, GA – (706) 217-2277
Follow us on social media for more useful information on buying, selling, and maintaining cars: Facebook, Twitter, YouTube, and Google+.
If you have no, low, or bad credit (any credit score below 600) and want to buy a used car, you’ve come to the right place. Although many incentives, such as “no down payment,” low interest rates, and loan terms are based on credit score, it’s still possible to find great deals on used cars.
This guide will help you understand your car financing options when you have no credit or bad credit:
Your credit score is determined by the Fair Isaac Corporation, better known as FICO. FICO gathers information from three credit bureaus: Experian, TransUnion, and Equifax. This information is then weighted to form a profile of an individual’s credit risk. The most weight is given to payment history, constituting around 1/3 of your total score, followed by accounts owed (around 30%).
According to Investopedia, “FICO scores range from 300 to 850. Traditionally, borrowers with scores at or below 579 have bad credit.”
While FICO does not decide what constitutes a “bad” credit score, you can generally assume the following:
Source: credit.com
The score is only “bad” or “good” depending on how the lender views it. It’s “bad” because it can keep you from certain perks, such as low interest rates and deals on insurance.
It’s a good idea to know your credit rating before you enter any car negotiations. After reviewing your credit report, you may find an error. You’ll want this error corrected before looking into financing options.
Get pre-approved for financing by completing our secure online credit application.
In general, the lower your credit rating, the worse your interest rate will be. If you have a high credit rating, you may be eligible for lower interest rates.
You may have bad credit because of unrealistic expectations in the past. Be realistic and only look at cars you can afford. Take into consideration fuel, maintenance, insurance, cleaning and parking costs as well.
Follow these car financing tips and you should be able to make all your car payments without a problem:
We recommend building up your credit using a secured card, which collects a down payment as collateral against defaulting on payments. This allows you to build up your credit when you have no or low credit, and eliminates the risk of getting into significant debt. Just make sure you make payments on time and use your card responsibly.
We specialize in bad credit and no credit financing, always working to find the best financing package to fit your needs and budget. We want to make sure that you drive away in a car that you can afford. That’s why we have a useful car loan calculator so you can plan your monthly payments ahead of time.
Once you have determined your used car budget, you’ll want to find cars that fall within that price range. Don’t be tempted by add-ons and other cars just to “have a look.” Restrict your search to only vehicles you can afford.
If a used luxury vehicle seems to be within your price range, consider all of the extra expenses for repairs and maintenance. These luxury vehicles may seem nice, but they have usually have higher rates of breakdowns, thefts, and repairs and maintenance tend to be a lot more expensive.
Also, consider the reasons for getting a new car. If you need space for a growing family, don’t look at small sedans. If you need a car that won’t cost a lot to maintain, look for cars that are known for the reliability, such as Hondas and Toyotas.
After researching the kind of car you want, search the dealership’s online inventory before making the trip. You want to make sure they have the make and model car you want.
If you want to trade-in or finance, research the options available to you. Before you enter the used car lot, get pre-approved.
A certified pre-owned car is one that has undergone a full inspection and any necessary repairs as specified by the automaker. If you have a low credit score, you can’t afford to take risks with private sellers and uncertified pre-owned vehicles. Although CPO cars tend to cost a bit more, the added inspections and peace of mind will make sure that you are not buying a lemon.
Buying a certified pre-owned vehicle from a respected dealership such as Auto Simple, will ensure that you get consumer protection, warranties, trade-in savings, financing options, no paperwork, and easier negotiations.
Additionally, look for newer used cars as they tend to have better financing. If you can gather the cash necessary for a full purchase, however, you may get a better deal an older used vehicle.
Ask for a vehicle repair and maintenance history report. Insist on a vehicle inspection report and certification checklist if it has been inspected.
Find the car you want and test drive it. After confirming that the vehicle is in stock, schedule a test drive. Don’t just show up and expect the car and dealer to be waiting for you. Call ahead of time and make an appointment to test drive the car.
Auto Simple has its own private test track with a variety of driving conditions so you can inspect the car’s handling. Don’t forget to test all of the electronic controls.
Learn more car buying and test driving tips with our Used Car Buyer’s Guide.
Although this isn’t always the case, opening up multiple credit inquiries within a short period of time can negatively impact your credit score. Be careful that you aren’t opening up multiple lines of credit within a short time span and this shouldn’t affect your credit score too much. Credit inquiries play a minor role in assessing credit risk, but it’s something to consider nonetheless (See: Credit Checks & Inquiries).
Yes, longer loan periods mean a lower monthly bill, but don’t forget about the sneaking interest rates! Interest rates are usually lower for shorter terms, which can significantly lowest the total cost of the car. The sooner you pay off your car, the sooner you can focus on paying off other loans and saving money.
If you have bad or no credit, you may be eligible for a better interest rate with a cosigner. Talk to the dealership first before asking anyone to cosign. A cosigner has a lot of responsibility. They will be responsible for your payments if you are unable to make them. Only ask someone to cosign if you are confident in your abilities to make payments on time.
Other dealerships may require more paperwork. Auto Simple only needs the following 4 items to get you driving away in a New Certified Pre-Owned Vehicle:
Bring two recent pieces of mail with your name and home address.
Bring two most recent paycheck stubs for proof of income.
Bring your valid government issued photo identification.
Cash or credit will be accepted, no checks.
Feel free to download and print our checklist before you arrive. Get pre-approved for financing by completing our secure online credit application.
We can help you out with financing regardless of your credit situation. We accept good credit, bad credit, and no credit; however, annual percentage rates may depend upon credit score.
Good Credit? Accepted
Bad Credit? Accepted
No Credit? Accepted
Past Bankruptcy? Accepted
If you have any questions, contact the store nearest you.
Auto Simple specializes in certified pre-owned vehicles and helping people with bad credit or no credit get a great car and rebuild their credit along the way. We take great pride in offering second chances to good people.
Contact Auto Simple today and drive away in your dream car.
Chattanooga, TN – (423) 551-3600
Cleveland, TN – (423) 476-4600
Dayton, TN – (423) 775-4600
Dalton, GA – (706) 217-CARS (2277)
Don’t forget to check out Auto Simple on Facebook, Twitter, Youtube, and Google+.