When you have bad credit and it happens a lot in the car industry that people that want a new or used car struggle with bad credit. Meaning that they can’t get a loan for the car they want.
Bad credit auto financing questions for car buyers
So that begs the question of what kind of interest rate am I going to get on a used car loan in Pittsburgh? Well that’s a good question for most car buyers and it comes down to this:
- Credit score – Typically the better the credit score the better interest rate you will have.
- Debt to income – This is measured by how much money you have coming in and what your bills are each month, lenders look at this to see what kind of car payment you can afford. Your debt to income should be less than 50%.
- Down payment – Very important because this can take months or years off the subprime auto loan term. Usually bad credit car dealerships in Pittsburgh want at least $1,000 down on the car.
- Vehicle age – This is big for the simple fact tat the car dealership finds it harder to value a used car.
- Auto loan term – You want to pick the auto loan length according to what you can see yourself handling. You don’t want to go any longer than 60 months as a rule.
A high interest rate might not be ideal but if you make payments on the auto loan on time and keep up with it your credit score will be on the rise. With a better credit score you maybe can refinance and get a lower interest rate on the car loan.
Working with bad credit car dealerships in Pittsburgh PA
What we do for bad credit car buyers in Pittsburgh is get them in the position to connect with local car dealerships that have the auto financing in place for them to afford a new or used car in Pittsburgh.