Financing a Car with Poor Credit: 7 Things to Know

Los Angeles used car dealership - Closeup of Bad Credit text in red Credit in green

Los Angeles Buy Here Pay Here Car Dealer

Having bad credit should not keep you from getting a car. However, there are certain things you need to know before taking that car back home. People, more often than not, dive right into financing a car with poor credit, which only creates more problems in the future. To make sure you don’t have to go through those problems, below are seven things that you need to know about getting a car with bad credit.

#1 It’s Not Necessarily Bad

A lot of people live under the mistaken notion that when they have a bad credit, buying anything is a bad idea. That is not necessarily true when it comes to financing a car. Auto dealers offer auto loans at quite reasonable rates. With payments that you can easily afford, getting a car presents little to no financial hiccups.

#2 You Can Get the Loan!

Don’t compare yourself to someone you may know who was unable to obtain an auto loan. Auto financiers take a lot of factors into account. You could be the perfect candidate to acquire a bad credit auto loan.

#3 Rates Can Vary

While opting for a car, always bear in mind that you already have bad credit. This means that you should shop around to see what rates different lenders are offering. People often fall prey to a car salesman’s tricks and don’t investigate other options. Make sure you research the market to find bad credit auto loans from a dealer at reasonable rates.

#4 Pre-Approval Can Help

Having a bad credit auto loan pre-approved can also come in handy. For starters, you are able to deal with an auto dealer on more even terms. Furthermore, shopping for a car becomes much easier with a pre-determined amount at your disposal.

#5 Check the Car

There is a reputation among some auto dealers for making use of a customer’s bad credit situation and offering them faulty cars on low credit. While you get to pay less interest, you are made to pay a higher rate of leaving with a faulty car. Therefore, always make sure that the car you are buying is worth the amount you’re paying for it.

#6 Rushing Can Be Costly

Often when people with bad credit realize they can easily get financed to buy a car, they get excited and make impulse decisions. Don’t do that. Rushing a decision can lead you to getting a loan on higher rates or getting a car in faulty condition. Always be patient while buying a car, as with any large purchase.

#7 Draw A Timeframe

Make sure that you apply for bad credit auto loans and get one within a two-week period. This is because the financiers you apply to for the loan are likely to check your credit situation. All the checks within a 2-week period are counted as one inquiry, which does not affect your already-bad credit score. Multiple credit inquiries beyond a two-week period can adversely affect your credit score.

What makes Hawthorne Auto Square different is that we will get anyone financed, no matter their credit situation.  Our in-house financing team can get you qualified and approved whether you have bad credit or no credit at all!  Come see us at 11646 Prairie Ave., Hawthorne, CA 90250: you buy here, you pay here!

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5 Months To Build Your Down Payment

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That’s right, we give you up to 5 months to build your down payment (see dealer for complete details and qualifications). With our giant selection of over hundreds of low mileage vehicles, all 2006 or newer, you can be sure you’ll find the car,truck or SUV that’s right for you. With payments as low as $150 so don’t waste your time driving from dealership to dealership. Don’t get denied for your next ride, come on down to Hawthorne Auto Square.

Getting an Auto Loan without Credit

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Poor or No Credit Car Dealership in Los Angeles

Cars are becoming progressively more expensive to purchase and maintain. As we head towards 2018, we see a number of new models rolling into the market, many which may seem unattainable for those with poor or no credit.

Auto Loans on Zero or Bad Credit

For a majority of the population, their credit score is a very big issue. An even bigger issue is having no credit established at all, which is increasing among American adults as well. In conditions like these, one has to ask whether it is even possible to get an auto loan without any sort of credit at all.

Rest assured; it is possible to get an auto loan with no credit. Here is how you can pull it off.

Calculate Your Budget Accurately and Realistically

This is perhaps the most important step of all, since you will have to pay something, irrespective of what your credit history is. Aim to get a loan for a car which you can realistically afford to pay back. Calculate the budget for the installments as well as the down payment in order to get an idea for how much you will have to spend each month.

Look Around for Good Deals

There are a number of auto financing providers who can sell vehicles without credit, such as Hawthorne Auto Square. All you have to do is look for one that offers the best deal, in terms of markup and monthly installment amounts. Some providers will offer cars with lower monthly payments but a higher down payment, and vice versa. You will have to decide which is better after considering your budget.

Get Someone to Cosign

A cosigner can share the responsibility of the loan, in terms of security, making sure that if there are any possible discrepancies, they can be avoided promptly. A cosigner can also be an insurance measure of sorts, making you look good on the credit front, in front of an auto loan provider.

Get a Loan from a Bank

The bank you have been doing business with for a certain period of time is more likely to assist you with an auto loan, rather than an establishment you have not interacted with. A bank is a much better option in terms of installments as well, since they typically have multiple loan options, which negates the need to shop around.

Amass a Hefty Down Payment

A bigger down payment will not only get you a loan much more easily, but it will also enable you to get lower interest on the installments.

At Hawthorne Auto Square we can help you finance a car no matter your credit situation, because we won’t check your credit. Get the car you want without the hassle: buy here, pay here!

Call (866) 707-7664 or come check out our selection at 11646 Prairie Avenue, Hawthorne, CA 90250!

Why Choose In-House Financing for Buying a Used Car

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Trusted Bad Credit Dealership in Los Angeles

Financing a used car is the most practical method of attaining a motor vehicle to the vast majority of Americans. This is not just for students and millennials who have less-than-ideal credit, but for anybody and everybody who does not have the means to purchase a new car right off the dealership. The benefits are many, and they are not just limited to convenience.

The majority of financing is done through financial institutions such as banks, and establishments that specialize in loans, specifically auto loans. Then there is in-house financing, which is becoming an increasingly popular option. First, it is important to understand exactly what in-house financing really is.

In-House Financing: What it is and how it works

In-house financing is basically auto-financing that is done at the dealership, and through the dealership itself. In this scenario, the dealership that is offering the car, is also offering financing options for the car in question, allowing the buyer to obtaining the financing option they want then and there, without having to go to a bank.

To some, this may be the ideal option, since in this case, you do not have to approach different establishments and collect a truckload of paperwork. For the most part, it is the best choice, as we will see below.

Important features of in-house financing

  • The dealership is offering the financing plan, which will no doubt be created accordingly with every single vehicle. This means that different classes of vehicle, and even different models, will have a different plan. This way, if there is a certain model of used car that is not the highest in its class, it will not be charged according to the class, as it is through most banks and auto financing facilities. Basically, you will be charged according to the car, its condition, its quality and how much it has been used.
  • Through in-house financing, you can get a much better car at a lower monthly plan and down payment, without the worry of large hidden charges and residual value baggage.
  • In-house financing is a lot more convenient, as compared to conventional financing. It essentially turns your local used car dealership into a financial institution which can offer vehicle financing, at substantially lower rates as compared to conventional establishments.

Hawthorne Auto Square offers in-house financing on all our vehicles and we give you 5 months to come up with a down payment! If you have bad credit or no credit at all, don’t worry—it doesn’t matter to us. We are the premier Los Angeles buy here pay here dealership!

Give us a call or come on down to 11646 Prairie Avenue, Hawthorne, CA 90250!